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Section VIII

Policy Manual

Table of Contents

Download a PDF of the handbook.

CNM Governing Board Policies Applicable to the College

Please note that additional College-wide policies adopted by the Governing Board are published in the CNM Employee Handbook. 

8.1 Equal Opportunity

It is the policy of the Governing Board to provide equal employment opportunity without regard to age, ancestry, color, mental or physical disability, gender identity, genetic information, national origin, race, religion, serious medical condition, sex, sexual orientation, spousal affiliation, veteran status, or any other protected class in any of its policies, practices, or procedures in accordance with applicable federal, state, and local laws, nor will it condone any act of illegal discrimination or harassment on the part of its employees. This policy promotes inclusive recruiting, hiring, and retention practices for applicants and employees.  All applicable federal, state, and local laws prohibiting unlawful discrimination are incorporated by reference.

8.2 Reasonable Accommodation 

Upon request, CNM will provide reasonable accommodations to individuals with disabilities regarding conditions of employment as required by applicable federal, state, and local laws.

8.3 Professional Development

Successful delivery of the educational services offered by the College depends on the performance of all employees: administrative, instructional, and support.  CNM supports professional development and provides opportunities for the continued development of employee competencies.

8.4 Articulation/ Transfer of Credits

The Governing Board supports and promotes articulation whenever possible as a means of facilitating student achievement of educational goals. Articulation refers specifically to course articulation–that is, the process of developing a formal, written agreement that identifies courses (or sequences of courses) at the College that are comparable to and acceptable in lieu of specific course requirements at another higher education institution to which a student has the opportunity to transfer or where a student has the opportunity to matriculate for advanced study.

8.5 Public Records

The Governing Board recognizes the right of the public to examine any public record on file at the College. Accordingly, the Governing Board has adopted a policy for the inspection of public records and the acquisition of copies of those records.  The policy and procedure are published in the Employee Handbook. 

8.6 Naming College Facilities

The Governing Board, in consultation with the President, may choose to name facilities (buildings, rooms, or areas) after an individual(s) or business entity(ies) with a history of exceptional contributions to the institution. Such designations are made in accordance with the following guidelines:

  • An honoree may not be employed by the College or be a Member of the Governing Board or the CNM Foundation Board at the time of the designation. An honoree must have been disassociated from employment, the Governing Board, or the CNM Foundation Board service for at least one year prior or have been deceased for at least one year prior to such a designation being made.
  • An honoree has earned distinction through extraordinary service or financial contributions to the College and by having demonstrated exemplary character.
  • A person who has contributed financially to a specific facility should be given strong consideration as an honoree if the amount contributed equals at least one-third of the cost of the facility.
  • The Governing Board approves all honorary name designations for College facilities and may discontinue any such designations.
  • The College reserves the right to physically alter any facility carrying an honorary name designation.

8.7 Procurement

State law requires all procurement for local public bodies to be performed by a central purchasing office designated by the governing authority of the local public body. The Governing Board is responsible for adopting and overseeing compliance with a policy for the procurement of services, tangible personal property, and construction which follows state statute. See NMSA 1978, Section 13-1-97(C).    On or before January 1 of each year and every time a chief procurement officer is hired, the College provides to the state purchasing agent the name of the College’s chief procurement officer and information identifying the local public body’s central purchasing office. See NMSA 1978, Section 13-1-95.2. New Mexico’s Procurement Code applies to every expenditure by the College for the procurement of items of tangible personal property, services, and construction unless there is a valid exception provided by law. See NMSA 1978, Section 13-1-30.  The CNM Purchasing Office is designated as the central purchasing office for all procurement as required by state law.  The CNM Procurement Office maintains departmental guidelines and procedures for the procurement of items of tangible personal property, services, and construction that comply with New Mexico’s Procurement Code.

8.8 Alcohol and Controlled Substances

Revised: 3/12/24

The Governing Board has adopted a comprehensive policy regarding Alcohol and Controlled Substances.  See Employee Handbook 12.02.  While on CNM campus or property the unlawful consumption, possession, manufacturing, distribution, selling, or serving of alcoholic beverages and controlled substances is prohibited. 

8.9 Investment

General:

It is the policy of CNM to invest financial assets in its possession or control to generate additional proceeds with which to fulfill the Mission of the College.  This policy applies to all funds held by CNM including, but not limited to, current funds, plant funds, bond proceeds, operating funds, Endowment funds, benefits reserve funds, debt service funds, and any other funds which have been contractually delegated to CNM for management purposes.  

Investment Responsibility and Control

As the recognized College Investment Officer, the Vice President for Finance and Operations is authorized to implement this Investment Policy either directly or acting through the Officer’s duly appointed designee.

Investment Guidelines:

The guiding principles for managing and investing the College’s funds are safety of principal, liquidity, yield, and public trust. The President and the College Investment Officer establishes unrestricted and restricted funds investment guidelines (Investment office policies) defining investment objectives, permitted investments, diversification targets, comparative benchmarks, and guideline approvals.  They understand and comply with statutory and internal reporting requirements. 

Special Provisions for Endowment Funds:

Endowment funds are restricted funds and must be managed with special care.  Restricted funds may not be comingled with unrestricted funds. Endowment Funds are treated with a special emphasis on preservation for permanent viability. Investments must take into consideration all special requirements established for those funds by Endowment Fund donors including permitted investments, restrictions on Endowment Funds use, and timing and conditions for disbursement. Investment Guidelines for Endowment Funds must account for these restrictions. To the extent any Endowment Fund requires reporting to donors, those requirements are documented and complied with.

