Title
Incorporated County of Los Alamos Resolution No. 20-19 and No. 20-20 Authorizing and Approving Submittal of Completed Applications to the New Mexico Finance Authority for Financial Assistance and Project Approval for Projects Designated as Otowi Well #2 Pumphouse and Equipment and Otowi Well #4 Motor Control Center.
Recommended Action
I move that Council adopt Resolution No. 20-19 and Resolution No. 20-20 as presented.
Utilities Manager Recommendation
The Utilities Manager recommends that Council adopt the resolutions as presented.
Board, Commission or Committee Recommendation
On September 16th, 2020, the Board of Public Utilities approved staff to submit applications.
Body
The New Mexico Finance Authority (NMFA) has available extremely low-cost loan funds for drinking water projects (1% interest rate, no admin fee, with potential for a supplemental stipend). The Department of Public Utilities has identified several maintenance and replacement needs in the water system that we have had to spread out over many years due to funding and cash flow constraints. With the availability of this very low financing interest rate, staff is recommending that we fund some of the larger projects in our budget with loan funds and use the cash that was earmarked for these projects on a back log of repairs and replacement water line projects. The Board of Public Utilities approved the plan and authorized that we proceed with the loan application process at their regular meeting of September 16, 2020. As noted, the Water fund does have adequate cash, which was earmarked for these large projects. The projects were included in our FY21 and FY22 budgets. The loans allow us to spread the cost of those projects up to thirty years (twenty-five is contemplated), and use the cash on hand for more urgent repairs and replacement projects that we have been scheduling piecemeal over several years. The current rate structure and revenues allows for cover...
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