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Alamogordo approves first publication to borrow about $12.87 million for municipal natatorium; $4 million in local GRT rededicated
Summary
The City Commission approved first publication of Ordinance 17-22 to pursue a roughly $12.865 million loan through the New Mexico Finance Authority for a municipal natatorium and clarified rededication of a 0.125% municipal infrastructure gross receipts tax and $4 million of fund balance toward the pool.
The Alamogordo City Commission on Feb. 24 approved first publication of an ordinance that would allow the city to borrow roughly $12.865 million to construct a municipal natatorium, and staff described how a previously dedicated municipal infrastructure gross receipts tax and a $4 million dedicated fund balance will be applied to the project.
City attorneys and finance advisers explained that Ordinance 17-22, as presented for first publication, authorizes a loan and related intercept agreement so the city can secure financing through the New Mexico Finance Authority (NMFA). City staff said the $12.865 million figure includes issuance costs and fees; the pool’s construction budget was directed to be designed at $12,000,000 so that debt service aligns with available rededicated funds.
Chris Muirhead, an attorney working with the city, told commissioners the drafting change to Ordinance 17-21 replaces earlier language to reference the city’s municipal infrastructure gross receipts tax consistently in the city code. "It is still substantively exactly what you expect it to be," he said of the rededication.
Evelyn (city staff) said the total loan amount includes fees and issuance costs and that NMFA will finalize pricing when its board meets; staff estimated a 25-year term and mentioned a current net interest-cost estimate near 4.93 percent but stressed those figures are market estimates and will be presented with final terms at the next meeting. "When we're back on March 24 for the actual final adoption ... you'll know exactly what your annual debt service is," counsel said.
The commission recorded a roll-call vote of 7-0 to approve first publication of the loan ordinance; final approval would require the commissioners to adopt the ordinance at a subsequent meeting after NMFA sets final pricing. Staff said the city expects to use the $4,000,000 the voters previously dedicated to local economic development (now referenced in code as the 0.125% municipal infrastructure gross receipts tax) for the project and that remaining balances and other local contributions would cover non-debt items if needed.
The loan, if approved, would be secured and repaid consistent with New Mexico Finance Authority processes; staff and advisers said they would return with full debt-service schedules, redemption provisions and final terms before any binding commitment.
Note on precision: figures reported at the meeting were described by staff and counsel as current estimates and subject to change when final pricing is presented to the commission for final adoption.
