Baltimore County, MD to Review $3.8 Billion Debt Refinancing Plan at Today’s Meeting

Baltimore County, MD has kicked off a sweeping debt restructuring plan, combining funding for critical capital projects with an ambitious refinancing of outstanding General Obligation (G.O.) bonds. The initiative was unveiled during the County Council’s December 1, 2025 Legislative Session with the introduction of Bill 89-25, presented by Kevin Reed, Director of the Office of Budget and Finance, at the request of the County Executive.

New G.O. Debt for Capital Projects

The ordinance authorizes up to $358 million in new G.O. debt, split between $198 million for Consolidated Public Improvements (CPI) and $160 million for Metropolitan District projects. CPI allocations span a broad range of county priorities, including:

• Schools: $123 million

• Public Works (roads, bridges, stormwater): $34 million

• Waterways: $21 million

• Parks, preservation, greenways: $8 million

• Community College: $4 million

• Agricultural Land Preservation: $3 million

• Community improvements: $3 million

• Refuse disposal: $2 million

Debt service on CPI bonds is secured by the County’s full faith and credit and financed through General Fund revenues. Bonds for CPI and Metropolitan District projects are expected to be issued in March 2026, with the Office of Budget and Finance retaining flexibility on timing to optimize market conditions.

Massive Refunding Operation

The ordinance also authorizes up to $3.44 billion in refunding bonds, exceeding 130% of the callable G.O. debt issued from 2010–2025, totaling $2.64 billion. This includes $1.29 billion in CPI bonds and $1.36 billion in Metropolitan District bonds.

The refunding is designed to capture debt service savings by accessing favorable credit markets. While new bonds are typically sold competitively, refunding bonds may be issued through private negotiated sales, a method the County successfully used in September 2024, achieving $2.12 million in net present value savings.

Financial Oversight and Advisory

Baltimore County’s debt operations are guided by a team of specialized advisors:

• Financial Consultant: Public Resources Advisory Group (PRAG), in its 2025 Debt Study, confirmed Baltimore County is one of only 50 U.S. counties—and ten in Maryland—with triple triple-A ratings. PRAG projects future debt ratios remain well within legal and affordability limits.

• Underwriters: Projected premiums for March 2026 issuances are $24.7 million for CPI bonds and $10.3 million for Metropolitan District bonds, based on competitive bids. Previous sales netted premiums after underwriter discounts and issuance costs.

• Legal Counsel: Total one-time administrative costs are $524,000, including $55,000 for bond counsel, ensuring full compliance with the Internal Revenue Code and maintaining tax-advantaged status.

• Rating Agencies: Fees of $450,000 are allocated to rating agency services, expected to be covered by bond premium proceeds.

Baltimore County’s $3.8 billion refinancing and capital plan underscores its strategic approach to debt management, leveraging elite credit ratings and market flexibility to secure long-term fiscal efficiency.