Eddy County Manager Mike Gallagher proposed that the commission set aside half of last year's general-fund surplus'about $15,500,000'to be allocated to municipalities for housing and related infrastructure projects, and asked that cities bring shovel-ready projects back to the commission for individual approval.

Gallagher said the county had an excess general-fund balance of about $31,000,000 and that his recommendation was to reserve roughly half of that. "Take half of our general fund surplus from the previous year, which was an excess of $31,000,000. And setting aside half of that, just over 15,500,000.0," Gallagher told the commission.

The proposal would allocate the funds to municipalities by population and require each city or town to submit specific project requests for the commission's vote. Gallagher described eligible uses to include housing construction and "things that go along with housing," such as sewer and water extensions, lift stations, acquisition of land for development and street infrastructure. "If Carlsbad comes to the commission and says, 'Eddy County, we need $5,000,000 for this project,' then the item that we would ask this board to vote on would be the agreement between Eddy County and the City of Carlsbad for that allocation," Gallagher said.

Mayors from municipalities represented at the meeting urged quick action. "We appreciate any help we can get. Obviously, we would like to get as much as we possibly can," Mayor Rick Lopez said, describing a ready-to-build housing project and recent obstacles that had delayed a separate water-well-driven development.

Another municipal leader described several planned and near-ready projects, including 20 acres recently acquired and a partnership with a developer to build workforce housing aimed at a target price of about $220,000 for a three-bedroom home. "We could have stick built homes ready to move in in nine months," that speaker said.

Commissioners asked how the county would ensure funds were spent as intended. Gallagher recommended using project-specific agreements and said the county could disburse funds on a reimbursement basis and require reporting. "We would have the ability'if we find there's an issue'to entertain callbacks," he said.

Commissioners also asked whether the proposal could be recurring; Gallagher said the recommendation was to test the program and judge future continuation based on results and revenue performance. Several commissioners emphasized the need to prioritize shovel-ready projects and to ensure municipalities return with proposals that include budgets, timelines and accountability metrics.

The item was presented for discussion; commissioners did not adopt a funding allocation at the meeting. Gallagher said he would bring the issue back as a possible action item on a future agenda so the board could vote on a specific set-aside or budget adjustment.

The proposal drew broad support from municipal leaders and county commissioners at the meeting, though no formal appropriation was approved that day. Gallagher said the county would expect municipalities to present project-level agreements and cost details before any funds are released.