Alamogordo City Commission Tables Natatorium Bond Loan; Short-Term Delays Possible for Voter-Approved Indoor Pool Project

ALAMOGORDO, N.M. – The Alamogordo City Commission voted Tuesday, March 24, 2026, to table the ordinance authorizing a $12 million loan agreement for the new Municipal Natatorium, also known as the Alamogordo Aquatic Center. The action effectively places the sale of bonds on hold for the voter-approved indoor swimming facility.

Voters approved the rededication of the 0.125% Local Economic Development Tax and at least $4 million from the Economic Development fund balance to support construction and maintenance of the natatorium in the November 5, 2024, municipal election. The measure passed with 5,686 Yes votes of voter approval

On Wednesday there was a large public outcry of concern texted and emailed to Alamogordo Town News from residents representing the elderly and youth groups who championed a year around swimming pool for health benefits and something for yourh to do. Prior AHS Swim Team members had championed the pool, as well, as it would improve performance training access and provide a location for swimming meets to be held in Alamogordo.

The proposed loan, which carries a 25-year term and an approximate net interest cost of 4.35%, would have been supported by $4 Million in rededicated local economic development gross receipts tax revenues. The item was deferred for further review and consideration during the regular commission meeting.

Commissioner Al Hernandez Explains His Position

Commissioner Al Hernandez directly addressed public questions about the tabling in a text exchange with Alamogordo Town News. He clarified that his concerns centered on potential construction cost overruns rather than the bond financing itself.

“The city has asked the architect to provide plans for a 12 million dollar project. The city has 4 million dollars that the voters approved to be used on this project. My concern does not have anything to do with the actual bond but with an over run on the actual construction project. I did stop by and visit with the finance director and express my concerns. I’m my opinion we can safely move forward with the bonds. We will have an opportunity to make sure this project can be completed on budget at a later time. The biggest reason for the questions in public was to be completely transparent,” Hernandez stated.

When asked by journalist Chris Edwards does he support the pool and want it to move forward Hernandez added: “Yes sir, and also want to make sure we provide the best facility we can.”

Officials with the City and State Outline Potential Impact of Tabling Decision

In response to inquiries from Alamogordo Town News and KALH Radio regarding the consequences of the commission’s decision, city and state leaders provided the following details:

At this time, l officials do not anticipate any long-term consequences resulting from tabling the loan item; however, there is potential for short-term delays in the overall project timeline. The original project schedule was carefully structured so that completion of the design phase would align closely with the anticipated loan closing. This alignment was intended to allow the city to move directly into the construction phase without interruption. With the current timing disrupted by the tabling action, that seamless progression may now be affected.

The next available bond sale window through the New Mexico Finance Authority is not expected for approximately five months.

In an effort to mitigate any slippage, the NMFA has already reached out to city staff to discuss potential options that could help preserve as much of the original timeline as possible.

City staff emphasized they will continue working collaboratively with the Finance Authority to evaluate all feasible next steps and will provide regular updates to the public and commission as more information becomes available.

City Manager Stephanie Hernandez noted that the "$4 million in voter-approved funds already allocated to the project remain unaffected by the tabling decision." The Staff reported design work with the architect and developer work on the infrastructure underneath the ground has continued. Approximately $1.3 million has already been spent with $2.5 million set aside for contingency purposes. The state requires a minimum of a 14% contingency reserve in case of change orders or unforeseen circumstances in a project.

Context from the March 24 Commission Meeting

The natatorium financing discussion took place during a lengthy 5 plus hour meeting that also included Open Meetings Act training, an update on ongoing challenges and improvements at Desert Lakes Golf Course, presentations from three golf course management companies, positive local development news, and several board appointments.

The proposed indoor aquatic center has generated strong community interest as a year-round facility that would serve youth swim teams, senior programs, recreational swimming, and overall community wellness, replacing outdated outdoor pool infrastructure.

KALHRadio.org and Alamogordo Town News will continue monitoring developments on the natatorium project, including any updates on financing options, design progress, and revised timelines. Residents seeking additional information are encouraged to contact City Hall or attend upcoming commission meetings.

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