Comal County authorizes certificates of obligation to fund proposed jail expansion, budgeted at $155 million

Comal County Commissioners Court authorized the issuance of certificates of obligation on Sept. 17 to fund design and possible construction of a jail expansion after a staff presentation and consultant briefing on capacity needs.

Staff recapped a feasibility study showing the countyf7s jail at or near historically high utilization and noted options that could add between roughly 274 and 548 beds on top of existing capacity, producing total new capacity estimates in the consultantf7s scenarios of roughly 857 to 1,131 beds. Presenters said that at the time of the earlier report the jail had been operating near 88% capacity; more recent averages were presented at about 85%, with some inmates housed out of county at a cumulative cost of $318,665 since May.

Bond counsel and financial advisors explained the contemplated financing. Duane Westerman of Samco Capital Markets outlined the procedure: the notice of intention listed a $180 million maximum principal, but the county budget carries a $155 million figure and advisors said they did not anticipate exceeding that amount. A maximum maturity date of Feb. 1, 2058 and a maximum true-interest rate of 6% were listed as parameters in the offering notice; advisors said the actual sale was being contemplated for late October with funds available in early December.

Commissioners moved and approved a resolution authorizing the county to proceed with offering documents and the issuance process, and delegated final sale approvals to designated county officials. Officials said proceeding now would allow the county to secure a financing mechanism if the court decides to proceed with construction following additional planning and design work.