Biz Roundup

Ulman Receives Final Report From Howard Spending Affordability Group

Howard County Executive Ken Ulman has announced that the Spending Affordability Advisory Committee (SAAC), which was appointed to review the county's projections of revenues and expenditures for fiscal 2008 through 2012, has completed its work and presented him with its final report.

The committee report includes projections of revenue and a recommended level of county debt authorization. Before preparing the final report, the committee received briefings from economists relating to personal income growth in the county and from the Maryland Department of Assessments relating to the increase in county property assessments.

Briefings were also given on the future of the Base Realignment and Closure (BRAC) plans, economic development and demographics as they would relate to county revenues and expenditure needs. The committee concluded that the county's revenues will continue to grow in the long term by 5% to 7%, and that the county needs to keep overall annual expenditures within these parameters.

The committee recommended that if spending is maintained at projected levels, the county can authorize up to $100 million in bonds supported by the general revenues in the budget each year. The complete SAAC report is available online from the county's homepage at www.howardcountymd.gov.



Howard Bank's Parent Company Increases Capital

Howard Bank has announced that $5 million in additional capital has been raised in a private placement through the bank's holding company, Howard Bancorp. This brings the level of capital raised by the bank and its holding company since November 2003 to $27.5 million.

Both existing and new shareholders purchased shares, said President and CEO Mary Ann Scully, who also noted that no investment banker was retained for the offering and that this offering was oversubscribed within seven weeks from opening.

"We have been exceptionally gratified by the rapid pace of our growth since opening in late 2004. Our asset size, which ended 2006 just shy of $150 million, far exceeds our initial projections," Scully said, noting that the bank was able to achieve a deposit market share ranking of number 11 out of 21 institutions in Howard County based on recent information provided by the FDIC.

"We believe that, with the recently announced changes in the landscape of local banking options, our 'hands on,' relationship-based delivery will become even more valued and generate additional growth. It is for these reasons that our board of directors decided that raising the additional capital was appropriate," she added.



Maryland Exports Reach Record $7.6 Billion in 2006

The Maryland Department of Business and Economic Development (DBED) has announced that state exports reached a record high of $7.6 billion in 2006, up from $7.1 billion the previous year.

The state exported to more than 200 foreign countries, with Canada continuing to be the top destination for Maryland goods, receiving nearly $1.5 billion in exports in 2006, up 11% from 2005. Among the main factors for the gain in exports is Maryland's elevated profile in the global marketplace, a result of the state opening several new international offices in recent years, plus an increased focus on assisting Maryland businesses in marketing their products overseas.

"These export figures are encouraging and a tremendous increase from where we were several years ago. But we know we have only scratched the surface when it comes to promoting products made by Maryland companies on an international scale," said DBED Secretary David Edgerley.

Behind Canada, the top export markets for Maryland are Egypt, the United Kingdom, The Netherlands, Belgium, Germany, Japan, China (mainland), Mexico and France. Maryland's biggest growth market, in dollar terms, has been Egypt. Exports from Maryland to Egypt jumped from $382 million in 2004 to $810 million in 2006, due mostly to an increase in aviation and aerospace equipment.



Howard Planning & Zoning Releases Development Monitoring System Report

The Howard County Department of Planning & Zoning has released its 15th annual Development Monitoring System (DMS) Report for the period spanning from Oct. 1, 2005, to Sept. 30, 2006.

The report summarizes all development activity in the county, from initial subdivision sketch plan to final use and occupancy permit. Both residential and non-residential development are included and categorized by stage, location, type and intensity, and there is also a comparison to previous years' development, going back five years.

Statistical data on agricultural and environmentally sensitive land preservation, housing sales and age-restricted and moderate income housing units are also included.

"This is good news," said County Executive Ken Ulman. "Based on the report, we know that growth in Howard County is right on pace with the 2000 General Plan, and our Department of Planning & Zoning is keeping a close watch to make sure we conform with restrictions established by the county's Adequate Public Facilities Ordinance (APFO). I am especially encouraged by the prospect of new moderate income units for teachers, police, our children and others in the workforce, as well as our senior population."

To view the entire report, visit www.howardcountymd.gov/DPZ/Research/dpz research.htm. For more information, contact the Department of Planning and Zoning at 410-313-2350 or visit www.howardcountymd.gov/DPZ/DPZ_HomePage.htm.



