Doña Ana County weighs $15.8 million in financing for Chaparral sewer expansion

Doña Ana County commissioners will consider $15.8 million in state financing for two Chaparral wastewater projects Tuesday.

Doña Ana County weighs $15.8 million in financing for Chaparral sewer expansion
An engineering site plan shows the proposed Chaparral wastewater collection Phase 2B project area. (Courtesy graphic / Doña Ana County)An engineering site plan shows the proposed Chaparral wastewater collection Phase 2B project area. (Courtesy graphic / Doña Ana County)

Two projects would extend centralized wastewater service to areas benefiting more than 1,100 residents, allowing septic systems to be decommissioned.

Damien Willis, Organ Mountain News

LAS CRUCES, N.M. - Doña Ana County commissioners will consider accepting nearly $15.83 million in state financing Tuesday for two wastewater collection projects in Chaparral.

The projects would extend centralized sewer service to areas benefiting a combined 1,122 residents, according to materials included in the commission’s 497-page meeting packet. County officials say connecting homes to the system would allow existing septic systems to be decommissioned, reducing the risk of groundwater contamination and exposure to pathogens.

The commission meets at 9 a.m. Tuesday at the Doña Ana County Government Center, 845 N. Motel Blvd. The financing appears as Item 22 on the amended agenda.

The New Mexico Finance Authority approved $10.43 million for Phase 2B of the Chaparral wastewater collection system and nearly $5.4 million for the project identified as Phase 3C.

Together, the awards include approximately $14.25 million in grants and $1.58 million in loans. The county would contribute another $1.58 million in matching funds from its unrestricted general fund, bringing the combined project investment to about $17.4 million.

Although the agenda and proposed county resolution describe the full $15.83 million as “two grant awards,” the state award letters show that approximately 10% of each award is a loan.

The loans would carry 20-year terms at a net effective rate of 0.25%, consisting of no interest and a quarter-percent administrative fee.

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Projects would replace septic systems

Both projects call for the installation of sewer pipelines and manholes, along with associated roadway demolition and reconstruction.

Phase 2B would receive approximately $9.39 million in grant funding and a $1.04 million loan. The county would provide a matching contribution of about $1.04 million. County materials say the project would benefit 740 residents.

The second project would receive approximately $4.86 million as a grant and $539,590 as a loan, with an equal county match. It would benefit an estimated 382 residents.

County materials identify that project as Phase 3C, although its project summary describes it as completing portions of a wastewater project “known as Phase 2C” that could not previously be constructed because of increased costs.

The design has been completed, but bidding documents must be repackaged and permits renewed, according to the county presentation.

State financing remains conditional

The state financing is conditional. Before the funding agreements can close, the county must submit readiness documentation to the New Mexico Finance Authority by Oct. 31.

Required materials include evidence of the county’s matching funds, approved plans and specifications, confirmation that rights of way, easements and permits have been secured and an executed fiscal administration agreement.

Commissioners will be asked to approve a budget revision and resolution providing spending authority for both projects.

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.

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