Truth or Consequences accepts $2.27 million Water Trust Board award to fix wastewater plant, averting major borrowing

The Truth or Consequences City Commission on Thursday unanimously approved a resolution to accept a Water Trust Board award to fund upgrades at the city’s wastewater treatment plant.

City staff presented the award as a grant of $2,270,488, a required loan of $252,277 and a local cash match of $252,276, for total project funds of $2,775,041. City manager said that combination, together with earlier federal and local funding the city has secured, moves the overall wastewater program past $5 million and will eliminate the need to borrow roughly $5 million the city had been studying.

“We’ve now achieved that goal through grants and grant processes,” the city manager said, adding that the funding will allow the city to complete headworks and other improvements the engineer has already begun designing. Officials said the award should substantially reduce the previously projected rate increases for wastewater customers.

Staff said the city has contracted engineering services (Bohan and Houston) to complete design work and will proceed into the next phases of construction and procurement once the grant acceptance is finalized. The city also noted it has a separate federal grant for a lift station extension that complements the work funded by the Water Trust Board award.

Why it matters: City officials told the commission that securing the Water Trust Board funds allows them to avoid taking on a multi‑million dollar loan for the plant and shortens the timeline to remove the plant from an administrative order the city had been under for wastewater compliance. Officials said rate adjustments may still be required for long‑term upkeep, but they expect the immediate large‑scale borrowing and an associated 15–25% rate increase will be unnecessary.

What the commission did: Following presentations from staff and the city manager, commissioners voted to accept the Water Trust Board award and approve the required resolution to enter the loan/grant agreement and accept the funds.

Next steps: Staff said the city will finalize the loan and grant documents, proceed with procurement and engineering work already underway, and return to the commission with project schedules and any future rate recommendations tied to long‑term operations and capital needs.