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Hobbs board authorizes early payoff of Series 2023 bonds, board hears estimated $273,000 interest savings

Hobbs Municipal Schools Board of Education · November 21, 2025
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Summary

Board approved a defeasance resolution authorizing up to $2,010,000 to defease selected 2023 bond maturities; advisers estimated about $273,000 in interest savings from a recommended $1,900,000 payoff and the board approved the transaction by roll call.

The Hobbs Municipal Schools board voted to authorize a defeasance transaction to prepay portions of the district's Series 2023 bonds.

Bond advisers told the board that over the last five years the district has defeased roughly $15.4 million of bonds, saving about $2.3 million in interest. For the current transaction, advisers recommended defeasing $1.9 million of outstanding maturities. The resolution that the board considered authorized a maximum of $2,010,000 to be applied to defeasance of specified 2027–2029 maturities and an outstanding 2031 maturity; advisers estimated the transaction would save the district approximately $273,000 in interest cost.

Bond counsel from Cuddy McCarthy reviewed the resolution and the related escrow agreement, explaining the process of notifying bondholders and placing funds in escrow for payment of the listed maturities. Board members expressed support for returning interest savings to taxpayers and for holding the mill levy steady while layering on newly authorized bonds approved by voters.

The resolution was approved by roll call. The meeting transcript recorded recorded yes votes from Mister Calderone, Miss Randall, Mister Romine, Miss Jones and the presiding speaker who said, "I vote yes." The advisers and counsel in attendance included representatives from Stifel and Cuddy McCarthy. Board members indicated the defeasance supports long‑term levy stability and accommodates newly authorized bonds without raising the mill rate.