It was a mainly financial day for the Calvert County Commissioners Tuesday, May 3, with the main event being the award of just over $23 million in bonds.
The bond sale attracted 15 bids, a number that San Ketterman, of Davenport Investments in Towson and the county’s financial advisor, called “extraordinary. I haven’t seen a number of bidders this high in 20 years. The result will be beneficial for the county’s budget.”
All 15 fell within a narrow range. At the low end was the winning bidder, Janney Montgomery Scott Inc. of Philadelphia, whose true interest cost for the bonds was 2.989443 percent. The high bid was 3.196208 percent from Morgan Stanley & Co. Inc. of New York. Just over one-fifth of one percent separated top from bottom. The gap between first and second was less than one hundredth of a percent.
County Commissioner Jerry Clark (R-1st) called the interest rate “a great number,” noting the county’s AAA bond rating. “It’s amazing to me how close these bids are.” Commissioner Steve Weems (R-At Large) wanted to “commend previous boards of commissioners for being conservative in their finances and setting the conditions for the bids to be so low. They set the bar.”
The largest chunk of the bond proceeds ($14.36 million) will go toward construction of Calvert High School. Other major projects include construction at the College of Southern Maryland ($2.856 million), the Substance Abuse Treatment Center ($1.3 million), and the Mt. Hope Convenience Center ($1 million).
At the same session, the commissioners approved an agreement between the county government and board of education that will save an estimated 60 teaching positions in the school system.
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