After reviewing several funding options August 9, Truth or Consequences (T-or-C) City Commissioners agreed to pursue a New Mexico Finance Authority (NMFA) loan offer and proceed with development of a Law Enforcement Complex on municipal property formerly housing the National Guard Armory.
George K. Baum & Company representative Mark Valenzuela presented commissioners with three primary funding options, the NMFA proposal, a dual proposal from BBVA Compass bank and an option to sell development bonds on the public market.
In outlining the offers, Valenzuela said his firm was recommending the NMFA proposal, primarily due to the opportunity to secure an approximate 1.93-percent interest rate over a proposed 25-year plan.
While this option would require the city to maintain a reserve equivalent to a projected annual payment, Valenzuela said the total cost including interest and related service fees would tally to approximately $2.78 million. He pointed out that this represented only a modest increase over the construction estimate of $2.18 million for the 25-year agreement.