Legal Restrictions

The College invests funds in conformity with federal and state laws and regulations, including Internal Revenue Services (IRS) regulations pertaining to tax-exempt bonds, bond resolutions and indentures, and other pertinent legal restrictions. These laws and regulations include but are not limited to NMSA 1978, § 6-8-1 et seq. and § 6-10-1 et seq., NMSA 1978; Uniform Prudent Investor Act, NMSA 1978, § 45-7-601 et seq.; Uniform Prudent Management of Institutional Funds Act, NMSA 1978 § 46-9A-1 through § 46-9A-10 NMSA 1978; and Internal Revenue Code on Arbitrage, 26 USC § 148.

Reporting and Governing Board Review

The College Investment Officer shall prepare monthly reports of investment activity and investment balances.  Quarterly reports summarizing the activity and balances for the fiscal year shall be prepared as of September 30, December 31, March 31, and June 30 each year and presented to the Finance Committee at its first meeting after which the reports are available. The Investment Officer will present a fiscal year annual report to the Governing Board regarding investment activities engaged in during the prior year. The Board shall review this investment policy, as necessary, but at a minimum every three years. Any changes made by the Investment Officer to the investment guidelines shall be presented to the Finance Committee of the Board as an informational item.

8.10 Fund Balance

It is the policy of CNM to maintain adequate fund balances given the intermittent nature of inflows of funds to the College.  The Governing Board has adopted a Funds Balance Policy for maintaining fiscal stability to provide a framework to guide decisions impacting this area. Sufficient fund balances are required to cover monthly budgeted expenditures to maintain positive cash flow.  A fund balance of a minimum of twelve percent (12%) and a maximum of twenty-five percent (25%) of operating budget expenditures is to be attained when the annual budget is approved by the Governing Board. The actual fund balance shall be increased or decreased by Budget Adjustment Requests during the fiscal year. The Governing Board is responsible for overseeing compliance with this policy and assuring the long-term fiscal stability for the College.

8.11 Debt Management

The College recognizes the foundation of any well-managed debt program is a comprehensive debt management policy.  The Debt Management Policy sets forth the parameters for issuing debt and managing the outstanding debt portfolio and provides guidance to decision-makers regarding the purposes for which debt may be issued, the type and amount of permissible debt, the timing and method of sale that may be used, and structural features that may be incorporated. Adherence to a debt management policy helps to ensure that government maintains a sound debt position and that credit quality is protected.

It is the intent of the College to establish a debt management policy to:

  • Ensure high-quality debt management decisions
  • Impose order and discipline in the debt issuance process
  • Promote consistency and continuity in the decision-making process
  • Provide all disclosures required by law and promote transparency
  • Strategically assess the College’s financial condition and demonstrate a commitment to long-term financial planning objectives, and
  • Ensure debt management decisions are viewed positively by the investment community, taxpayers, and rating agencies

I. Debt Management Policy

The College’s Debt Management Policy (“Debt Policy”) provides for the following:

  • Full and timely payment of principal and interest on all outstanding debt
  • Impact of debt service requirements of any new proposed debt within the overall context of outstanding debt
  • Post Issuance Compliance Guidelines that formalize post issuance compliance controls and procedures related to the College’s financial and legal obligations. General Obligation (Limited Tax) bonded debt, System Revenue bonded debt and other revenue bonded debt shall be incurred only for those purposes and issued under terms as permitted by State Statute and approved by the College’s Governing Board
  • The College shall select a method of sale that achieves the financial goals of the College and minimizes financing costs. Such sales may be competitive, negotiated or private placement, subject to State Statute, the project, and market conditions
  • The College may use the services of qualified internal staff and outside advisors, including bond counsel and municipal advisors, to assist in the analysis, evaluation, and decision process
  • The College shall make every attempt to earn and maintain the highest investment grade rating achievable
  • The College shall maintain good communications with bond rating agencies to ensure complete and clear understanding of the creditworthiness of the College
  • Finance team members (including but not limited to municipal advisors and bond counsel and may also include disclosure counsel) should be selected in accordance with the College’s Purchasing Procedures and the Debt Policy. The selection should maximize the quality of services received while minimizing the cost to the College.  Any subtractions or additions to the finance team members shall be subject to approval by the Vice President of Finance and Operations (“VP”).   Selected advisors shall adhere to applicable Municipal Securities Rulemaking Governing Board (“MSRB”) and the Securities and Exchange Commission (“SEC”) rules and regulations
  • Financial reports and bond official statements shall follow a policy of full, complete, and accurate disclosure of financial conditions and operating results. All reports shall conform to guidelines issued by the Government Finance Officers Association (“GFOA”), SEC, and the Internal Revenue Service (“IRS”) to meet the disclosure needs of rating agencies, underwriters, investors, and taxpayers
  • Federal income tax laws restrict the ability to earn arbitrage in connection with tax-exempt bonds.  Every effort shall be made to eliminate or minimize negative arbitrage.

II. Debt Policy Authorization and Administration

Authorization

The College will issue debt in conformance with New Mexico State Law.   The Governing Board may act by resolution to both authorize and approve the sale of debt or may choose to delegate approval of the sale may pursuant to state law.  Current State Statues provide for the following:

General Obligation (Limited Tax) Bonds

  • NMSA 21-2A-6 authorizes the College’s Governing Board (“Governing Board”) to issue General Obligation (Limited Tax) bonds for the purpose of financing certain capital improvements and computer hardware and software, as specified in that statutory section.
  • NMSA 21-2A-8 authorizes the Governing Board to issue General Obligation (Limited Tax) Refunding Bonds for the purpose of refunding existing General Obligation (Limited Tax) Bonds when such refundings are deemed by the Governing Board to be in the best interest of the College.

