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El Paso County weighs multiple financing options for 2025 capital plan as lawmakers pursue limits
Summary
County staff presented debt scenarios including tax notes, certificates of obligation and pairing with low- or no‑interest state loans. Commissioners were warned of pending legislation that could limit use of COs and tax anticipation notes; court scheduled further decisions for early March.
El Paso County officials on Thursday outlined choices for financing projects in the county's multi-year capital plan, presenting scenarios that range from short-term tax notes to multi-decade certificates of obligation and pairing local debt with low- or zero-interest loans from state programs.
Jose Landeros, Strategic Capital Development, told commissioners staff and the county's financial adviser had prepared a range of financing scenarios the court could consider as it plans potential debt issuance in 2025 and beyond.
The nut graf: The court faces a near-term decision window (staff asked the court to aim for a structure choice by early to mid‑March) on how to balance a 5-cent "INS" (interest and sinking) debt-service tax rate that has funded essential public-purpose projects and the first tranche of the 2024 voter‑approved general obligation (GO) bond.
Brad Anks of Stifel Public Finance presented the financial detail. He said the county's current INS structure yields recurring capacity and a declining debt-service schedule that could allow new issuances without increasing the INS tax rate. Scenarios shown to the court included: a larger certificate-of-obligation (CO) issuance this year in the $50 million range; a smaller 7-year tax note only (about $35 million) that would concentrate repayment near term; and hybrid approaches that pair a 2025 issuance with a larger CO in 2028. Stifel also modeled a contingency that preserves capacity to accept potential Texas Water Development Board (TWDB) awards: holding $41 million for a TWDB zero‑interest loan and $14 million for a State Infrastructure Bank (SIB) loan while issuing about $50 million in COs this year.
Landeros and Anks warned the court that award notifications for some TWDB applications likely will arrive this spring and that the county should factor any grants or low‑interest loans into its capital plan because such awards reduce the tax‑financed portion of project costs.
Commissioners asked about timing and public outreach. Landeros urged the court to follow a calendar that would permit a March decision so staff can meet appraisal district deadlines for the 2025 tax-rate process. Anks outlined a tentative timetable: staff recommendations in late February, a notice of intent on March 10 if COs are pursued, authorization in late April, pricing in early June and a late‑June closing to meet a July 15 appraisal deadline.
County staff also flagged pending state bills that could change what the county may issue using COs or tax anticipation notes. Landeros summarized several proposals on file that would constrain use of COs for certain facility types or restrict tax-note uses after a failed ballot proposition; he said staff and bond counsel would continue to monitor legislative movement.
The court did not take an immediate financing vote but moved the discussion into subsequent workshops: staff scheduled follow-up sessions on Feb. 10, Feb. 24 and Feb. 27, with final decisions recommended in early March.
Ending: Commissioners directed staff to refine the scenarios, explicitly model TWDB and SIB outcomes, and return with updated numbers and outreach plans as the court considers a March financing decision.
