The Hays County Commissioners Court approved the creation of a new savings fund to help decrease the amount of debt issued to fund major future projects.
The big picture
The Capital Improvement Fund will provide the county with financial resources allocated to large, nonrecurring projects, according to agenda documents. Projects paid for by the fund will create new assets or extend existing ones.
Future projects that could be funded by the Capital Improvement Fund include construction, major renovations, infrastructure, and significant equipment and technology purchases.
How it works
The separate savings fund will allow the county to separate the budgets for current and future major capital projects.
The county will be able to rely less on issuing debt for major projects by utilizing the Capital Improvement Fund, according to the documents. Money in the account will come from excess in the general fund.
Commissioners Debbie Gonzales Ingalsbe and Walt Smith voiced a desire to utilize the fund to partially pay back debt that has previously been issued as well.
In their own words
“Creating this fund will help us in time so we don’t have to issue debt,” said Morgan Hammer, Hays County commissioner, Precinct 3. “Debt has its place, but a lot of debt is never a good thing. To be the most beneficial with taxpayer dollars, this is a no-brainer.”
“I love the idea, most importantly, of creating this capital investment fund, because it takes us out of the feast or famine mentality [and] it helps us to plan, project and forecast,” said Ruben Becerra, Hays County judge.