Silver Schools closes $7 million bond sale; mill levy set to reach 10 mills

Mark Valenzuela, the district’s bond advisor, told the Silver Consolidated Schools Board of Education on Jan. 20 that the district has closed the first bond issuance authorized by voters. “We have met those goals with this first issuance,” Valenzuela said, reporting a $7,000,000 sale priced to a 20-year final maturity and a true interest cost of 4.3 percent.

Valenzuela said the sale was completed in a difficult market day for municipal debt and that the district’s enhanced state rating and the underwriter’s work helped secure the financing. Hilltop Securities acted as underwriter through a competitive RFP; Valenzuela said Hilltop bought roughly 30 percent of the transaction on its own balance sheet to help the deal close. The offering produced about $209,000 of premium and roughly $61,635 of residual proceeds that will be deposited into the district’s debt service account.

The bond sale was the first installment of a multi-year plan Valenzuela described to match state participation in school facility funding. He said the district’s local match under the plan will rise so the overall tax rate reaches a minimum of 10 mills, a threshold the district was told the state requires before increasing its share; Valenzuela said, “The mill levy next year will be set at 10 mills.” The district plans additional installments of roughly $6 million each in subsequent years, he said.

Valenzuela outlined intended uses for the proceeds: match funding for the first phase of the Cliff School project and additional work across district facilities, including roofs and HVAC. In the board packet and presentation he also noted the state allows bonds with up to a 20-year final maturity. Valenzuela described a repricing decision the superintendent and finance director authorized during the sale after rates rose that day; moving some principal forward reduced the district’s long-term interest cost and, according to Valenzuela, limited the net increase in interest expense to the district.

Superintendent Hawkins and Finance Director Michelle McCain were cited repeatedly as having guided market decisions. Board members thanked local participation; Hawkins later confirmed a local depository, First New Mexico Bank, participated in the purchase.

No board action or vote was required at the meeting—the presentation was informational and the board took no formal vote on the bonds that evening.

Valenzuela and district staff said they will continue monitoring debt capacity and market conditions as they schedule future sales in the multi-year plan.