Guadalupe County court directs advisors to pursue tax notes, exploring up to $20 million to fund capital projects
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Summary
The Guadalupe County Commissioner's Court on Feb. 10 directed its financial advisor and bond counsel to proceed with planning tax‑note financing (preferred option) to raise up to $20 million for capital projects, authorizing a process that could close as soon as mid‑April if timelines hold.
On Feb. 10, 2026, the Guadalupe County Commissioner's Court authorized county financial advisor Mr. Westerman and bond counsel to proceed with planning for the issuance of tax notes (the court discussed tax notes and certificates of obligation) and to investigate a private placement and a five‑year call option, with a working authorization amount discussed up to $20 million.
Mr. Westerman, the county’s financial advisor, outlined timelines and scenarios for short‑term tax notes and longer‑term certificates of obligation. He emphasized that “tax notes . . . must be paid back within 7 years,” presenting examples showing how different issuance sizes and amortization choices would affect the county’s I&S tax rate. Using a conservative 4% illustrative interest rate, Westerman showed a scenario in which a one‑cent I&S increase translates to roughly $30 a year for the average homeowner on the portion of county tax the presentation modeled.
Commissioners debated timing and scale, noting the county’s upcoming capital needs — including a potential future detention facility and first‑responder projects — and the tradeoffs between borrowing more now versus preserving low tax‑rate volatility. Several members supported issuing a larger short‑term note now while rates are comparatively low. One commissioner said borrowing more now could save money over the long term because construction and financing costs rise over time.
After discussion, a commissioner moved and the court voted to give the county’s financial advisor direction to proceed with planning the issuance of tax notes (7‑year amortization) and to investigate private placement options and a five‑year call provision. The court indicated it would return with final authorization and details (amount, interest terms and final offering route) at a subsequent meeting; staff projected a formal court authorization could come at the March 24 meeting with funds available by mid‑April, if schedules and market conditions allow.
The authorization is a direction to proceed with planning and market testing; final sale terms, the precise amount and formal approval of the issue were left for a future court action.