EP Water report prompts board questions over open-space fund transfers and Cement Lake purchase

El Paso Water’s real estate manager, Jonathan Peral, presented the open-space fund portion of the utility’s first-quarter fiscal 2026–27 report (covering March 1–May 31, 2026) and answered detailed questions from members of the El Paso Open Space Advisory Board.

Peral said the 10% municipal drainage (stormwater) allocation for open-space projects included an allocation of 1,122,377 and interest earnings of 37,462 for the quarter and listed expenses that the presentation characterized as: PNI (36,140), a Cement Lake acquisition (1,285,800) and a transfer to the Front/Land Alliance listed in the packet as 268,879, yielding total reported expenses of 1,590,819 for the period. Peral said the fund balance and cash flows were shown in the packet and offered to provide more detailed breakdowns on request.

Board members pressed staff on the scope and permissibility of those expenditures under the city ordinance that created the drainage/open-space funding. Several members said the original enabling language focused on acquisitions for properties that served both stormwater and open-space purposes and asked whether the fund should be used for ongoing maintenance costs, including a multi-year open-space manager salary and trail/signage work that were described in the presentation as among the reimbursed items. One board member told staff, “we may have jumped the line on this thing,” and asked staff to confirm whether maintenance and remediation previously paid by stormwater had been properly reimbursed from the open-space fund.

Members also asked whether remediation or trespass-related cleanup had been charged to the fund; one member said remediation tied to violations should be paid by responsible parties, not the open-space account. Peral responded that the Cement Lake line shown in the packet covered acquisition only and that he would follow up with leadership to confirm how remediation and other post-acquisition expenses will be handled and whether funds will be returned if a site cannot serve a dual purpose.

The board requested a clearer, high-level breakdown for the Front/"Fonta" Land Alliance transfer (how much was salary versus supplies and services) and for Cement Lake (what, if any, remediation costs were included). Peral committed to providing the requested detail at a future meeting and to researching whether the ordinance authorizing the 10% allocation allows the fund to be used for maintenance as opposed to acquisitions only.

What’s next: staff will supply a categorical breakdown of the Font/Front Land Alliance transfer and clarify Cement Lake remediation funding; the board asked that those items be placed on a future agenda so members can evaluate whether the current uses align with the ordinance and the board’s acquisition priorities.