Saturday, April 20, 2024
While Coryell County is awaiting the possibility of receiving millions of dollars in grants to fund road improvement projects, it also faces the likelihood of having to wait until it receives those funds.
How to keep the construction process going while awaiting reimbursement was a topic considered during the April 11 meeting of the Cortell County Commissioners Court.
"Are we going to borrow money? Move money around? We ain't got no money (to fund the projects out of pocket)," said Precinct 3 Commissioner Ryan Basham.
County Judge Roger Miller said he had a discussion with County Auditor Matthew Wood about ways to funnel money to the projects.
"There is a good chance we can cash flow that without having to borrow any money," Miller said. "That is a very simple thing we'd be able to do. We can also look at borrowing short term with our depository bank."
Miller said if more than $10 million was borrowed, the commissioners court would need a more formal process in place.
"There is a window if it gets in excess of $20 million, we would need a short-term line of credit established with our depository bank," he said.
"If we get a really large sum of money (via grant) Mr. Wood had recommended we look at a hybrid of some short-term local funding and a tax note. That would allow us some flexibility and also allow us to get projects funded as quickly as possible. We do have some deposited funds to borrow against. There's some pretty significant numbers there. It reflects a 25% reserve as we try to cash flow things until the tax revenue comes in at the end of January."
Additional options might be needed, depending on the amount of grant revenue promised to the county and also what deadline was given for the work to be completed.
"A third option might be required depending on how things play out," Miller said. "We would get a line of credit with our depository bank to be able to fund some things quickly. Borrowed funds would not be debt that would be funded by taxpayers. The grant would fund any debt that we would incur."
Precinct 1 Commissioner Kyle Matthews asked Wood to put specifics related to possible funding mechanisms in writing "to help the commissioners court. It's always helpful to have it (written) in black and white."
Miller said "one number we discussed as a dividing line was $25 million and they would need our audit reports. It would be contingent on the announcement of the granting agency. It would take them about 45 days (for a lending agency to deliver the funds to Coryell County). With a smaller amount in the few million, they'd be able to do that in a couple weeks."
Matthews said he wanted Wood's input on different borrowing options.
"I just think not that we need to explore it, but what options you (Wood) need to take," Matthews said. "There may be some dollar amounts we cannot handle. I just think there need to be some options. We have to make sure we've really thought (the options) through."
Miller said he and Wood will "come up with a diagram that will lay out different options for general funding scenarios. There is an amount, and I don't know what that is, beyond our ability to fund it.”
Matthews said the time constraints that granting agencies give Coryell County is also a big factor in determining what can be done.
"For us, there is an absolute ceiling" on what the county can manage in a specific timeframe, Miller said. "One size doesn't fit all with these various amounts we're plugging in there. It does streamline some paperwork and some (financial) draws."
