Rio Rancho board OKs resolution to place $80 million bond question on November ballot

The Rio Rancho Public Schools Board of Education voted June 23 to authorize placing an $80 million general obligation bond question on the Nov. 4 general election ballot.

The measure, presented by bond counsel Chris Muirhead and financial advisor Eric Harrigan of RBC Capital Markets, would allow the district to issue bonds in multiple series over a four-year period without increasing the district's current tax rate. "What we're recommending to the district, is to go back to voters this November for an additional 80,000,000," Eric Harrigan said during his presentation to the board.

The board's action was presented as a resolution and proclamation that formally asks the county clerk to include the question on the ballot and also places three school board seats (Districts 1, 3 and 5) on the same ballot. Bond counsel told the board the ballot language was drafted broadly to give the board flexibility to apply proceeds to existing and future capital projects. "This resolution in front of you is the official action that you would need to take to put a question on the ballot ... to authorize seek voter approval for $80,000,000 in general obligation bonds," Chris Muirhead said.

Why it matters: district staff and the financial advisor told the board rising construction costs and recent strong growth in assessed valuation make it difficult to complete previously authorized projects without additional funding. Harrigan noted recent double-digit increases in the tax base and flagged two New Mexico constitutional amendments expanding veteran exemptions as factors that affect future capacity. He estimated the veteran exemption could remove roughly $253 million from the district's tax base, about a 6% reduction by his estimate, once fully applied.

Board procedure and next steps: if voters approve the authorization, any bond series would return to the board for approval tied to specific projects. The San Miguel County Clerk (San Juan/Sandoval/County clerk handling elections as noted in the presentation) will administer the election process and required publications after the board's action.

Vote: Board member Jeff Morgan moved to approve; Gary Tripp seconded. During roll call the four members recorded as voting "yes." The motion carried.

The board and staff said the authorization is intended to maintain the current $8.54 tax rate while allowing the district to continue planned capital work. Harrigan and district leaders warned the projections are estimates; the ultimate capacity will depend on how many veterans claim the new exemptions and other changes to the tax base.