Commissioners Court approve Amended $1.205 Million Tax Anticipation Notes

By: Jose G. Landa, Eagle Pass Business Journal, Inc., Copyright 2015

Maverick County Commissioners Court unanimously approved to amend and restate the Order to authorize the issuance and sale of Maverick County Tax Anticipation Notes Series 2015 for the reduced amount of $1,205,000 (Million) instead of the previously approved $2 million at their Monday, August 10, 2015 meeting.

Commissioners Court is currently in a transitioning process from the current 2014-2015 fiscal year to the upcoming 2015-2016 fiscal year by cementing its proposed 2015 annual ad valorem tax rate increase, authorizing the issuance of and sale of Maverick County, Texas Tax Anticipation Notes Series 2015, and setting the dates of public hearings on a tax rate increase, if necessary.

County Judge David R. Saucedo opened Agenda Item No. 16 calling for the possible approval of an amended and restated Order of Maverick County, Texas, authorizing the issuance and sale of Maverick County Tax Anticipation Notes, Series 2015 levying a tax in payment thereof , approving a note purchase agreement, a private placement agreement, and a paying agent/ registrar agreement, prescribing the form of said notes , and enacting other provisions relating to the subject.

Maverick County Financial Advisor Raul Villasenor presented Commissioners Court a detailed briefing under agenda item No.16: “ The number that we provide in various documents, we got to insure that in fact, a deficit in that amount, at least in that amount is going to exist. What we’re doing is updating that number from the original not to exceed $2,000,000 number that you approved a month ago. We are now down to a number not to exceed $1,205,000. This is borrowed money that has to be repaid by July 15, 2016. We wanted to get that number as small as possible. But also to ensure that the projected deficit, that we expect in October is fully covered, before your tax revenue begins to roll in,” said Villasenor.

Villasenor advised Commissioners Court that a large adjustment had to be made as a result of the huge expenditures incurred by Maverick County for operating the Maverick County Detention Center (MCDC) during November 1, 2013 to August 15, 2015. “That was the biggest adjustment that we made to the $2,000,000. We tracked down some of the expenditures that we thought the County had to cover for the MCDC,” said Financial Advisor Raul Villasenor.

Commissioners Court, Villasenor and Maverick County Auditor Sandra Watkins discussed the necessary steps needed to be taken and the variables in play to determine where the County stands financially in order to structure a reasonable set amount to be issued through the proposed Tax Anticipation Note, Series 2015.

Commissioners Court approved an amount not to exceed $1,205,000 for the issuance and sale of Maverick County Tax Anticipation Notes, Series 2015.

Commissioner Jerry Morales was not present during the discussion and vote of this agenda item No. 16 as he went to represent Commissioners Court at the U.S. Army Corps of Engineers Public Hearing on Coal Mining in Texas held at the City of Eagle Pass International Center for Trade.