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Starr County approves $1.695 million SIB loan, issues certificates of obligation
Summary
Starr County Commissioners Court approved a $1.695 million State Infrastructure Bank loan with TxDOT and authorized issuance of certificates of obligation; officials said the financing is structured to avoid raising the county tax rate and includes a LoanSTAR Bank certificate option.
Starr County Commissioners Court on Monday approved a resolution to enter a State Infrastructure Bank loan with the Texas Department of Transportation and moved forward with issuing certificates of obligation to support county projects.
County staff told the court the SIB loan is for $1,695,000 at a 3.93% interest rate payable over 20 years, with interest-only payments for the first years and the option to refinance or prepay. Staff also described a proposed certificates of obligation offering through LoanSTAR Bank at a 4.85% interest rate, callable and refinanceable in 10 years. The court voted to approve the loan resolution and the certificates issuance.
“...it does not include any increase in tax rate,” the presiding official said when the debt package was discussed, adding that the county aims to maintain or possibly lower the tax rate while proceeding with the borrowing.
A City of Roma representative thanked the court for support on a separate bridge-restoration project and said the city is contributing 35% of the costs; county leaders noted the county is leading and also contributing funds. The court also approved opening a dedicated bank account to receive the certificates-of-obligation proceeds.
County staff emphasized the financing structure includes a larger payment up front followed by smaller payments in later years to provide budget flexibility; staff noted the option to refinance or pay the debt early. The votes to approve the loan, the certificates issuance and the related banking action were put by motion and carried.
Next steps identified by staff include executing the loan agreement and completing the bank-account setup to receive and manage proceeds. Several details discussed at the meeting — including timing of initial payments and exact amortization schedule — were presented by staff and will be finalized as the county completes loan closing and any related administrative steps.
