Starr County votes to publish notice of intent to issue up to $7 million in certificates of obligation

Starr County Commissioners on June 8 approved publishing a notice of intent to issue certificates of obligation that the county’s financial adviser estimated could total at least $7,000,000 to fund a juvenile detention facility and several precinct road projects.

Bobby Villareal, who identified himself as a financial adviser to the court, told commissioners the county’s debt-service payments had fallen in recent years, creating capacity to take on new certificates of obligation without raising the I&S (interest and sinking) portion of the property-tax rate. "We can do an issuance of at least 7,000,000, dollars," Villareal said, adding, "It won't raise the I and S rate." He also described the planned schedule: the notice would be published in two consecutive July issues of the local paper, pricing and sale would be presented at the court’s Aug. 26 meeting, and funds would typically be available to the county within two to three weeks after sale.

The presiding judge framed the action in the context of recent tax-rate reductions, noting the county’s tax rate has dropped about five cents over the past several years while attempting to meet local needs. The court voted by voice to approve publishing the notice of intent.

The notice is a prelude to formal sale and financing decisions. If the court proceeds following the notice and subsequent pricing, the county will return to the Commissioners Court to approve final sale documents on the scheduled Aug. 26 agenda.