Education Technology Notes

  • NMSA 21-2A-13 authorizes the Governing Board to enter into a lease-purchase arrangements payable in whole or in part from ad valorem taxes, for the purpose of acquiring educational technology equipment whether the debt is designated as a general obligation (limited tax) lease, note, or other instrument evidencing a debt of the College.
  • NMSA 21-2A-14 authorizes the Governing Board to enter into a lease-purchase arrangement for the purpose of refunding or refinancing any lease-purchase arrangements then outstanding.

System Revenue Bonds

  • NMSA 21-2A-9 authorizes the Governing Board to issue System Revenue Bonds for the purpose of financing any necessary buildings, structures, or facilities, or to refund existing System Revenue bonds when such refundings are deemed by the Governing Board to be in the best interest of the College.

University Research Park Revenue Bonds

  • NMSA 21-28-8 authorizes a research park corporation, which may be formed by the Governing Board, to issue revenue bonds, payable only from the revenues or assets of the corporation, in order to carry out the purposes of the Act.

Administration

The VP shall review and recommend to the College’s President both the finance team and structuring plans for all capital financings prior to the introduction to the Governing Board.  The VP may employ the assistance of the College’s retained municipal advisor and legal counsel in the development and ongoing administration of its debt management responsibilities.

Key debt management administration responsibilities include but are not limited to:

  • Develop and maintain comprehensive supporting guidelines in accordance with the College’s Debt Policy.
  • Annually assess the College’s ability to issue and repay debt utilizing financial benchmarks specified within the College’s Debt Policy
  • Review and evaluate results of debt financing operations including, but not limited to:
    • Issuance of long-term and short-term debt obligations,
    • Selection of bond type, structure, methods of sale and marketing of bonds, and
    • Investor and rating agency communications
  • Review expenditures of bond proceeds and the status of various projects being financed, including the capital improvement program for timeliness of spent bond proceeds
  • Review and evaluate services provided by legal counsel (including but not limited to bond counsel, disclosure counsel, and tax counsel), municipal advisor (s), underwriters, and other service providers in bond transactions for effectiveness and quality of service
  • Review and revise annually the Debt Policy based upon review of operations
  • Maintain Post Issuance Compliance Guidelines that formalize post issuance compliance controls and procedures related to the College’s financial obligations
  • Review and revise annually the Post Issuance Compliance Guidelines based upon review of operations and legal requirements
  • Prepare an annual report to Governing Board on the following:
    • Results of previous year’s financings,
    • Rating agency reports and rating status,
    • Bond capacity and relevant comparable financial ratios,
    • All bond financings in progress or anticipated for the subsequent fiscal year, and
    • Any changes to the Debt Policy
  • Develop and maintain the selection criteria for municipal advisor, underwriters, and other finance team members, appoint Ad-Hoc Committee under the direction of the College’s Purchasing Director on all underwriting Requests for Proposals (“RFP”), and recommend to the Governing Board the finance team for all College bonds, pursuant to the College’s procurement code.

III. Debt Affordability Coordination with the College’s Capital Master Plan

As an important step within the annual development of the budget, the VP will annually assess the College’s ability to issue and repay its debt.  At a minimum, the VP shall review and evaluate proposed financing plans in conjunction with the long-range financial plan, the capital improvement program, current financial position, and financial policy to assess the College’s ability to issue and repay its debt.  The VP shall recommend how much new debt, if any, the College may authorize.

IV. Debt Affordability and Capacity Measures

A significant portion of the College’s Debt Policy should establish specific financial benchmarks that measure the population’s ability to pay, the burden upon the taxable property values, and the College’s current debt servicing capacity.  To this end, this section sets forth a step-by-step procedure for evaluating debt capacity.

  1. General Obligation (Limited Tax) Debt

    The approach, introduced in Table 1, is comprised of two levels of financial measures for evaluating debt capacity for General Obligation (Limited Tax) bonds. Level 1 establishes acceptable debt capacity measures as long-term average targets.  Level 2 establishes quantitative upper limits for debt capacity that should generally not be exceeded.  Once an upper limit is exceeded, projects requiring new debt need to demonstrate an economic benefit, and overall conditions must allow benchmarks to return within the Level 1 long-term average target levels within five (5) fiscal years or less. 

    TABLE 1

    LIMITED TAX FUND OBLIGATION MEASUREMENTS
    Level Ability to Pay Burden on Taxable Property Values
    One 1. Direct Net Debt Per Capita ≤ $150 2. G.O. (Limited Tax) Debt Outstanding as % of Assessed Value of Taxable Property ≤ 0.75%
    3. Debt Service as a % of Operating Expenditures ≤ 7.5% 4. Tax Rate for Debt Service at or below $1.00 per $1,000 of Assessed Valuation
    5. Fund Balance as a % of Expenditures ≤ 18% 6. Direct Debt as % of Full Value ≤ 0.20%
    Two 1. Direct Net Debt Per Capita ≤ $200 2. G.O. (Limited Tax) Debt Outstanding as % of Assessed Value of Taxable Property ≤ 1.25%
    3. Debt Services as a % of Operating Expenditures ≤ 10% 4. Tax Rate for Debt Service at or below $1.00 per $1,000 of Assessed Valuation
    5. Fund Balance as a % of Expenditures ≤ 12% 6.  Direct Debt as % of Full Value ≤ 0.25%
    1. Direct Net Debt Per Capita – Creditors and credit rating agencies measure the population’s ability to pay by dividing direct debt (includes debt supported by general revenues and taxes such as G.O. bonds debt) by per capita income. The College will utilize the corresponding benchmarks as set forth in Table 1 to evaluate the population’s ability to pay for outstanding and proposed debt.
    2. G. O. (Limited Tax) Debt Outstanding as a Percent of Assessed Value of Taxable Property – This measure evaluates the portion of long-term debt burden that is to be repaid by local property taxes.  G.O. debt is limited by NMSA 21-2A-6 to 3.00% of the value of taxable property from the last assessment.
    3. Debt Service as a % of Operating Expenditures – This measure evaluates the size of annual debt service requirements as a percentage of Operating Expenditures.  The measure assists the College in monitoring debt service levels and sets parameters for the size of debt service requirements to assist in mitigating outsized debt service growth.
    4. Tax Rate for Debt Service – State law permits a tax rate of $5.00 per $1,000 of assessed valuation in the initial year of issuance.  The College targets a tax rate of $1.00 per $1000 of assessed valuation or less as directed by the Governing Board and actively manages its principal and interest payments to achieve the Governing Board approved tax rate.
    5. Fund Balance as a % of Expenditures – Measures the College’s total current fund balance as a percentage of total unrestricted operating expenditures.   Provides an indication of reserve levels and ability of the College to manage expenditure spikes and temporary revenue declines.

