New Mexico Municipal League Seeks to Expedite State Approval of Drinking Water and Sewage Infrastructure Projects

The New Mexico Municipal League, an organization representing 106 incorporated cities and towns across the state, is urging state lawmakers to streamline the process of approving drinking water and sewage infrastructure projects. The organization argues that the current process, which requires approval from the Water Trust Board during legislative sessions, leads to delays and increased costs due to inflation, supply chain constraints, and missed construction windows.

Key Takeaways:

• The Water Trust Board makes loans and grants using the Water Project Fund, which has seen a dramatic increase in public funding over the past six years, with $200 million added in the most recent session.
• Local communities' applications for funding have exceeded the fund's total amount, with a new emphasis on sewer projects.
• Across New Mexico, water systems need more than $3 billion for their drinking water infrastructure, with municipal water systems needing at least $1.2 billion over the next three years.
• The New Mexico Municipal League is seeking temporary suspension of the requirement that Water Project Fund plans receive legislative approval during sessions, allowing the New Mexico Finance Authority to directly approve eligible plans.
• Small water systems are particularly vulnerable to the delays and increased costs associated with the current process.
• Some notable examples of communities in need include Albuquerque, with over $294 million in identified, unfunded drinking water projects, and Des Moines, with just over $1.9 million needed for its drinking water infrastructure.

Statistics:

• The New Mexico Water Project Fund has seen a dramatic increase in public funding over the past six years, with an additional $200 million added in the most recent session.
• Local communities' applications for funding have exceeded the fund's total amount.
• Across New Mexico, water systems need more than $3 billion for their drinking water infrastructure.
• Municipal water systems need at least $1.2 billion over the next three years.
• Albuquerque has over $294 million in identified, unfunded drinking water projects.
• Des Moines needs just over $1.9 million for its drinking water infrastructure.

Sources:

• New Mexico Municipal League presentation to the NMFA Oversight Committee on Wednesday: (https://www.nmlegis.gov/handouts/NMFA%20070925%20Item%202%20-%20NMML%20Presentation.pdf)
• Legislative analysts' report on the Water Project Fund in May: (https://www.nmlegis.gov/handouts/ALFC%20051325%20Item%207%20ENMU%20Water%20Authority.pdf)
• New Mexico Finance Authority's Water Trust Board webpage: (https://www.nmfinance.com/water-trust-board/)
• Albuquerque Bernalillo County Water Utility Authority: (Courtesy Albuquerque Bernalillo County Water Utility Authority)