Proposal would let Carroll County borrow up to $27 million

Carroll County could borrow up to $27 million by issuing general obligation bonds. The money could support public facilities, including water and sewer projects, roads, schools, parks, county buildings, and loans to volunteer fire departments for emergency equipment or buildings. The County would set the bonds' terms through a resolution, including interest, sale method, repayment schedule, and loan terms for volunteer fire departments. No bond could mature more than 30 years after its issue date. The proposal would also allow installment purchase obligations to acquire agricultural or woodland preservation easements. The text says the authority would begin June 1, 2026, but the proposal failed before becoming law.

Carroll County would pledge its full faith and credit and unlimited taxing power to repay the bonds. The pledge would cover principal and interest on every bond issued under the proposal while that bond remains unpaid. The County would levy property taxes at rates high enough to make each year's required payments. If those taxes were not enough, the County would levy additional taxes in the next fiscal year to cover the shortfall. Certain state, county, municipal, and other Maryland taxes would not apply to the bonds, their interest, or related income. The tax requirement would apply in each fiscal year while bonds issued under the proposal remain outstanding.

The County would have to use bond proceeds for the projects named in its resolution and could issue refunding bonds for earlier bonds. Proceeds could fund listed public facilities or volunteer fire department loans; unused money would generally repay or redeem bonds unless the County approved another eligible facility use. If project costs were higher than expected, the County could issue additional bonds within the proposal's limits if its resolution approved them. Refunding bond proceeds would have to be kept in a separate trust fund and used only to pay, purchase, or redeem the earlier bonds and related costs. These spending limits would apply when bond proceeds are received, and refunding authority would apply before or at the maturity, purchase, or redemption of earlier bonds.