Frequently Asked Questions (FAQ)
What is a GO Bond?
A GO Bond is a form of debt financing secured by property tax revenue - General obligation bonds can be issued
for general purpose projects. The law requires each specific project to be presented in a separate question
for voter approval
How much bonding capacity does the city of las cruces have?
State statute limits the amount of general obligation bonds issued by municipalities to 4% of total assessed
valuation. The City of Las Cruces' current GO Bonding capacity is about $92 million.
Does Las Cruces have any GO Debt?
No, Las Cruces currently has no GO Bond debt.
How is the GO Bond debt retired?
A GO Bond is typically paid back in 10 to 15 years with an interest rate based on the City's credit worthiness.
A municipality can borrow at a better than private market rate.
Will there be future GO Bond Elections?
Many communities issue and repay GO Bonds on a regular cycle - e.g. every 2 to 6 years. The City will evaluate
the success of the upcoming election to determine the strategy for future elections.
What is the tax impact on a typical home owner?
The following table shows the yearly impact to a typical homeowner should voters approve a $35.6 million GO Bond that funds
all of the proposed projects.
| Bond Size: Yearly Cost to a Typical Homeowner |
| Full Value |
Assessed Value* |
2.1 mills |
| $100,000 |
$33,333 |
$70.00 |
| $125,000 |
$41,667 |
$87.00 |
| $150,000 |
$50,000 |
$105.00 |
| $175,000 |
$58,333 |
$122.00 |
| $200,000 |
$66,667 |
$140.00 |
| $225,000 |
$75,000 |
$157.00 |
| $250,000 |
$83,333 |
$175.00 |
*Tax at 1/3 market valuation Median Home Value
What is schedule for the GO Bond process?
The GO Bond Schedule:
February 15 to May 1, 2018 - Public Meetings and project vetting
May 4 - Final Ballot Information determined
June 4 - Council considers ballot approval
August 21 - Mail-in election for GO Bond
Does the City have other sources of capital funding?
Yes. Las Cruces has a Capital Improvement Program (CIP) that is now primarily funded by revenue bonds. These are bonds issue
against a regular source of revenue such as the City's share of the New Mexico Gross Receipts Tax (GRT).
You can find information about the City's CIP program here, at the
Office of Management and Budget site.
If approved, when would the tax increases go into effect?
Depending on which GO Bond requests are approved, the City will prepare for one or several bond sales spaced out to minimize
interest cost and match project needs. Tax rates would be adjusted after the sale of the bond(s), and property
owners would see that increase on their next property tax bill (issued annually).
Where can I submit a question?
Send in your thoughts to
gobond@las-cruces.org.
