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Coryell County approves $1.24 million tax note; Texas Regional Bank wins bid at 3.86%
Summary
Coryell County Commissioners approved an order authorizing the issuance and sale of Tax Note Series 2025 to generate roughly $1.24 million in proceeds. Texas Regional Bank submitted the lowest bid at a fixed 3.86% rate; closing is scheduled for June 11.
Coryell County Commissioners on Tuesday approved an order authorizing the issuance and sale of the county's Tax Note Series 2025 to raise roughly $1.24 million for county projects.
Bond counsel told the court the lowest bid came from Texas Regional Bank at a fixed 3.86% interest rate. The note will mature in 2032 and is callable beginning in early 2029; proceeds are expected to be available at closing on June 11 if the attorney general approves the documents.
County financial advisers said the annual debt service on the notes will be roughly $215,000 and that the calculation assumed no growth in the tax base and a 97% collection rate. The advisers also noted financing costs will be deducted from the authorized issuance amount to arrive at net proceeds.
The county solicited bids from banks across the state and received nine responses. The winning bid was selected after review of total debt-service implications, not just headline interest rates; advisers said fees differ across proposals but Texas Regional's rate produced the lowest overall cost to the county on their analysis.
A formal motion to adopt the order and name the bank as paying agent and registrar passed during the meeting; the court recessed briefly after voting to allow signatures on the closing documents.
The county judge and court staff will forward the approved documents to the attorney general for final review before closing.
