New Mexico § 5-11-20 - Special levy; bonds; imposition

§ 5-11-20. Special levy; bonds; imposition

A. At any time after the hearing on formation of the district, the district board

may from time to time order that a hearing be held to determine whether a special

levy should be imposed and special levy bonds issued to provide money for any public

infrastructure purpose consistent with the general plan. The question of imposing a special levy may be considered at the hearing on district

formation upon notice that both issues will be heard at that time, which notice shall

include the information required in Subsection B of this section. B. Notice of hearing shall be provided at least two weeks in advance of the hearing

itself in a newspaper of general circulation in the municipality or county in which

the district is located. The notice shall include the following: (1) a description of the method by which the amount of the proposed special levy will

be determined for each class of property to which the levy is proposed to apply, in

sufficient detail to enable the owner of the affected parcel to determine the amount

of the special levy; (2) a description of the project to be financed with special levy bonds or revenues;

and (3) a statement that any person affected by the proposed special levy may object in

writing or in person at the hearing. C. Prior to issuing special levy bonds, the district board shall set a maximum levy

for each class of property that may be imposed for debt service on the special levy

bonds. D. Unless a local government has enacted an ordinance providing a greater limitation,

no special levy bonds may be issued if at the time of issuance of such bonds the estimated

total tax and assessment obligation for a class of property, including projected ad

valorem taxes and special levies as provided in the feasibility study, exceeds one

and ninety-five hundredths percent of the anticipated, average market value of each

class of property at the time of issuance of a certificate of occupancy as determined

by a member appraiser of the appraisal institute. E. Special levy bonds may be sold in a public offering or in a negotiated sale. F. After the bonds are issued, the district board shall enter in its minutes a record

of the bonds sold and their numbers and dates and shall annually impose and cause

a special levy to be collected, at the same time and in the same manner as property

taxes are levied and collected on all property within the district that may be subject

to the levy, including, without limitation, all leased property or improvements to

leased land, sufficient, together with any other money lawfully available to pay debt

service on the bonds when due, except to the extent that the district board has provided

for other imposition, collection and foreclosure procedures in connection with special

levies. Money derived from the imposition of the special levy when collected that is pledged

to pay the debt service on the bonds shall be kept separately from other funds of

the district. Special levy revenues not pledged to pay debt service on bonds may be used to pay

other costs of the district, including costs of formation, administration, operation

and maintenance, service or enhanced services. G. The district board shall specify conditions under which the obligation to pay special

levies may be prepaid and permanently satisfied. H. Special levies against privately owned residential property shall be subject to

the following provisions: (1) the amount of special levy that may be imposed shall not be increased over time

by an amount exceeding two percent per year, except that the amount of special levy

actually imposed may be increased by up to ten percent as a result of the delinquency

or default by the owner of any other parcel within the district, but in no case shall

the amount of the special levy imposed exceed the maximum special levy provided in

the rate and method of apportionment; (2) the special levy shall be imposed for a specified time period, after which no

further special levy shall be imposed and collected, except that special levies imposed

solely to finance the cost of ongoing district services, maintenance or operations

or enhanced services may be levied while such services, maintenance or operations

or enhanced services are continuing; and (3) nothing in this subsection shall preclude the establishment of different categories

of residential property or changing the amount of the special levies for a parcel

whose size or use is changed. A change in the amount of a special levy imposed upon a parcel due to a change in

its size or use shall not require voter approval if the method for changing the amount

of special levy was approved in the election approving the special levy in sufficient

detail to enable the owner of the affected parcel to determine how the change in size

or use of the parcel would affect the amount of the special levy. I. A district's imposition of a special levy shall constitute a lien on the property

within the district subject to the special levy, including property acquired by the

state or its political subdivisions after imposition of the special levy, which shall

be effective during the period in which the special levy is imposed and shall have

priority co-equal to the lien of property taxes. A special levy shall be subject to foreclosure by the district at any time after

six months following written notice of delinquency to the owner of the real property

to which the delinquency applies. The lien shall include delinquencies, penalties and interest thereon at a rate not

to exceed the maximum legal rate of interest per year and penalties otherwise applicable

for delinquent property taxes, the district's actual costs of foreclosure and any

other costs of the district resulting from the delinquency. All rights of redemption applicable to property sold in connection with property

tax foreclosures pursuant to the laws of this state shall apply to property sold following

foreclosure of a special levy lien. The portion of proceeds of any foreclosure sale necessary to discharge the lien

for the special levy shall be deposited in the special bond fund for payment of any

obligations secured thereby. J. No holder of special levy bonds issued pursuant to the Public Improvement District

Act may compel any exercise of the taxing power of the district, municipality or county

to pay the bonds or the interest on the bonds. Special levy bonds issued pursuant to that act are not a debt of the district, municipality

or county, nor is the payment of special levy bonds enforceable out of any money other

than the revenue pledged to the payment of the bonds. K. Subject to the requirements of this section, a district may issue special levy

bonds at such times and in such amounts as the district deems appropriate to carry

out a project or projects in phases. L. Pursuant to this section, the district may issue and sell refunding bonds to refund

any special levy bonds of the district authorized by the Public Improvement District

Act. Refunding bonds issued pursuant to this section shall have a final maturity date

no later than the final maturity date of the bonds being refunded.