STATE OF NEW MEXICO
PUBLIC EDUCATION DEPARTMENT
300 DON GASPAR
SANTA FE, NEW MEXICO 87501-2786
Telephone (505) 827-5800
www.ped.state.nm.us
DR. VERONICA C. GARCÍA
SECRETARY OF EDUCATION
BILL RICHARDSON
Governor
May 29, 2007
MEMORANDUM
TO:
Public School Superintendents
Public School Business Managers
New Mexico State Education
FROM:
Steve Burrell, Director
School Budget & Finance Analysis Unit
RE:
Year-end 2007-2008 Debt Levy Requirements
Attached is the PED 955F form needed to report your debt levy requirements for 2007-2008. It
is essential that the information you provide to us on this form is accurate. This information is
used to determine the school district’s debt service property tax levy for the 2007 calendar year.
New Mexico State Statute requires that the debt levy rates be set August 15. Therefore, it is
imperative that the Form 955F be submitted to the School Budget & Finance Analysis Unit
no later than July 6, 2007. This information is also used to determine budget needs for debt
service payments in 2007-2008.
The following are instructions for completing the PED 955F, Debt Levy form:
1. For each bond issue, indicate the date of issue and the original issue amount, and list the
amount of the principal and interest payments in the month they are due. If you have
principal and interest payments due in July 2007, enter the date the July payment was or will
be made for each applicable issue. It is important to avoid making July payments in June
since this will affect the 6/30/07 cash balance that will then affect the debt levy rate. A
“YES” or “NO” must be answered for each bond issue to indicate whether the bond issue
was for Educational Technology (Ed. Tech.) Notes. Answering this question is essential in
Year-end 2007-2008 Debt Levy Requirements
May 29, 2007
Page 2
separating the Ed. Tech. debt service payments from the General Obligation Bond (GOB)
debt service payments.
2. CASH REQUIREMENTS -- Enter the total Cash Balance as of 6/30/07, from the Final
Cash Reconciliation. There is one column for the GOB Debt Service Fund 41000 and a
separate column for the Ed. Tech. Debt Service Fund 43000. Cash balances are used to
determine the debt levy requirements.
3. Enter any loans to be repaid from either debt service Fund (41000 or 43000).
4. All other amounts will automatically calculate. If there is a cash surplus, 75% of that
surplus is used for the debt payments due from January to December of the upcoming year.
The remaining 25% is considered a reserve. The debt levy rate calculation is not shown on
this form; however, the debt levy rate is calculated by taking the “Amount to be collected in
the 2007 tax year” that is calculated on line 7 and dividing that amount by the total property
production. The total property production is the certified property valuation for the school
district multiplied by the property tax collection rate for each property unit within the school
district.
5. UNSOLD BONDS -- Unsold bonds must also be taken into consideration in setting the debt
levy rates. Therefore, it is very important to include a Bond Indebtedness Retirement
Schedule for those proposed sales, even if it is an estimate. Please note that any proposed
GOB issues must have voter approval prior to including the proposed principal and interest
payments on the Form 955F. Ed. Tech. Bonds do not require voter approval. Proposed
schedules can be requested from the district’s bond advisor. Enter the 2007-2008 Operating
Budget for the Bond Building Fund 31100 and the Ed. Tech. Fund 31900.
6. BUDGETED DEBT SERVICE -- Enter the 2006-2007 Operating Budget amount for the
GOB Debt Service Fund 41000 and Ed. Tech. Debt Service Fund 43000 as of June 30,
2007. Enter total expenditures to date from the Final Receipts and Expenditure Report.
Budget Balance will automatically calculate. These budget balances will be used in
verifying the 6/30/07 cash balances in line 1 of the “Cash Requirements” section. Any large
differences will be questioned. List the loans made to the GOB Debt Service or Ed. Tech.
Debt Service Fund from the Operational Fund or any other Fund.
The PED 955F form will be e-mailed to your district. If you have any questions regarding this
form or if you do not receive the electronic form please contact your assigned budget analyst.
In addition, all completed forms must be e-mailed to your assigned budget analyst and an
original signed copy must be mailed. Your prompt attention to this request is greatly
appreciated.