El Paso County preparing to ask taxpayers for up to $350 million in November bond election

El Paso County is planning to ask voters this November to approve as much as $350 million in bond debt to finance a range of new projects, as well as renovations at Ascarate and other county parks.

During a capital project planning presentation on Jan. 9, the El Paso County Commissioners Court considered financing a list of 100 projects – such as wide-ranging improvements to Ascarate Park, a new animal shelter and new office space for county workers.

El Paso County can raise a total of $500 million by issuing debt over the next five years, including as much as $150 million worth of certificates of obligation that don’t require voter approval. However, it would cost the county about $832 million to complete all of the potential projects on its list, according to the county’s cost estimates, so in the coming months the commissioners court must prioritize which projects to fund in years ahead.

Issuing debt beyond  $50 million “would begin to affect the county’s bond rating, or creditworthiness,” said Jose Landeros, director of strategic development for El Paso County. A downgrade in the county’s bond rating would likely mean the county would have to pay a higher interest rate on debt it issues going forward.

Some of the preliminary projects that the county is considering include more than $72 million for improvements at Ascarate Park – such as a splash pad, amphitheater and walking loop trail – and $1.2 million for an outdoor festival stage area at the park. The county is seeking millions of dollars to modernize county facilities, such as expanding a county annex office on the East Side, and $3 million for a new jail surveillance system.

Other projects with big price tags under consideration include $54 million to renovate the El Paso County Coliseum and $46 million for improvements to the Juvenile Justice Center. Commissioners also identified $96 million of projects to improve water and wastewater systems.

And a new county office complex and Downtown courthouse – one of the biggest single projects, which would alleviate “space constraints” the county said it is experiencing – would cost $132 million.

More: 'Bias-free' policing, ban on pet surgeries top next El Paso City Council agenda

The county is considering issuing certificates of obligation without voter approval, which are typically used to fund essential projects. County commissioners in November 2022 paused efforts to issue up to $100 million in debt in the form of COs after a handful of residents opposed the proposal and promised to petition against the bonds.

Landeros said that if the court chooses to ask voters for the maximum bond debt the county can issue – $350 million – and voters approve it, that would boost the county’s property tax rate by between 3 cents and 3.5 cents. That means an owner of a home in El Paso County valued at $200,000 would likely see their annual property tax bill increase by between $48 and $56.

El Paso County can incur about $130 million in debt without boosting the tax rate. But that’s not enough money to cover the county’s current needs, Precinct 2 Commissioner David Stout said.

“We have so many needs that we don’t have enough capacity with just that $130 million to be able to take care of (projects),” he said. “I’m willing to talk to voters about what they want.”

Precinct 3 Commissioner Iliana Holguin emphasized that commissioners have to slim down the list of projects they want to fund. She was the only member among the five court members who was skeptical of issuing the full amount of debt possible.

“It really does bother me now that we’re talking about an amount of $350 million that is going to potentially add either 3 to 3.5 cents to the tax rate,” Holguin said.

“We’re going to ask residents … to have to choose between increasing their taxes and getting better quality of life, like improvements to their park, and I don’t support that at all,” she said.

More: TSA found record number of guns in carry-ons in 2023. Here's how many were in El Paso

Delaying projects could wind up costing taxpayers more in the future as costs for things such as construction materials and labor continue to escalate, said Precinct 4 Commissioner Sergio Coronado.

“We need to look at it like taking care of our own house. Would (constituents) want to spend on fixing the roof so that it doesn’t dilapidate, and cause them more damage inside their house and cost them twice or three times as much? Absolutely not,” Coronado said. “These are things we need to spend on to keep our taxpayers from paying more later on.”

But there’s a risk that the county could propose taking on more debt than voters want, and the bond proposal loses at the ballot box. So it’s key for the court to decide which projects to fund with certificates of obligation versus voter-approved general obligation bonds.

Local governments can’t issue COs for any bond projects rejected by voters for up to three years following the bond election.

“I’m afraid, honestly, if we go for such a large amount that does impact the tax rate, I don’t know if the voters will vote for it,” Holguin said. “No matter how important the projects are, if they fail (at the ballot), we can’t fund them.”

The Commissioners Court will adopt a spending plan this month, and then the county will hold multiple public meetings throughout the area to gather feedback from March through June. The plan is to have a final project list and a financing plan in place by July, Landeros said.

“Since I’ve been at the county, we’ve been very fiscally responsible. Our tax rate is right now the same as it was when I came into office,” Stout said.

By paying debts early and restructuring other debt, El Paso county has, Stout said, “set ourselves up for this opportunity to be able to make really great investments in our community.”

This article originally appeared on El Paso Times: El Paso County eyes $350 million bond election this November