RBC briefing: education‑technology notes could fund devices without raising overall tax rate, at the cost of future bond capacity

The Rio Rancho Public Schools board received a technical briefing on June 8 from Eric Herrigan of RBC Capital Markets about the mechanics and tradeoffs of creating an education‑technology note (ETN) program.

Herrigan explained the district's tax base growth and recent voter‑approved veteran exemptions that the adviser estimates will reduce assessed value by roughly $250–$300 million (~6–6.5%). Against that backdrop, he showed how ETNs could be layered into the district's current GEO bond debt structure while keeping the combined tax rate unchanged: "the tax rate as a total would stay exactly the same," Herrigan said, describing a hypothetical $2.5 million per year ETN program that would show up as a separate line item while lowering GEO bond capacity in future elections.

Herrigan warned the primary tradeoff is lost future GEO bond capacity: modeling showed that a five‑year ETN program could reduce the district’s future GEO bond authorization capacity by several million dollars compared with issuing only GEO bonds. He also noted that, unlike GEO bonds, ETNs generally do not require voter authorization under a 1984 constitutional amendment permitting school boards to issue them—though boards may choose to seek voter approval.

Board members asked for details on proposed uses and asked staff to return with a spending plan if the board wants to proceed. The presentation was technical and advisory; no board vote was taken on moving forward with ETNs at this meeting.