Las Alturas water project reaches council with $50,000 funding discrepancy
Las Cruces council will consider adding $2.14 million for the Las Alturas Del Sol water tank amid a $50,000 packet discrepancy.
Council will consider adding $2.14 million for water tank and booster station improvements Tuesday
Damien Willis, Organ Mountain News
LAS CRUCES - The Las Cruces City Council will consider adding more than $2.13 million to the city’s capital budget Tuesday for improvements to the Las Alturas Del Sol water storage tank and booster station.
But the proposed budget amendment lists $50,000 less in grant funding than the financing agreement council approved less than three months ago.
Resolution 27-037 would amend the city’s fiscal year 2027 budget and its six-year Capital Improvements Program. The resolution includes funding changes for projects across several city departments and appears on the consent agenda, meaning it could be approved without separate discussion unless a councilor asks to pull it.
The council meeting begins at 1 p.m. Tuesday, Sept. 8, in council chambers at City Hall, 700 N. Main St.
Budget would establish $2.14 million project
The proposed amendment would create a $2,138,331 capital budget for the Las Alturas project. City documents say the work will include designing, constructing and repairing the water storage tank and booster station to store, convey and deliver water to customers.
The September packet lists three funding sources:
- $1,722,398 in grant funding
- A $196,933 loan
- A $219,000 local match
The project currently has no funding listed in the Capital Improvements Program. Approval would increase its budget from zero to $2,138,331.
City staff said the broader budget amendment would not affect the city’s required General Fund reserve.
Council approved financing in June
The City Council approved Ordinance 3115 on June 15, authorizing a Water Project Fund agreement with the New Mexico Finance Authority for the same project.
That agreement provides $1,969,331 through a $1,772,398 grant and a $196,933 loan. It also identifies $219,000 in additional city funding, bringing the project’s combined financing to $2,188,331.
The loan carries no interest, although the city must pay an annual administrative fee equal to 0.25% of the unpaid balance. Repayment is secured by net revenue from the city’s combined water, wastewater and natural gas utility system.
The New Mexico Finance Authority approved the assistance in May 2025. The state Legislature authorized the project during its 2025 session.
Plans and specifications must be approved by the Finance Authority or the New Mexico Environment Department before construction funding can be disbursed.
Packet does not explain $50,000 difference
The grant amount in Tuesday’s packet — $1,722,398 — is exactly $50,000 below the $1,772,398 grant authorized in June.
That difference also carries through to the project total. The September budget amendment provides $2,138,331, while the financing package approved in June totals $2,188,331 when the city’s $219,000 match is included.
The packet does not say whether the grant was reduced, whether part of the funding will be budgeted separately or whether the September figure is a clerical error.
It also does not provide the tank’s capacity, describe its current condition or identify a construction schedule.
Because the amendment is on the consent agenda, those questions may not receive public discussion unless the item is pulled before Tuesday’s vote.
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