Taos City opens public hearing on CDBG application for wastewater treatment plant upgrades

Taos City leaders opened a public hearing Tuesday to announce a Community Development Block Grant application for equipment upgrades and installation at the town's wastewater treatment plant and to receive public comment on the proposed project.

The town intends to apply for roughly $1.8 million for the first phase of a multi-phase upgrade, staff said; the CDBG application deadline is Aug. 19. The council will consider a formal resolution on the application at its Aug. 12 meeting.

The hearing explained CDBG program goals, eligibility rules and application requirements. Town staff summarized that CDBG funds can be used for community infrastructure projects including water and sewer systems, public facilities and housing rehabilitation; program rules require at least one public meeting (three are recommended), full project scopes and budgets, and that projects be completed within 24 months of a fully executed grant agreement. A staff presenter said, "CDBG program objectives are benefit principally low and moderate income families, aid in the prevention of slum or blight, meet urgent community development needs where an existing condition poses a threat to the health and welfare of the community and other financial resources are not available." (Staff presentation.)

"I don't have the exact amount, but it's 1,800,000.0 plus," a town staff presenter said when asked about the grant request. Town Manager Martinez told the council, "The needs are identified, and we're happy to put an application together. ... So the ask we're asking for is for continuous upgrades to the water treatment plant." Martinez also said the town previously transferred about $1.8 million from the general fund toward related needs.

Council members asked staff to confirm program details mentioned during the presentation. Staff said the Department of Finance and Administration (DFA) announced there is no cash-match requirement for the current funding cycle and no cap on award amounts this year; town staff also noted that rural/nonrural status in some eligibility rules did not change the DFA announcement that no match is required for this cycle. Applications without certified cost estimates are limited to $500,000 under ordinary rules and $750,000 with certified estimates, but staff said DFA's current announcement removes the cap for this year.

Councilors also discussed other CDBG categories and timing. Staff said planning and economic development CDBG grants can be pursued separately from capital infrastructure grants. The town previously used CDBG funds for a 2018 comprehensive plan update ($50,000 grant, $5,000 town match), a well project funded in 2018 (CDBG $750,000, town match $75,000), a 2019 hotel rehabilitation (CDBG $500,000 matched by Taos Hotel Associates), and a 2022 land-use planning grant ($50,000 CDBG, $5,000 match) that has not yet been completed.

No members of the public attended in person or online to offer comments during the hearing, and the mayor closed the hearing after confirming no speakers were present. Staff clarified that the council did not need to take action on the application at Tuesday's meeting; the item will be before the council as a resolution at the Aug. 12 meeting.

Votes at a glance: - Motion to approve the meeting agenda: approved (roll-call yes votes recorded). (See actions list.) - Motion to adjourn: approved (voice vote "Aye").

Background: The Community Development Block Grant program is administered in part through New Mexico's Department of Finance and Administration and the New Mexico Mortgage Finance Authority for some grant types; entitlement cities receive HUD funding directly. State program rules discussed during the hearing highlighted special provisions for colonias and a recommended citizen-participation process. Town staff emphasized the wastewater project is intended to serve multiple communities in the Taos Valley, including residents of El Pueblo, Taos Pueblo and El Valle De Los Ranchos.

The council session was a special meeting called for the purpose of the public hearing; no substantive public comments were received and staff will bring a resolution and the completed application to the Aug. 12 council meeting for formal action.