Randall County court approves plan to pursue up to $10 million in certificates of obligation for justice center, roads and drainage

Randall County Commissioners Court on May 27 authorized county staff and the county's financial advisors to proceed with a proposed certificate of obligation (CO) financing that would be structured to add about $10 million in new debt service while aiming to hold the county's tax rate steady.

The action, taken after a presentation from Samco Capital Markets's financial advisor Mark McLaney, directs staff to begin the public-notice process with a return to court June 10 for a formal notice-of-intention resolution. The resolution would allow a future CO issuance not to exceed a larger ceiling for multiple projects; the court discussed a sample $10 million tranche that staff said would fund expansion and renovations of the Randall County Justice Center, county roads and bridges and flood-control and storm-drainage facilities.

The notice of intention sets the timetable: if the court approves the notice on June 10 the financial team would aim for a sale in August and a late-August/September closing timed to final taxable values so the county can match debt service to its tax-rate targets. Mark McLaney of Samco said the county's existing debt service is scheduled to decline in coming years, creating capacity to add repayment for new projects without raising the current tax rate.

McLaney said the county has intentionally targeted borrowings at or below the $10 million "bank-qualified" threshold to secure lower interest yields; keeping the county under that threshold typically yields lower rates for small issuers. He also noted potential state-level changes under consideration in House Bill 19 that could affect CO authority, and said the county's planned August closing would be grandfathered even if a law changed Sept. 1.

Commissioners emphasized the primary capital need is additional space at the Justice Center to accommodate growth in the district attorney's office and future courtroom needs. Judge (presiding) said the county expects the expansion to serve 15 to 20 years of growth and noted the county has used prior planning and defeasance strategies to smooth debt service.

After questions, a commissioner made a motion to authorize staff and advisors to proceed with the financing process and the court voted 4-0 to carry the motion.

The court will return June 10 to consider the notice-of-intention resolution and, if adopted, the county's advisors would proceed with sale preparations that could culminate in an August sale and September closing.