The City of Española was awarded more than $17.5 million from the New Mexico Water Trust Board to complete three projects to improve the city’s water infrastructure system.
The money will fund the installation of new water lines, the repair of existing water lines, digging a new a supply well and other infrastructure rehabilitation projects.
According to a city press release, officials applied for this money about two years ago. Construction is expected to begin in 2026.
Letters from the New Mexico Finance Authority said the Water Trust Board recommended the three projects for approval on Aug. 27 The Española City Council was scheduled to approve three resolutions to accept these funds during its Tuesday meeting.
Ninety percent of each award is a grant, which the city will not have to pay back. The remaining 10% is taken on by the city as a 20-year loan. While each has a 0% interest rate, a .25% interest charge is included to cover administrative fees.
The first award of $14,600,000 will be used to construct and repair water lines along North Riverside Drive from Fairview Lane to the Santa Clara Bridge. The city’s loan for this project is $1,460,000.
“The existing water infrastructure needs to be improved to expand development opportunities and to improve fire protection in the area, including water distribution system requirements due to the unique fire protection needs of the Santa Clara,” a memo written by Human Resources Director Sally Baxter said.
This award includes a funding match of $2,190,000, which can be paid using utility easement funds from Santa Clara Pueblo or other city monies.
The second award is for $2,710,000 “for the construction of a new well, well house, treatment facilities, and electric utility connection at Prince Carter Ranch,” a memo said. The loan for this project totals $271,000.
This will improve the delivery quality and capacity.
The third award of $278,000 will be used to repair five existing water tanks. The total loan amount of this award is $27,800.
The awards are contingent on a city funding match. The total of the funding match for all three awards is $2,610,400. These matching funds can be met using existing city funds, according to the proposed resolutions.