By a unanimous vote Monday morning, the Brown County Commissioners approved the issuance and sale of two certificates of obligations totaling $6.5 million, with the funds being earmarked for building improvements and the construction of another.
Earlier this year, the court approved the $5.799 million McKinstry Energy Savings Performance Contract for the purpose of improving several county buildings, including the courthouse, juvenile justice center and the agricultural extension office. The court later approved a second phase of the project, a $1.25 million bid for the construction of a new elections/treasurer’s building. The secondary phase saw the demolition of the Daniell building, which was located in the 600 block of N. Fisk Ave. The new office will be a 4,000 sq. ft. energy efficient structure.Erick Macha with First Southwest, the county’s financial advisor, discussed the repayment schedule. “The first interest payment will be March 1, 2017,” Macha said. “The reason is for this is since the county has already set its tax rate for this current fiscal year, come next budget time, the county will need to start budgeting for the payments.”
Macha said the first principal payment will be in line with the county’s existing debt, which is September 1, 2017. Both series (certificates) will expire in 2031, Macha said. “The county will have the option, if it chooses, to redeem or to prepay the certificates early. The bank has given the county that called feature.”
Macha said the certificates could be refinanced at any time, with the annual payments totaling $585,000 annually on a 15 year term. “Given the current tax base, that is about two, two and-a-half pennies per $100 valuation,” Macha said. The annual payments begin to slightly decrease around 2019, according to Macha.
Prior to the discussion and vote, Precinct 1 Commissioner Gary Worley said he was required, by law, to abstain from casting a vote or taking part in any discussion related to the certificates of obligation. “My daughter is a senior vice president of Texas Bank,” Worley said. “And therefore, it is within the third degree of blood relation-but I have to abstain from any discussion or voting on the matter involving Texas Bank. And, I have filed the affidavit with the county clerk.”
Texas Bank is the purchaser, the local branch in Brownwood, is the purchaser of the certificates.
The McKinstry Project contract focuses on the project goal of making improvements which leverage energy and operational savings that could possibly pay for themselves through efficiency with upgrades and retrofits.
The court also heard from Sharon Ferguson, county clerk, who announced her office was one of a handful of office presented with a special award last week. “My office was awarded the exemplary , five-star vital statistics award,” Ferguson said. “Out of 254 counties, there are only 26 registrars that received this exemplary award. I am really proud of it because of my staff. They have done an excellent job with vital statistics. The way fraud is now, it is not as easy as it used to be, and we are very proud of this award for my office and my staff.”
Pictured above are members of the County Clerk’s office: Carol Holamon, County Clerk Sharon Ferguson, Jeanie Degal, Roxy McLaughlin, Patricia Valdez. Also a part of the team but not pictured are Yolanda Bernal and Amber Hanley.
In other business, the court:
- Heard from Brown County Republican Party Chair Robert Porter who stated Monday at 6 p.m. was the filing deadline for anyone choosing to run for a county office in the March 1 primary.
- Took no action regarding a burn ban, which means there is still no burn ban in effect in Brown County.
- Took no action regarding a fireworks ban, which means fireworks may be sold. However, all fireworks purchased must be shot outside of city limits.
