The district expects the money to be available in October for school construction, repairs, technology and other capital projects

Damien Willis, Organ Mountain News

LAS CRUCES - Las Cruces Public Schools is preparing to borrow the first $16.25 million from a $65 million school bond package approved by voters last year.

The Board of Education voted unanimously Aug. 18 to authorize the sale of the bonds, the first of four planned installments from the $65 million voters approved in November 2025.

The district expects to sell the bonds to investors Sept. 15 and close the transaction around Oct. 7. That is when the money would become available for school projects.

In practical terms, the district is borrowing money now and paying it back over time through property taxes.

The bond money can be used to build, remodel and add to school buildings, improve school grounds, purchase student computer hardware and software and provide the district’s share of funding for state-supported capital projects.

LCPS currently plans to sell $16.25 million in bonds each year from 2026 through 2029, although the timing and amount of later sales can change depending on district needs. The total cannot exceed the $65 million voters authorized.

Eric Harrigan, the district’s financial adviser with RBC Capital Markets, told board members LCPS expects to pay an interest rate of about 3.5% on this round of borrowing.

He said borrowing costs have increased since the spring, but the expected rate remains only slightly higher than what the district paid when it borrowed money last year.

The district was scheduled to meet with credit rating agencies Aug. 19 before the September bond sale.

LCPS currently has about $105 million in outstanding general obligation bonds and lease-purchase debt. District financial documents show LCPS is using about 35% of the amount it is legally allowed to borrow.

The new bonds are structured so LCPS can continue adding voter-approved debt without increasing the property tax rate currently dedicated to paying school debt, Harrigan told the board.

Bond counsel Catherine McKinney told board members the resolution allows the superintendent and the district’s chief financial officer to approve the final sale without returning for another board vote, as long as the terms stay within limits already approved by the board.

Those limits include borrowing no more than $16.25 million and a final repayment date no later than Aug. 1, 2041.

The resolution technically allows an interest rate as high as 10%, although Harrigan told the board the district expects the actual rate to be far lower.

Investors will compete for the bonds in a public sale, with LCPS accepting the best offer that meets the district’s requirements.

The district expects to report the final borrowing terms to the board after the bonds are priced and the sale closes.

Harrigan also told board members that one of the district’s capital mill levies is nearing expiration and recommended returning to voters in November 2027 to extend it.

He referred to it during the meeting as the district’s HB-33 mill levy.

However, the written finance presentation included in the board packet says voters renewed the HB-33 mill levy in November 2025 through tax year 2031. The same presentation recommends the district’s next SB-9 mill levy election for November 2029.

No board action was taken Aug. 18 on a future mill levy election.

For now, the immediate next step is the Sept. 15 bond sale.

If the transaction proceeds on schedule, LCPS expects to have the first $16.25 million from the voter-approved bond package available for projects in early October.

Damien Willis is founder and editor of Organ Mountain News. If you have a personal story to share or a lead we should follow up on, reach out at OrganMountainNews@gmail.com or connect with him on X at @damienwillis.