Travis County approves borrowing $138M for infrastructure projects, $12M for Precinct 2 facility

The Travis County Commissioners Court approved $12 million in funding for a new Precinct 2 building at a March 3 meeting.

The new facility comes as the county prepares to borrow nearly $138.88 million through certificates of obligation in Fiscal Year 2025-26.

The big picture

Travis County officials are planning to issue $138.88 million in certificates of obligation, or COs, for infrastructure improvements, including:

• $61.09 million for road construction and drainage projects
• $19.88 million for new and replacement vehicles and fleet electrification infrastructure
• $12 million for the purchase and design of a Precinct 2 facility
• $12 for High-Modulus Asphalt Concrete, or HMAC, and alternate paving
• $10 million for substandard roads
• $9.24 million for roadway recycling
• $5 million for high crash and congested intersection construction
• $4 million for sidewalk repairs
• $2.18 million for facilities management
• $2 million for traffic signals
• $543,440 for park concrete hike and bike trail upgrades

A closer look

The county has identified a new facility for its Precinct 2 office in Northwest Travis County, said Michelle Surka, Travis County assistant budget director. The Travis County Precinct 2 Constable's Office and Justice of the Peace Precinct 2 building is currently located at 10409 Burnet Road, Austin.

The $12 million in approved funding would cover the $11.5 million purchase of the property and $500,000 to design renovations. The county will put $2.38 million in interest earnings from prior CO balances toward the project's cost, Surka said. An additional $8 million in funding would be needed in FY 2026-27 for renovation-related construction costs, according to county documents.

A Travis County spokesperson told Community Impact the county cannot comment on the real estate transaction at this time due to it being under negotiation.

The impact

The issuance of $138.88 million in debt for FY 2025-26 would increase the annual tax bill of a homeowner by $13 based on an average taxable homestead value of $515,212, according to county documents.

Something to note

Certificates of obligations allow government entities to issue debt to finance projects without voter approval. Travis County may issue long-term debt without voter approval through an election if a financial analysis demonstrates that the county "would spend significantly less," Surka said.

"Purchasing the Precinct 2 building and financing it over 20 years produces significant savings over that time period," Surka said. "We believe that this does qualify as an exception and is allowable for 20-year debt."

At the March 3 meeting, the court voted to delay the issuance of $118.7 million in road and public improvement bond dollars from FY 2025-26 to FY 2026-27 and FY 2027-28. Voters approved $509 million in road and public improvement bonds in 2023, $306 million of which have already been issued, Surka said.

Delaying the issuance of these funds will allow the county to catch up on other bond projects, she said. In December, work was underway on 61 active capital improvement projects, according to county documents.

Looking ahead

The county may look to secure $500 million in funding for a mental health diversion center and $60 million in funding for a helicopter replacement, Surka said.

This fall, the county was looking for potential sites for a diversion center that could serve as an alternative to jail for people who commit nonviolent crimes and suffer from mental illness or substance abuse disorder, according to previous Community Impact reporting.