Alamogordo Water System Day of Reckoning, $160 Million in Needed Repairs

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The Alamogordo City Commission and the new City Manager Rick Holden and his assistant City Manager Stephanie Hernandez have a difficult job before them. Since Mr. Holden has come into office he has been tasked with taking inventory of the city infrastructure, policies and procedures and evaluate neglect and to bring the city forward. One thing that has been obvious in recent months and with recent commission meetings is that past commissioners have kicked the ball down the road, the city has failed for decades to keep up with infrastructure from roads to the airport to the water systems and now the results of decades of neglect are coming to roost. 

Decades of Neglect Festering Issues

The most recent analysis discovered and discussed at the most recent commission meeting was around the water system infrastructure and the need for a scaled rate increase to ensure system reliability. It seems almost daily in the summer citizens witness yet another busted pipe and thousands of gallons of our precious water resources leaking down a roadway. 

The city staff wants to address the issue and this city commission on a vote of 7 to zero agreed it’s time to address the elephant in the room- $160 Million dollar expense of an elephant to be exact. 

There are dozens of infrastructure problems with the water system specifically identified in critical need of repair. The estimated cost of those critical repairs totals $160.4 million and will continue to rise every day it is further ignored. 

Critical repair needs include an old 5-million-gallon storage tank that’s in danger of collapsing and failing. There are miles of rotting and collapsing pipes; some date to the 40s, there is clay sewage pipes dating even before that in the original neighborhoods that need replacing. The largest at risk concern with a huge price tag is for the Snake Tank Well transmission line, which will be need to be replaced in three phases between now and 2032, at a total estimated cost of $42 million.

Neglect Has Resulted in Near Fiscal Collapse of System

There has not been a single rate increase to keep up with inflation since 2015. Without a rate increase, the system will be close to 130 percent of its debt service, the maximum amount allowed by the New Mexico Finance Authority. The city must meet and erase that debt in order to qualify for bonds to pay for the repairs. Without the ability to qualify for bonds the work cannot proceed and major projects could never begin. 

More disturbing and showing a lack of past leadership is that without a rate increase, the city would not be able to cover basic operating expenses on the water system as early as 2026.

Expect a hearty increase to the July 2024 Water Bill.

Since being approved in June the new rates will go into effect in July. For a customer who uses 6,000 gallons in a month, the current rate for Alamogordo water and sewer is $48.43. 

After the increase, those 6,000 gallons would cost $70.98, a 46.5 percent increase.

Even at the increase, Alamogordo’s rate would still be lower than many New Mexico municipalities, including the Village of Ruidoso, the Village of Los Lunas, the City of Santa Fe, the City of Clovis, the City of Gallup, the City of Farmington according to staff. 

The proposed increase for Alamogordo, at $70.98 for 6,000 gallons, includes a little over $40 per month for water, and a little less than $30 for sewer.

Municipalities with lower rates include Las Cruces (about $45), Calsbad (about $45) Albuquerque (about $43) and Hobbs (about $37).

Necessary and Needed

We have all witnessed stories of failed water systems throughout the country when elected leaders and city staff failed to act.

Though the actions are a huge increase to locals already struggling with inflation and low wage employment in the Alamogordo area failure to act now would cost the city more in the long run; to include potential fines from the state and federal governments and or an eventual collapse of the overall water infrastructure. Though not a popular move by staff and commissioners this was a necessary move for public safety due to decades of neglect. 

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