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Hobbs Municipal Schools authorizes $20 million bond sale to advance capital projects
Summary
The school board voted to authorize the final $20 million from its 2020 bond authorization after a finance presentation showing a $2.7 billion assessed valuation and remaining bonding capacity; the resolution passed on a roll-call vote.
Nick Cain, the district’s assistant superintendent of finance, told the Hobbs Municipal Schools Board of Education on June 11 that the district plans to issue $20 million in general-obligation bonds this summer under the authorization voters approved in November 2020. "We're going to be talking about the 2026 general obligation bond sale," Cain said during a slide presentation that showed the district’s total assessed valuation at about $2.7 billion.
Cain said school districts in New Mexico may bond up to 6% of assessed valuation, which he calculated as roughly $165 million for Hobbs; with about $44 million currently outstanding, the district has a remaining theoretical capacity of roughly $121 million. The $20 million issue would leave significant headroom for future projects, Cain said, and could result in a lower tax impact because valuations have risen about 2.5% this year.
The presentation explained the district’s plan-of-finance and recommended a public sale with standard parameters — including a not-to-exceed maximum interest rate and delegation of final sale authority to district staff to complete the issuance this summer. Cain outlined a target schedule that would allow closing on the issuance by the end of August if the board approved the resolution.
Board members asked whether a proposed constitutional change on the November ballot — which would allow local questions to be placed on more statewide election dates — might give the district greater flexibility for future bond elections. Cain said the proposed change would allow districts to place bond questions on additional statewide ballots and could make timing more flexible.
After the presentation the board approved a resolution authorizing the sale, establishing procedures for sale and delivery, and delegating matters related to issuance. The resolution passed on a roll-call vote with board members voting in favor.
The district will publish its official bond documents and follow standard public-bond sale procedures once staff finalize parameters and the board’s delegations.
