Santa Fe County approves sale of up to $21,025,000 in general obligation bonds

The Santa Fe County Board of County Commissioners on Thursday approved a resolution authorizing the issuance and sale of up to $21,025,000 in general obligation improvement bonds, Series 2025, and approved a preliminary official statement and a form of registrar and paying agent agreement. Commissioner Justin Green moved the measure and Commissioner Hank Hughes seconded; the motion carried and was assigned Resolution No. 2025055.

The bonds represent part of $33,525,000 in general obligation authority voters approved at the November general election via three bond questions. County Manager Schafer told commissioners the $21,025,000 proposed for sale covers projects for roads and for open space, trails and parks; the remaining $12,500,000 in voter-approved authority will be placed with the New Mexico Environment Department for water and wastewater projects, where loan interest rates are close to zero.

The county spelled out parameters for the sale: the net effective interest rate shall not exceed 10 percent; bonds would be sold for no less than par and not more than 115 percent of face value; and the underwriting discount would not exceed 3 percent of the par amount. Manager Schafer said staff anticipates a competitive sale on or about June 5, with a closing around July 1, and that the county has applied for a rating from Standard & Poor’s. Schafer said the preliminary official statement included background on county finances and overlapping debt and had been reviewed by county staff, bond counsel and the county’s financial advisor.

Schafer said county staff recommended approval; he identified finance division staff, Deputy County Manager Leandro Cordova, bond counsel Peter Franklin and financial adviser Eric Harrigan of RBC Capital Markets as reviewers. The resolution also approves a registrar and paying agent agreement with BOKF, National Association to handle bond registration and scheduled payments on the county’s behalf.

During discussion, Commissioner Justin Green asked whether the timing reflected market conditions or urgency to have funds available. Schafer said market uncertainty and the possibility of changes to the federal tax treatment of municipal bonds were factors in moving forward now, and that having proceeds available would allow the county to begin spending on approved projects. Commissioner Hank Hughes clarified that the planned NMED financing would remain a general obligation of the county and be repaid through a property tax levy.

The board’s action approves the sale authorization, the preliminary official statement and the registrar/paying agent agreement; no specific project-level spending decisions were made at the meeting. According to Schafer, proceeds would be available after the anticipated July 1 closing and used for the roads and open-space projects identified in the voter-approved bond questions.