Last year the commission elected to implement the hold harmless gross receipts tax and the commissioners cited a need to utilize the money for service projects.
In January the commission approved a tax bond that allowed them to issue up to
"We went out to market on behalf of (the
"We ended up selling
Valenzuela said the interest cost came in at 3.86 percent. He said the percentage was really a strong pricing for the current market. He said his company had anticipated that the market was going to deliver more at a 4.1 percent rate.
He said the annual payment on the bonds is roughly
"They're 20 years for final maturity and you have a ten year call, which means you can pay those off in 10 years. Or refinance them with no harm no foul to you," he said. "You have the ability to pay these off -- no harm no foul -- in 10 years."
"Our view is you acted, these resolutions are all taking action on existing statutes, which is House Bill 641 from last year. And there has been nothing done at this point that is part of
"Mark has generally described what we believe the state of the law to be. Looking at the amount of money that you're bonding and the payment you're obligating your selves to, we believe we have the ability to make these bond payments even with the proceeds of one eighth of a GRT," Bryant said. "So, that if they do something and try to tinker with it and try in some way to make it retroactive we'll be protected.
"In addition to that we have discussed the statutory provision that says, 'once a local entity has bonded against the proceeds of a GRT no law will be passed that impairs that contract or effects that credit,'" Bryant said. "So we believe that we will be protected by that statutory provision."
Byrant added that though it looked as if the county's investment would be safe he could not confirm how things would work out in the future.
"Now the one thing that every lawyer always has to say is there is not a court case in
(c)2014 the Alamogordo Daily News (Alamogordo, N.M.)
Visit the Alamogordo Daily News (Alamogordo, N.M.) at www.alamogordonews.com
Distributed by MCT Information Services