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Taos Municipal Schools board approves up to $5.5 million lease‑purchase for classroom technology
Summary
The Taos Municipal Schools Board on July 22 approved a resolution to authorize a lease‑purchase financing arrangement of education-technology notes not to exceed $5,500,000, selecting Sentinel Bank of Taos; closing is scheduled for Sept. 3.
The Taos Municipal Schools Board of Education on Wednesday night approved a resolution authorizing a lease‑purchase arrangement and the issuance of education-technology notes with an aggregate amount not to exceed $5,500,000.
The board voted unanimously after a presentation by municipal bond advisor Carolyn Salazar Ives of Stifel Public Finance and responses from bond counsel. "Tonight, you are being asked to consider for approval the resolution to authorize entering into a lease purchase agreement for the district's ... education technology notes," Salazar Ives said in her summary of the sale. The board moved to approve Resolution "20 26 0 7 22," with a second from Board Member King; President Flores, Vice President Spray, Secretary Trujillo, Board Member King and Board Member Concha voted yes.
Advisors said the notes have a three‑year repayment structure with interest in the approximate range of 3.05% to 4.50% and that the issuance includes both taxable and tax‑exempt components. The documents identify Sentinel Bank of Taos as the selected lender. Stifel and bond counsel said legal documents will be published next week to start a 30‑day waiting period, and the transaction is scheduled to close on Sept. 3, when the district would receive funds.
Bond counsel Catherine McKinney explained the legal form of the financing. "All other general obligation debt requires voter approval," McKinney said. She added that because the financing is structured as a lease‑purchase arrangement it is an accommodation of a constitutional provision that permits this form of financing without voter approval.
The board held no public comment on the measure. The special meeting adjourned after the vote; a regular board meeting was noted to follow later the same evening.
