LWVCNM Voters’ Guide
State General Obligation Bonds
(updated 10/1/2008)
2008 Capital Projects General Obligation Bond Issues
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 "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 project taxation. According to the Board of Finance Division of the Department of Finance and Administration, the specific amount of property taxes collected is attributable to a number of factors, 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 2008 mill levy has been set to 1.25 mills, which is slightly higher than the 2007 rate of 1.22 mills. The State Board of Finance estimates that over a ten-year period, the four bonds on the ballot would increase annual property tax bills by an average of $15.61 per $100,000 of asset value. Of that $15.61, Bond A accounts for $1.03, Bond B accounts for $0.77, Bond C accounts for $4.02, and Bond D accounts for $9.77.
2008 Capital Projects General Obligation Bond Act
The 2008 New Mexico legislature passed the 2008 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.
- Bond Issue A asks for voter approval to issue general obligation bonds in an amount not to exceed $14,725,000 for senior citizen facility improvement, construction, and equipment acquisition.
- Bond Issue B asks for approval to issue general obligation bonds in an amount not to exceed $11,019,000 for academic, public, and tribal library acquisitions.
- Bond Issue C asks for approval to issue general obligation bonds in an amount not to exceed $57,925,000 to make capital expenditures for health-related facilities.
- Bond Issue D asks for approval to issue general obligations bonds in an amount not to exceed $140,133,000 for higher education and constitutional special school facilities.
The total of all four questions, including bond issuance costs, is $223,802,000. A complete breakdown of the designated projects under each bond issue can be found on the New Mexico Legislature's website: 2008 Capital Projects General Obligation Bond Act in HBxxx (PDF, xx KB)
Bond Issue A - Senior Citizen Facility Improvements
The 2008 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 fourteen million seven hundred twenty-five thousand dollars ($14,725,000) 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:
The sale of Bond Issue 1 will fund 148 senior citizen facility projects in 29 New Mexico counties, including the Navajo Nation and pueblos, as follows:
- Bernalillo, eight projects totaling $2,395,300
- Catron, one project totaling $2,165
- Chaves, three projects totaling $575,515
- Cibola, five projects totaling $581,600
- Colfax, seven projects totaling $274,240
- Curry, four projects totaling $45,716
- Dona Ana, five projects totaling $87,700
- Eddy, two projects totaling $101,377
- Grant, three projects totaling $48,447
- Guadalupe, two projects totaling $166,317
- Hidalgo, two projects totaling $728,936
- Lea, two projects totaling $222,600
- Lincoln, three projects totaling $222,500
- McKinley, 19 projects totaling $1,833,130
- Mora, two projects totaling $615,300
- Otero, eight projects totaling $936,336
- Quay, three projects totaling $43,015
- Rio Arriba, nine projects totaling $614,180
- Roosevelt, two projects totaling $28,233
- San Juan, ten projects totaling $376,355
- San Miguel, two projects totaling $81,100
- Sandoval, fifteen projects totaling $1,375,600
- Santa Fe, seven projects totaling $253,480
- Sierra, two projects totaling $60,950
- Socorro, two projects totaling $72,000
- Taos, seven projects totaling $977,958
- Torrance, four projects totaling $81,500
- Union, three projects totaling $29,250
- Valencia, two projects totaling $479,200
- Three projects totaling $390,000 that serve multiple counties through the Navajo Nation
- one statewide project providing $1,000,000 to area agencies on aging throughout New Mexico for purchase and installation of equipment
These 148 projects include the planning, designing, construction, equipping, and furnishing of 17 new senior center facilities in the following areas:
- Barelas and Highland Senior Centers, Bernalillo County
- Hagerman Senior Center, Chaves County
- Pueblo of Laguna Senior Center, Cibola County
- Lordsburg Senior Center, Hidalgo County
- Hobbs Senior Center, Lea County
- Hondo Valley Senior Center, Lincoln County
- Chichitah Chapter and Standing Rock Chapter Senior Centers on the Navajo Nation, McKinley County
- Mora-Wagon Mound Senior Center, Mora County
- Tularosa Senior Center, Otero County
- Newcomb Chapter Senior Center on the Navajo Nation, San Juan County
- Torreon Chapter of the Navajo Nation, Pueblo of Cochiti, and Rio Rancho Senior Centers, Sandoval County
- Pueblo of Taos Senior Center, Taos County
- Del Rio Senior Center, Valencia County
In addition to the Legislature's website address listed previously, the New Mexico Aging and Long-Term Services Department's website has a summary of senior citizen projects covered by this bond issue. (PDF, KB)
Bond Issue B - Library Acquisitions
