Title
Incorporated County of Los Alamos Ordinance No. 756; An Ordinance Authorizing The Issuance Of The Incorporated County Of Los Alamos, New Mexico Gross Receipts Tax Improvement Revenue Bonds, Series 2026A (The “ Bonds”), In The Principal Amount Not To Exceed $35,000,000 For The Purpose Of Acquiring, Extending, Enlarging, Bettering, Repairing And Otherwise Improving Fire Station Number 4, Fire Fighting And Safety Facilities And Equipment, And Other Public Buildings, Facilities And Infrastructure; Providing That The Bonds Will Be Payable And Collectible From Certain Gross Receipts Tax Revenues Distributed To The County; Providing For The Disposition Of The Receipts Derived From Certain Gross Receipts Tax Revenues; Delegating Authority To The County Council Chair And County Manager To Approve Certain Terms And Details Of The Bonds At The Time The Bonds Are Priced; Prescribing Other Details Concerning The Bonds And Gross Receipts Tax Revenues, Including But Not Limited To Covenants And Agreements In Connection With The Bonds And The Form And Manner Of Execution Of The Bonds; Authorizing The Preparation Of A Preliminary Official Statement And The Form Of A Final Official Statement For The Marketing Of The Bonds; Authorizing The Execution And Delivery Of A Bond Purchase Agreement If The Bonds Are Sold In A Negotiated Sale, And Other Agreements And Certificates In Connection With The Bonds; Ratifying Action Previously Taken In Connection With The Bonds; And Repealing All Ordinances In Conflict Herewith
Recommended Action
I move that Council adopt Incorporated County of Los Alamos Ordinance No. 756; An Ordinance Authorizing The Issuance Of The Incorporated County Of Los Alamos, New Mexico Gross Receipts Tax Improvement Revenue Bonds, Series 2026A (The “ Bonds”), In The Principal Amount Not To Exceed $35,000,000 For The Purpose Of Acquiring, Extending, Enlarging, Bettering, Repairing And Otherwise Improving Fire Station Number 4, Fire Fighting And Safety Facilities And Equipment, And Other Public Buildings, Facilities And Infrastructure; Providing That The Bonds Will Be Payable And Collectible From Certain Gross Receipts Tax Revenues Distributed To The County; Providing For The Disposition Of The Receipts Derived From Certain Gross Receipts Tax Revenues; Delegating Authority To The County Council Chair And County Manager To Approve Certain Terms And Details Of The Bonds At The Time The Bonds Are Priced; Prescribing Other Details Concerning The Bonds And Gross Receipts Tax Revenues, Including But Not Limited To Covenants And Agreements In Connection With The Bonds And The Form And Manner Of Execution Of The Bonds; Authorizing The Preparation Of A Preliminary Official Statement And The Form Of A Final Official Statement For The Marketing Of The Bonds; Authorizing The Execution And Delivery Of A Bond Purchase Agreement If The Bonds Are Sold In A Negotiated Sale, And Other Agreements And Certificates In Connection With The Bonds; Ratifying Action Previously Taken In Connection With The Bonds; And Repealing All Ordinances In Conflict Herewith; approving the form of the Preliminary Official Statement as amended and included in the agenda packet; and asking staff to assure that it is published as provided in the County Charter.
County Manager's Recommendation
The County Manager recommends that Council adopt Ordinance No. 756.
Body
The County has planned for and approved Fire Station 4 and other Capital Improvement Projects budget beginning with its FY2025 annual budget and planned for the issuance of Gross Receipts Tax Revenue Bonds as the primary funding source. A formal solicitation along with award of constructing Fire Station 4 project has already been approved by Council. Construction work has already begun.
The County has engaged third party bond counsel and financial advisory services to assist with the issuance of the $35 million Gross Receipts Tax Revenue Bonds. The County intends to market the bonds in September 2026. The ordinance authorizes the preliminary official statement, which has been amended to add an Official Notice of Bond Sale as Appendix D, to be used if the County and its advisors decide a competitive sale is preferable to a negotiated sale. Although a competitive sale seems unlikely, including the notice preserves that option. The ordinance delegates authority to the Council Chair and County Manager to approve the final terms of the bonds, and to take any additional actions necessary to issue and sell the bonds.
Ordinance No. 756 requires a super majority of Councilors (6 out of 7) to vote in favor of adopting this ordinance to become effective.
Alternatives
Council could choose not to introduce this ordinance and not issue the debt to complete this and other capital projects, which is not recommended by staff, as this has been planned for in the capital improvement budget for over two years. Construction work for Fire Station 4 is already in place, and the issuance of the debt was always intended to serve as the financing source. Council would have to determine another method of funding this and other capital improvement projects if it is not adopted.
Fiscal and Staff Impact/Planned Item
This is planned for and the associated debt service related to the issuance of the debt has already been adopted into the FY2027 budget and long range financial projection.
Attachments
A - Ordinance No. 756
B - Preliminary Official Statement
C - Disclosure Responsibilities Memorandum
D - Publication Notice
E - Presentation 2026A Series GRT Revenue Bonds