The Courier of Montgomery County has reported that in August TxDOT will receive bids for the construction of a direct connector ramp at I-45 and Texas 242 East. Montgomery County will have to come up with $19 million to fund the project.
In escrow funds, the County has $58 million. The funds are from the County’s pass-through toll program with the state for projects for road construction. The County will need to come up with the funding first and next be reimbursed by the state.
In order to avoid “dipping too much into County reserve funds,” Precinct #3 Commissioner James Noack proposed that the County look at issuing short-term debt to take care of the cost.
County Budget Officer Amanda Carter was hesitant in regard to the County issuing debt. She said there is $13.4 million available for the project. She thinks they do not need to issue the debt because they have the cash flow.
There is a time issue regarding finding the funds, according to Commissioner Riley. He wanted “to get it done.” He expressed that if they don’t get it done, they will miss August. And then, it may be another year.
The County’s financial advisor, BOK Financial Securitie’s John Robuck, recommended issuing certificates of obligation. He offered that it was a quicker way for Montgomery County to pick up funds over a bond election. He said the process takes 65 to 70 days. According to Robuck, there would be lower interest rates, and the County could begin repaying the debt in March of next year, while the state reimburses the County with toll program funds.
Commissioner Noack cautioned that the County needs to be careful lowering their fund reserves to pay for projects. He said it could affect their credit rating.
The court will again look at the project at their meeting on June 18th.
Montgomery County Judge Mark Keough requested that Commissioners Riley and Noack have a meeting with Carter and County Auditor Rakesh Pandey to talk about issuing debt and other possible funding alternatives.
