Truth or Consequences delays vote on interim water revenue bond, approves $4.98 million WISP 1 construction contract

The Truth or Consequences City Commission opened a public hearing April 8 on Ordinance No. 773, which would authorize the city to issue Water System Improvement Revenue Bonds, Series 2026A, with a principal amount of $2,673,000, but commissioners deferred final action after staff and bond counsel said state statute requires approval by 75% of the full commission.

Bond counsel Muirhead told the commission that because the bond is a revenue issue backed by net water-system revenues rather than a general-obligation debt, ‘‘the state statutes require that 75% of the full commission approve it,’’ meaning four of five votes are needed. With two commissioners absent at the meeting and no guarantee of a fourth vote, counsel and staff advised pausing final approval until the commission can meet the statutory threshold or schedule a special meeting that meets publication and notice requirements.

Mayor opened the hearing for public comment; no members of the public spoke. City Manager Andrew Whitehead said staff had prepared documents and that taking the hearing now would preserve notice while delaying a final vote to the next regular meeting or a special session if that is required. ‘‘Everything that you've heard today is true and accurate,’’ Whitehead said, summarizing staff’s readiness to proceed once the commission can meet the voting threshold.

Separately, the commission moved forward on construction procurement tied to the broader water program. After a public bid opening, staff recommended awarding the WISP 1 construction contract to SmithCo as the lowest responsive bidder. The commission approved the award and associated purchase order in the amount of $4,984,960.64; staff stated USDA concurrence had been secured for the award and that the work will include roughly 15,000 linear feet of water line, eight pressure-reducing valves and a line extension to improve fire flow in several neighborhoods.

City officials said the procurement and interim financing are intended to accelerate construction while the permanent USDA loan is arranged. Bond counsel and finance staff explained the typical sequence: an interim bank loan to fund construction draws followed by permanent USDA loan closing at a lower long-term rate. Staff noted that grant funds, described in the briefing, will cover a meaningful portion of costs when the USDA financing is finalized.

Next steps: The commission left the public hearing record open for the bond ordinance but recessed final deliberation to allow staff to verify notice timelines and to secure the votes needed under state law. The WISP 1 contract award is final pending any routine contract documentation and the usual preconstruction steps.

Sources: Bond counsel Muirhead and City Manager Andrew Whitehead presented the financial overview and procurement recommendation to the commission during the April 8 meeting. No public commenters spoke on the ordinance at the hearing.