Santa Fe Public Schools approves $11 million education-technology note; bond closings set for July 2

The Santa Fe Public Schools Board of Education on June 17 approved the award of an $11 million education-technology note and accompanying lease to the New Mexico State Treasurer, a financing step the district says will fund technology acquisitions over the coming years.

The approval is part of a broader set of recent financings: the district also priced voter-authorized general-obligation bonds, and board presenters told trustees the sale is scheduled to close July 2, when bond and note proceeds will become available for district projects.

Eric Harrigan of RBC Capital Markets told the board the district priced a general-obligation bond series and an education-technology note earlier in the week. He said the general-obligation bonds were priced at about 4.513% on a short-term placement and that the $11,000,000 education-technology note carried an interest rate of about 4.76% with roughly a two-and-a-half-year maturity. Harrigan said both financings are scheduled to close on July 2, when funds will be available for projects.

Art Melendres, counsel with Modrall Sperling, explained the transaction structure to trustees. He described the note-and-lease arrangement as a mechanism by which the district issues a note as evidence of the obligation to pay and the district acquires equipment through a lease-purchase arrangement. "All of this is in accordance with New Mexico law," Melendres said.

Melendres also said purchases will come out of an acquisition fund and that an Exhibit A in the packet lists the specific equipment eligible for purchase. Board members confirmed purchases will be made "as needed over time," and the district will draw from the acquisition fund to complete individual procurements.

Board Member Heffron asked for clarification about what types of technology are covered; Melendres and staff pointed to Exhibit A for a detailed list. Trustees also asked about timing: Melendres said the purchasing and the funding schedule align with the fiscal year beginning July 1, 2025, and that the note's repayment period is about two years.

Board Member Bonaser moved to approve the award of the education-technology note and lease to the New Mexico State Treasurer; the motion was seconded and approved by the board. The action was recorded as Resolution 2024/2025-16. Board staff indicated signature pages would be completed following the meeting.

District presenters reminded the board that the recent sale used the last tranche of previously voter-authorized general-obligation bond authority from four years ago and that trustees earlier approved placing a $160 million bond question before voters this November to continue the district's capital program.

The board adjourned after completing signatures and said it would reconvene for its scheduled executive session and study session shortly afterward.