County issues tax notes for courthouse project

The Donley County Commissioners’ Court approved the issuance of $550,000 in tax notes this week to provide matching funds for the restoration of the 1890 courthouse.

The notes issued during Monday’s regular session of the court will be paid off in 2007 and will be funded through ad valorem taxes. The first payment will be August 1, 2001.

All three local banks are participating in the county’s financing. The Donley County State Bank and the Community Bank will each hold $175,000 of the debt, and the Herring National Bank will carry $200,000.

The interest rate on the notes is 6¼ percent, and the notes can be called at any time. In other words, the county can pay the notes off ahead of time if it has the money.

Ken Smith of Southwest Securities set up the tax note offering for the county.

“I think you’ve got an excellent deal from the local banks,” Smith said. “They’ve been real good to you, especially Jerry Woodard [at Herring].”

County Judge Jack Hall said the court appreciates the help from the local banks.

“The commissioners and I are grateful for their support,” he said. “We think it’s a good reflection of the local support for this project.”

Smith said that 6¼ percent was a very good interest rate and that it would have been more difficult to make the notes callable if the county had gone through a public offering.

The money can be placed in an interest bearing account while the county waits for bills to come in on the restoration project, Smith said. Interest earned on the money must be used on the project itself or to pay on the notes.

Earlier this year Donley County was awarded $2.9 million from the Texas Historical Committee to completely restore and refurbish the county courthouse. Money from the tax notes issued this week will be used for the county’s 15 percent match and for other expenses related to the project.

Built in 1890, the Donley County Courthouse is the oldest functioning courthouse in the Texas Panhandle and is one of the most unique structures of its kind in the State of Texas.

Also in Monday’s session of the court, the commissioners considered a contract with Sun City Analytical, Inc., of El Paso for the abatement of asbestos, lead paint, and bat guano from the courthouse.

Sun City’s proposal would have cost the county $23,656. Following a telephone conversation with the court however, Sun City lowered their price by more than $2,300. The commissioners agreed to a contract in the amount of $21,521.

For more information on the restoration of the Donley County Courthouse, click here.