County Commissioners - Public Hearings

PUBLIC HEARING - October 20, 2005



Code Home Rule Bill No. 5-2005

NOTICE OF PUBLIC HEARING

There will be a Public Hearing on Code Home Rule No. 5-2005 which is an Act to repeal and reenact Section 3-9.1 to Chapter 3, administration of government , of the Code of Public Local Laws of Kent County, Maryland to authorize and empower the County Commissioners of Kent County, from time to time, to borrow not more than fifteen million dollars ($15,000,000) for the public purposes of financing or refinancing general operating expenses or capital improvements, all as more particularly described herein, and to evidence such borrowing by the issuance and sake at public or private sale, upon its full faith and credit, of one or more series of its general obligation bonds in like par amount; empowering and directing the County Commissioners of Kent County to adopt a resolution in accordance with Section 15(4) of Article 25B of the Annotated Code of Maryland, as amended from time to time, prior to issuing all or any part of the bonds; empowering and directing the County to levy ad valorem taxes in rate and amount sufficient to provide funds for the payment of the maturing principal of and interest on the bonds and pledging the County’s full faith and credit and unlimited taxing power; exempting the bonds from the provisions of Section 9 to 11, inclusive, of Article 31 of the Annotated Code of Maryland; authorizing the issuance of refunding bonds; and relating generally to the issuance and sale of such bonds.

This hearing will be held on Tuesday, November 15, 2005, at 10:00 a.m. at the County Commissioners’ Hearing Room, County Government Center, 400 High Street, Chestertown, Maryland.

If you require communication assistance, call (410) 778-7435 or visit www.mdrelay.org no later than November 8, 2005.

A BILL ENTITLED

AN ACT TO REPEAL AND RE-ENACT SECTION 3-9.1 TO CHAPTER 3, ADMINISTRATION OF GOVERNMENT, OF THE CODE OF PUBLIC LOCAL LAWS OF KENT COUNTY, MARYLAND TO AUTHORIZE AND EMPOWER THE COUNTY COMMISSIONERS OF KENT COUNTY, FROM TIME TO TIME, TO BORROW NOT MORE THAN FIFTEEN MILLION DOLLARS ($15,000,000) FOR THE PUBLIC PURPOSES OF FINANCING OR REFINANCING GENERAL OPERATNG EXPENSES OR CAPITAL IMPROVEMENTS, ALL AS MORE PARTICULARLY DESCRIBED HEREIN, AND TO EVIDENCE SUCH BORROWING BY THE ISSUANCE AND SALE AT PUBLIC OR PRIVATE SALE, UPON ITS FULL FAITH AND CREDIT, OF ONE OR MORE SERIES OF ITS GENERAL OBLIGATION BONDS IN LIKE PAR AMOUNT; EMPOWERING AND DIRECTING THE COUNTY COMMISSIONERS OF KENT COUNTY TO ADOPT A RESOLUTION IN ACCORDANCE WITH SECTION 15(4) OF ARTICLE 25B OF THE ANNOTATED CODE OF MARYLAND, AS AMENDED FROM TIME TO TIME, PRIOR TO ISSUING ALL OR ANY PART OF THE BONDS; EMPOWERING AND DIRECTING THE COUNTY TO LEVY AD VALOREM TAXES IN RATE AND AMOUNT SUFFICIENT TO PROVIDE FUNDS FOR THE PAYMENT OF THE MATURING PRINCIPAL OF AND INTEREST ON THE BONDS AND PLEDGING THE COUNTY’S FULL FAITH AND CREDIT AND UNLIMITED TAXING POWER; EXEMPTING THE BONDS FROM THE PROVISIONS OF SECTIONS 9 TO 11, INCLUSIVE, OF ARTICLE 31 OF THE ANNOTATED CODE OF MARYLAND; AUTHORIZING THE ISSUANCE OF REFUNDING BONDS; AND RELATING GENERALLY TO THE ISSUANCE AND SALE OF SUCH BONDS.


SECTION 1. BE IT ENACTED by the Board of County Commissioners for Kent County that Section 3-9.1 of Chapter 3, Admininstration of Government of the Code of Public Local Laws of Kent County, Maryland, be and is hereby repealed.