    6. Direct Debt as Percentage of Full Value – this measure evaluates the burden of governmental direct debt upon the broadest possible measure of the College’s property tax base. Direct debt is the amount of all long-term debt (generally debt supported by general revenues and taxes such as G.O. debt) less sinking fund accumulations and less self-supporting enterprise debt. Self-supporting enterprise debt is excluded because it is repaid exclusively from revenues generated by the enterprise activity for which the debt was issued, e.g. enterprise revenue bonds or project revenue bonds. Full Value is defined as total fair market value of taxable property in the College, plus any exemptions and exclusions. Management will utilize the corresponding benchmarks as set forth in Table 1 to evaluate the population’s ability to pay for outstanding and proposed debt.

  2. Revenue Debt

    In addition to General Obligation (Limited Tax) debt, the College may elect to issue revenue bonds secured by a lien on and pledge of all or any part of any of the legally available revenues, income, or receipts of the College, other than ad valorem tax proceeds.  In order to demonstrate the College’s ability to pay debt service on the proposed revenue bonds, the College shall provide for an additional bond test as follows:

    • Maintaining an additional bonds test of 3.0x (System Revenue Bonds) computed for a period for any twelve (12) consecutive calendar months out of the preceding eighteen (18) months. The additional bonds test allows the College to issue additional bonds, if the College can produce net revenues annually to pay 300% of debt service requirements on all outstanding senior parity obligations.
    • Maintaining an additional bonds test of 1.25x for Research Park Revenue Bonds.

V. Financing Alternatives

The College shall assess all financial alternatives for funding capital improvements prior to issuing debt.   Pay-as-you-go financing should be considered before issuing any debt. Pay-as-you-go financing may include: grants from federal, state, and other sources; current revenues and fund balances; private sector contributions; or partnerships with private or public entities. Once the College has determined that “pay-as-you-go” and governmental or private sector grants are not a feasible financing option, the College may use short-term or long-term debt to finance capital projects.

  1. The College will not fund current operations or normal maintenance from proceeds of long-term financing. The College will confine long-term borrowing and capital leases to capital improvements, projects, or equipment that cannot be financed form current financial resources. In an effort to conserve debt capacity, the College shall borrow only when necessary and utilize pay-as-you-go financing to the extent possible.
  2. Short-Term Debt and Interim Financing - Maturity of one (1) year or less. Short-term obligations may be issued to finance projects or portions of projects for which the College ultimately intends to issue long-term debt (or where cash is available in a debt service fund and can be “sponged” to retire bonds immediately thereafter); i.e., it shall be used to provide interim financing which shall eventually be refunded with the proceeds of long-term obligations.  Short-term obligations may be backed with a tax or revenue pledge, or a pledge of other available resources.
  3. Bond Anticipation Notes (“BANs”). BANs, including commercial paper notes issued as BANs, may be issued instead of capitalizing interest to reduce the debt service during the construction period of a project or facility.  The BANs will not mature more than 1 year from the date of issuance
  4. Long-Term Debt (Bonds) – Maturity over one (1) year. Long-term General Obligation (Limited Tax) bonds shall be issued to finance significant capital improvements for purposes set forth by voters in bond elections and the capital improvement program or similar plans implemented by the College. Additionally, revenue bonds may be issued in response to public need without voter authorization.  Long-term debt may be incurred only those purposes as provided by law.
  5. Education Technology Notes – Maturity not exceeding five (5) years. The Governing Board may determine the need to lease-purchase educational technology equipment pursuant to a financing arrangement where periodic lease payments composed of principal and interest components are to be paid to the holder of the lease-purchase arrangement and pursuant to which the owner of the education technology equipment may retain title to or a security interest in the equipment and may agree to release the security interest or transfer title to the equipment to the College for nominal consideration after payment of the final periodic lease payment.  Additionally, the Governing Board may authorize the College to incur other forms of debt for the purpose of acquiring educational technology equipment.

VI. Issuance of Debt Obligations

All College debt shall be issued in accordance with the following policies:

  1. Conditions of Sale

    Unless otherwise justified, the issuance and sale of all College bonds, notes, loans and other evidences of indebtedness shall be subject to the following parameters:

