Nogales officials say unfinished 2020 WIFA projects could require major borrowing, rate increases

City of Nogales officials presented a staff analysis July 30 that shows the city has already borrowed about $15 million through a 2020 WIFA loan for water and wastewater projects and that completing projects from that loan would require additional borrowing in the tens of millions.

Michael Vasquez, the city’s municipal adviser, told the council the 2020 loan—about $10 million for water and $5 million for wastewater—has been nearly expended and produced engineering and plans but only four completed projects. Vasquez said staff ballpark estimates are that completing the projects listed in the 2020 loan would require roughly $38 million more ($30.4 million water, $7.5 million wastewater). He added that, beyond finishing the 2020 projects, the city’s infrastructure would continue to degrade and staff identified roughly another $37 million in needs over the next 10 years (about $22 million water, $14.5 million wastewater).

“The bookend analysis we presented shows three scenarios,” Vasquez said. “Do nothing and let the $15 million amortize; borrow $38…