No general obligation bonds or other evidences of indebtedness, the payment of which is secured wholly or in part by a pledge of any proceeds of general ad valorem property taxes or to which the full faith and credit of a municipality are pledged, shall be issued, except as follows:
A. a county shall so borrow money only for the purpose of erecting necessary public buildings in connection with any project, and in any such case only after the proposition to create such debt shall have been submitted at a general or special election to the qualified electors of the county and approved by a majority of those voting thereon;
B. a city shall so contract any such debt only by an ordinance that shall be irrepealable until the indebtedness therein provided for shall have been fully paid or discharged and that shall specify the purposes to which the funds to be raised shall be applied. No such debt shall be created unless the question of incurring the debt shall, at a regular election for councilmen or other officers of the city, have been submitted to a vote of the qualified electors thereof and a majority of those voting on the question shall have voted in favor of creating the debt; and
C. no municipality shall ever become indebted to an amount in the aggregate, including existing indebtedness, exceeding four percent on the value of the taxable property within the municipality as shown by the last preceding assessment for state or county taxes, but excluding debts contracted by a city for the construction or purchase of a system for supplying water or of a sewer system for the city; and all bonds or obligations issued in excess of that amount shall be void.
History: 1953 Comp., § 6-9-9, enacted by Laws 1959, ch. 300, § 9; 1977, ch. 28, § 2; 2019, ch. 212, § 191.
The 2019 amendment, effective April 3, 2019, deleted "registered" preceding "qualified elector" throughout the section.
Structure New Mexico Statutes
Chapter 5 - Municipalities and Counties
Article 5 - Joint City-County Building
Section 5-5-2 - Legislative declaration.
Section 5-5-4 - Jointly owned projects.
Section 5-5-5 - Powers of county and city.
Section 5-5-6 - Agreements between county and city.
Section 5-5-7 - Borrowing money and securities evidencing loans.
Section 5-5-8 - Short-term notes.
Section 5-5-9 - Limitations upon incurring debts.
Section 5-5-10 - General obligation bond and debt elections.
Section 5-5-11 - Authorization of bonds.
Section 5-5-12 - Payment of bonds.
Section 5-5-13 - Municipality's limited liability on bonds and recital therein.
Section 5-5-14 - Incontestable recital in bonds.
Section 5-5-15 - Form of bonds.
Section 5-5-16 - Alternate bond form.
Section 5-5-17 - Execution of bonds.
Section 5-5-18 - Sale of bonds.
Section 5-5-19 - Application of proceeds.
Section 5-5-20 - Covenants in bond proceedings.
Section 5-5-21 - Remedies of bondholders.
Section 5-5-23 - Revenue bond charges.
Section 5-5-24 - Pledging of occupation taxes.
Section 5-5-25 - Exemption from taxation.