Johnson County approves Freese and Nichols for bond program management and finalizes $31.7M road bond sale

Johnson County commissioners on May 27 approved multiple actions to advance a voter‑approved transportation bond program and finalized the sale of the county’s first tranche of road bonds.

The court unanimously approved an exemption (Order 2025-43) from competitive bidding to allow BOK Financial Securities Inc. and Stevens Inc. to serve as underwriters for the Johnson County unlimited tax road bond sale. County staff said the exemption was requested because the underwriters are providing financial professional services in connection with the bond issuance.

The court then approved a contract with engineering firm Freese and Nichols for program management and engineering services tied to the bond program. The contract covers program management, coordination with TxDOT and utilities, design and drainage studies, bid-phase management, contractor oversight and an outreach/funding strategy; staff said contingent services were folded into basic services during negotiation. County staff said program-management fees will be paid from bond proceeds and that the bond package is intended to seed roughly $60 million of county funds to attract $300 million to $400 million in construction investment over the program period.

In the afternoon session the court adopted Order 2025-44 authorizing issuance and sale of up to $31,700,000 of Johnson County unlimited tax road bonds, series 2025, as approved by voters in November 2024. Hart Hilltop, the presenter to the court, said the county received a Fitch Ratings triple-A affirmation and a Standard & Poor’s AA affirmation on the additional debt and that investor demand for the sale was strong: the order period was oversubscribed by 6.3 times, producing about $200 million in orders for the offering. Hilltop reported an interest outcome of 4.6% for the bonds; presenters translated that as a roughly $871,000 reduction in principal-and-interest costs relative to an earlier 4.8% budget assumption, and about $213,000 improvement versus a 4.64% mid-May market snapshot.

Hilltop and county staff said the bonds finance work identified by county engineers and that proceeds will arrive after closing; closing was scheduled for June 24. The county judge and auditor were authorized to sign bond documents; the court also directed staff to submit the bond order to the Texas Attorney General’s office for review as required. The motion to adopt the order passed unanimously.

No amendments to the bond size were proposed at the meeting; commissioners noted the sale represents the first phase of the voter-approved program and that program-management work will begin as funds become available.

Votes: The court approved Order 2025-43 (procurement exemption), the Freese and Nichols program-management contract, and Order 2025-44 (bond issuance) by unanimous vote of the members present (County Judge Rick Huebsen; Commissioners Willie, White, Howell and Wooley; Commissioner Bailey absent).