Callahan County Commissioners Court on July 14 approved an engagement to obtain bond arbitrage rebate compliance services and authorized payment from professional services or an appropriate fund.

County staff explained the county sold 30-year tax-exempt bonds at a low interest rate (approximately 1.8 percent true interest cost) and, because the county invested bond proceeds while interest rates later rose, the county has earned investment interest that must be tested under federal arbitrage rules. Staff said the work is technical and that an outside firm is recommended because the county could owe money to the IRS if calculations are incorrect. The meeting packet listed a $1,500 initial report fee and $500 per year for ongoing calculations; the presenter expected a total fee of about $3,000.

Commissioner Clark moved to approve the engagement (recorded in the meeting as approval of a contract with DLX Group), Commissioner Farmer seconded, and the court voted aye with no opposition. Staff said the rebate calculation will be due on the fifth anniversary of the bond issuance date (March 2026) but recommended beginning the work immediately.

Ending: Staff will finalize the engagement letter and identify the appropriate line item (professional services or bond account) for payment; the compliance report will be prepared for the March 2026 filing deadline if required.