Where:
Otero County, Timberon, New Mexico

Problem:
Aging water system needs improvements

Solution:
RCAC provided a $320,000 loan to cover design planning costs for water supply and distribution system improvements

Timberon Water & Sanitation District’s water source comes from Carissa Springs and five ground wells. Three of the wells were out of service due to many factors, including drought. Elevation changes and high pressure areas caused frequent breaks (blow-outs) throughout the water system’s estimated 175 miles of distribution piping. A break in 2013 drained two reservoirs and lost approximately 250,000 gallons of water. And, the area around the wells is not secure, which leaves it vulnerable to vandalism. Corrective action was required to ensure a continued safe water supply to residents, and the district secured a loan and grant commitment from U.S. Department of Agriculture Rural Utility Service.

The distrcit needed to meet the letter of conditions to close its funding from the Rural Utility Service, including completing the design and bidding for the project. RCAC provided a $320,000 predevelopment loan to cover engineering design work and related expenses. Without the loan the district would not have been able to complete the predevelopment work required for the federal funds.

The RCAC loan fund works with small districts and local engineers all over the West to help ensure that federally funded projects get completed. In some instances RCAC only finances design and predevelopment costs, in others it also provide construction financing. Regardless RCAC is filling a gap in the federal funding framework.