    • The average life of the debt incurred should be no greater than the projected average life of the assets being financed.
    • The payment of General Obligation (Limited Tax) bonds shall be secured by the full faith, credit and taxing power of the College, subject to a maximum debt service levy of five (5) mils per thousand of assessed (taxable) property within the District at the time of issuance, and by the pledge of specified limited revenues accounted for in special funds, in the case of revenue bonds.
    • Prior to the issuance of debt, the College will identify the revenue source and find that the revenue source is sufficient to pay debt service over the expected repayment timeframe when considering current and proposed debt.
    • The timing of any borrowing should be coordinated to coincide as closely as possible to the cash flow requirements for construction or installation of the project and to meet the spend down requirements established by applicable statutory and/or regulatory requirements, therefore minimizing potential arbitrage rebate.
    • Pursuant to applicable statutory and/or regulatory requirements, a reimbursement resolution (declaration of official intent) must be approved by the Governing Board, if prior to a tax-exempt bond issue being sold, the College intends to spend funds from another source with the intent to reimburse the expenditures with tax-exempt bond proceeds. The reimbursement resolution must be approved not later than 60 days after payment of the original expenditure.  Currently, the reimbursement allocation from bond proceeds must be made not later than 18 months after the later of: (i) the date the original expenditure is paid, or (ii) the date the project is placed in service, but in no event more than 3 years after the original expenditure.  Certain preliminary “soft costs” expenditures (architectural, engineering, surveying, soil testing, etc.) may be recovered without a reimbursement resolution up to an amount not in excess of 20% of the bond issue.
    • The term of every General Obligation (Limited Tax) bond shall be 20 years or less. The term of Education Technology Notes shall be 5 years or less.  The term of System Revenue bonds shall be 30 years or less.
    • New money General Obligation (Limited Tax) bonds shall be issued at a public competitive or negotiated sale on terms determined by the College in consultation with the College’s municipal advisor and bond counsel or may be sold at a private sale to the State of New Mexico or the New Mexico Finance Authority.
    • New money Education Technology notes shall be issued at a public competitive or negotiated sale on terms determined by the College in consultation with the College’s municipal advisor and bond counsel or may be sold at a private sale to the State of New Mexico or the New Mexico Finance Authority.
    • General Obligation (Limited Tax)s bonds may be issued for the purpose of:
      • erecting, furnishing, constructing, purchasing, remodeling, and equipping buildings and utility facilities, exclusive of stadiums;
      • making other real property improvements;
      • purchasing grounds; and
      • purchasing and installing computer hardware and software with a useful life equal to or exceeding the maturity of the bonds.
    • General Obligation (Limited Tax) bond issuances by the College are subject to approval by the New Mexico Higher Education Department and subsequently by an election of a majority of qualified electors voting on the proposed issue.
    • No General Obligation (Limited Tax) bonds shall be issued that create a total bond indebtedness in excess of three (3) percent of the assessed valuation of the taxable property within the College’s district,
    • Education Technology Notes may be issued for the purpose of funding tools used in the educational process that constitute learning and administrative resources and may include:
      • closed-circuit television systems; educational television and radio broadcasting; cable television, satellite, copper, and fiber-optic transmission; computer, network connection devices; digital communications equipment, including voice, video, and data; servers; switches; portable media such as discs and drives to contain data for electronic storage and playback; and purchase or lease of software licenses or other technologies and services, maintenance, equipment, and computer infrastructure information, techniques and tools used to implement technology in colleges and related facilities;
      • improvements, alterations, and modifications to, or expansions of, existing buildings or personal property necessary or advisable to house or otherwise accommodate any eligible education technology tools; and
      • expenditures for technical support and training expenses of college district employees who administer education technology projects funded by a lease-purchase arrangement and may include training by contractors.
    • Revenue bonds may be issued for the purpose of:
      • constructing, purchasing, improving, remodeling, furnishing, or equipping any necessary buildings, structured or facilities
      • In the case of University Research Park bonds, the College, as authorized by NMSA 21-28-5, may finance all or part of the costs of the research park, including the purchase, construction, reconstruction, improvement, remodeling, addition to, extension, maintenance, equipment, and furnishing. Per New Mexico State Statue 21-28-9, bonds issued under the provisions of the University Research Park and Economic Development Act shall be deemed issued on behalf of the College but shall not be deemed to constitute a liability or a pledge of faith of the state or any political subdivision therefore or any college/university.  University Research Park bonds shall be payable solely from the revenue or assets of the research park corporation pledged for that payment.
    • System Revenue bond issuances shall be authorized by resolution of the Governing Board and approved by a majority vote of the Governing Board. The New Mexico Higher Education Department and the State Board of Finance shall approve the sale of all System Revenue bond issuances.
    • Bonds shall be sold at a price that does not result in a net effective interest rate exceeding the maximum net effective interest rate permitted by the Public Securities Act.
    • Capital improvements should be developed, approved, and financed in accordance with College Bond Resolutions and pursuant to the College capital improvement budgeting process.
    • Principal and interest retirement schedules shall be structured to: (1) meet available cash flow available to service debt, (2) achieve a low borrowing cost for the College, (3) accommodate the debt service payments of existing debt and (4) respond to perceptions of market demand. Shorter maturities shall always be encouraged to demonstrate to rating agencies that debt is being retired at a sufficiently rapid pace.
    • Debt shall be limited to obligations that are payable serially and have term maturities, but may be sold subject to optional or mandatory redemption.
  2. Methods of Sale
    Debt obligations in the form of bonds, notes, loans, or other evidences of indebtedness of the College may be sold by competitive, negotiated public sale or private placement methods unless otherwise limited by state law.  The selected method of sale shall be the option which is expected to result in the lowest cost and most favorable terms given the financial structure used, market conditions, and prior experience with each method. Pursuant to NMSA 21-2A-6, new money General Obligation (Limited Tax) Bonds shall be issued at a public sale or may be sold at private sale to the State of New Mexico or the New Mexico Finance Authority.

