Las Cruces City Council to Consider the Issuance and Sale of $22.5 Million in Joint Utility Improvement Revenue Bonds 2018
Expansion and improvements to the City of Las Cruces’ Joint Utility System could be made as the Las Cruces City Council will consider authorizing the issuance and sale of $22.5 million in Joint Utility Improvement Revenue Bonds.
The proposed bond sale will be discussed and considered when City Council meets at 1 p.m. Tuesday, Jan. 16, in Council Chambers at Las Cruces City Hall, 700 N. Main St. The meeting will be streamed live at www.clctv.com and on Facebook/CityofLasCruces/
On May 25, 2017, the City contracted with Johnson Controls, Inc. for an investment grade energy audit and project proposal to determine the feasibility of entering into a guaranteed utility savings contract at the Las Cruces Utilities facilities. The investment grade audit for the Energy Savings Performance Contract (ESPC) Phase I showed a guaranteed utilities savings contract was feasible with additional funding.
The City Charter authorizes City Council to borrow money by ordinance, and the City is authorized by state statute to issue revenue bonds. The City intends to issue as much as $22.5 million in subordinate lien bonds through a request for quote process to finance the ESPC.
Issuing the bonds through a private, negotiated bond sale, to be conducted Jan. 31, will allow the City to mitigate any risks due to the uncertainty with the bond market and will provide opportunities to reduce debt interest costs.