During their meeting last week, the city councilors approved a motion for holding a public hearing before deciding whether to accept the terms for an emergency loan from the New Mexico Environment Department (NMED) to repair wastewater infrastructure affected by the Roswell-Chaves County flood disaster on Oct. 19-20.
Changes made are described as “technical changes” by City Manager Chad Cole.
The city would use reimbursement money from the Federal Emergency Management Agency (FEMA) to pay the NMED for the loan and make critical post-flood infrastructure repairs.
This item was revised after councilors’ information packets were sent out and posted online before Thursday’s meeting. So they were provided with paper copies of the new version.
The first sentence of Ordinance 24-23 changed the term used to describe the city from “recipient” to “borrower.” Also modified was the original phrasing about the loan to “obtaining project funds in the amount of $1,040,000” to “obtaining project loan funds in the principal amount of $780,000 plus accrued interest; and principal forgiveness funds in the amount of $260,000 for a total funded amount of $1,040,000.”
Five funding sources, such as the NMED, revenue bonds and New Mexico Finance Authority, as well as the associated series or loan numbers are noted from as far back as 2014. The total principal amount outstanding from these sources is just shy of $21 million.
Also stated in the ordinance is that if there is no funding awarded by FEMA to Roswell for the city to provide to the state, “the principal amount will be amended to principal forgiveness.”
Safe Streets and Roads for All
Councilors adopted a resolution allowing city staff to apply for state funds to fulfill the requirement of a U.S. Department of Transportation grant meant to help negate traffic fatalities and serious injuries at some of the community’s most dangerous locations.
The U.S. Department of Transportation Safe Streets and Roads for All accepted a federal grant to carry out a comprehensive safety action plan to identify such locations.
The total amount the city might need won’t exceed $3.5 million, but the city has to find a non-federal source to provide a 20% matching grant of up to $700,000. The city will look to the state for the match — which could be up to $700,000.
Special audit update
The special audit of the city’s finances related to the Roswell Air Center and various other actions remains ongoing. This audit was announced to the public two years ago during the December 2022 council meeting.
It was proposed to concentrate on “past procurement, contracting, and lease practices as the City of Roswell …, special fund expenditures, and lease and loan agreements entered into by the City involving the Roswell Air Center,” as stated in a December 2022 letter from the State of New Mexico Office of the State Auditor.
This department is responsible for examining government agencies in New Mexico. It “may cause the financial affairs and transactions of an agency to be audited in whole or in part” and to work jointly with a contractor of the city’s choice from a list compiled by the state auditor.
The city chose the Albuquerque-based Jaramillo Accounting Group to conduct this special audit, which highlights the city’s finances from the 2019-20 to 2021-22 fiscal years, which would be from July 1, 2018, to June 30, 2022.
More than two dozen situations have turned up as of last week, according to staff.
Budget adjustment OK’d
The councilors also approved a budget adjustment that amends the current spending plan for the fiscal year ending June 30, 2025, to reflect that the city’s expenses were $333,229 more and their revenues were $54,229 more.