Where: Truth or Consequences, Sierra County, New Mexico
Problem: The City of Truth or Consequences’ aging wastewater system needed infrastructure improvements
Solution: RCAC developed an improvement plan and new rate structure to cover infrastructure improvement costs. RCAC also provided a bridge loan to cover design costs

The City of Truth or Consequences’ aging wastewater system needed improvements to adequately serve local residents and to comply with regulatory requirements. Originally, the city planned the wastewater system overhaul as one large project, but no one single funder would pay for the entire project.

RCAC’s loan fund issued a bridge loan to cover the cost of the project’s design phase (pre-construction), which is not often covered by state and federal infrastructure funds. In addition, RCAC researched various funding opportunities and recommended that the city complete the project in phases. RCAC then worked with the city to apply for combined funding from the U.S. Department of Agriculture – Colonias Program and the New Mexico Colonias Infrastructure Fund. More than $4 million from the two funders was approved for the first phase of construction.

RCAC completed a rate analysis and helped develop a new rate structure. The analysis resulted in a recommended 20 percent increase to sufficiently cover all of the system’s operating costs, debt service and reserve funds. The analysis also provided the city with a five-year budget projection, and recommended gradual rate increases. The city responded well to RCAC’s recommendations and once USDA approves the submitted designs, phase one of construction will commence.