Alamogordo Citizens will See Significant Increase in Water Bill Rates in July

As mentioned in a previous story by AlamogordoTownNews.org water bills will be increasing significantly due to $160 Million in neglect and needed maintenance.

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 wanted 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.

 Statement from the City of Alamogordo

The city or Alamogordo released the following statement about the increase and provided a sample billing statement so citizens can see what the sticker shock may look like. 

Per their statement; “Our city's water and sewer infrastructure, vital to your daily lives, has reached a critical point of
deterioration. Over the past few years, we've experienced increased water breaks and deterioration of water storage facilities, highlighting the urgent need for $160 million in repairs and upgrades.

The costs of essential materials for these repairs have surged, with some increasing by as much as 200%-400%. Additionally, the price of water treatment products, crucial for ensuring safe drinking water, has doubled or even tripled

These factors have significantly hindered our ability to maintain and repair the  failing infrastructure.

This decision was not made lightly. Discussions and planning began three years ago to explore all possible solutions and anticipate challenges. Ignoring these issues would jeopardize our ability to meet current debt obligations and secure financing for essential capital improvements. It also threatened our ability to comply with increasingly stringent regulatory standards.

Furthermore recognizing the complexity of the previous rate structure, we have simplified it by eliminating tiers and mandatory account transfers. This simplification aims to provide clarity and transparency in how your water bills are calculated.”

Example Household Bill (3/4” Meter):
Under the new rate structure, a typical household with a 3/4” meter can expect their bill to reflect the true costs of maintaining and improving our water infrastructure.

More information may be found via the press release from the city of Alamogordo at https://ci.alamogordo.nm.us/DocumentCenter/View/16330/PSA--New-Rates-and-Fees-for-Water-Sewer-and-Reclaimed-Water-Service?fbclid=IwZXh0bgNhZW0CMTEAAR0oqE2RBZVxh8IXFqaCj5Hf7TwGOXo7zB_q64hh85sSpIMSZnBjO_qsorM_aem_YU8jqZDkwgV7ors5kP7iTg

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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