Board adopts necessity resolution to use education-technology notes; special meeting slated for Aug. 24

The Rio Rancho Public Schools Board approved the necessity resolution for education-technology notes (ETNs) on July 27, taking the first formal step required by state statute to issue short-term notes for technology infrastructure. District staff and bond counsel said the ETN program would allow the district to issue roughly $3,000,000 in ETNs each year while keeping the combined GO‑bond and ETN levy essentially level for taxpayers.

Bond counsel Catherine McKinney summarized the necessity resolution and statutory timing: "The resolution before you is the first of two resolutions...this is considered the necessity resolution," she said, adding that the ETN estimated tax rate is "the 83¢ that won't result in an overall increase to the taxpayers" because the debt-service between GO bonds and ETNs is managed as a level levy. Financial advisor Eric Herrington explained that ETNs are short notes that will be priced with the New Mexico State Treasurer and that a special meeting will be required for the award and pricing.

Board members asked about the useful life of technology and repayment schedules; Member Michael Berry noted technology depreciates quickly and asked whether the short-term maturities were intentional. Herrington confirmed the ETN maturity structure is short (maturity around Aug. 1, 2027 for one noted series) and McKinney noted ETNs are typically capped at five years. The board voted to adopt the necessity resolution and scheduled an Aug. 24 special meeting (audit committee at 4:00 p.m., special session around 4:45 p.m.) to approve award documents and pricing.