The Travis County Commissioners Court has announced its intention to consider issuing up to $290 million in certificates of obligation on behalf of the Travis County Healthcare District, known as Central Health. The matter will be discussed during a regular meeting scheduled for October 7, 2025, at 9:00 a.m. at the Commissioners Courtroom located at 700 Lavaca Street in Austin.
According to the notice, the certificates could be issued in one or more series and would bear interest rates not exceeding the maximum allowed by law. The maturity period for these obligations would not exceed thirty years from their issuance date. The funds are intended for a range of purposes, including acquiring, constructing, expanding, improving, renovating, rehabilitating and equipping District facilities for medical and clinical services as well as administrative, support, training and parking facilities. Additional uses include purchasing materials and equipment for District purposes and covering related professional services such as legal, fiscal, engineering and design fees.
The repayment of these certificates will come from ad valorem taxes within statutory limits and surplus revenues generated by the operation of District healthcare facilities. This pledge is limited to $1,000 from surplus revenues. The estimated combined principal and interest required to pay off the certificates is $565.9 million based on an assumed interest rate of 5 percent; however, actual market conditions may result in different rates.
As of this notice’s date, Central Health has $157.67 million in outstanding public securities secured by ad valorem taxes (excluding those designated as self-supporting). The total combined principal and interest required to repay all such outstanding securities is approximately $222.5 million.
The proposed issuance follows procedures outlined under Texas Local Government Code Subchapter C of Chapter 271 and Chapter 281 of the Texas Health and Safety Code.
“TAKE NOTICE that the Commissioners Court (the ‘Commissioners Court’) of Travis County, Texas (the ‘County’), shall convene at 9:00 a.m. on October 7, 2025, at its regular meeting place in the Commissioners Courtroom, 700 Lavaca Street, Austin, Texas and, during such meeting, the Commissioners Court will consider the passage of one or more orders authorizing the issuance of not to exceed $290,000,000 total principal amount of certificates of obligation…for the purpose of paying contractual obligations to be incurred for: (i) the acquisition, construction…and equipping of District facilities…and administration…related thereto…” stated County Clerk for Travis County.
A downloadable version of this notice is available: Download Notice Of Intention To Issue Travis County Healthcare District Certificates Of Obligation (pdf).
