2023 New Mexico Statutes › Chapter 3 - Municipalities › Article 31 - Revenue Bonds › Section 3-31-4 - Ordinance authorizing revenue bonds; three-fourths majority required; resolution authorizing revenue bonds to be issued and sold to the New Mexico finance authority.

A. At a regular or special meeting called for the purpose of issuing revenue bonds as authorized in Section 3-31-1 NMSA 1978, the governing body may adopt an ordinance that:
(1) declares the necessity for issuing revenue bonds;
(2) authorizes the issuance of revenue bonds by an affirmative vote of three-fourths of all the members of the governing body; and
(3) designates the source of the pledged revenues.
B. If a majority of the governing body, but less than three-fourths of all the members, votes in favor of adopting the ordinance authorizing the issuance of revenue bonds, the ordinance is adopted but shall not become effective until the question of issuing the revenue bonds is submitted to a vote of the qualified electors for their approval at a special or regular local election. If an election is necessary, the election shall be conducted in the manner provided in the Local Election Act [Chapter 1, Article 22 NMSA 1978].
C. In addition and as an alternative to adopting an ordinance as required by the provisions of Subsections A and B of this section, at a regular or special meeting called for the purpose of issuing revenue bonds as authorized in Section 3-31-1 NMSA 1978, the governing body may authorize the issuance and sale, from time to time, of revenue bonds in amounts not to exceed one million dollars ($1,000,000) at any one time to the New Mexico finance authority by adoption of a resolution that:
(1) declares the necessity for issuing and selling revenue bonds to the New Mexico finance authority;
(2) authorizes the issuance and sale of revenue bonds to the New Mexico finance authority by an affirmative vote of a majority of all the members of the governing body; and
(3) designates the source of the pledged revenues.
At the option of the governing body, revenue bonds in an amount in excess of one million dollars ($1,000,000) may be authorized by an ordinance adopted in accordance with Subsections A and B of this section and issued and sold to the New Mexico finance authority.
D. No ordinance or resolution may be adopted under the provisions of this section that uses as pledged revenues the municipal gross receipts tax authorized by Section 7-19D-9 NMSA 1978 for a purpose that would be inconsistent with the purpose for which that municipal gross receipts tax revenue was dedicated. Any revenue in excess of the amount necessary to meet all principal and interest payments and other requirements incident to repayment of the bonds shall be used for the purposes to which the revenue was dedicated.
History:
1953 Comp., § 14-30-4, enacted by Laws 1965, ch. 300; 1979, ch. 311, § 3; 1995, ch. 141, § 3; 2018, ch. 79, § 67.
ANNOTATIONS
The 2018 amendment,
effective July 1, 2018, provided that the provisions of the Local Election Act govern elections called for the purpose of voting on the question of issuing revenue bonds, and made technical changes; in Subsection B, after "special or regular", deleted "municipal" and added "local", and after "in the manner provided in", deleted "Sections 3-8-1 through 3-8-19 NMSA 1978. Notice of the election shall be given as provided in Section 3-8-2 NMSA 1978" and added the Local Election Act"; and in Subsection D, after "repayment of the bonds", deleted "must" and added "shall".
The 1995 amendment,
effective April 5, 1995, added "resolution authorizing revenue bonds to be issued and sold to the New Mexico finance authority" in the section heading; substituted "votes" for "vote" in the first sentence in Subsection B; added Subsection C; redesignated former Subsection C as Subsection D; in Subsection D, in the first sentence, inserted "or resolution", substituted "Section 7-19D-9" for "Section 7-19-4", and made a minor stylistic change.
Elections not authorized.
— The legislature saw no necessity and provided no machinery for an election on the issuance of revenue bonds when the necessary three-fourths vote of the governing body had been obtained. Nor did the legislature provide any authorization for an election prior to action by the governing body. 1966 Op. Att'y Gen. No. 66-26.
Law reviews.
— For comment, "The Last Bastion Crumbles: All Property Restrictions on Franchise Are Unconstitutional," see 1 N.M.L. Rev. 403 (1971).
Am. Jur. 2d, A.L.R. and C.J.S. references.
— Delay after election, effect of delay after authorization by voters on power of governmental unit to issue bonds, 135 A.L.R. 768.
Voter approval, constitutional or statutory requirement of prior approval by electors of issuance of bonds or incurring of indebtedness, by municipality, county, or state, as applicable to bonds or other instruments not creating indebtedness, 146 A.L.R. 604.