County details revenue bond plan to expand detention facility’s medical and behavioral‑health capacity

Santa Fe County staff on Monday described a proposed revenue bond to pay for a major expansion and remodel of the adult detention facility aimed at increasing on‑site medical and behavioral‑health treatment capacity.

"The primary focus of that would be to increase the medical and behavioral health treatment capacity of the adult detention facility as well as address some other facility constraints," Manager Greg Schaefer said, adding that the operating budget includes $1.75 million in assumed future debt service. Based on that assumption, staff estimated potential bond proceeds somewhere between $22.7 million and $24.6 million, depending on terms and timing.

Staff said the revenue bond would be augmented by available fund balance in the Corrections Operations fund (estimated uncommitted balance about $5.2M) and, if needed, by the indigent hospital fund. Schaefer said sale of the bonds would likely occur in fiscal year 2027 or 2028 once planning yields firm cost estimates and staff can assure timely implementation and spending of proceeds.

Why revenue bonds: staff framed revenue bonds as a tool to move large capital projects forward sooner than self‑funding would allow. Unlike general obligation bonds, revenue bonds do not require voter approval but do consume recurring revenue streams for debt service; staff said the county must ensure statutory authority and sustainable debt‑service coverage before issuing.

Next steps: staff will refine firm cost estimates and a financing plan and bring options back to the board for direction. The board did not take a final vote on issuance; commissioners asked for additional details as part of the broader capital plan and ICIP work.