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City to apply for $100,000 NMFA planning grant to study reclaimed-water reuse

Truth or Consequences City Commission · November 19, 2025
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Summary

The commission authorized an application to the New Mexico Finance Authority for a $100,000 planning grant (no local match) to produce a preliminary engineering report evaluating expansion and feasibility of the city's effluent (reclaimed) water reuse system.

The commission approved a resolution authorizing an application to the New Mexico Finance Authority for a $100,000 planning grant to produce a preliminary engineering report (PE) on the city’s effluent (reclaimed) water system.

City staff explained the PE would test feasibility and affordability for recommended improvements and possible reuse expansions, including potential irrigation of the cemetery and other nonpotable uses. "The report would confirm any feasibility and affordability for recommended improvements and expansions," staff said.

Staff noted the grant is a 100% planning grant with no local cash match and that PE studies are commonly required to pursue funding through USDA, Water Trust Board or CDBG programs. The resolution passed unanimously.

Next steps: staff will prepare and submit the NMFA application and, if the grant is awarded, proceed with the preliminary engineering report to define project scope and funding pathways.