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Wilson County News June 12, 2013 2,629 views 7 comments
The Wilson County Commissioners Court is considering the sale of $8.5 million in certificates of obligation, which will finance renovations to the Wilson County Courthouse and to Wilson County Courthouse Annex III. The commissioners and financial advisor Robert Henderson of RBC Capital Markets discussed this matter during the June 10 commissioners court meeting.
Henderson said that because of a recent uptick in the housing market and the U.S. government’s recent revelation that the third round of quantitative easing will end this year, interest rates are starting to rise. Over the past two to three weeks, he said, rates have increased 40 basis points.
In light of this, Henderson said if the county wished to sell $8.5 million worth of bonds, it could expect to borrow the money at an interest rate of 3-1/2 percent. This would have a 2.4-cent impact on the interest and sinking -- debt service -- side of the ad valorem tax rate. An interest rate of 4-1/2 percent would result in a 2.65-cent impact. The repayment period would be 20 years.
Henderson said debt services accounts for approximately 1.3 cents of the county’s property-tax rate of 46.57 cents per $100 of assessed value.
The commissioners are set to approve selling the bonds at their June 24 meeting. From there, Henderson said the county would advertise the decision two times in a local newspaper, with the first notice being published at least 30 days before the anticipated sale date of Aug. 12. Barring any resistance from the state Attorney General’s office, funds from the sale could be deposited as early as Sept. 4.
The bonds would include a 10-year par call feature, Henderson said, meaning the county could repay the remainder of the balance in the 10th year without incurring a penalty.
Also during the meeting, the commissioners held their second budget workshop ahead of the fiscal year 2014 budget. County Auditor Verna Gorzell said if all departmental requests were granted, it would mean a $1.4 million increase over the previous year’s budget of $15,883,193. For more on the previous workshop, see related article, page 5A.
In other business, the commissioners:
•Heard a speech from Stockdale High School senior Jessica Puente, who will be competing next month at a state-level 4-H public-speaking competition. Puente’s speech was about farming’s future amid urban population growth.
•Presented a plaque to Pct. 2 employee Ernest Moczygemba upon his retirement after 16 years.
•Proclaimed the week of June 17-23 as Amateur Radio Week in Wilson County.
•Approved a fee of $5, which will be added to expenses incurred in filing civil cases with the Wilson County District Court, which will fund the preservation and restoration of records.
In attendance: Wilson County Judge Marvin Quinney and commissioners Albert Gamez Jr., Paul Pfeil, Ricky Morales, and Larry Wiley; County Clerk Eva Martinez, Sheriff Joe D. Tackitt Jr., County Attorney Daynah Fallwell, County Auditor Verna Gorzell, Assistant County Auditor Kristin Labus and Lisa Eberhardt of the Wilson County Auditor’s Office, Katelyn Eberhardt of the Wilson County Clerk’s Office, Pct. 4 Justice of the Peace Richard “Dickie” Jackson, Pct. 3 Justice of the Peace Jim Burdette, and Emergency Management Coordinator LeAnn Hosek, Edwin Baker of the Wilson County Health and Public Safety Office, and Sharon Scriven of the Wilson County District Clerk’s Office.
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Your Opinions and Comments
Michael Abbott Sutherland Springs, TX July 3, 2013 12:49am
!!!!This is so ridiculous!!!! Quit spending money that you don't have!! Find an alternative solution that is less costly. It's that simple. Again I ask, where the heck are the different proposals? The County should be ... More ›
!!!!This is so ridiculous!!!! Quit spending money that you don't have!! Find an alternative solution that is less costly. It's that simple. Again I ask, where the heck are the different proposals? The County should be dropping RFPs left and right looking for competitive proposals. For everything!! Again, back to our roads. You can't even fix them, but you'll pay some guy $8.5m to rebuild your facilities w/o question. Be an example to your constituents. Don't buy what you can't pay for.
Did anyone notice that the amount of these projects went from a little over %5mil to $8.5mil in just a couple of weeks? Hell, we better get this done now. In another month or two it will be $20mil. And we do not discuss whether ... More ›
Did anyone notice that the amount of these projects went from a little over %5mil to $8.5mil in just a couple of weeks? Hell, we better get this done now. In another month or two it will be $20mil. And we do not discuss whether this is absolutely have to do spending. Nope. Got to do it because if we wait the interest rates may go up. Right.