Board of County Commissioners (BCC)
Meeting: 02/17/15 05:00 PM
Department: Finance
Prepared By: Emily Madrid
Director: Shirley Ragin
DCM:
Title:
Notice of Intent to Adopt an Ordinance to Pledge Hold Harmless GRT Revenues
Action:
Motion to approve publication of the Notice of Intent to adopt an ordinance to pledge the
following Revenues as security for Bernalillo County:
1.
2.
The 1/8th General Purpose Hold Harmless GRT Revenues for the NM Gross Receipts
Tax Refunding Revenue bonds, Series 1996B, Series 1997, Series 1998, Series 2005
and Series 2010B,. and
The 1/8/th Behavior Health and Mental Hold Harmless GRT Revenues for NM Gross
Receipts Tax Refunding bond Series 2010A.
Summary:
GRT on food and medical services was removed by the State legislature in 2004. The County's
Series 1996B, Series 1997, Series 1998, Refunding Series 2005, Series 2010A and Series
2010B bonds were issued at a time when the food and medical gross receipt taxes were being
paid by the State of NM along with the monthly GRT distributions; therefore, the food and
medical hold harmless GRT revenues were being pledged for these bonds. The Bond
Documents and state law provides that the County agree that pledged revenues will not be
impaired.
The Phase-out of the food and medical gross receipts tax reduces county revenue currently
pledged to outstanding revenue bonds beginning in FY2016 creating an impairment to
bondholders; therefore, it is necessary to pledge the 1/8th general hold harmless GRT revenues
for the County's Series 2005 and Series 2010B bonds and pledge the 1/8th behavioral and
mental health needs hold harmless GRT revenues for the 2010A bond series.
Revisions to laws of the State affecting taxed activities and distributions of gross receipts tax
revenues could be adopted in the future by the State Legislature. Proposals affecting taxed
activities and distributions are frequently considered by the State Legislature. There is no
assurance that any future revisions to State laws will not adversely affect the distribution of
gross receipts tax revenues to the County.
Attachments:


Notice of Intent to Adopt an Ordinance (D3)
(PDF)
Pledge Revenues-Financial Analysis Short Form(XLSX)
DOC ID: 4374
Page 1
Staff Analysis Summary:
Risk Management
Veronica Espinosa Review
Completed
02/13/2015 11:01 AM
"Risk Management has reviewed, with no additional comment, the proposed motion. Veronica
C. Espinosa, Fiscal Officer, 2/13/2015
"
Purchasing
Dinah Esquivel
Review
Completed
02/13/2015 11:31 AM
Application of the Procurement Code does not apply to the proposed motion. Purchasing
comment is not required.
Accounting Jeff Lovato Review
Completed
02/13/2015 11:44 AM
The Accounting Department will insure that the pledged GRT revenue is tracked and accounted
for properly in the County's financial system. Jeff P. Lovato, Accounting Director, 02/13/15
Budget & Business Improvement
Jeff Lovato Review
Completed
02/13/2015
11:51 AM
Reviewed and approved. Approval of this agenda item will pledge 1/8th of the hold harmless
GRT revenue to outstanding revenue bonds beginning in FY 2016 to account for the phase-out of
the food and medical gross receipts hold harmless payments currently pledged to outstanding
revenue bond debt. Loss of the pledged hold harmless revenue to debt creates an impairment to
bondholders in the form of reduced coverage levels of debt serve; therefore, it is recommended
that 1/8th general hold harmless GRT revenues be pledged to the County’s outstanding gross
receipts tax revenue bonds. Jeff P. Lovato, Accounting Director, 02/13/15
Budget & Business Improvement
Shirley Ragin Review
Completed
02/13/2015
12:07 PM
Reviewed and recommend approval of the Notice of Intent to Pledge the Hold Harmless GRT
revenues to outstanding Gross Receipts Tax Revenue Bonds. If approved, this will allow the
pledging of the Hold Harmless 2/8th GRT, upon approval of the Hold Harmless GRT Ordinance.
SMR 2/13/2015
Legal Eric Schuler Review
Completed
02/13/2015 1:51 PM
Approved as to legal form; prepared by bond counsel. Eric W. Schuler, Assistant County
Attorney
County Manager
Heidi Warren Review
Completed
02/13/2015 1:57 PM
I recommend Board approval. TZ 02/13/2015
Board of County Commissioners
Yvette Chavez Meeting
Completed
02/17/2015
5:00 PM
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