Leopold Submits Proposal to Keep Navy Dairy Farm Agricultural

Anne Arundel County Executive John Leopold announced that the county will submit a proposal to the U.S. Department of the Navy to preserve the Gambrills dairy farm's agricultural status.

The submission is in response to a Request for Proposal (RFP) announced by the Navy in January for parties to enter into a lease agreement. Leopold wants to preserve the 857-acre property as a working farm that is open to the general public. The county would also like to add community gardens that residents can farm themselves, a walkable botanical garden, a program for students to learn about agriculture and botany, and community events.

"This farm is located at the epicenter of growth and development in West County, with ties to the agricultural heritage that precedes us," Leopold said. "As a park, this gem is the perfect site for a facility everyone can enjoy."

The proposal calls for a long-term lease with the county. Other suggested features proposed for the property include a solar energy farm, a farm museum, pick-your-own produce and holiday events, like the corn maze.



Maryland Shows Strong in 'New Economy' List

Massachusetts, New Jersey, Maryland, Washington and California top the list of states that are leading an economic transformation in adapting to an increasingly global-, knowledge- and innovation-based New Economy, according to the 2007 State New Economy Index.

The index, released by the Ewing Marion Kauffman Foundation and the Information Technology and Innovation Foundation (ITIF) to mark EntrepreneurshipWeek USA, is a state-by-state analysis of how state economies are transforming from an old industrial economic model based on "smokestack chasing," in which economic development success is measured by the number of big company relocations, rather than the creation and retention of high value-added, high-wage jobs. Regionally, the New Economy has taken hold most strongly in the Northeast, Mid-Atlantic, Mountain West and Pacific regions; 14 of the top 20 states are in these four regions. In contrast, 15 of the 20 lowest-ranking states are in the Midwest, Great Plains and Southern regions.

The index uses 26 indicators from various sources to rank each state on the extent to which their economies are structured and operate to effectively compete regionally, as well as globally. It examines the degree to which state economies are knowledge-based, globalized, entrepreneurial, information technology-driven and innovation-based.



Anne Arundel County Gets First Triple-A Bond Rating

The Anne Arundel County Government received its first triple-A bond rating ever, an event notable for Standard & Poor's raising the county's rating from last year's AA+ to AAA.

"I am elated to receive the outstanding news that, for the first time in history, Anne Arundel County will enjoy a triple-A bond rating," said County Executive John Leopold. "This development will mean decreased interest costs for county residents and heightened interest in county bonds."

Ratings were affirmed on the county's debt as follows:

• Standard & Poor's Rating Group: AAA

• Moody's Investors Service: Aa1

• Fitch Ratings: AA+

Meanwhile, Leopold announced the sale of $138.4 million in County General Obligation Bonds, of which $95.9 million was for general improvements and $42.5 million was for water and sewer improvements. Citigroup Global Markets provided the winning bid with a true interest cost of 4.076346% and a premium of $5,934,128.



Howard County Residents Part of National Health Survey

Many Howard County residents have been receiving telephone calls on behalf of the Health Department, asking health related questions that are part of the world's largest, ongoing telephone health survey conducted each year by the Centers for Disease Control (CDC), the Behavioral Risk Factor Surveillance System (BRFSS).

The BRFSS has been tracking health conditions and risk behaviors in the United States yearly since 1984. Each year the CDC conducts the survey in 50 state health departments, as well as those in the District of Columbia, Puerto Rico, Guam and the U.S. Virgin Islands.

BRFSS provides state-specific information about issues such as asthma, diabetes, health care access, alcohol use, hypertension, obesity, cancer screening, nutrition and physical activity, tobacco use and more.

For more information about the survey, visit the Howard County Health Department web site at www.hchealth.org or the Center for Disease Control web site at www.cdc.gov/brfss.



Dimensions Bailout Bills Advance in General Assembly

Two bills aimed at bailing out the Prince George's County health care system have advanced from the House of Delegates to consideration in the Maryland Senate. HB 510, sponsored by Prince George's Del. Doyle Niemann (D-47), would increase property taxes in the county to pay off the Dimensions Health Care System's debt of approximately $130 million. A second bill would set aside approximately $50 million in tobacco tax revenues during the next five years to support the system.

Both bills passed the House on March 16. Efforts to negotiate with a possible buyer of the troubled hospital system are continuing; however, an announcement by County Executive Jack Johnson regarding the status of negotiations did not occur as expected on that date.

"As of this time, nothing has changed," said Suzanne Almalel, spokesperson for Dimensions.