VII. Selection of Debt Structures

  1. Fixed Rate Bonds
    In order to minimize interest rate risk, the preference of the College is to issue fixed rate debt; however, if an alternative structure is determined to be more advantageous, the College may adopt an alternative bond structure subject to the defined constraints described herein.
  2. Variable Rate Bonds
    The proportional amount of debt attributable to specific pledged revenue that shall be issued in the form of unhedged variable rate securities shall be limited to a maximum of 20% of the total outstanding debt for which that revenue is pledged.  In the case of tax-supported variable rate debt, the level of variable rate shall not exceed 20% of the then outstanding tax-supported debt which includes General Obligation (Limited Tax) and System Revenue debt.  In considering the amount of unhedged variable rate debt to be issued, consideration shall be given to the amount of cash balances available to be otherwise invested as reserves and available as a natural interest rate hedge. Periodically, the VP with assistance from the municipal advisor shall analyze each outstanding variable rate issue to determine if the issue should be converted to a fixed rate or otherwise hedged.  The College will consult with its legal advisors, municipal advisors, and a selected derivative advisor for guidance in incurring or managing derivative products.
  3. Tax-Exempt Bonds
    In order to minimize interest cost, the preference of the College is to issue tax-exempt debt; however, if an alternative structure is determined to be more suitable the College may adopt an alternative bond structure subject to the defined constraints described herein.
  4. Taxable Bonds
    The College may elect the use of taxable debt for those projects that have an intended use or other characteristics that preclude the use of tax-exempt debt or in other instances where the use of taxable debt can be shown to offer a financial advantage to the College.  Any use of taxable debt requires Governing Board approval and is subject to applicable statutory and/or regulatory requirements.
  5. Liquidity and Credit Enhancement Facilities

    The College may seek to use liquidity (in the event there is an issuance of Variable Rate Bonds as provided above) or credit enhancement when such enhancement proves to be cost-effective or to improve or establish a credit rating.  When their use is judged prudent and advantageous to the College, the VP shall have the authority subject to Governing Board approval to enter into agreements with commercial banks or other financial entities for the purposes of acquiring lines or letters of credit, bond insurance, or surety policies, etc.  The selection of enhancement providers is subject to a competitive bid process developed by the VP and municipal advisor and approved by the Governing Board.

    1. Prerequisite to use:
      The present value of the estimated debt service savings from the use of credit enhancement should be at least equal to or greater than the premium paid by the College to obtain such credit support; and criteria to be used in the appointment of credit provider include:
      • An objective evaluation of responses to a request for qualification
      • The short-and long-term credit ratings of the institution and the relative trading level of debt support by such credit provider
      • Institution's experience with providing liquidity facilities to municipal bond issuers
      • Competitiveness of fees submitted, interest charged on liquidity draws, maximum legal and administrative fees
      • Ability to agree to College and state legal requirements; and
      • Number and amount of liquidity facilities currently outstanding in the market
  6. Optional Redemptions
    The College’s bonds may be subject to optional redemptions and early calls, consistent with the objective of paying the lowest possible interest cost.  Early calls may permit the College to act upon decreases in interest rates by refinancing debt for the purpose of realizing debt service savings. The College and its municipal advisor will regularly evaluate optional redemption provisions for each issue, so the College does not service its debts at unacceptably higher interest rates. Debt will be structured with shortest optional redemption date which does not materially increase cost.
  7. Reserve Requirements & Bond Insurance
    In the issuance of bonds, the College may find it necessary to fund a reserve fund or acquire bond insurance in order to achieve the lowest possible interest cost.  In each instance, the College and its municipal advisor will determine the appropriate reserve and or insurance option that allows for the lowest achievable interest cost while maintaining the marketability of the College’s bonds.

VIII. Refundings

  1. Refunding Bonds: The College shall consider refunding outstanding debt in order to:
    1. Generate interest rate savings,
    2. Restructure principal, or
    3. Eliminate burdensome bond covenants.
    4. A present value analysis shall be prepared that identifies the economic effects of any refunding proposed. Prominent among these are:
      1. Time to call date,
      2. Negative arbitrage per maturity, and
      3. Structure of debt service savings.
  2. Current Refundings
    1. Requires that the refunding escrow may not exceed 90 days. A current refunding transaction shall require a present value savings of a minimum of 3% of the principal amount of the refunding debt being issued and shall incorporate all costs of issuance expenses. A current refunding with present value savings of less than 3% present value savings must be for tax rate management purposes only.
  3. Advance Refundings
    1. Requires the refunding escrow duration to exceed 90 days. Governmental refunding bonds issued after 2017 may only be advance refunded with taxable bonds.   Consequently, the College should carefully weigh the benefits and opportunity costs of such an action; and unless otherwise justified, an advance refunding transaction shall require a present value savings of at least the principal amount of the refunding debt being issued and shall incorporate all costs of issuance expenses. A maturity by maturity analysis shall be conducted to include a determination of the negative arbitrage incurred in connection with the escrow established for a particular maturity.  In the event of substantially all of the maturities of an advance refunding meet the criteria of Table 3, maturities not confirming to the savings matrix may be refunded in conjunction with the advance refunding bonds.
    2. The chart below illustrates the savings matrix for a fixed-rate advance refunding of existing fixed-rate bonds so that each individual bond maturity generates a net present value savings of at least the following:

Minimum NVP Savings Decision Matrix
Years to Call Date
Years from call Date to Maturity Date


 -- 0-2 3-7 8-10
0-5 0.50% 3.00% 3.00%
6-10 3.00% 3.00% 4.00%
11-15 3.00% 4.00% 5.00%
16-20 4.00% 5.00% 5.50%

IX. Redemptions

Redemptions are payment or prepayment or College debt with available cash from either the debt service fund or other legally available funds of the College.  The College shall consider redeeming bonds for the purpose of reducing future debt payments and related interest cost or for purposes of redeeming bonds for tax rate management purposes.  The impact of a redemption should be evaluated on a present value basis by the College’s municipal advisor.

X. Investment of Bond Proceeds

Bond proceeds will be invested pursuant to the College’s Investment Policy and Investment Guidelines. If the investment of bond proceeds is not addressed within the College’s Investment Policy or Investment Guidelines or in the absence of a policy, the proceeds will be invested in US Treasury and or US Government Agency securities. 

