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Contracts awarded to issue bonds

June 09, 1999

The Washington County Commissioners unanimously awarded contracts Tuesday for a $10 million tax-exempt public improvement bond issue and a $7.52 million taxable water and sewer refunding bond.

Both contracts went to Legg, Mason, Wood and Walker. Its bid for the $10 million bonds included a 4.9536 percent interest rate. The rate for the other bond was 7.006 percent.

It is a good rate but not as good as last year's, said Commissioners President Gregory I. Snook. Last year's rate was 4.807 percent, Budget and Finance Director Debra Bastian said.

Money from the tax-exempt bonds is to be used to pay for education, road, drainage, bridge and other public facilities that are part of the fiscal 2000 Capital Improvement Program.

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Last year the county issued about $6.8 million in public improvement bonds.

The refunding bond for the pretreatment fund replaces a 1993 tax-exempt $7.29 million Maryland Water Quality bond and pays the Internal Revenue Service for costs associated with the refinancing of a separate 1996 bond.

By voting to issue a new bond to replace an older one of an almost equal amount, the County Commissioners will eliminate a prohibition against direct piping into the Conococheague Industrial Pretreatment Facility.

They also will eliminate a rule banning one company from taking up more than 10 percent of the plant's capacity.

- Scott Butki

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