It will consider borrowing money to rehabilitate its vacuum sanitary sewer.
A federal loan document from the U.S. Environmental Protection Agency is in the agenda packet. The money would be disbursed and the loan agreement overseen by the New Mexico Environment Department Construction Program Bureau’s Clean water Revolving Loan Fund.
The City Commission already passed a resolution to accept the federal loan and subsidy on July 24, therefore the ordinance on the agenda is to accept the loan terms.
The loan is for $473,000 principal, which includes a $100,000 grant or subsidy. The city will pay 1.2-percent interest annually on the remaining $373,000 principal. The life of the loan is not stated beyond the phrase, “the final maturity is not to exceed the agreed upon useful life of the project.”
The first payment is due within one year after the project is completed.
The pledged revenue is “wastewater system revenues,” in other words, money collected from city sewer-bill payers.
The city has two loans it is paying off from the same revenue source. It still owes $212,506 principal on a $1.8-million loan from the New Mexico Finance Authority at 2.268-percent interest, which matures May 1, 2021. The second debt is also an NMFA loan for $75,000 at 0-percent interest, which matures June 1, 2035.
The City is obligated to “accomplish” the project by doing the following steps: preliminary engineering report, location survey, environmental planning and permitting, architectural-engineering design for the vacuum station building, letting or bidding the project, construction management and construction.
The second major item on the agenda is notifying the Secretary of State of the local election, which must be done between 120 days and 150 days before the election. City Clerk Renee Cantin has drafted a resolution for the City Commission’s consideration.
The election is to be held Tuesday, March 3. On the City Commission, three seats are up for election.
Seat number five, held by George Szigeti by board approval after Steve Green resigned, is a two-year term ending 2022.
Seat number two, held by Kathy Clark, is a four-year term ending 2024.
Seat number four, held by Rolf Hechler, is also a four-year term ending 2024.
In addition, the municipal judge’s seat, currently held by Beatrice Garcia-Sanders, is up for election. It carries a four-year term, ending 2024.
There are no questions on the ballot.