County hears options for courthouse: renovation cheaper but new build exceeds property‑tax capacity

Mark Valenzuela, bond advisor with Bosque Advisory Group, presented financing scenarios to the Grant County Board of Commissioners on Dec. 11 for a potential courthouse project and stressed the importance of matching project size to the county’s constitutional debt limits. "Based on $900 million of assessed value, the county’s gross constitutional capacity is about $36 million and net bonding capacity is roughly $26 million after existing debt," Valenzuela said. He laid out two project scales — a $20 million rehabilitation of the existing courthouse and a $36 million new facility — and modeled three funding splits (100% county, 75/25 county/state, 50/50 county/state). Valenzuela warned that a fully county‑funded $36 million project would exceed property‑tax capacity and would more than triple current debt mills under local rules. Commissioners asked for specifics about voter timing and constraints, and Valenzuela explained how New Mexico’s rules limit general‑obligation bonds to 4% of taxable value and require voter approval for property‑tax debt. Commissioners raised political and equity concerns. Commissioner Flores said many constituents are already frustrated by recent tax increases and said she could not support large tax hikes that would be borne countywide. Commissioner Stevens urged exploring creative public education and clearer ballots so voters understand where money would go. In response to questions, Valenzuela also reviewed gross‑receipts tax options: a county‑imposed 0.125% increase (requiring only commission action) and a quarter‑percent voter‑approved option each generate additional bonding capacity; combined, they could approach the figures needed for a $20 million project. The discussion ended without a vote on a courthouse plan. Instead, commissioners later directed staff to prioritize road improvements and the Hilo Library in the governor’s capital outlay application and to pursue state partnership options for courthouse work. The county manager and bond advisor agreed to return with tighter cost estimates and financing details if the board wants to proceed.