Advertisement

Credit proposals heard in session

February 25, 1999|By LAURA ERNDE

ANNAPOLIS - Two proposals to give Washington County government more borrowing power faced few questions from a Maryland General Assembly committee Wednesday.

One request would allow the county to get a line of credit of up to $5 million for use in short cash-flow situations.

"We think it's good business to have this in our hip pocket," County Administrator Rodney Shoop told the Appropriations Committee.

The county already has a $5 million cash reserve.

The credit would be used only as a stopgap measure when a large bill was due but tax revenue had not yet arrived.

Without the line of credit, the county would have to go through a difficult and expensive process to borrow short-term cash.

Advertisement

Frederick County has similar borrowing authority.

A second request would allow the county to borrow up to $50 million over the next four years to finance construction of schools, a landfill and other capital improvements.

Four years ago, the county asked for $40 million in long-term borrowing over four years. The county actually borrowed $28 million.

Wednesday's hearing is one step in the process, said Washington County Delegation Chairman Robert A. McKee, R-Washington.

The two proposals, sponsored by the county delegation, must first be approved by the Appropriations Committee then the House of Delegates and Senate.

The Herald-Mail Articles
|
|
|