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Curry County authorizes $2 million NMED loan/grant package to support Texico water improvements
Summary
After a public hearing, the Curry County Commission directed staff to authorize a loan agreement with the New Mexico Environment Department for $1.5 million at 1% interest plus a $500,000 loan-subsidy grant to support water system work for the Town of Texico; commissioners flagged repayment risk if Texico defaults.
Curry County commissioners voted Jan. 14 to move forward with an ordinance authorizing the county to borrow $1.5 million at 1% interest and accept a $500,000 loan-subsidy grant from the New Mexico Environment Department (NMED) for water improvements in the Town of Texico.
The action followed a public hearing and presentations from county staff. Ben Roberts described the NMED package as a combined loan and grant “for the purpose of obtaining project loan funds” to support water funds and acquisitions for Texico. Commissioners asked whether Texico’s existing wells and revenues would sustain the project and what would happen if Texico failed to make payments.
Commissioner comments underscored the town’s fragile water supply: one commissioner said he had been told Texico’s five wells combined produce “about 120 gallons” and that daily needs can approach tens of thousands of gallons, describing the local situation as “pretty dire.” Manager Lance Pyle and staff clarified that Texico had committed to pledge one of its gross-receipts-tax (GRT) streams and to prepay the county for loan payments, but if Texico defaulted the county would be legally responsible for any unpaid loan amount and would need to pursue legal remedies.
After discussion, the commission directed staff to proceed with authorizing the county to be the borrower on the NMED loan agreement for the $2,000,000 package. The motion was seconded and carried by roll call.
Why it matters: The loan-and-grant package aims to extend reliable water infrastructure to a community described by commissioners as operating on limited supplies; county backing reduces upfront risk to state funding but creates contingent county liability if the town cannot repay.
What comes next: Staff will finalize the loan documents with NMED and proceed with project planning and implementation, including the county’s oversight of the loan payments as described in the public hearing.
Quote: “If the city of Texico defaults, it’ll fall on the county to pick it up,” Manager Lance Pyle said during the hearing.
