LOCAL NEWS

City of EB Considering $500,000 Loan for City Buildings, Rock Canyon Rd. Work

Council the Decider for P&Z on Lot Line Vacation

 

By Tony A. Archuleta

HERALD Reporter

The Elephant Butte City Council is eying the possibility of securing up to a $500,000 loan to pay for city hall expansion/renovation and provide matching funds for the Rock Canyon Road improvement project.

During its workshop on Wednesday, Oct. 1, the city council visited with a pair of representatives from the Albuquerque-based investment firm, George K. Baum & Co.

Company Vice President Mark Valenzuela and Analyst Luis Ramos outlined a couple of project funding ideas – a 20-year loan with a $178,444.22 interest cost (based on a 2.902 percent interest rate) or a 25-year term (3.353 percent interest) costing $255,297.39 in interest fees.

The loan would be secured through the city’s gross receipts tax revenue. Property tax revenue could also help pay down the debt, although it can’t be used to secure the loan, both City Manager Alan Briley and the financial consultants noted.

The city recently purchased the property and building next door to the Municipal Building, 103 Water St., formerly known as Mannon Motion fitness center.

The city plans to retrofit the building for municipal use, as well as repair roof leaks at city hall.

Mayor Eunice Kent, with the nodding acknowledgement of the council, indicated the city would further study the funding proposal before taking action.

Earlier in the workshop, Briley reported on the city’s Infrastructure Capital Improvement Plan, which lists the continuing wastewater disposal project as the top priority.

The city is the recipient of a $285,000 legislative appropriation during the 2014 session, and also has an additional $200,000 in property tax proceeds to begin Phase 4A wastewater line installation, Briley said.

The city’s No. 2 ICIP priority is potable water system upgrades, with $215,000 appropriated by the Legislature in 2013 and $100,000 in 2014.

The city manager noted that the city has fared extremely well in Santa Fe, especially in 2014, when the city was awarded $385,000 of the $600,000 that was disbursed throughout Sierra County.

The No. 3 and No. 4 priorities are drainage and the aforementioned “city center” respectively.

To read the rest of this article, contact us at 575/894-2143 or at herald@torcherald.com for an e-subscription.

 

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