The new Smith County Courthouse will be built on the east side of the downtown square. Several downtown buildings will be removed, and demolition began this week. (Tyler Morning Telegraph File)

After receiving five bids, the Smith County Commissioners Court accepted the sale of the voter-approved courthouse bonds during its Tuesday meeting.

Specialized Public Finance Inc. bid the bonds, which will net the county $160 million to pay for the construction of the new courthouse. Closing on the sale is set for Sept. 21.

Steven Adams, Specialized Public Finance Inc. managing director, presented to the court and reaffirmed that Smith County’s high rating of AA+ helped the county attract competitive bidders.

“Five bids are good for a bond issuance of this size,” Adams said.

Adams said Jefferies LLC was the winning bid, with a true interest cost of 4.43%. Because the interest rate is so low, the bond will result in a “minimal tax rate increase to pay these bonds back,” he added.

The debt service portion of the total tax rate that is increased for Smith County taxpayers “is required to be increased to pay for the bond passed by the voters,” Adams said.

The $179 million bond package, which includes $160 million for the new courthouse and $19 million for a parking garage, was approved with 53.73% of the vote in November 2022.

The proposed fiscal year 2024 budget was filed on Aug. 15 and includes a proposed tax rate of .347264 cents per $100 valuation, an increase from the current tax rate of 33 cents.

Two public hearings were held Tuesday on the proposed budget and tax rate, and an additional public hearing will be held at 9:30 a.m. Sept. 5, when the proposed budget is scheduled for adoption.

The court also approved an agreement with Tyler Technologies to add the CourtFunds Jury Program providing electronic payment to jurors. A card will be issued to jurors to reduce the hassle of payment disbursements.

The cards cannot be reloaded and can be used where MasterCards are accepted.

“Going to the new payment system using cards instead of cash has its pros and cons, but we have plenty of time to work those out,” District Clerk Penny Clarkston said. “It will do away with cash paying the jurors, especially with the increase in payments.”

The juror payment is increasing from $6 to $20, effective Sept. 1.

There is potential for a kiosk in the courthouse for people who don’t have access to redeem those cards. Each card must be activated within 90 days, or the money is void. Jurors have 365 days to spend the money once activated.

Clarkston said money that doesn’t get used would come back to the county.