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Council approves $1.04M NMED emergency loan for sewer repairs after October flood

January 11, 2025 | Roswell, Chaves County, New Mexico


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Council approves $1.04M NMED emergency loan for sewer repairs after October flood
The Roswell City Council adopted Ordinance 24‑23 to accept an emergency loan from the New Mexico Environment Department to fund sewer repairs needed after the October 2024 flooding.

City staff described the loan terms at the public hearing: $1,040,000 in total assistance, of which 25% is principal forgiveness and 75% is a loan. The city intends to use FEMA public‑assistance reimbursements to repay the loan portion once FEMA reimbursements are received, and NMED included a provision that would convert remaining loan dollars to forgiveness if FEMA reimbursement fails to materialize.

During council discussion, staff confirmed the funding is intended for the pipe replacement and related repair work where roughly 800 feet of a 24‑ to 42‑inch line along the Hondo River washed away during the flood. City staff said the loan proceeds will cover repairs so the city can restore service and then seek FEMA reimbursement.

The council approved the ordinance on a 9‑0 roll call.

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