Hays County plans $100 million in capital projects; court adopts reimbursement resolution to allow early spending

SAN MARCOS, Texas — Hays County commissioners on Tuesday adopted a resolution allowing the county to reimburse earlier capital expenditures from the proceeds of future tax-exempt obligations, clearing the way for spending on prioritized projects while debt is prepared.

Bridal & Associates presented a mid-cycle update to the county's capital improvement plan that lists high-priority projects including a proposed East Side campus in Kyle, a pet resource center in partnership with the City of Kyle, initial improvements to the government center and a new Precinct 4 office and site. The presentation distributed cost ranges and potential timelines for short-, mid- and long-term projects.

Vicki Dorsett, Hays County budget officer, said the county anticipates issuing approximately $100 million in certificates of obligation to address vertical infrastructure needs and that the reimbursement resolution would let the county start work and incur eligible costs before the debt is issued.

Why it matters: The resolution is a common municipal financing step that allows public entities to pay for capital work up front and later reimburse those expenditures from bond or certificate proceeds, which improves timing and project delivery. Dorsett said the county is assembling project cash flows and negotiating partner contributions; the court voted to approve the resolution.

What the court did: The commissioners voted unanimously to approve the reimbursement-resolution language (agenda item J17), enabling staff to continue pre-financing work on priority projects while finalizing the debt issuance plan.

What's next: Staff will continue cash-flow planning, finalize partner MOUs for projects such as the East Side campus and the pet resource center, and return to court as project budgets and financing schedules firm up. The resolution anticipates additional funding rounds if priorities outpace the $100 million planned for initial issuance.

Quote from Tuesday's meeting:

• Vicki Dorsett, Hays County budget officer: "The reimbursement resolution is just to identify capital projects that we will potentially start spending some funds on prior to issuing the debt that we anticipate issuing in FY26."