JEMEZ VALLEY PUBLIC SCHOOLS board approves lease-purchase, escrow to fund tech after bond, ETN sale

The JEMEZ VALLEY PUBLIC SCHOOLS board voted unanimously to approve a series of financing measures on motions made during a regularly scheduled meeting, authorizing a lease-purchase arrangement, approving the corresponding lease-purchase agreement and ratifying a capital project escrow agreement that will hold and distribute funds once bond and note proceeds arrive.

Carissa Stone, of RBC Capital Markets, told the board the district sold $1,900,000 in general obligation bonds and $800,000 in education-technology notes on July 6. "The true interest cost on the general obligation bonds came in at 2.377%, resulting in total interest of around $76,000 for a total repayment of around $1,976,000," Stone said. She said the ETNs included a taxable component of $190,000, priced with a true interest cost of 2.556%, producing roughly $28,000 in interest for a total ETN repayment near $828,000. Stone said both the bonds and the ETNs are structured to mature through 2031 and are scheduled to close Aug. 21, when funds will become available to the district.

Carlos Padilla, identified in the meeting as representing the bond advisers, asked the board to take three separate votes so each agreement could be considered independently. Board members complied and approved each item by voice vote.

The first vote approved a resolution authorizing a lease-purchase arrangement that, advisers said, positions the district to access financing structured to use excess property tax collections and to help keep the district's tax rate level while achieving interest-cost savings. The second vote approved the lease-purchase agreement itself; the third approved a capital project escrow agreement with BOKF, which will hold proceeds from the financing and make payments as required under the transaction documents.

Superintendent (speaker 4) told the board staff will provide updates when funds are received and that planned uses of the funds will align with the district's strategic plan, with a primary focus on improving technology infrastructure for students and schools. "I will work with you and give you some updates as soon as the funding arrives and how we are utilizing those funding, aligned to our strategic plan," the Superintendent said.

The board recorded the votes by voice; during roll call earlier in the meeting the Secretary noted President Dr. Trujillo was absent and a quorum was present. The meeting packet referenced the agreements and included the debt service schedules and related transaction documents. The board had no further items and concluded the meeting.

Next steps: advisers said the financings are scheduled to close Aug. 21; the district will receive proceeds then and the superintendent indicated staff will report back on the timing and specifics of technology purchases and implementation.