New Mexico § 5-11-8 - Formation; debt limitation

§ 5-11-8. Formation; debt limitation

A. If the formation of the district is approved by at least a three-fourths' majority

of the votes cast at the election, the governing body shall cause a copy of the resolution

ordering formation of the district to be delivered to the county assessor, the county

treasurer and the county in which the district is located and to the taxation and

revenue department and the local government division of the department of finance

and administration. A notice of the formation showing the number and date of the resolution and giving

a description of the land included in the district shall be recorded with the county

clerk. B. Except as otherwise provided in this section, a district shall be a political subdivision

of the state, separate and apart from the municipality or county. The amount of indebtedness evidenced by general obligation bonds issued pursuant

to Section 5-11-19 NMSA 1978 , special levy bonds issued pursuant to Section 5-11-20 NMSA 1978 and revenue bonds issued pursuant to Section 5-11-21 NMSA 1978 shall not exceed the estimated cost of the public infrastructure improvements plus

all costs connected with the public infrastructure purposes and issuance and sale

of bonds, including, without limitation, formation costs, credit enhancement and liquidity

support fees and costs. The total aggregate outstanding amount of bonds and any other indebtedness for which

the full faith and credit of the district are pledged shall not exceed sixty percent

of the market value of the real property and improvements in the district after the

public infrastructure improvements of the district are completed plus the value of

the public infrastructure owned or to be acquired by the district with the proceeds

of the bonds and shall not affect the general obligation bonding capacity of the municipality

or county in which the district is located. C. Bonds issued by a district shall not be a general obligation of the state, the

county or the municipality in which the district is located and shall not pledge the

full faith and credit of the state, the county or the municipality in which the district

is located, irrespective of whether the district board is governed by the governing

body of the county or municipality in which the district is located. D. Following formation of the district, the district board shall administer in a reasonable

manner the implementation of the general plan for the public infrastructure improvements

of the district.