The League of Women Voters of New Mexico
Voters' Guide to the 2014 Election
last revised 09.23.2014
last revised 09.23.2014
A 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 ldquo;General Obligationrdquo; 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 three bond issues will be passed by voters, the property tax year 2014 mill levy has been set at 1.36 mills, which is the same as the 2013 rate. The State Board of Finance estimates that over a ten-year period, the three issues on the ballot would increase annual property tax bills by approximately $9.91 average per year per $100,000 of asset value. Of the annual average $9.91, Bond Issue A accounts for $1.00, Bond Issue B accounts for $0.65, and Bond Issue C accounts for $8.27.
The New Mexico Legislature passed the 2014 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.
The total for all three questions, including bond issuance costs, is $166,998,790. A complete breakdown of the designated projects under each bond issue can be found on the New Mexico Legislaturersquo;s website:
(To read the PDF files, you can download a free copy of Adobe Acrobat Reader:)
The 2014 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 seventeen million dollars ($17,000,000) 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?
The 2014 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 eleven million dollars ($11,000,000) 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?
The following projects have been specifically designated for funding by the sale of Bond Issue B.
Cultural Affairs Department: $3,000,000 to acquire library books, equipment, and other resources for public libraries statewide, and $800,000 for books, equipment, and other resources for tribal libraries statewide.
Public Education Department: $3,500,000 to acquire library books, equipment, and resources for public school libraries statewide.
Higher Education Department: $3,500,000 to acquire library books, equipment, and resources for academic libraries statewide.
The 2014 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 forty-one million dollars ($141,000,000) 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?
| School | Total |
|---|---|
| Indian Affairs Department various schools | $5,000,000 |
| Higher Education Department various schools | $23,530,000 |
| Eastern New Mexico University | $14,325,000 |
| Highlands University | $5,000,000 |
| Military Institute | $4,800,000 |
| Mining and Technology, NM Institute | $15,000,000 |
| New Mexico State University | $25,100,000 |
| Northern New Mexico State School | $2,000,000 |
| University of New Mexico | $39,000,000 |
(To read the PDF files, you can download a free copy of Adobe Acrobat Reader:)