Hobbs board authorizes bond sale, plans to sell portion of voter‑approved package

The Hobbs Municipal Schools Board on July 17 approved a resolution authorizing the sale of school bonds and establishing procedures for the sale and delivery of bonds voters approved earlier this year.

Nick Kane of Stifel Public Finance, the district's municipal bond adviser, told the board the district has roughly $128 million in remaining bonding capacity based on 2024 assessor valuations and that voters approved $40.5 million in February. Kane recommended selling a portion—about $20.5 million—this summer, with closing scheduled toward August and without increasing taxpayers' mill rate because of a rise in the community's assessed valuation.

"School districts are allowed to bond up to 6% of that," Kane said while reviewing assessed valuations and debt capacity. He told the board the transaction schedule and maximum terms were set so staff could complete the sale during market hours without returning to the board for additional approvals.

Board members voted to delegate authority to Superintendent Strickland to complete routine steps for the sale under the parameters in the resolution. The motion passed on a roll‑call vote; board members recorded affirmative votes during the roll call.

Kane said the district expects to layer this sale on top of scheduled payoff events and that a later tranche of the voter‑authorized package will likely be sold early next year, assuming construction proceeds as planned. The presentation included a timeline, expected annual payment schedules and mill levy scenarios showing the district can proceed "without a tax increase for residents," Kane said.

The board approved the resolution and set maximum borrowing terms, with staff to return with closing details once market conditions are finalized.