County considers project funding options

With Coryell County potentially in line to receive significant grant funding of up to tens of millions of dollars for road improvements and to address low-water crossings, county leaders discussed ways to make sure money is efficiently being paid to contractors during the process.

Three funding options were talked about during the April 25 meeting of the Coryell County Commissioners Court.

"There are three basic funding options we have available to us," County Judge Roger Miller said. "It all starts with notification of the award (of grant funding) and acceptance of the award. Overall borrowed funds would be deposited into the grant fund and parceled out to vendors."

While grants will cover most if not all the work, there may be a delay in the county receiving the funds, which would require the county to borrow money until the grant funding arrives.

"Financing option 1 is for $5 million or less and would be a line of credit through the county's depository bank," Miller said. "They would have 30 days to fund it, and the interest rate would be the prime rate times .57 adjusted annually."

Commissioner Ryan Basham said it thought it would be the prime rate times .56, and Miller said he would verify the amount.

"Option 2 is up to $25 million and would also be a line of credit through our depository bank," Miller said. "The time to fund it would be approximately 60 days and interest would follow what is already outlined.

"Option 3 is for greater than$20 million, and I realize there is some overlap with option 2. It would involve the issuance of a tax note through Specialized Public Finance. The time to fund would be 45 days to 60 days. The interest rate market would be based on offers received."

Steve Manning with Natural Resources Solutions, which has been working with the county on grant applications and other projects, said he believes option 3 might not be needed for the county to fund work.

"One these financing options, we believe we may be able to get a draw schedule set up to keep it under $25 million (in borrowed funds)," Manning said. "That way you wouldn't have to get into a tax note situation. We have had informal meetings with a number of contractors. We think we've got a rate to build a mile and a quarter to a mile and a half (of roads) per month. We've got folks crunching numbers right now."