Collin County's $817.5 Million Bond Would Carry $486 Million in Interest

Collin County voters will see four bond propositions on the Nov. 3 ballot asking permission to borrow $817.5 million. Each one carries the same words required by state law: THIS IS A TAX INCREASE.

The county's own voter information document shows what the borrowing would cost over time. At assumed interest rates of 5%, the four propositions would carry about $486 million in interest, for a total of roughly $1.3 billion in principal and interest.

The four propositions

• Proposition A, $296.5 million: courts, adult detention, medical and mental health detention, and probation facilities. Estimated interest: $176.3 million.

• Proposition B, $475 million: non-tolled roads and bridges. Estimated interest: $282.5 million.

• Proposition C, $6 million: parks. Estimated interest: $3.6 million.

• Proposition D, $40 million: a building for elections and records. Estimated interest: $23.8 million.

The county already owes about $1.13 billion in principal on outstanding debt, plus about $506 million in remaining interest, as of Aug. 10, according to the same document.

Jail beds and courtrooms

About $90 million of Proposition A would build two jail housing clusters with about 550 beds, according to the Prosper-Celina Journal. The jail held about 1,200 inmates as of Aug. 10. County Administrator Yoon Kim said the money would also finish 15 courtrooms that were left unfinished.

Proposition D would give the elections office and county records a permanent home. The county currently pays about $650,000 a year in leases.

What it means for the tax rate

The county says its financing plan does not anticipate a debt service rate increase from Proposition A, C or D on its own. If all four pass, along with the remaining money from the 2023 bond, the county projects its debt rate would rise to about 5.14 cents per $100 of value, up about 0.95 cents. On a $100,000 home with no exemptions, that is about $9.51 a year, the county says. By Dock Line's calculation, a $500,000 home would pay about $48 more. Community Impact reported a projected rate near 4.95 cents by 2031, so the exact figure depends on which year and assumptions are used.

Those projections assume taxable values keep growing 3% a year. If growth slows, the burden rises.

A county that just raised taxes

In September, commissioners adopted a total rate of $0.151414 per $100, the county's first rate increase in decades, KERA reported. The vote was 4-1, with County Judge Chris Hill opposed. The county estimated the median homestead bill would rise to about $745, from about $682.

Collin County residents will also see other borrowing on their ballots. Collin College is asking for $600 million, the Prosper-Celina Journal reported.

The questions to ask

The county has grown fast, and nobody disputes that roads and courtrooms are needed. The question is how much, how soon and at what price. Voters can approve some propositions and reject others. Each stands on its own.

Early voting runs Oct. 19 through Oct. 30, and Election Day is Nov. 3. Read the county's voter document before you go. The numbers are all there, including the interest. Dock Line has also looked at Houston's tax rate and Amarillo's forensic audit.

Hero photo: Larry D. Moore via Wikimedia Commons, CC BY 4.0, cropped and resized.