XI. Appointment of Professionals

  1. To provide systematic technical advice and support to the College and for the efficient competitive, negotiated or private placement sale of College debt, the Governing Board may approve the selection of qualified professionals including Bond Counsel, Municipal advisor, Disclosure Counsel, Arbitrage Rebate Services, and underwriters (if applicable).
  2. Such selection of qualified professionals shall be based on an evaluation of competitive proposals for separate advisory and underwriting services, as recommended to the Governing Board by the VP. In no case may the municipal advisor on any College credit serve as an underwriter in compliance with MSRB rules and regulations. 
    1. Term of Appointments
      1. Appointments shall be effective for a term consistent with the College’s procurement code, from the date of ratification of the award by the Governing Board, unless otherwise amended by the Governing Board.
    2. Selection Process
      1. The College shall periodically publish a RFP that invites concurrent proposals from individual offeror to provide services in support of each of the College's anticipated projects.
    3. Blackout Periods Imposed
      1. In line with the College’s procurement policies, communication about an RFP or the selection process with members of a municipal advisor, or underwriting proposal review committee, College employees, or elected officials of the College by any employee or representative of an underwriting team under consideration for selection is explicitly prohibited from the date of publication of such RFP until recommendation of award by the Governing Board.
      2. Failure to comply with this requirement shall result in the applicant’s disqualification.
    4. Selection Criteria for Underwriting Firms
      1. Criteria to be used in the appointment of qualified financial advisor and underwriters shall include, but are not limited to:
      2. Demonstrated ability of the firm to structure an issue of debt utilizing the contemplated credit structure(s) efficiently and effectively
      3. Experience of assigned personnel
      4. Approach to proposed scope of work, including quality and applicability of proposed financing ideas
      5. Demonstrated capability to sell bonds to institutional and retail investors, especially to investors located in New Mexico
      6. Demonstrated commitment and capacity of the underwriting firm or firms to put its firm's capital at risk, especially as evidenced by having successfully bid on prior competitive sales of College debt or by having underwritten the College's debt in adverse markets
      7. Demonstrated secondary market support for debt which the underwriting firm or firms are retained, especially for the specific credit which is to be pledged
      8. Fees and expenses
      9. Weights for the above criteria may vary and shall reflect the unique requirements of the proposed engagement
      10. Other factors. Other factors are defined as those factors that have not been included as technical selection criteria, but are factors that in some instances must be considered in making the final selection. Their nature will not permit a meaningful numerical predetermination of relative significance of impact on the selection decision, and therefore, they are not numerically scored.
      11. Failure to provide complete disclosure for each of the offeror firms to the following questions or misrepresentation shall result in disqualification. The provider must certify that, to the best of its knowledge, the information submitted in response to this section is accurate, complete, and not misleading.
    5. Selection Criteria for Municipal Advisors

      Criteria to be used for in the appointment of qualified municipal advisors shall include but are not limited to:

      1. Qualifications and experience as a municipal advisor to higher education institutions and government entities in the areas of:
        • Issuance of tax exempt and taxable financings
        • Understanding of debt management and alternative financing methods and techniques
        • Understanding credit ratings and rating agencies
        • Understanding relevant federal and State of New Mexico laws
      2. Demonstrated capabilities as a municipal advisor
        • Proven history of the firm to include number of years your company has been in operation
        • Appropriate credentials and expertise of assigned personnel
        • Accessibility of services including location of headquarters, other offices, and employees
    6. Conflicts of Interest
      1. Each offeror’s proposal shall list all potential conflicts of interest, whether required by law or not, of which the firm has knowledge or which may arise with respect to the representation of the College. The disclosure of all potential conflicts of interest shall include, without limitation, any circumstances which would create the appearance of a conflict of interest.
    7. Regulatory Action
      1. Each offeror shall disclose any judicial or administrative proceedings of public record that have been filed against the firm during the five (5) years preceding the date of the proposal that concerned the offeror participation in a securities transaction.
      2. Each offeror shall list and describe the current disposition or status of any litigation or formal or informal action taken by any state or federal securities commission, the MSRB, or any other regulatory body against the firm (or taken against any individuals now at the firm who will work under this contract) within the last five (5) years.
      3. Each offeror shall disclose employment practices and describe the current disposition or status of any litigation or formal or informal action taken by the Equal Employment Opportunity Commission or any other regulatory body against the firm within the last five (5) years with respect to its employment practices.

XII. Investor and Rating Agency Communications

  1. Disclosure
    1. It is the College’s policy to provide primary and secondary disclosure to all its bond investors on a periodic basis as required by the SEC Disclosure Rule 15c2-12 and SEC Antifraud Provision Rule 10b-5 and MSRB Rule G-36 as stated below:
      SEC Disclosure Rule 15c2-12 requires that issuers of municipal securities undertake in a written agreement or contract for the benefit of holders of such securities to provide certain annual financial information to various information repositories.
    2. SEC Antifraud Provisions Rule 10b-5 requires that disclosure made by issuers of municipal securities be both accurate and complete in all material respects at the time the disclosure is provided.
    3. MSRB Rule G-17 requires, in the conduct of municipal securities or municipal advisory activities, each broker, dealer, municipal securities dealer, and municipal advisor shall deal fairly with all persons and shall not engage in any deceptive, dishonest or unfair practice.
    4. MSRB Rule G-23 establishes ethical standards and disclosure requirements for brokers, dealers, and municipal securities dealers who act as municipal advisors to issuers with respect to the issuance of municipal securities. Firms are prohibited from engaging in underwriting and remarketing activities with issuers of municipal securities with whom they maintain a municipal advisory relationship, as defined by MSRB Rule G-23.
    5. The College acknowledges the responsibilities of the underwriting community and shall assist underwriters in their efforts to comply with SEC Disclosure Rule 15c2-12, SEC Antifraud Rule 10b-5, and MSRB Rule G-36 as required by law or agreement with an underwriter.
  2. Official Statement Filing - Primary Disclosure
    1. The College shall file its Official Statements on the MSRB’s Electronic Municipal Market Access (“EMMA”) system which is the official repository for municipal securities.
  3. Comprehensive Annual Financial Report

    1. The College shall provide its Annual Comprehensive Financial Report (“ACFR”) when it becomes public information and shall disseminate other information that it deems pertinent to the market in a timely manner.  The College shall file its ACFR with EMMA on a timely basis as required.

