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Commission accepts Colonia Infrastructure award to fund wastewater collection engineering report
Summary
The commission approved Resolution 102526 to accept a New Mexico Finance Authority Colonia Infrastructure Project Fund award to produce a preliminary wastewater collection-system engineering report; the award packages $171,900 with a $19,100 loan component and a $19,100 local cash match and will support future grant and USDA applications.
The City Commission of Truth or Consequences voted to accept Resolution 102526, authorizing execution of a Colonia Infrastructure Project Fund loan/grant agreement with the New Mexico Finance Authority to fund a preliminary engineering report for the city's wastewater collection system.
Assistant City Manager Tracy Alvarez told the commission the award totals "$171,900 in grants, 19,100 of that is a loan, 19,100 is a cash match," and described the next steps: once the agreement is executed the city will return to the commission to budget the award and issue a request for proposals for engineering services.
Alvarez and commissioners stressed the report is preparatory: staff estimated the engineering work will take about nine to 18 months and will include a hydraulic model and GIS mapping of the collection system. Commissioners said the resulting report is required for many state and federal funding programs and will position the city for subsequent grants from NMFA, the Water Trust Board and USDA.
Commissioners also discussed whether to absorb the small loan component using municipal bond funds to avoid the long-term administrative burden of a low-interest loan. Staff noted the loan is a modest amount but that different funding sources do not always overlap, giving the city both opportunities and coordination challenges when combining water, sewer and street repairs.
The mayor moved to approve Resolution 102526 as presented; the motion passed on a unanimous voice vote. Staff said the item will return to the commission later for formal budgeting and contract work once the agreement is final.
The commission’s acceptance starts the procurement steps to hire engineering services and positions the city to apply for construction funding once the preliminary engineering report is complete.