The 2008 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 nineteen thousand dollars ($11,019,000) to make capital expenditures for academic, public and tribal 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 2 to acquire library books, equipment, and library resources:
- Cultural Affairs Department: $3 million for public libraries statewide and $2 million for tribal libraries statewide
- Public Education Department: $3 million for public school libraries statewide
- Higher Education Department: $3 million for academic libraries statewide
Bond Issue C - Health Facility Improvements
The 2008 Capital Projects General Obligation Bond Act authorizes the issuance and sale of health facility improvement bonds. Shall the state be authorized to issue general obligation bonds in an amount not to exceed fifty-seven million nine hundred twenty-five thousand dollars ($57,925,000) to make capital expenditures for cancer research and treatment facilities, other statewide and regional health facilities, educational facilities for statewide dental services and public health and behavioral health facilities and provide for a general project 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 Health Facilities Projects to be Funded:
- Higher Education Department: Clovis Community College allied health building, $4 million; San Juan College health sciences building, $5 million; University of New Mexico dental residency program educational facilities, $7 million
- Indian Affairs Department: Santa Fe Indian School regional wellness center, $3 million
- New Mexico State University: Carlsbad branch allied health and university transfer center, $3 million
- University of New Mexico: Health sciences center's cancer research and treatment center, $17 million; Health sciences center's neurosciences research building, $4 million
- Capital Program Fund: Phase I of Meadows hospital facility at the New Mexico Behavioral Health Institute, Las Vegas, $10 million
- Department of Health: Renovation of public health offices in Roosevelt County, Alamogordo in Otero County, and Sunland Park in Dona Ana County, $2.328 million; Regional health services facility in Rio Arriba County, $2 million
Bond Issue D - Higher Education and Special Schools Improvements and Acquisitions
The 2008 Capital Projects General Obligation Bond Act authorizes the issuance and sale of higher educational and special 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 million one hundred thirty-three thousand dollars ($140,133,000) 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 4:
- Higher Education Department:
- Central New Mexico Community College, phase 3 of the westside campus, $12 million
- New Mexico Junior College central plant, $3.5 million
- Mesalands Community College North American wind research and training center, $7 million
- Luna Community College multipurpose education center, $4.5 million
- Santa Fe Community College trades and advanced technology center, $4.2 million
- Institute of American Indian Arts science, technology, art and cultural center, $500,000
- Eastern New Mexico University:
- Roswell Branch educational center, $4 million
- Portales campus electrical system upgrade, $2 million, technology building renovation, $9 million, and music building renovation, and expansion, $1 million
- New Mexico Highlands University:
- Campus infrastructure, $9 million;
- science building and annex renovations, $1.8 million
- New Mexico Military Institute: Pearson auditorium renovations, $5 million
- New Mexico Institute of Mining and Technology: Central utility renovation and expansion, $8 million
- New Mexico School for the Deaf: Dillon Hall plan, construction, and equipping, $3 million
- New Mexico State University:
- Arts complex plan, construction, and equipping, $19 million;
- agricultural center research, education, and services, $2.4 million;
- Dona Ana East Mesa Center plan, construction, equipping, $6 million;
- Dona Ana branch trades building renovation and expansion, $500,000;
- Alamogordo branch general classroom buildings plan, construction, and equipping, $1 million;
- Carlsbad branch infrastructure renovation and expansion, $300,000
- Northern New Mexico State School:
- Espanola campus, learning resource center addition plan, construction, and equipping, $5 million;
- acquisition of land for, and planning of, a solar energy research park academy and the retrofitting of buildings for alternative energy resources, $1.8 million
- University of New Mexico:
- Biology building renovation and expansion, $5 million;
- College of Education plan, construction, and equipping, $6 million;
- Mesa del Sol digital media building plan, design, construction, and equipping, $4 million;
- learning center plan, construction, and equipping, $2 million;
- Gallup branch structural repair and mechanical replacements at Calvin Hall, $900,000;
- Taos branch classroom completion project plan, construction, and equipping, $3.3 million
- Western New Mexico University:
- Chino computing center renovation, $2 million;
- campus infrastructure plan, construction, and equipping, $6 million
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