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County adviser outlines $31.7M first phase of transportation bond; sale targeted May 27
Summary
Hilltop Securities briefed the court on the county’s transportation bond plan: the first phase is approximately $31.7 million, the sale is planned for May 27 with closing June 24, underwriters named and an interest-rate cushion included in budget projections.
Johnson County’s financial adviser, Hilltop Securities, updated the Commissioners Court on April 28 about the county’s transportation bond program and the planned financing timeline.
Jorge with Hilltop summarized the plan: the program will be sold in at least two phases, with the first phase financing roughly $31.7 million in projects identified for spending within three years. The county plans to use a negotiated sale with BOK Financial Securities as lead underwriting manager and Stevens as co-manager. Hilltop said the team is targeting investor-grade ratings, a May 27 pricing date, and a June 24 closing so proceeds can fund the planned projects.
Why it matters: The bonds will finance the county’s major thoroughfare and road improvements under the bond program. Hilltop said the plan is to keep the tax-rate impact at no more than 1 cent as promised to voters, though rates are market-sensitive. The adviser recommended budgeting a 25-basis-point cushion in interest-rate assumptions; that would keep the projected rates within the range used in February’s budgeting work.
Details presented: Hilltop said a typical 10-year call provision will be included and explained options for earlier calls if the market supports it. The adviser explained the purpose of a 3-year spend window (IRS tax-exempt guidelines) and said staff expect strong market reception given the county’s credit profile. No bond sale was authorized at the meeting; Hilltop asked for county direction to proceed to an official sale on May 27.
