After authorizing the sale of $150 million in tax anticipation notes March 21 in order to fund uncompleted 2019 road bond projects, the Williamson County Commissioners Court has plans to form a citizens bond review committee to assess the county’s infrastructure needs.
The county will issue the short-term debt and pay back the proceeds using ad valorem taxes. However, according to Dan Wegmiller, financial adviser with Specialized Public Finance, the sale is not anticipated to affect the county’s tax rate for debt services.
In addition, he said a competitive sale allowing investment firms to bid on the tax notes—combined with the county’s AAA bond rating—means the county might only have to pay back $130 million-$140 million of the money it receives.
“[Investors] need to stick their money into certain years where they are anticipating or planning for potential drawdowns or movements,” Wegmiller said. “So high quality investors who want to know those funds will be there when they need to see a turnover will seek out bonds like yours.”
