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Corrales council hears presentation on $1.6M Series 2026 bonds for fire, flood and road projects
Summary
Village finance advisers and bond counsel outlined a plan to issue $1.6 million in general-obligation bonds through the New Mexico Finance Authority to fund fire-station and flood/road projects, saying the sale should not raise residents' tax rates for two years and is slated to close June 26, 2026.
Mayor Fred Hashimoto convened the Village of Corrales council on May 12 where finance advisers presented an ordinance authorizing the sale of $1,600,000 in general-obligation bonds ("Series 2026") through the New Mexico Finance Authority to fund fire-substation and flood/road projects.
Nick, a representative of Siebel Public Finance, told the council the $1.6 million represents remaining authorization from the 2023 election and said staff chose the finance authority because it offered a lower cost of issuance and more flexibility. "They have lower cost of issuance and are giving you the full flexibility to spend that bond proceeds on those projects as you see fit," he said.
Dan, bond counsel, walked members through the ordinance's provisions and legal documents, explaining the package includes a bond purchase agreement and a capital-projects escrow. He said the structure calls for an eight-year maturity, an estimated true interest cost of about 2.79%, and a closing scheduled for June 26, 2026. "These bonds will not be, these bonds have a no redemption provision," he said, adding the instruments fall within the ordinance's parameters.
Councilors asked technical questions about the debt-service graph and naming convention. Dan explained the graph shows existing debt and the proposed issue, and confirmed the plan is to maintain the current mill levy for two years so issuing the bonds would not require an immediate tax increase.
Staff said additional closing documents will return to the council for signatures and that the bond proceeds will be deposited into an escrow account subject to requisitions and audit. The presentation did not record a final vote in the transcript; staff said they will return to the council for required signatures at closing.
Why it matters: The ordinance would enable the village to fund prioritized infrastructure without an immediate tax increase, but it commits the village to a structured repayment schedule and oversight of project draws from escrow.
Next steps: Staff said they will bring finalized closing documents and signatures to a public meeting ahead of the June 26 closing.
