A county in western Maryland issued almost $100 million in bonds to finance its capital improvement plan, which prioritizes the county’s school districts.
The bonds, issued by Frederick County, Maryland, received AAA ratings from Fitch Ratings and S&P Global Ratings. They mature between 2024 and 2053, with yields between 2.28% and 4.05%.
“Property and income taxes that support the county’s general fund budget are expected to yield strong revenue growth given recent assessed value trends, new economic development within the county and continued expansion of the county’s employment base and personal income,” according to Fitch.
The issuance comes as Frederick County seeks to revitalize its public schools amid rapid economic growth, which has been supported by the bioscience and military industries. It is one of the fastest growing counties in Maryland, bolstered by developable property and its proximity to Baltimore and Washington, DC, according to Fitch.
The county’s Capital Improvement Program aims to mobilize more than $306 million by 2027, much of which will be directed toward improvements at the county’s schools. Among the most costly improvements is the $100 million construction of a fourth high school in the county, with a projected capacity of 1,250 students. The county expects high school student enrollment to grow alongside its economy. Of the most recent bond issuance, $24 million will go to the county’s public schools.
Citigroup Global Markets Inc. served as lead underwriter on the issuance.