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Grayson County approves tax notes issuance; $5 million project fund, competitive sale to close June 11
Summary
The commissioners approved an order authorizing issuance of Grayson County Tax Notes Series 2025 following a competitive sale that drew nine bids; the winning bidder was Hilltop Securities with a rate just under 3.3%, and the county's S&P rating was affirmed as AA.
Grayson County Commissioners Court approved an order authorizing the issuance and sale of Grayson County, Texas tax notes series 2025 after a presentation from the county's financial advisor.
Dave Gordon of Estrada Hinojosa, the county's financial advisor, told the court the county planned a $5,000,000 project fund for the notes and ran a competitive sale because of the relatively small amount and short six-year term. He said the competitive sale drew nine bids; the winning bidder was Hilltop Securities at a rate “just shy of 3.3%.” Gordon said the county expects to close the transaction on June 11 if the court authorized the sale.
Gordon reported that S&P affirmed the county's AA rating on outstanding obligations; he also noted the county holds a comparable double-A2 rating with Moody's, which was not used in this sale. He summarized projected debt-service impacts, noting the new obligations would add what he described as “just shy of a million dollars a year” in debt service while also noting earlier years had partial support from payments from TxDOT for certain obligations.
Gordon presented offering documents including a preliminary official statement and said the par amount of the obligations would be $4,805,000 because the sale would occur at a premium to fund the $5,000,000 project amount. He said the county's freeze-adjusted net assessed valuation for 2025 is about $16.7 billion and that the appraisal district was reporting a possible near-34% increase in assessed value next year, which remains under review.
Gregory Miller of Bickerstaff, Heath, Delgado & Acosta, bond counsel to the county, attended to answer legal questions. Commissioner Marr moved to approve the order authorizing issuance and sale; Commissioner Arthur seconded. The court voted in favor and the motion carried.
The court record shows the sale was approved; Gordon identified bidders and terms during the public presentation. No other competing actions were recorded.
