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Las Cruces school board adopts $12.5 million general obligation bond resolution
Summary
The Las Cruces Public Schools Board voted unanimously April 22 to authorize issuance and sale of $12,500,000 in general obligation bonds — the final installment of a voter-approved 2021 bond package — to be sold to the New Mexico State Treasurer’s Office under a delegated pricing plan.
The Las Cruces Public Schools Board of Education voted unanimously April 22 to adopt a resolution authorizing the issuance and sale of $12,500,000 in general obligation bonds, the district’s bond counsel said.
Casper McKinney of Modrall Sperling, the district’s bond counsel, told the board the resolution authorizes the last installment of the voter-approved bonds from 2021. “These bonds are payable from the property taxes levied within the district,” McKinney said. The resolution sets delegation parameters, including a maximum principal amount of $12.5 million and a final maturity no later than Aug. 1, 2027.
The resolution delegates to district officials the authority to fix final terms and execute a pricing certificate and bond-purchase agreement after the state treasurer’s office prices the bonds. McKinney said the district will sell the bonds in a private placement to the New Mexico State Treasurer rather than in a public competitive sale. The Bank of Albuquerque was named paying agent and registrar in documents included in the board packet.
“Eric [Kerrigan] and the financial team are monitoring pricing and will advise on timing,” McKinney told the board when asked about market volatility. “He doesn’t have a crystal ball either, but he will be mindful of the market as he looks to price these.” Board members were told a scheduled closing date is June 17; proceeds would be available at closing and the pricing details will be reported back to the board the same day.
President Court called for a motion; the measure was moved by Ms. Tonordio and seconded by Secretary Wofford. The board recorded the vote as unanimous. District staff said the resolution completes bond authorization steps voters approved in 2021 and is intended to fund remaining voter-approved capital projects.
Why it matters: The bond proceeds will be repaid from property taxes levied within the Las Cruces Public Schools district and will finance capital projects included in the district’s 2021 voter-approved bond package. Board members asked about timing and market risk; staff and bond counsel said the delegated-sale structure and short maturities reduce refinancing and redemption complexity and that district financial advisers will time pricing to the market.
The board scheduled a follow-up report to disclose final pricing and the bond-purchase terms once the State Treasurer’s Office completes the pricing process.
