2019 New Mexico Statutes
Chapter 5 - Municipalities and Counties
Article 11 - Public Improvement District
Section 5-11-19 - General obligation bonds; tax levy; exception.
A. At any time after the hearing on formation of the district, the district board, or, if before formation, the governing body may from time to time order that the question of authorizing the issuance of general obligation bonds to provide money for public infrastructure purposes consistent with the general plan be presented to the owners for a determination and that a general obligation bond election be called to submit the question to the qualified electors. The question shall include authorization for a levy, including a limitation on the levy, of a property tax to pay debt service on the bonds. The election shall be held pursuant to the provisions of the Local Election Act [Chapter 1, Article 22 NMSA 1978] and may be held in conjunction with the formation election.
B. If general obligation bonds are approved by a determination of the owners and approved at an election, the district board may issue and sell general obligation bonds of the district; provided that the district board shall have determined by resolution that the principal amount of all district general obligation bonds currently outstanding and the district general obligation bonds proposed for issuance and sale shall not result in a total annual debt service that exceeds five-tenths percent of the allowable base.
C. Bonds may be sold in a public offering or in a negotiated sale.
D. After the bonds are issued, the district board shall enter in its minutes a record of the bonds sold and their numbers and dates and shall annually levy and cause a property tax to be collected, at the same time and in the same manner as other property taxes are levied and collected on all taxable property in the district, sufficient, together with any money from the sources described in Section 5-11-17 NMSA 1978 to pay debt service on the bonds when due. Money derived from the levy of property taxes that are pledged to pay the debt service on the bonds shall be kept separately from other funds of the district. Property tax revenues not pledged to pay debt service on bonds may be used to pay other costs of the district, including costs of formation, administration, operation and maintenance, services or enhanced services. A district's levy of property taxes shall constitute a lien on all taxable property within the district, including, without limitation, all leased property or improvements to leased land, which shall be subject to foreclosure in the same manner as other property tax liens under the laws of this state. The lien shall include delinquencies and interest thereon at a rate not to exceed ten percent per year, the actual costs of foreclosure and any other costs of the district resulting from the delinquency. The proceeds of any foreclosure sale shall be deposited in the special bond fund for payment of any obligations secured thereby.
E. Subject to the determination and election provisions of this section, a district may issue general obligation bonds at such times and in such amounts as the district deems appropriate to carry out a project or projects in phases.
F. Pursuant to this section, the district may issue and sell refunding bonds to refund general obligation bonds of the district authorized by the Public Improvement District Act. No determination or election is required in connection with the issuance and sale of refunding bonds. Refunding bonds issued pursuant to this section shall have a final maturity date no later than the final maturity date of the bonds being refunded.
History: Laws 2001, ch. 305, § 19; 2009, ch. 46, § 3; 2013, ch. 45, § 8; 2019, ch. 212, § 197.
ANNOTATIONSCross references. — For property tax liens, see 7-38-48 NMSA 1978.
The 2019 amendment, effective April 3, 2019, provided that the determination of the issuance of general obligation bonds by the district board be conducted pursuant to the Local Election Act, and made conforming technical amendments; in Subsection A, after "time order", deleted "and call" and added "that the question of authorizing the issuance of general obligation bonds to provide money for public infrastructure purposes consistent with the general plan be presented to the owners for a determination and that", after "qualified electors", deleted "the question of authorizing the district to issue general obligation bonds of the district to provide money for any public infrastructure purposes consistent with the general plan.", and after "The election", added "shall be held pursuant to the provisions of the Local Election Act and".
The 2013 amendment, effective July 1, 2013, prohibited a public improvement district from selling general obligation bonds until it has determined that the principal amount of its bonds will not exceed a total debt service of five-tenths percent of the value of taxable property in the district; and in Subsection B, after "may issue and sell general obligation bonds of the district", added the remainder of the sentence.
Applicability. — Laws 2013, ch. 45, § 12 provided that the provisions of Laws 2013, ch. 45, §§ 1 through 4 and 6 through 10, do not apply to an application for formation of a public improvement district submitted to a governing body prior to January 1, 2014.
The 2009 amendment, effective June 19, 2009, in Subsection A, added the next to the last sentence.
