Hood County outlines plan to issue about $51.34 million in bonds and approves $691,103 jail construction contract

Hilltop Securities told the Hood County Commissioners Court it plans to pursue a roughly $51.34 million bond issuance to fund the county’s first-phase projects, including about $30 million for road improvements and about $24 million for the jail expansion. Jim Saponis of Hilltop Securities said the bond package "is issuing about 51,340,000" and noted the county’s AA+ rating from S&P Global would support a competitive sale.

The court approved a professional-services contract for construction‑management and owner’s‑agent services for the Hood County Jail Expansion Project with Kitchell, not to exceed $691,102.60. The motion to authorize the county judge to sign the Kitchell agreement was made by Commissioner Samuelson and seconded by Commissioner Wilson; the motion carried without opposition.

Saponis outlined pricing assumptions used in the plan of finance, saying the county used current interest-rate levels plus 25 basis points and that pricing would move forward through a competitive-sale process. He told the court the county expects to return in August with sale results and that closing could occur after the Texas Attorney General’s review, with a target close date of Sept. 9.

County staff said the bond proceeds would be allocated across the projects presented: the roads program (about $30 million) and the jail (about $24 million). The presentation also emphasized the financing structure was sized to avoid an increase to the county’s tax rate under the presented assumptions; staff said the plan would not require raising the county’s current effective tax rate.

What’s next: commissioners approved authorizing the county to proceed with the financing steps outlined, including a competitive sale and submission to the Texas Attorney General for review; staff will return with sale results in August. The Kitchell contract is to be funded from allotted bond proceeds when available.