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Dimmit County court authorizes plan to issue up to $5.65 million in tax notes to fund county projects
Summary
Dimmit County Commissioners Court approved a plan to issue tax notes estimated at $5,650,000 to fund county building and road projects, with staff, bond counsel and a financial adviser authorized to proceed. The court set dates for bank bids and a targeted October closing.
Dimmit County’s Commissioners Court on a recorded vote approved authorizing county staff, bond counsel and its financial adviser to proceed with the issuance of tax notes estimated at $5,650,000 to finance county building improvements, road-and-bridge projects and parks equipment.
The authorization, introduced under agenda item 2.1, was presented by a representative of Air Frontier Financial Consulting, who said the plan contemplates a two-year payment schedule with the first year interest-only and an estimated interest rate of 4 percent. The consultant said the $5,650,000 figure is an estimate and that cost of issuance was estimated at about $150,000. "We're estimating 4% given that the length of per payment term is so low," the consultant said.
An unidentified county speaker summarized proposed allocations described in the meeting, saying at one point that the plan would provide "$1,000,000 for each commissioner" and later that "$5,000,000" would be dedicated to commissioners; that speaker also said $500,000 was set aside "for the old courthouse to fix the elevators, air conditioners, and roofing." The court did not provide a written breakdown during the meeting; the article reports what speakers said on the record.
Air Frontier Financial Consulting outlined the timetable for the transaction: bank bids were due September 6, bid results were to be presented to the court on Monday, September 9, and closing was scheduled for October 10. The consultant explained that tax notes were chosen in part because they avoid a 45-day newspaper notice required for certificates of obligation and therefore can deliver funds faster.
After the presentation and a short period of questions about rates and repayment structure, the presiding officer called for a motion. The court recorded a motion by "commissioner Alonso Carmona" and a second by "commissioner Odenda"; members present responded "Aye," and the presiding officer said "Motion carries," authorizing staff and advisers to proceed with the financing steps described.
The court’s action authorizes staff to work with bond counsel and the county’s financial adviser to solicit bids and complete sale documents; the final principal, interest and total cost will be determined once banks submit bids and the court accepts the bid results.
