ENMWUA board approves $15 million loan agreement

The Eastern New Mexico Water Utility Authority (ENMWUA) board on Thursday approved a loan agreement in the amount of $15 million with the New Mexico Finance Authority, with the city of Clovis footing the bill.

“The city of Clovis is providing this up-front, $15 million capital contribution as a portion of their membership contribution” to ENMWUA, water authority administrator Orlando Ortega said.

Another $150,000 is tacked onto the $15 million for insurance, bringing the loan total to $15,150,000.

The loan will finance some Eastern New Mexico Rural Water System costs for engineering services, land acquisition, easement acquisition, electrical power, construction of untreated water pipeline projects for two sections of the project, and other work as needed.

The authority has 36 months to use the funds for the project, and ENMWUA may request an extension of 27 months. Ortega emphasized that ENMWUA requested the extension, so the finance authority provided it.

Mike Morris, the mayor of Clovis and chairman of ENMWUA, said he was happy to put this agenda item in the past.

“I want to say it’s no less than seven or eight times this has been in front of our city commission,” Morris said.

The board then approved the submission of an application to the state Water Trust Board for funds totaling as much as $20 million that will be due September 15. Of that amount, 10% is a loan; the other 90% is a grant.