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Mission Statement

This section provides budget data for the repayment of general obligation bond issues, and other long- and short-term financing for public facilities, equipment, and infrastructure in the Debt Service Fund for all tax supported County agencies (Montgomery County Government, Maryland-National Capital Park and Planning Commission, Montgomery County Public Schools, and Montgomery College), as well as other associated costs. Non-tax supported debt repayment related to the Montgomery Housing Initiative Property Acquisition Fund, Water Quality Protection bonds, and Wheaton Redevelopment are also included.

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Budget Overview

The total approved FY22 Operating Budget for Debt Service is $448,687,490, an increase of $11,776,730 or 2.7 percent from the FY21 approved budget of $436,910,760. This amount includes long-term lease expenditures of $2,741,000, short-term financing of $7,690,000 and other long-term debt of $46,628,260. The budget excludes $49,650 in debt service, which is appropriated in a non-tax supported fund.

FY22 Approved Changes
The Debt Service appropriation increase of 2.7 percent is primarily due to additional long term debt.

G.O. Bonds are issued by the County to finance a major portion of the construction of long-lived additions or improvements to the County's publicly-owned infrastructure. The County's budget and fiscal plan for these improvements is known as the Capital Improvements Program (CIP) and is published separately from the Operating Budget and Public Services Program. Currently, G.O. Bonds are anticipated to fund approximately 38.3 percent of the County's capital expenditures for the six years of the Amended FY21-26 CIP. Other long-term debt includes financing for the Silver Spring Music Venue, Incubators, Site II Acquisition, Affordable Housing (MHI Property Acquisition), Stormwater Management (Water Quality Protection Bonds), Wheaton Redevelopment, Rockville Core, and Energy Performance Contracting.

Long-term leases are similar to debt service in that they are long-term commitments of County funds for the construction or purchase of long-lived assets. They are displayed and appropriated within the Debt Service Fund. Short-term financing, where the payments represent a substantial County commitment for the acquisition of assets which have a shorter life, but still result in a substantial asset, are also displayed and appropriated within this Fund.

The FY22 Debt Service budget is predicated on the bond issuance requirements in the Approved CIP, adjusted for inflation. An interest cost of 5.0 percent was budgeted for the Fall 2021 issuance. Projected interest rates for bond issues for FY22 through FY27 are based on market expectations for coupon rates, which drive actual debt service costs. Under these projections and assumptions, total Debt Service will increase from $448.7 million in FY21 to $490.4 million by FY27.

Budget Trends
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Program Contacts

Contact Jacqueline Carter of the Department of Finance at 240.777.8979 or Anita Aryeetey of the Office of Management and Budget at 240.777.2784 for more information regarding this department's operating budget.

Related Links
Budget Summary
TitleActual
FY20
Budget
FY21
Estimate
FY21
Approved
FY22
%Chg
Bud/App
DEBT SERVICE
EXPENDITURES
Salaries and Wages0.000.00 0.00 0.000.0
Employee Benefits0.000.00 0.00 0.000.0
Debt Service Personnel Costs0.000.00 0.00 0.000.0
Debt Service G.O Bonds389586360.00383360960.00 380891563.00 391628230.002.2
Debt Service Other23152228.0031842250.00 32463800.00 29309510.00-8.0
Debt Service Expenditures412738588.00415203210.00 413355363.00 420937740.001.4
PERSONNEL
Full-Time0.000.00 0.00 0.000.0
Part-Time0.000.00 0.00 0.000.0
FTEs0.000.00 0.00 0.000.0
REVENUES
American Rescue Plan Act0.000.00 0.00 1400000.000.0
Federal Grants3894791.00252930.00 1373400.00 252930.000.0
Investment Income1465500.000.00 0.00 0.000.0
Miscellaneous Revenues3695350.00450000.00 7930938.00 0.00-100.0
Premium on General Obligation Bonds14745679.0088130.00 1832030.00 3523676.003898.3
Debt Service Revenues23801320.00791060.00 11136368.00 5176606.00554.4
 
GRANT FUND - MCG
EXPENDITURES
Salaries and Wages0.000.00 0.00 0.000.0
Employee Benefits0.000.00 0.00 0.000.0
Grant Fund - MCG Personnel Costs0.000.00 0.00 0.000.0
Grant Fund - MCG Expenditures0.000.00 0.00 0.000.0
PERSONNEL
Full-Time0.000.00 0.00 0.000.0
Part-Time0.000.00 0.00 0.000.0
FTEs0.000.00 0.00 0.000.0
Grant Fund - MCG Revenues0.000.00 0.00 0.000.0
 
DEBT SERVICE - NON-TAX SUPPORTED
EXPENDITURES
Salaries and Wages0.000.00 0.00 0.000.0
Employee Benefits0.000.00 0.00 0.000.0
Debt Service - Non-Tax Supported Personnel Costs0.000.00 0.00 0.000.0
Debt Service Other15772674.0021707550.00 18878950.00 27749750.0027.8
Debt Service - Non-Tax Supported Expenditures15772674.0021707550.00 18878950.00 27749750.0027.8
PERSONNEL
Full-Time0.000.00 0.00 0.000.0
Part-Time0.000.00 0.00 0.000.0
FTEs0.000.00 0.00 0.000.0
REVENUES
Miscellaneous Revenues0.00257157.00 52641.00 0.00-100.0
Debt Service - Non-Tax Supported Revenues0.00257157.00 52641.00 0.00-100.0
 
DEPARTMENT TOTALS
Total Expenditures428511262.00436910760.00 432234313.00 448687490.002.7
Total Full-Time Positions0.000.00 0.00 0.000.0
Total Part-Time Positions0.000.00 0.00 0.000.0
Total FTEs0.000.00 0.00 0.000.0
Total Revenues23801320.001048217.00 11189009.00 5176606.00393.8
Additional Documentation