(Deming) – The Luna County Commissioners recently voted to reclassify the taxable nature of the bonds sold for the Starmax facility.
The commissioners unanimously voted last month to approve Luna County Ordinance Number 90 authorizing the issuance and sale of the Luna County Capital Outlay Gross Receipts Tax Refunding Revenue Bonds.
Officials said the move will refinance the taxable bonds that have been in place since 2007, when Luna County voters approved issuing bonds to finance construction of the entertainment complex. The county began making payments toward the loan in 2008.
Luna County Manager Charles “Tink” Jackson said the reclassification is part of ongoing efforts to save money and increase revenue.
Deming native Mark Valenzuela, of the financial firm G.K. Baum, said the ordinance only changes the status of the bonds to tax-exempt, with the rest of the ordinance mirroring the language of the measure passed by Luna County voters.
Currently, Valenzuela said, the county is paying about 5.5% interest rates on the bonds, but under current market conditions, refinancing could lower the rate to around 2.6%.
The refinancing could amount to about $18,000 in savings each year, and the move is expected to shorten the overall life of the bonds.
Valenzuela stressed, however, that market conditions change daily.
The commissioners unanimously voted last month to approve Luna County Ordinance Number 90 authorizing the issuance and sale of the Luna County Capital Outlay Gross Receipts Tax Refunding Revenue Bonds.
Officials said the move will refinance the taxable bonds that have been in place since 2007, when Luna County voters approved issuing bonds to finance construction of the entertainment complex. The county began making payments toward the loan in 2008.
Luna County Manager Charles “Tink” Jackson said the reclassification is part of ongoing efforts to save money and increase revenue.
Deming native Mark Valenzuela, of the financial firm G.K. Baum, said the ordinance only changes the status of the bonds to tax-exempt, with the rest of the ordinance mirroring the language of the measure passed by Luna County voters.
Currently, Valenzuela said, the county is paying about 5.5% interest rates on the bonds, but under current market conditions, refinancing could lower the rate to around 2.6%.
The refinancing could amount to about $18,000 in savings each year, and the move is expected to shorten the overall life of the bonds.
Valenzuela stressed, however, that market conditions change daily.
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