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THE LEAGUE OF WOMEN VOTERS OF NEW MEXICO |
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2010 Capital Projects General Obligation Bond IssuesA bond represents a debt for money borrowed by a government to finance capital improvement projects. The government promises to repay the amount borrowed, plus interest, over a period of time. The bonds are called "General Obligation" because payment of the debt service (principal plus interest) is a general obligation of the governmental entity issuing the bond, in this case the state and its property owners. Therefore, the bonds are backed by the full faith and credit of the State of New Mexico. General obligation bonds are payable from property taxes levied on all property in the state that is subject to property taxation. According to the Board of Finance Division of the 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 2010 mill levy has been set to 1.53 mills, which is higher than the 2009 rate of 1.15 mills. The State Board of Finance estimates that over a ten-year period, the four bonds on the ballot will increase annual property tax bills by an average of $11.26 per $100,000 of asset value. Of that $11.26, Bond A accounts for $0.50, Bond B accounts for $0.45, Bond C accounts for $0.33, and Bond D accounts for $9.98. 2010 Capital Projects General Obligation Bond ActThe 2010 New Mexico Legislature passed the 2010 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. All of the four 2010 bond issues ask for voter approval to issue general obligation bonds as follows:
Bond Issue A - Senior Citizen Facility ImprovementsShall the state be authorized to issue general obligation bonds in an amount not to exceed seven million seven hundred ninety thousand three hundred twenty dollars ($7,790,320) to make capital expenditures for certain senior citizen facility improvements, 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?
Summary of Senior Center Projects to be Funded:
Bond Issue B - Library AcquisitionsShall the state be authorized to issue general obligation bonds in an amount not to exceed seven million eighty-two thousand one hundred ten dollars ($7,082,110) to make capital expenditures for academic, public school, tribal and public library 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? Summary of Library Projects to be Funded: The following projects have been specifically designated for funding by the sale of Bond Issue B. Cultural Affairs Department: $2 million to acquire library books, equipment, and library resources for public libraries statewide, and $1 million for supplemental library resource acquisitions, including books and equipment, and for planning, designing, and constructing capital improvements for tribal libraries statewide. Public Education Department: $2 million to acquire library books, equipment, and resources for public libraries statewide. Higher Education Department: $2 million to acquire library books, equipment, and resources for academic libraries statewide. Return to top of pageBond Issue C - Public SchoolsShall the state be authorized to issue general obligation bonds in an amount not to exceed five million one hundred thousand dollars ($5,100,000) to make capital expenditures for pre-kindergarten classrooms and facilities at public schools and for public school books and instructional materials 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? Summary of Public School Projects to be Funded: The following projects have been specifically designated for funding by the sale of Bond Issue C. Public Education Department: $2 million for renovation and construction of pre-kindergarten classrooms and facilities at public schools statewide; $2 million to purchase school books and instructional materials statewide; $500,000 to purchase school buses statewide; and $500,000 for student count equipment in school buses statewide. Return to top of pageBond Issue D - Higher Education and Special Schools Improvements and AcquisitionsShall the state be authorized to issue general obligation bonds in an amount not to exceed one hundred fifty-five million five hundred sixty-seven thousand eight hundred twenty-four dollars ($155,567,824) to make capital expenditures for certain higher educational and special 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? Summary of Higher Education and Special School Projects to be Funded: The following projects have been specifically designated for funding by the sale of Bond Issue D. Eastern New Mexico State University: $4 million to construct and improve the physical plant complex, including purchasing and installing a modular building at the Roswell branch campus; $500,000 for renovations and infrastructure improvements, including energy efficiency and campus safety, at the Ruidoso branch campus; $7 million for renovations and infrastructure improvements, including the razing of closed facilities, at ENMU in Portales. Higher Education Department: $16 million to renovate the Jeanette Stromberg hall at Central New Mexico Community College in Albuquerque; $1 million to renovate the former allied health facilities for use as computer labs and classrooms at Clovis Community College in Clovis; $2 million to plan, design, and construct a facility for the renewable energy program and to purchase and install equipment for the school of trades and technology at San Juan College, San Juan County; $5 million to renovate the vocational education complex at Luna Community College, Las Vegas; and $1 million for infrastructure improvements at Santa Fe Community College, Santa Fe County. New Mexico Highlands: $7 million to renovate and equip the historic Trolley building at New Mexico Highlands University, Las Vegas. New Mexico Institute of Mining and Technology: $12 million to design, equip, and furnish phase 1 of the geology facility at New Mexico Tech. New Mexico State University: $1,750,000 for infrastructure renovation and improvements at the Grants branch campus, Cibola County; $18 million to renovate/construct and equip the Hershel Zohn theater and Branson library to house the institute for public policy at NMSU, Las Cruces; $5,650,000 to design, construct, and equip an addition to the Gadsden center at the Dona Ana Community College branch, Dona Ana County; $1,250,000 for infrastructure renovation at the Carlsbad branch campus, Eddy County; $1,750,000 for infrastructure renovation at the Alamogordo branch campus, Otero County. New Mexico School for the Deaf: $3 million to coordinate with the public school facilities authority for fire suppression and improvements to comply with the Americans with Disabilities Act of 1990, and other renovations to address critical deficiencies at the New Mexico School for the Deaf, Santa Fe. University of New Mexico: $3,800,000 to renovate/construct and equip the biology building at UNM; $12 million to demolish the old facility and construct an outpatient services building at Carrie Tingley Hospital, UNM; $10 million to construct and furnish Reibsomer Hall, the chemistry building, at UNM; $4 million to construct a new collaborative teaching and learning building for the College of Education, UNM; $10 million for construction and furnishing of the Health Science Education Interdisciplinary Building, UNM; $750,000 to renovate and equip science labs, classrooms, and storage space, Los Alamos branch campus; $1,400,000 for improvements to the Zollinger Library, Gallup branch campus; and $2 million to construct and equip phase I of the research center and learning library, Taos branch campus. Western New Mexico University: $5,500,000 for infrastructure improvements, including renovating the McCray Arts Building, Silver City. Indian Affairs Department: $1 million for improvements and security enhancements at Southwestern Indian Polytechnic Institute, Albuquerque; $2 million to construct a regional wellness center for the Santa Fe Indian School, Santa Fe County; $750,000 to construct the science technology and sculpture foundry buildings at the Institute of American Indian Arts, San Fe County; and $1,500,000 to construct and improve general classroom facilities at Navajo Technical College, Crownpoint. |