SECTION 2. BE IT ENACTED by the Board of County Commissioners of Kent County that a NEW SECTION 3-9.1 to Chapter 3, Administration of Government of the Code of Public Local Laws of Kent County, Maryland, be and is hereby enacted in lieu thereof, to read as follows:


§ 3-9.1. Borrowing Authorized.

A. The County Commissioners of Kent County are hereby authorized and empowered to borrow money and incur indebtedness for the public purposes described in § 3-9.1B, at one time or from time to time, in an aggregate principal amount not exceeding FIFTEEN MILLION DOLLARS ($15,000,000), and to evidence such borrowing by the issuance and sale, at public or private sale, upon its full faith and credit, of its general obligation bonds in like par amount, which may be issued at one time or from time to time, in one or more groups or series, as the County Commissioners may determine.

B. The net proceeds from the sale of the bonds authorized to be issued under this § 3-9.1 shall be used and applied for the financing or refinancing general operating expenses or capital improvements of the County Commissioners of Kent County.

C. Prior to issuing all or any part of the bonds authorized to be issued hereunder, the County Commissioners shall adopt a resolution containing all of the provisions required under § 15(4) of Article 25B of the Annotated Code of Maryland, as amended from time to time. The resolution may also contain such other provisions as the County Commissioners may deem appropriate. The resolution may be adopted by the County Commissioners at any time after the enactment of this § 3-9.1 and the appropriate officers of the County Commissioners of Kent County may take any action deemed appropriate to effect the timely issuance and sale of the bonds pursuant to the resolution at any time after the enactment of this § 3-9.1, provided only that the resolution may not become finally effective until the effective date of the Act enacting this § 3-9.1. The bonds may be sold on any date or dates after the effective date of the Act enacting this § 3-9.1.

D. For the purpose of satisfying the debt service requirements on the bonds, the County Commissioners of Kent County shall levy for each and every fiscal year during which any of the bonds may be outstanding ad valorem taxes upon all real and tangible personal property within its boundaries subject to assessment for unlimited taxation by the County Commissioners of Kent County in rate and amount sufficient to provide for the prompt payment of the principal of and the interest on the bonds maturing in each fiscal year; and, in the event the proceeds from the collection of the taxes so levied in any such fiscal year may prove inadequate for such purpose, additional taxes shall be levied in the subsequent fiscal year to make up any deficiency.

The full faith and credit and unlimited taxing power of the County Commissioners of Kent County is hereby irrevocably pledged to the prompt payment of the maturing principal of and interest on the bonds as and when the same respectively mature, and to the levy and collection of the taxes hereinabove described as and when such taxes may become necessary in order to provide sufficient funds to meet the debt service requirements of the bonds. The County Commissioners of Kent County hereby covenant with each holder of any of the bonds to take any action that may be appropriate from time to time during the period that any of the bonds remain outstanding and unpaid to provide the funds necessary to make the principal and interest payments due thereon and further covenant and agree to levy and collect the taxes hereinabove described.

E. The bonds authorized to be issued hereunder are hereby specifically exempted from the provisions of §§ 9 to 11, inclusive, of Article 31 of the Annotated Code of Maryland, as amended from time to time.

F. The County Commissioners of Kent County are hereby authorized pursuant to §§ 14 to 21, inclusive, of Article 25B of the Annotated Code of Maryland, as amended from time to time, and § 24 of Article 31 of the Annotated Code of Maryland, as amended from time to time (the “Refunding Act”) to issue its bonds (“Refunding Bonds”) for the purpose of refunding any bonds issued hereunder. References to the bonds in §§ 3-9.1B through 3-9.1E, inclusive, above, shall include the Refunding Bonds, unless the context requires otherwise. The Refunding Bonds may be issued at one time or from time to time, for one or more public purposes specified for the issuance of refunding bonds in the Refunding Act, and sold at public or private sale, as may be further provided in the resolution of the County Commissioners adopted pursuant to § 3-9.1C. The aggregate principal amount of Refunding Bonds shall not exceed 120% of the principal amount of the bonds being refunded. The validity of any such Refunding Bonds shall in no way be dependent upon or related to the validity or invalidity of the obligations so refunded.

Please contact the County Commissioner's Office at (410) 778-4600 or by e-mail with any questions or comments.