Description
Title: Authorizing The Issuance And Sale Of The City Of Albuquerque, New Mexico Gross Receipts Tax Refunding Revenue Bonds, Series 2026A In The Maximum Principal Amount Of $38,025,000 To Finance The (1) The Cost Of Refunding The City’s Outstanding Gross Receipts Tax Improvement Revenue Bonds, Series 2015A And Outstanding Gross Receipts Tax Improvement Revenue Bonds, Series 2016C; And (2) Paying Expenses Related Thereto; Providing For The Payment Of The Series 2026a Bonds From State-Shared Gross Receipts Tax Revenues; Providing For The Collection Of State-Shared Gross Receipts Tax Revenues; Approving
Summary
The Albuquerque City Council is considering legislation to authorize the issuance of Gross Receipts Tax Refunding Revenue Bonds, Series 2026A, with a maximum principal amount of $38,025,000. This ordinance aims to refund existing Series 2015A and 2016C bonds, taking advantage of lower interest rates to restructure the city's debt service and save approximately $300,000 annually, totaling around $2.9 million in net present value savings. The bonds will be secured by state-shared gross receipts tax revenues, ensuring a dedicated revenue stream for repayment. If the financing is not approved, the city risks incurring higher costs without the potential savings from this restructuring initiative. This legislation is crucial for maintaining financial efficiency and reducing overall debt service