Municipal League, NMFA ask oversight committee to speed Water Trust Board funding and boost technical assistance for small systems

AJ Forick, executive director of the New Mexico Municipal League, and Allison Nichols, deputy director of the Municipal League, told the Finance Authority Oversight Committee that the Water Trust Board and New Mexico Finance Authority are critical to municipal access to capital for water, wastewater and public‑safety infrastructure. "The Water Trust Board is the best mechanism to get water projects funded," Forick said, and he credited the recent $200 million appropriation to the program while warning that the total need remains far larger.

Forick described the Municipal League’s disaster and insurance role during recent events in Ruidoso, including fuel and generator deliveries and emergency communications via Starlink. He warned that water and wastewater systems are particularly vulnerable in extreme floods and fires and that equipment losses and replacements drive up pooled insurance costs for all member cities.

Marquita, speaking for the New Mexico Finance Authority/Water Trust Board, presented a timeline showing that a typical Water Trust Board application-to-award cycle can span roughly 300+ days from application start to award, with additional post‑award readiness and closing steps before projects can begin. She identified specific administrative steps that could be piloted for elimination to shorten the process by about six months and recommended piloting separate application tracks for large systems, small systems and wastewater projects.

Committee members asked how smaller entities — acequias and mutual domestic water associations — can access funding. Marquita and Municipal League staff said the smaller entities often lack organizational readiness (planning documents and engineering reports) and recommended stronger technical assistance, advance training and contractor support. Presenters also noted that some awards have been returned historically, commonly because project costs rose and applicants could not bridge the gap.

Several legislators raised regional examples: Portales (declining well production, multi‑community pipeline), Santa Fe (a multihundred‑million‑dollar wastewater need), Raton (dam and storage needs) and Baird (a $15 million plant upgrade with limited local revenue). Forick urged regionalization where feasible, and Marquita said the Water Trust Board has programs for technical assistance and annual trainings at application, award and readiness phases.

Presenters requested that the oversight committee consider giving the Water Trust Board and NMFA limited legislative flexibility to allocate authorized capital more quickly — for example, multiyear authorization windows or pilot delegation with reporting to the committee — arguing that the current requirement for routine legislative reauthorization creates administrative delays that increase project costs and reduce contractor availability. The committee chair asked staff to open a legislative file to consider options.

The committee approved minutes earlier in the meeting (motion by Representative Block; second by Representative Abeta) and scheduled a more detailed Water Trust Board report and a September site visit to Deming. Lunch was announced at adjournment for the morning session.

No formal policy changes were adopted during the session recorded in the transcript; presenters asked the committee to review possible statutory changes to speed allocation and expand technical assistance.