In a nutshell
In 2023, voters approved two bond proposals worth $825 million and $59 million for road and park projects, respectively. The $884 million bond package was the largest proposal brought to voters in Williamson County’s history, according to previous Community Impact reporting.
Each of the two bonds discussed May 13 came from the 2023 voter-approved package, County Auditor Julie Kiley said. At the meeting, commissioners approved issuing up to:
- $150 million in road bonds
- $30 million in park bonds
- $94 million in tax anticipation notes
Out of the $825 million approved in the 2023 road bond, zero money was reserved for right-of-way acquisition, Precinct 3 Commissioner Valerie Covey said. The $94 million in tax anticipation notes is a seven-year form of debt and will be used to purchase right of way for 2023 bond program projects, Kiley said.
“My question is, is that enough?” Covey said. “I don't think it is.”
Covey cited the Leander Road expansion project as a recent example of costly right of way, which has $45 million left to purchase right of way from Garey Park to the 183A Toll alone, she said.
“We cannot continue business the way we've been doing it. We cannot continue buying the right of way at the cost that it is per square foot,” Covey said. “We need to look at keeping the utilities in our right of way and not having to buy extra amounts for their easements.”
Covey said the county is discussing alternative right-of-way options with the city of Georgetown and utility company Pedernales Electric Cooperative. Officials will return to Commissioners Court at a later date to discuss options, she said.
“The right of way money that we're spending is not sustainable,” Covey said. “We want to keep this program going? We have to think differently.”
The big picture
Since voters approved the $825 million road bond, Williamson County has already sold over $141 million in bonds for road projects, Covey said. Every year, staff will likely sell a portion of the remaining $534 million road bond balance based on cash flow needs, Covey said.
This is the first time the county will issue any money from the $59 million park bond passed in 2023, Covey said.
On May 21, Williamson County staff is expecting to sell the bonds and evaluate refinancing about $35 million in current debt by securing a lower interest rate, according to a news release.
“How the market performs that day will ultimately determine the size of that refunding, or if it happens at all,” Kiley said May 13.
One more thing
Rating agencies Fitch Ratings and Standard & Poor Global reaffirmed Williamson County’s AAA bond rating—the highest rating possible, according to the release. High bond ratings allows government entities to sell debt for major expenses at lower interest rates, according to previous Community Impact reporting.
The county has held a AAA bond rating for over a decade, per the release.
