Commissioners approved financing for two wastewater projects that combine state grants, low-cost loans and a county match

Damien Willis, Organ Mountain News

LAS CRUCES - Doña Ana County commissioners approved nearly $15.83 million in Colonias Infrastructure Fund financing Tuesday for two wastewater projects that will extend centralized sewer service in Chaparral.

The financing, administered through the New Mexico Finance Authority, combines approximately $14.25 million in grant funding with $1.58 million in low-cost loans. The county will provide another roughly $1.58 million in matching funds from its unrestricted general fund, bringing the combined project investment to about $17.4 million.

The projects will continue the county’s phased expansion of wastewater infrastructure in Chaparral, allowing additional homes to connect to centralized sewer service and decommission septic systems.

Two projects move forward

The larger award provides approximately $10.43 million in state financing for Phase 2B of the Chaparral wastewater collection project. That package includes about $9.39 million in grant funding and a $1.04 million loan, with the county contributing an additional $1.04 million match.

County documents estimate that phase will benefit about 740 residents.

A second award provides nearly $5.4 million for Phase 3C, consisting of approximately $4.86 million in grant funding and a $539,590 loan. The county will provide an equal $539,590 match.

That phase is expected to benefit about 382 residents.

County staff told commissioners Tuesday that the Phase 3C funding will complete a portion of the project that previously lacked enough money and will provide about 110 additional connections.

The loan portions of both awards carry 20-year terms with no interest and a 0.25% administrative fee.

Sanchez addresses earlier OMN coverage

Commission Chair Manuel Sanchez also addressed Organ Mountain News’ earlier reporting on the financing during Tuesday’s meeting.

Sanchez said he believed the story created the impression that the county had obscured the fact that the $15.83 million package was not entirely grant funding.

“This was not hidden, quote unquote, buried in our agenda,” Sanchez said.

He noted that Colonias Infrastructure Fund awards include a loan component and local match in addition to grant funding.

Sanchez was right that Organ Mountain News’ original report should have identified the Colonias Infrastructure Fund as the source of the financing. The story accurately distinguished the grant, loan and county-match amounts but did not name the fund through which the awards were made.

Organ Mountain News has since updated the original story to include that information.

The county’s agenda described the item as accepting “two grant awards totaling $15,828,550,” while the accompanying financial information stated that both awards were structured as 90% grant, 10% loan and required a county match.

Expansion continues in Chaparral

The wastewater projects are part of a broader effort to extend centralized sewer service into areas of Chaparral that have historically relied on septic systems.

County officials have pursued the work in phases as state and local funding becomes available, with the latest awards allowing two more portions of the system to move forward.

Commissioners approved the financing unanimously Tuesday.

Damien Willis is founder and editor of Organ Mountain News. If you have a personal story to share or a lead we should follow up on, reach out at OrganMountainNews@gmail.com or connect with him on X at @damienwillis.