Santa Fe Bypasses New Mexico Finance Authority

The city of Santa Fe is expected to issue sales tax bonds to renovate a building for municipal offices after turning down a loan from the troubled New Mexico Finance Authority.

Problems with a fraudulent audit at the state agency have prevented it from going ahead with an offered $3.6 million loan for the project, city officials said last week.

The Santa Fe City Council is expected to vote in November on whether to issue $5 million of sales tax bonds to acquire and renovate the top floor of an existing building.

Some city offices currently located in a federal building near city hall will move into the renovated space.

The NMFA had offered to loan the city $3.6 million at 3.04%, but officials said they expect a lower rate on the bonds.

Santa Fe is rated Aa2 by Moody's Investors Service, AA by Fitch Ratings and AA-plus by Standard & Poor's.

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New Mexico
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