County officials explore debt options following nullified bond election

Hays County officials are exploring options for long-term debt financing following a nullified bond election, which has opened the door for the issuance of combination tax and revenue certificates of obligation. During a recent government meeting, financial advisor Dan outlined that these certificates could be issued at the same interest rates and bond ratings as previously approved voter bonds, allowing the county to raise significant funds for infrastructure projects.

With a proposed 2-cent tax increase, the county could potentially generate up to $225 million, while a 3.5-cent increase could raise approximately $376 million. This funding is crucial for addressing various projects, including roads and facilities, which have been identified as priorities for the county.

Commissioners discussed the importance of transparency and the need to differentiate between road projects and vertical improvements, such as buildings. They emphasized that while the county has the capacity to raise taxes, careful consideration is needed to ensure that the funds are allocated appropriately and in line with voter expectations.

The meeting also highlighted the necessity of adhering to IRS regulations, which require that proceeds from bonds be spent within three years to avoid penalties. This stipulation underscores the urgency of moving forward with identified projects to ensure compliance and maximize the use of funds.

As the county prepares to move forward, officials are tasked with identifying specific projects and setting a timeline for the issuance of these certificates. The discussions reflect a proactive approach to managing the county's financial resources while addressing the infrastructure needs of the community.