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State Bonds

A: Senior Citizens   B: Library    C: School Buses    D: Higher Ed

2018 GENERAL OBLIGATION BONDS

Seal of the State of New Mexico
A bond represents a debt for money borrowed by a government to finance capital improvement projects. The State of New Mexico promises to repay the amount borrowed, plus interest, over a period of time for each General Obligation bond that is approved by voters. The bonds are called “General Obligation” because payment of the debt service (principal plus interest) is a general obligation of the of the State and its property owners through property taxation. According to the Board of Finance Division of the NM Department of Finance and Administration, the specific amount of property taxes collected in a given year is attributable to a number of factors, including the amount of debt service required for existing general obligation bonds, the projected debt service required for the new bond issue, the latest assessed valuation of net taxable property, cash balances in bond debt service accounts, the date of issuance, and the actual interest rate obtained on the bond sale.

Based on the assumption that all four bond issues will be passed by voters, the property tax year 2018 mil levy has been set at 1.36 mils, which is the same as the 2016 and 2017 rates. The State Board of Finance estimates that over a ten-year period, the four issues on the ballot would cost approximately $8.91 per $100,000 of asset value. Of the annual average $8.91, Bond Issue A accounts for $0.58, Bond Issue B accounts for $0.69, Bond Issue C accounts for $0.33, and Bond Issue D accounts for $7.31.

Each question set forth in this section includes a specific work or object to be financed by the bonds. If any such question is not approved by a majority vote of the electorate at the state’s 2018 general election, the issuance of bonds for the work or object specified by the question shall be excluded from and shall not be part of the 2018 Capital Projects General Obligation Bond Act. The failure of a question to be approved by the electorate at the 2018 general election shall not affect those questions that are approved at the election.

2018 Capital Projects General Obligation Bond Act

The New Mexico Legislature passed the 2018 Capital Projects General Obligation Bond Act detailing projects that would be funded by these bonds. No bonds will be issued or sold under the act until the state’s registered voters have voted upon and approved the bonds. Each bond is voted upon separately with a “For” or “Against” question.

Summary: The four 2018 bond issues ask for voter approval to issue general obligation bonds as follows:

Bond Issue A, in an amount not to exceed $10,770,000 to make capital expenditures for certain senior citizen facility improvements, construction, and equipment acquisition projects;

Bond Issue B, in an amount not to exceed $12,876,000 to make capital expenditures for academic, public school, tribal, and public library resource acquisitions;

Bond Issue C, in an amount not to exceed $6,137,000 to make capital expenditures for the purchase of school buses; and

Bond Issue D, in an amount not to exceed $136,230,000 to make capital expenditures for certain higher education, special schools and tribal schools capital improvements and acquisitions.

The total for all four questions, including bond issuance costs, is $166,013,000. A complete breakdown of the designated projects under each bond issue can be found on the New Mexico Legislature’s website: https://nmlegis.gov/Sessions/18%20Regular/final/SB0094.pdf

Bond Question A – Aging and Long-Term Services Department

The 2018 Capital Projects General Obligation Bond Act authorizes the issuance and sale of senior citizen facility improvement, construction and equipment acquisition bonds. Shall the state be authorized to issue general obligation bonds in an amount not to exceed ten million seven hundred seventy thousand dollars ($10,770,000) to make capital expenditures for certain senior citizen facility improvement, construction and equipment acquisition projects and provide for a general property tax imposition and levy for the payment of principal of, interest on and expenses incurred in connection with the issuance of the bonds and the collection of the tax as permitted by law?

Bond Question B – Library Acquisitions

The 2018 Capital Projects General Obligation Bond Act authorizes the issuance and sale of library acquisition bonds. Shall the state be authorized to issue general obligation bonds in an amount not to exceed twelve million eight hundred seventy-six thousand dollars ($12,876,000) to make capital
expenditures for academic, public school, tribal and public library resource acquisitions and provide for a general property tax imposition and levy for the payment of principal of, interest on and expenses incurred in connection with the issuance of the bonds and the collection of the tax as permitted by law?

Bond Question C – School Buses

The 2018 Capital Projects General Obligation Bond Act authorizes the issuance and sale of bonds for the purchase of school buses. Shall the state be authorized to issue general obligation bonds in an amount not to exceed six million one hundred thirty- seven thousand dollars ($6,137,000) to make capital expenditures for the purchase of school buses and provide for a general property tax imposition and levy for the payment of principal of, interest on and expenses incurred in connection with the issuance of the bonds and the collection of the tax as permitted by law?

Bond Question D – Higher Education Facilities

The 2018 Capital Projects General Obligation Bond Act authorizes the issuance and sale of higher education, special schools and tribal schools capital improvement and acquisition bonds. Shall the state be authorized to issue general obligation bonds in an amount not to exceed one hundred thirty-six million two hundred thirty thousand dollars ($136,230,000) to make capital expenditures for certain higher education, special schools and tribal schools capital improvements and acquisitions and provide for a general property tax imposition and levy for the payment of principal of, interest on and expenses incurred in connection with the issuance of the bonds and the collection of the tax as permitted by law?