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Bond advisor: district valuation up; options to issue remaining authorization without raising tax rate
Summary
Stifel Public Finance told the board the district's assessed valuation rose about 4%, increasing bonding capacity to roughly $7.7 million; advisors expect residential rates near $10.9 per $1,000 and said state waivers and a $150,000 NMFA subsidy reduce the district's borrowing cost.
Nick, a municipal bond advisor with Stifel Public Finance, briefed the Tularosa Municipal Schools board on the district's 2025 general obligation bond sale and the local tax-rate outlook.
Nick said district valuations are up roughly 4% from last year and that the district's bonding capacity stands at about $7.7 million against a total valuation shown in the presentation. He told the board the district has about $1.25 million of remaining authorization from a prior bond issuance that must be used within four years.
On tax-rate impacts, Nick said preliminary 2025 residential tax rates are expected to be near $10.9 per $1,000 of assessed value and that the valuation increase allows the district to borrow the same amounts with a smaller immediate tax impact. He said the district qualified for a $150,000 allotment from the New Mexico Finance Authority at 0% interest, which lowers the blended borrowing cost; with fees and legal costs included, he cited an approximate effective cost near 3.34%.
Nick also reviewed state funding waivers that reduce local match requirements through 2027 and described how the district could layer debt and use state support to stretch bond dollars on larger projects.
“No tax increase with the new bonds, it is managing the overall levy that we've been working to bring down ever so slightly in the long run,” the advisor said, urging careful sequencing of issuances and reminding the board those decisions are typically done in coordination with the council and PSFA when larger projects require state involvement.
Board members asked about timing and communications; Nick offered to help present the tax-rate and bond-structure details to the county council when needed.
