By Gloria Way
Legend has it that many, many years ago, Certificates of Obligation were created by the Texas legislature because municipal and county officials argued that emergencies and time-sensitive infrastructure needs required a financing tool that did not depend on waiting months for an election. Emergency situations such as hurricanes, tornadoes, wildfires, infrastructure failures, and other incidents require immediate action for recovery which requires immediate access to funds. Many local government entities do not have the cash to purchase equipment, pay personnel, etc., to deal with these situations in a timely manner. Certificates of Obligations filled this gap by allowing governing bodies to authorize debt directly after providing public notice but without a public vote. But good intentions can and do lead to abusing a system that was intended as a tool to provide financial assistance to local municipalities and counties in emergency situations.
Chambers County has been having a love affair with Certificates of Obligation for over a decade. In the years 2012, 2013, 2014, 2015, 2016, 2020, 2021, 2023, 2024, Chambers County Commissioners Court has passed up to $224,520,000.00 in tax and revenue supported debt without a vote of the people. Adding the original interest amount of the COs, the amount comes to $263,769,729.12. The monies were used for infrastructure projects, parks and recreation, public safety, etc. The COs were passed without a public vote and many feel that the voters were bypassed on having a “say” in the county accumulating more debt. Critics have complained that Commissioners Court use COs on pet projects for the purpose of getting reelected
Item #2.1 on Chambers County Commissioners Court for Tuesday, July 28, 2026, states: Discuss and consider approval of a resolution authorizing the publication of a Notice of Intent to issue Chambers County, Texas Certificates of Obligation, Series 2026. The CO information presented with the agenda item packet stated that the CO was in the amount of $45million for roads and bridges, new community building, baseball field, soccer fields, and restrooms. At Commissioners court when the item came up for a vote, County Auditor Aaron Thomas told the Commissioners that the request for the CO had increased an additional $5million, bringing the total to $50million. The additional $5million is for “public safety”.
Thomas reminded the Court that even if item #2.1 passed, they still had the ability to cancel the CO or lessen the amount of $50million before September. Thomas stated that the county just received the new tax rate and the county can analyze its 2027 budget with the new tax rate and determine whether to proceed or not with the $50million CO.
Commissioners Tommy Hammond and County Judge-elect Commissioner Ryan Dagley voted “no” on the resolution to authorize the $50million CO.
Dagley explained his “no” vote stating, “I voted no on the proposed CO due to items on the CO not fitting into how I feel COs were originally intended. I am for the projects listed but not for the method which is proposed to fund them. It is basically amenities verses necessities. Some of the projects should go before the voters.”
Commissioner Mark Tice and Commissioner Jimmy Gore voted in favor of the $50 million CO with County Judge Jimmy Sylvia casting the deciding vote for the resolution to pass.