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Council eyes solar upgrades, water enterprise debt and a 2027 PNM receivership
Summary
Councilors discussed water enterprise fund transfers, debt service paid from water revenues, and a PNM purchase‑power agreement that will transfer to the town in 2027 — prompting suggestions to pursue state solar‑access funds to reduce electricity costs.
Councilors used the FY26 wrap‑up discussion to highlight the water enterprise fund’s role in covering debt service and to flag a possible efficiency project tied to the town’s aging solar arrangement.
A councilor asked about an adjustment of roughly $548,310 associated with the water enterprise; staff explained that the amount consists largely of debt service paid from the water fund — debt for water‑line repairs and related work. The council noted that prior CARES/ARPA and colonia infrastructure match funding have supported large projects and that water capital needs are multimillion‑dollar in scope.
One councilor highlighted the town’s purchase‑power agreement with PNM executed during wastewater treatment plant renovations in 2007 and said that PNM’s arrangement should be in receivership to the town in 2027. He suggested using state 'solar access' funds to upgrade the town’s solar capacity and add battery systems to reduce monthly electricity costs for pumping: “So that will be, I believe, in receivership to the town in 2027,” the councilor said, urging the town to pursue upgrades when the contract turns to town control.
Staff said historically remaining balances in enterprise funds were often used to cover overspending in other areas, but acknowledged the council could consider setting aside funds specifically for long‑term capital needs going forward. No formal direction or allocation was taken at the meeting.
