Bobby Villareal, the district’s financial advisor, told the Hidalgo County Drainage District board that the district sold three bond series this month — a refunding, a taxable series and a tax-exempt new-money series — and closed roughly $44.26 million in bonds as part of the district’s 2023 bond authorization.

The sale included a refinancing that lowered interest costs and a taxable tranche for revenue-generating projects, Villareal said. He told the board the market timing — moving sales to Monday and Tuesday before a Federal Reserve action — likely saved the district “probably 500 to 600,000 in interest by just moving it over a couple days.”

The presentation explained the district previously received voter authorization of $195 million in 2023; after the latest issuance and anticipated Texas Water Development Board (TWDB) participation the district has about $90 million remaining under that authorization for future projects. Villareal said the debt service schedule was structured so the district should not need to raise the tax rate for these sales, and that the tax-exempt series was structured out to 20 years while the taxable series was short-term.

Commissioners asked about capacity to borrow and project delivery. Villareal said market capacity and the district’s structure would likely allow “another couple 100,000,000” in borrowing capacity without raising the tax rate, though staff noted that construction capacity limits mean projects cannot all be delivered simultaneously and that engineering and project management resources will constrain the pace of work. The board discussed coordinating issuance timing with project readiness and with state grant or loan programs to avoid holding cash and paying extra interest.

No vote or formal action was required for the presentation. The board’s general manager and project staff said they will continue to coordinate issuance and project schedules with engineers and precinct staff.

Villareal and the financial team credited district staff and advisors for preserving rating levels and achieving favorable market reception: the sale drew three to four times more orders than bonds offered, helping reduce interest costs.