Williamson County Plans To Pay Down $42M In Debt

WILLIAMSON COUNTY, TX — The Williamson County Commissioners Court this week authorized a paying down of $42 million in debt.

The so-called debt defeasance aims to trim principle and interest, a measure included in the county's fiscal year 2020 budget. Commissioners said the measure will result in a savings of some $20.2 million in interest payments, explaining that the county issues debt to finance long-term capital projects — roads, parks, buildings and the like. About 84 percent of the county’s debt is from voter-approved road and park bonds, officials added.

Commissioners noted that Williamson County has saved more than $135.6 million in interest through its efforts to pay off debt early and refinancing in the course of the past 20 years or so.

“Paying down debt early has been a priority of the Commissioners Court for several years," Precinct 3 Commissioner Valerie Covey said in a prepared statement. "I have been a strong advocate of making this part of our annual budget process in order to save the taxpayers millions of dollars."

County officials added that the commissioners court is allocating $25 million in its fiscal year 2021 budget for debt defeasance. Commissioners referenced favorable terms given for debt issue by virtue of the county's AAA bond ratings reaffirmed by both the Fitch Ratings and Standard & Poor’s ratings services.

Read more at the county’s financial reports page.