Board approves $18.25 million bond question for November ballot; members cite assessed-valuation drop and veteran tax exemptions

The Gallup-McKinley City Schools board voted to place a proposed $18,250,000 general-obligation bond on the November 2025 ballot.

Deputy Superintendent Hanks and other staff briefed the board on the amount, saying it reflects the district’s bonding capacity under state law (the district may issue general-obligation bonds up to 6% of assessed valuation) and anticipates reductions in assessed valuation. The staff presentation noted a prior election involved a $6,000,000 proposition; staff said assessed valuation declines (which they estimated at roughly $9.4 million in one year) and newly adopted veteran property-tax exemptions further reduce the district’s bonding capacity.

Hanks explained the proposal seeks to maintain a steady tax rate while limiting the bond ask to what the district can legally carry. She said the recently adopted veteran exemptions have the unintended effect of shrinking the assessed valuation the district can bond against and described discussions among county assessors and state officials about whether the benefit might be better delivered as a state tax rebate rather than a reduction of assessed valuation.

Board members debated the policy trade-offs and asked whether the state could offset impacts. The superintendent replied that the district will continue conversations with county assessors and state officials.

A motion to adopt the 2025 election resolution and place the bond question on the November ballot passed on a roll-call vote. The roll call recorded the following votes on the bond resolution: Mitchell — yes; Benally — yes; Schaaf — yes; Long — yes; Mortensen — yes. The chair declared the motion adopted.