The CCSD Board of Education approved a resolution authorizing a lease‑purchase agreement, the lease‑purchase contract itself and an escrow agreement tonight to finalize an EdTech financing package with the New Mexico Finance Authority (NMFA).
The vote was 4–0 to approve the three documents that will let the district borrow $5,000,000 for technology equipment, with the NMFA interest rate locked at 2.48% over a four‑year term.
The loan closing will follow board approval and — if final documents are executed — staff said the district is scheduled to receive the loan proceeds on Sept. 19. The district’s finance director, Dominic Satania, introduced municipal bond advisor representatives from Stifel Public Finance. Nicholas Kane of Stifel told the board the NMFA offered the district a “very competitive interest rate” and that the borrowing is tax‑exempt because of the projects submitted through NMFA.
Board members asked about legal review, repayment structure and the effect on the mill levy. Board attorney testified she had reviewed the package and provided a memo supporting the transaction. Stifel and staff described a plan of finance intended to level the mill levy while structuring repayments over four years. The district’s advisers said the first year’s levy is set so the rate remains largely unchanged and that the plan intentionally allows the district to pursue future state matching funds through PSFA programs.
Board discussion also covered prepayment options and cost if the district repays early. Stifel said because the note matures in four years there is no standard early‑call/prepayment option; adding a prepayment (a “call”) from closing would raise the interest rate. A board member pressed for a simple example of the levy effect; Stifel said a 0.8‑mill change equates to about $26.40 annually on a $100,000 home (about $2.20 per month if taxes are paid monthly). Stifel also illustrated total debt service on the $5 million as about $5.2 million over four years (roughly $200,000 in interest at the 2.48% rate).
The formal motion before the board was to approve (a) the resolution authorizing the lease‑purchase agreement, (b) the lease‑purchase agreement, and (c) the escrow agreement. Board member Montoya made the motion; the motion was seconded by Lasquez; the roll‑call votes recorded Montoya, Aspis, Haske and Wells voting yes. The board president announced the motion carried, 4–0.
Board members and staff said the proceeds are earmarked for technology equipment and that the financing is separate from operating revenue. Staff stressed operational budgeting and state aid remain distinct from capital financing for facilities and equipment under SB 9 capital maintenance rules.
The board also approved adjournment of the special meeting and moved into the scheduled work session.