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.