Starr County approves $1.695 million SIB loan and certificates of obligation

Starr County Commissioners' Court approved a $1.695 million State Infrastructure Bank (SIB) loan on Monday and moved ahead with issuing certificates of obligation to cover related financing needs.

A county staff member told the court the SIB loan is "in the amount of 1.695 million at a 3.93 interest rate payable over 20 years," with interest-only payments in the early years and the option to prepay or refinance. Staff also described certificates of obligation for a 2004 series with Lone Star Bank at a 4.85% interest rate, callable and refinanceable after 10 years, with larger initial payments and smaller payments later to preserve capacity.

Presiding official emphasized the financing would not require an increase in tax rates, saying the actions "do not include any increase in tax rates" and that officials expect to maintain the current rate or possibly lower it. The court approved the loan and the certificates during the meeting; motions on those items carried.

Mary, identified in the transcript as Mayor of Roma, thanked the court and said the city and county are partnering on a restoration project for the city's suspension bridge; she described Roma as contributing a share of costs. The mayor said the SIB loan approval and the county's support were appreciated by the city.

The court also approved creating a bank account for the certificates of obligation and authorized a small internal loan to open the account. No vote tallies by name were recorded in the transcript; minutes reflect the presiding official announced motions "carried."