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Bond counsel: lease‑purchase structure allows financing without voter approval
Summary
Bond counsel told the Taos board the lease‑purchase form is an accommodation of a constitutional provision and, unlike other general obligation debt, does not require voter approval; the board voted to proceed with the financing.
During questions about the financing structure, a board member asked what a lease‑purchase arrangement means compared with traditional general obligation debt. Bond counsel Catherine McKinney explained the constitutional and legal basis the district is relying on.
"All other general obligation debt requires voter approval," McKinney said. "Because of a constitutional provision and that this comes in the form of a lease purchase arrangement, it is a permitted form of debt for the district that does not require the voter approval." She described the lease‑purchase arrangement as the form the district is using to finance education technology and said the legal documents will be published next week to initiate the required waiting period.
The board accepted the explanation and proceeded to vote to approve the resolution authorizing the lease‑purchase notes.