XIII. Securities Disclosure Policies and Practices of Administration Officials 

In connection with the issuance of certain bonds, notes, and other municipal securities, the College is required to prepare and disseminate certain disclosure information in order to comply with Rule 15c2-12 promulgated by the SEC under the Securities Exchange Act of 1934, including a requirement for continuing disclosure of annual financial information and notices of certain material events.  This policy shall centralize the information dissemination process, establish appropriate controls on disclosure statements made by the College and enable the College and its enterprises to comply with Rule 15c2-12, in order to assure the College's access to the capital markets as a source of funds for necessary and useful public undertakings of the College.  This policy is not intended in any way to limit any person's access to public records or information, nor to infringe upon the normal political process, in particular the right of any elected official of the College to review, discuss, release, comment upon, or criticize any information.

  1. Policy
    1. Relying on the information brought to the attention of the Governing Board in its official capacity, the Governing Board shall review and approve a substantially final form of each official statement or disclosure statement relating to municipal securities as to which the College is the issuer or an obligated person for purposes of Rule 15c2-12. Each member of the Governing Board will be asked to alert the VPFO, the municipal advisor or bond counsel if upon information or belief they have reason to believe that an official statement or disclosure statement (i) contains any inaccurate information; (ii) includes an incomplete or misleading statement; or (iii) should include information material to a purchaser that is not currently included in the document.
    2. The VP shall be responsible for reviewing and recommending, prior to release to the public, all official statements and disclosure statements relating to municipal securities as to which the College is the issuer or an obligated person for purposes of Rule 15c2-12.
    3. No official statement relating to any municipal securities as to which the College is the issuer or an obligated person for purposes of Rule 15c2-12 shall be issued or released to the public until and unless approved in writing by the VP.
    4. No disclosure statement concerning municipal securities as to which the College is the issuer or an obligated person for purposes of Rule 15c2-12 shall be made, issued, or released to the public by any employee, agent, or official of the College until and unless such disclosure statement and the release thereof shall be approved in writing by the VP.
    5. The College shall not bind itself pursuant to an undertaking relating to securities, such as certain types of private activity bonds, as to which it is not an obligated person for purposes of Rule 15c2-12. No undertaking relating to municipal securities as to which the College is the issuer or an obligated person for purposes of Rule 15c2-12 shall be binding upon the College without the written approval of the VP.
    6. No disclosure statement, official statement, or undertaking in respect of any municipal securities as to which the College is the issuer or an obligated person for purposes of Rule 15c2-12 that is issued or released to the public by any employee, agent or official of the College without the express written approval of the VP as required by this policy shall be deemed to be a statement or undertaking by or on behalf of the College.
  2. Action
    1. Unless otherwise required by law, prior to releasing to the public any official statement or disclosure statement intended to be made public, all non-elected employees, agents and officials of the College shall report to and file with the VP any such proposed disclosure statement, together with such additional information requested by the VP, including certificates as to the accuracy of such disclosure statement, and each such employee, agent and official of the College shall consult with the VP concerning such proposed official statement or disclosure statement.
  3. Published Disclosure Statements
    1. All information and documentation requested by the VP that may be required to support the preparation of a disclosure statement, official statement or undertaking shall be provided by the appropriate College departments, as identified by the VP, on a timely, complete, and accurate basis.
    2. All disclosure statements, official statements, and undertakings shall be compiled by disclosure counsel and reviewed by the VP and other counsel who are parties to the documentation. They shall be afforded, by the originating department, such unobstructed access to documentation and information, as they may deem appropriate.
  4. Rating Agency, Investor, and Media Communications
    1. The information is already in the public domain;
    2. The information is a disclosure event as defined by the SEC, requiring prompt EMMA filing; and
      • All communications with rating agency personnel, including responses to their periodic questions, shall be managed through and approved by the VP.
      • In order to ensure uniform market access to information that may be relevant to the valuation of the College's securities, the release of any information, whether in response to an ad hoc question or self-initiated, that may be potentially relied upon by the market to impute the credit worthiness of the College's debt, whether intended for that purpose or not, shall be reviewed by the VP and Disclosure Counsel to determine whether or not:
      • The information is full, accurate, complete, and not misleading.

8.12 Diversity, Equity, and Inclusion 

It is the Policy of the Governing Board of Central New Mexico Community College to commit to providing a diverse, equitable and inclusive College experience.

The Governing Board of Central New Mexico Community College is committed to providing a diverse, equitable and inclusive college experience.

The Board is aligned to intentionally remove barriers to success in policy, programs and practices. The board will advocate for and monitor the goals of the following practices:

  1. Identify and address educational and economic gaps for students in historically underserved or underrepresented populations.

2. Ensure equitable hiring and retention practices are used to build a workforce representative of the student body and surrounding community.

3. Cultivate an inclusive, thriving environment where a multitude of voices are heard and encouraged.

4. Support students and staff regardless of gender, ability or disability, age, sexual orientation, gender identity, race, religion, ethnicity, immigration status, country of origin, economic status, military or individuals impacted by the justice system.