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 like or similar projects 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.

What is the 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 - City Council consideration and approval of ballot questions
• July 24 through August 21 - Mail-ballot election for GO Bond
• Special election ballots, mailed or hand-delivered, must be received at the County Clerk's Office by 7:00 PM on August 21.

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 issued 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).

What else is on the ballot?

The ballot also contains several proposed charter amendment changes:

• The proposed charter amendment addresses the recall provision.
• Recall gives the voters the power to recall their City Councilor or Mayor.

Why does the charter require changes to the recall provision?

• Currently, recall can occur for any reason. The proposed change lists specific acts that could bring about a recall. This will eliminate individuals from simply not approving of a Councilor’s vote and causing great expense to the community for a recall election. The Councilor must have committed a violation of law or a rule and must have committed misconduct. The proposed standard requires factual allegations of misconduct, not just disapproval of a Councilor’s position.
• Misconduct is clearly defined; conviction of a felony or crime of moral turpitude, failure to discharge the duties of office, or a violation of state or city ethics rules or laws or laws or rules of professional organizations of which the elected official is a licensed member.
• The current charter does not have a standard of proof for the District Court to use in reviewing a challenge for a recall. In other words, the District Court may use a “preponderance of the evidence” standard, or “clear and convincing” standard. The two are very different and could cause very different outcomes. The change will employ a uniform standard of proof so that all challenges and decisions are consistent.
• The elected official who is being challenged will receive the opportunity to present evidence in the District Court in their own defense.

Why are Recall, Referendum, and Initiative made into separate sections?

• Recall is a very different action. The form for filing a petition is better described and more detailed.
• The City Council is provided an opportunity to review the referendum petition to insure it complies with the requirements for signatures and timelines.

Where can I submit a question?

Send in your thoughts to gobond@las-cruces.org.