Las Cruces Public Schools closes $12.5M bond placement, board sets tax-rate intent and approves November bond question

Las Cruces Public Schools announced the closing of a private placement of general obligation bonds and on June 17 the school board outlined its intent to keep the district’s debt-service property tax rate steady while approving a resolution to place a general obligation bond question and a renewal of the public school buildings tax on the November 4 ballot.

District finance staff and external advisers told the board the district closed a 2025 general obligation bond issue on June 17 through a private placement with the state treasurer’s office for $12,500,000. Catherine McKinney (Mojo Sperling) and representatives from RBC Capital Markets reported the sale yielded an interest rate of 4.817% and included short-term maturities, with the final maturity on Aug. 1, 2027. An adviser explained the bonds were sold on a taxable basis because of the short term, which typically carries a higher interest rate but limits long-term interest cost because most principal is paid quickly.

Separately, staff presented a resolution stating the board’s intent to maintain the district’s historical debt-service mill rate at 4.612 mills. Mr. Liu (district finance staff) and the outside advisers explained the resolution assists the district’s rate-setting process with the Public Education Department and the county. Member Tenorio and others asked for clarity about how property tax levies appear on county bills and which parts of the levy fund debt service; advisers described land and improvements as taxable property and explained the district’s debt-service portion is the ad valorem levy that appears on county property tax statements.

The board approved the resolution establishing the intent to maintain the 4.612 mill rate (motion moved by Secretary Wofford, seconded by Member Tenorio; vote recorded in favor). Later in the meeting the board approved a separate, roll-call resolution to call a regular school district election that will place two items on the Nov. 4 local ballot: a general obligation bond question (recorded in the meeting materials as $65,000,000) and a renewal of the public school buildings tax (a 3-mill levy). The resolution to call the election was approved by roll call (votes recorded: Member Frank — yes; Member Tenorio — yes; Secretary Wofford — yes; Vice President Nolan — yes).

Board members and advisers emphasized that the district’s plan is to maintain the historical tax rate while issuing or seeking voter authorization for additional bonds; advisers noted the district’s long-term finance plan had communicated to voters that bond issuances would be structured to maintain the historical rate. Shirley O’Brien, district staff, presented the bond-project package that will be associated with the proposed bond question; the board then approved that project package for the 2025 general obligation bond question.

Ending: The board’s actions put a bond question and a building-tax renewal before voters in November while signaling intent to keep the district’s debt-service mill rate at its current level; proceeds from the closed private placement are available now for planned projects and staff presented a project list to accompany the November question.