The Tucumcari School District Board on Monday approved issuing the last $200,000 of bonds approved by voters in 2011.
The board has issued the first $1.8 million of these bonds.
The bonds pay for some of the district’s share of a $20-million cost to build the new Tucumcari High School and make other renovations, Superintendent Aaron McKinney said.
The district is selling the bonds to the New Mexico Finance Authority at an effective interest rate of a little more than one-third of one percent. The total cost of borrowing the money will be about $2,104 as the debt is retired over the next 10 years, according to Paul Cassidy, managing director of the Municipal Finance Department of RBC Capital Markets. Cassidy said the bond will not cause a tax rate increase.
RBC is the school district’s financial manager.
Another election in 2014 will seek to authorize another $2 million in bonds to be sold over a four-year period, Cassidy told the board, and there is another two-mill levy election in February 2019.