Debt Administration
The ratio of net bonded debt to assessed property value and the amounts of bonded debt per capita are
considered to be useful indicators of the State's debt position to State management, citizens and investors. Data
for fiscal years 1987 and 1988 are shown as follows:
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|
|
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|
|
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Ratio of Net
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Ratio of
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|
|
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Bonded Debt
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Debt to
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|
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Amount
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to Assessed
|
Present
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Bonded
|
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(expressed
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Value (50.7% of
|
Market
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Debt Per
|
|
in thousands)
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Present Market)
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Value
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Capita
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General
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|
|
|
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obligation bonds:
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|
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1987
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$2,030,415
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2.78%
|
1.41%
|
$454.84
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1988
|
2,090,820
|
2.60
|
1.32
|
462.57
|
Additionally, outstanding limited obligation bonds of the Department of Transportation amounted to
$388,900,000 at June 30,1988. Debt service on these bonds is provided principally by excise taxes levied by
statute. Self-supporting revenue bonds outstanding at June 30, 1988 were $1,890,052,000. Long-term
obligations for accrued retirement costs of $444,783,000 represent the excess of retirement costs over
retirement expenditures since 1978 and are being funded on a long-term basis through annual contributions,
principally from general fund revenue. Long-term obligations for accrued annual leave of $93,808,000 represent
the value of accumulated earned but unused annual leave for general government employees at June 30,1988.
In 1978, the Capital Debt Affordability Committee was created to study the State's debt structure and to
recommend maximum limitations on annual debt authorizations. Although the recommendations of the
Committee are not binding on the State's General Assembly, the amounts of annual general obligation bond
authorizations for 1988 were within the limits established by the Committee. For the fiscal year 1988, new
general obligation bond authorizations amounted to $254,178,000.
The following tabulation shows the general obligation bonds issued during the past three fiscal years:
State of Maryland—General Obligation Bonds
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|
|
Effective
|
Interest Cost
|
|
|
Average
|
Interest
|
Per Borrowed
|
Date of Issue
|
Amount
|
Life in Years
|
Rate
|
Dollar
|
March 1, 1986
|
$124,585,000
|
10.2
|
6.50%
|
65.1
|
July 15, 1986
|
164,645,000
|
9.9
|
6.68
|
66.0
|
July 9, 1987
|
144,860,000
|
9.8
|
6.44
|
63.1
|
January 7, 1988
|
80,000,000
|
9.9
|
6.78
|
67.2
|
May 17, 1988
|
80,000,000
|
9.9
|
6.49
|
64.3
|
Since June 30, 1983, general obligation bonds outstanding have declined by $319,070,000.
Maryland's general obligation bonds have been rated Aaa by Moody's Investors Service and AAA by
Standard and Poor's for a number of years.
Additionally, limited obligation bonds issued by the Department of Transportation and self-supporting
revenue bonds issued by enterprise agencies amounted to $18,255,000 and $372,815,000, respectively, during
1988.
Cash Management
During the year, temporary surpluses of cash in general governmental funds were invested in repurchase
agreements and U.S. Treasury and agency obligations with maturities ranging from one to 181 days and in time
deposits ranging from 180 to 365 days. As of June 30,1988, the State's cash resources for general governmental
funds were invested as follows: in repurchase agreements, 85.9 percent; in U.S. Treasury and agency obligations,
13.8 percent; and in certificates of deposit and other, 0.3 percent. The average yield on maturing investments
during the year was 7.0 percent, as compared to 6.4 percent in the prior year, and the amount of interest received
was $90,441,000, which was $25,005,000 more than the previous year.
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