Board ponders alternate finance methods
A relatively new state law could help the Rio Rancho school system build and repair facilities in a quicker and cheaper fashion.
The New Mexico Lease Purchase Act, approved by voter in the November 2006 election and implemented by the 2007 state Legislature, now allows governmental agencies, including school districts, to enter into lease agreements with non-profit private groups. Those groups, in turn, would create a team to build new schools, with the property reverting back to the district after 20- or 30-years of lease payments are made, similar to a home mortgage.
Four different teams made presentations about the new law to the Rio Rancho School Board at a workshop Monday. The board is exploring different ways to pay for new schools and other infrastructure.
Though no decisions are likely for several months, the proposals did point out different ways the growing district might be able to keep up, if not catch up, to the explosive growth in Rio Rancho’s student population. The district will open two elementary schools this fall and a second high school in 2009.
Proponents of PPPs, or Public-Private Partnerships, say these types of financial plans don’t require a school district to have all of the money at the beginning of a project and makes for quicker construction times, saving money as the cost of building materials continues to rise. But concerns include less control by the school district during the construction process and passing costs on to future taxpayers instead of paying for construction cost now.
Board members seem to believe some new finance methods are inevitable, but wanted to see more details and comparisons between the way construction is funded now and how much time and money would actually be saved under different plans.
The first three presenters, representing groups based outside of New Mexico, used Power Point presentations and had multiple color handouts for the board. But the actual cost breakdowns were not clearly available.
By contrast, the final presentation by a group including local realtor Bill Nelson made it clear that his group of architects, designers and construction companies would seek a 10 percent profit no matter when the district would complete its final lease payments.
MORE TO COME
