Hidalgo County approves notice to issue up to $50 million in certificates of obligation and clears several contracts

Hidalgo County Commissioners on Oct. 26 approved a resolution authorizing publication of a notice of intent to issue up to $50,000,000 in certificates of obligation to finance design, acquisition, construction and improvement of county public works and to authorize related matters, and they approved a series of procurement items and engineering agreements.

The vote to publish the notice begins a process that county officials said would give Hidalgo County funds to plan precinct projects and the possible expansion or improvements to the county jail. County Judge Richard Cortez led the meeting and asked county financial advisers and staff for details before the vote.

Why it matters: The issuance would increase Hidalgo County’s authorized debt capacity for capital projects and refinancing, but officials said the issuance is expected to be structured so it does not raise the county’s tax rate. That matters for taxpayers and for planning of a potential jail expansion that county staff described as a need rather than a wish.

Bobby Villanue, identified in the meeting as the financial adviser with the presenting firm, said the county was considering “a notice of intent to issue about 50 up to $50,000,000” and that the funds under discussion would split between precinct capital needs and planning and design for jail improvements. Villanue told commissioners the county currently had “about $379,000,000 outstanding, and about $321,000,000…