The Elephant Butte City Council took two hours to question their engineer and city manager and then to discuss a road project, demonstrating care with public money.
The question of whether to close out a completed project—the drainage improvement and paving of Camino Cinco—or whether to extend the project to include Camino Seis, occupied nearly half of the council’s nearly five-hour Oct. 21 meeting.
Camino Cinco and Camino Seis are in the northwestern part of the city, to the west of a main tributary, Rock Canyon Road.
City Councilor Mike Williams, in a separate interview, said, “Everything west of Rock Canyon Road, the majority of the houses are manufactured homes. It’s a high-density residential neighborhood. It sits on a hill, the water draining east. They are paving the streets as they put in sewer. Most of the streets are paved now, and they are trying to improve the drainage as they pave.”
Camino Cinco was funded with money left over from a $595,000 wastewater project. The New Mexico Finance Authority provided the project loan in 2015, including the proviso the money be used by June 2020.
David Shields of the Albuquerque civil engineering firm Bohannon Huston updated the council on his oversight of the Camino Cinco project. He said the city first asked NMFA if the leftover money could be used to repair the annex building near city hall. “When that didn’t pan out,” Shields said, “the New Mexico Finance Authority changed the authorization to fund Camino Cinco.”
Shields said about $256,000 will remain of the $595,000 loan, once outstanding bills are paid on the Camino Cinco project.
However, Mayor Pro Tem Kim Skinner said the annex project had been done, raising questions about the remaining balance. Skinner asked City Manager Vicki Ballinger what remains of the loan during the meeting, but Ballinger could not settle the issue.
No matter what the balance is, Shields said NMFA would not pay the last two Camino Cinco invoices, which were billed after the June 2020 deadline. The city must close out the 2015 loan “and start a new one,” he said.
The NMFA loan’s purported $256,000 balance, to be verified at a later date by Ballinger and Shields, could be supplemented by two other funding sources, if the city wanted to take on the $400,000 Cinco Seis project, Shields said.
The city received $198,000 in capital outlay and $62,000 in Local Government Road Funds, bringing the total available from the three sources to about $520,000. The city would have about $120,000 remaining after completing the $400,000 Camino Seis project.
A decision to close out or to continue the Camino Cinco project had to be made at the Oct. 21 meeting. Shields said NMFA needed confirmation on the loan closeout or extension by Friday, Oct. 23. If the city wanted to extend the loan, Shields said, a “placeholder” application also needed to be submitted in order for the NMFA to consider the Camino Seis project at its Nov. 19 meeting.
Skinner and City Councilors Mike Williams and Travis Atwell said they didn’t have enough information to make the decision, Williams and Atwell specifying they didn’t get the agenda and accompanying documents by the Friday before the meeting. They asked city staff not to add anything to the meeting agenda after Friday noon preceding a Wednesday meeting. “We need the weekend to consider it,” Williams said.
The three city councilors asked several questions. How would the new loan affect the budget? Would it increase the debt load? What would be the new interest rate? Could the city afford the match amount of the NMFA loan and the Local Government Road Fund loan?
Finally, it was decided the city would close out the $595,000 NMFA loan, as required, and also submit a “placeholder” application to start a new loan, meeting the Oct. 23 deadline.
Shields and Ballinger were directed to supply all the missing information by the city council’s Nov. 18 meeting, when a vote would be taken on whether to go through with the Camino Seis project. The completed application, if acceptable to the city council, could then be presented to the New Mexico Finance Authority Board on Nov. 19.