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Commission approves publication of ordinance tied to third G.O. bond issuance, signs advisory and counsel engagements
Summary
The Truth or Consequences commission approved publication of Ordinance No. 772 to begin the third installment of voter-approved general obligation bonds, heard a presentation on debt and mill-levy projections, and approved municipal advisory and bond counsel engagements for the issuance.
The Truth or Consequences City Commission voted to publish Ordinance No. 772 to advance a third installment of voter-approved general obligation (G.O.) bonds and approved related advisory and counsel engagements for the sale.
Mark Belzenfeld, the financial presenter, told the commission the current issuance would include roughly a $790,000 principal piece that, with interest under conservative assumptions, could cost about $970,000 annually. "Right now, we're being very conservative with the 5% rate," Belzenfeld said, adding that the rate could be closer to 3.5% when finalized and that staff is projecting a 3.5-mill levy for revenue purposes. He said the New Mexico Finance Authority board is scheduled to consider approvals in December and that staff currently "assume the transaction will close on January 9, 2026."
City management told the commission $440,000 of this bond is already pledged for a water project currently out to bid, and that proceeds have been earmarked across water, wastewater and streets. City Manager Matthew Whitehead said the bond program remains affordable under the projected mill levy and described the city's approach to preserving flexibility for future issuances.
Commissioners also approved an engagement agreement with the city's municipal advisors and a standard bond-counsel engagement letter; presenters said fees are payable only if the transaction closes and match prior-issuance terms. The commission recorded a roll-call vote to publish the ordinance and to delegate authority in the ordinance to the mayor and city manager to accept final pricing terms when available.
Why this matters: The ordinance publication begins the legal and public-notice steps needed to offer the bonds to investors and allows staff to finalize pricing and close the transaction after NMFA approval. Commissioners emphasized transparency about uses of proceeds and timing.
The commission moved other housekeeping items tied to the bond sale, including advisory and counsel engagements, before continuing with the agenda.
