Brazos County approves $38M in certificates of obligation despite concerns over voter input

During public comment, a resident questioned why the county chose certificates of obligation rather than pursuing a bond election.

“Since we are able to pay for it, I'm curious as to why we decided to go for a certificate of obligation that avoids the voters and their decision-making process in this,” Peter Michelena, who had previously ran for Precinct 4 commissioner, asked the court.

Precinct 1 Commissioner Bently Nettles and Judge Duane Peters argued the financing strategy allows the county to preserve reserves for future needs and emergencies rather than depleting existing fund balances.

County Auditor Marci Turner described the disagreement as largely philosophical, centering on the use of debt versus cash funding for capital projects.

Blake Roberts of PFM Financial Advisors said the county received nine bids for the 20-year debt issuance and highlighted Brazos County’s recently reaffirmed AA+ bond rating from S&P Global Ratings, the second-highest rating possible.

Precinct 3 Commissioner Fred Brown opposed the measure, arguing the county was “going to push off $38 million worth of debt to our grandkids and our great grandkids” without direct voter approval.

The court ultimately approved the certificates of obligation with opposition from Brown.

Also on the agenda

Commissioners approved a separate issuance of $7 million in voter-approved general obligation bonds. Turner clarified voters previously authorized up to $100 million in bonds, though not all have been issued. She said the county previously issued $30 million in 2023.

Both bond issuances received winning bids from Bank of America.

Items worth mentioning

• Commissioners received an update on concerns surrounding voting irregularities tied to Bexar County’s voter ticketing system. Brazos County Chief Information Officer Eric Caldwell said the county reviewed the claims and found no cause for concern with the system currently used locally.
• The court approved an agreement with Texas A&M University’s Psychology Clinic to provide clinical psychology services through the county’s RESTART Court program.
• Commissioners approved a temporary contract with Trevino-Smith Funeral Home and Crematory for transport of the deceased and cremation services ahead of the county opening its own medical examiner’s office.

Brazos County Commissioners Court will meet next May 26 at the county administration building.