Calvert County has sold $75.9 million in general obligation bonds to pay for school upgrades, water and sewer work, road projects and a new fire and rescue station in St. Leonard. The winning bid carried a true interest cost of 4.66%.
Hilltop Securities submitted the winning bid when the county opened bids Sept. 29. True interest cost is the effective annual rate the county will pay over the life of the bonds, including fees and the timing of payments. It’s the standard measure used to compare competing bids.
The Board of County Commissioners authorized the sale Aug. 18, when it held a public hearing and took up the 2026 general obligation bond sale and resolution. The projects were approved earlier as part of the county’s fiscal 2024 through 2026 capital improvement plans.
State lawmakers set the ceiling on the borrowing earlier this year. House Bill 1513 passed both chambers unanimously and was signed April 28. It allows Calvert to issue up to $80,957,080 in general obligation bonds for public buildings, roads, senior center renovations, storm drains and related design and engineering. Under the law, no bond can run longer than 30 years. The bonds are backed by the county’s full faith and credit, which means the county must levy enough property tax each year to cover principal and interest.
The AAA advantage
The sale came two weeks after Fitch Ratings, Moody’s Investors Service and S&P Global Ratings each reaffirmed Calvert’s AAA rating. AAA is the highest rating available, and this is the eighth straight year the county has held it from all three agencies. The county attributes the ratings to its strong economy, solid revenues and sound financial management. A top rating lets the county borrow at lower interest rates, which cuts the long-term cost of major capital projects for taxpayers.
“Our fiscal discipline and policies are affirmed by major creditor agencies, making it possible for Calvert County government to borrow funds at favorable rates,” Commissioner President Todd Ireland said when the ratings were announced.
Where the money goes
The county listed 14 ongoing projects that will receive bond funding.
Schools:
- Northern Middle School improvements
- Southern Middle School HVAC
Public safety:
- Replacement of the St. Leonard Volunteer Fire Department and Rescue Squad facility
Roads:
- Prince Frederick Loop Road
- Boyd’s Turn Road
- Little Cove Point Road curve repair
Water and sewer:
- Solomons Wastewater Treatment Plant upgrades
- Sewer collection rehabilitation
- Back Creek loop water main
- West Prince Frederick storage tank
County facilities:
- Hall Aquatic Center roof and HVAC replacement
- Calvert Pines Senior Center renovation and expansion
- Brooks Administrative Building
- Barstow Convenience Center upgrade
The county said the sale also funds several other projects it did not list.
The school projects come as Calvert County Public Schools faces a $223.8 million, six-year capital repair plan and a shrinking state share of construction costs. That puts more of the burden on county borrowing.
Residents with questions can contact the Calvert County Department of Finance & Budget at 410-535-1600 or budgetteam@calvertcountymd.gov.
