Board of Public Utilities
County of Los Alamos
Agenda - Final
1000 Central Avenue Los Alamos, NM 87544
Robert Gibson, Chair; Matt Heavner, Vice Chair Eric Stromberg,, Charles Nakhleh and Jennifer Hollingsworth, Members
Philo Shelton, Ex Officio Member
Anne Laurent, Ex Officio Member
Ryn Herrmann, Council Liaison
Municipal Building, Council Chambers 5:30 PM Wednesday, March 18, 2026
Public Participation ~ in person or https://us06web.zoom.us/j/82180323960
Members of the public may also participate remotely and provide public comment via Zoom: Link ~ https://us06web.zoom.us/j/82180323960 | Webinar ID ~ 821 8032 3960
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PUBLIC COMMENT:
Oral comments are accepted during the periods identified on the agenda and after initial board discussion on a business
item, prior to accepting a main motion on an item. Public comments are limited to three minutes per person. For those
participating over Zoom, please use the raise hand function. If you are participating by phone enter *9 to raise your hand.
Please submit written comments to the board at bpu@lacnm.us.
County of Los Alamos Printed on 3/13/2026
Page <
March 18, 2026 Board of Public Utilities Agenda - Final
.
MOTION: I move that the Board of Public Utilities approve the items
on the Consent Agenda as (PRESENTED -or- AMENDED) and that
the motions in the staff reports be included in the minutes for the record.
4.a.
Approval of Board of Public Utilities Meeting Minutes - February 2026
Presenters:
Board of Public Utilities
A - Draft BPU Work Session Minutes - 2/4/26
B - Draft BPU Regular Session Minutes - 2/18/26
Attachments:
4.b.
Award of Bid No. IFB 26-23 for the Purpose of the San Ildefonso
Waterline Replacement Project in the Amount of $1,617,673.80 and a
contingency in the amount of $346,384.40, for a Total Project Amount of
$2,078,307, including NMGRT
Presenters:
James Martinez, Senior Engineer
A - LAC WPF-6583 Executed Loan Grant Agreement
B - IFB 26-23 Construction Plans
Attachments:
4.c.
Approval of the Calculation of Revenue Transfer from Electric & Gas
Funds for Operations during Fiscal Year 2025 and Approval of Budget
Revision 2026-48
Presenters:
Joann Gentry, Deputy Utility Manager-Finance &
Admin.
A - Incorportated County of Los Alamos Ordinance
02-324
B - Utility Profit Transfer Schedule - FY2026 for FY2025
C - Budget Revision 2026-48
D - Revenue Transfer Presentation
Attachments:
5. PRESENTATIONS (none)
6. PUBLIC HEARINGS (none)
7.a.
Approval of the DPU FY2027 Budget
Presenters:
Joann Gentry, Deputy Utility Manager-Finance &
Admin.
County of Los Alamos Printed on 3/13/2026
Page < Pages 5 - 21
Pages 22 - 80
Pages 81 - 94
Pages 95 - 225
March 18, 2026 Board of Public Utilities Agenda - Final
A - Changes to Budget Since Feb BPU
B - DPU FY2027 Budget Packet
C - Budget Options FY2027
Attachments:
7.b.
Approval of Modification 26 to Extend the Contract Term by One-Hundred
and Twenty-Days of the Electric Coordination Agreement (ECA) between
the Incorporated County of Los Alamos and the United States Department
of Energy (DOE)
Presenters:
Ben Olbrich, Deputy Utility Manager-Power Supply
Attachments:
7.c.
Approval to Execute a Power Purchase Agreement in an Amount not to
Exceed $3,833,000 Plus Applicable Gross Receipts Tax, to Meet
Forecasted Los Alamos Power Pool Load for the Months of April 2026
through June 2026
Presenters:
Ben Olbrich, Deputy Utility Manager-Power Supply
7.d.
Approval of Services Agreement No. AGR26-36 with Loftin Equipment
Company for a Mobile 560kW Generator and Maintenance Services in
the amount of $436,603.00 Plus Applicable Gross Receipts Tax for the
term of Seven Years
Presenters:
Clay Moseley, Deputy Utility Manager-GWS Services
A - AGR26-36 Loftin Equipment Co.
Attachments:
8.a. Chair's Report
8.b. Board Member's Reports
8.c. Utilities Manager's Report
8.d. County Manager's Report
8.e. Council Liaison's Report
8.f. Environmental Sustainability Board Liaison's Report
8.g. General Board Business (none)
8.h. Board Expenses
8.h.1.
BPU Training Opportunity: APPA National Conference, June 26 - July 1,
2026
Presenters:
Philo Shelton, Utilities Manager
County of Los Alamos Printed on 3/13/2026
Page < Pages 226 - 229
Pages 230 - 231
Pages 232 - 249
Pages 250 - 270
Approval to Execute a Power Purchase Agreement in an Amount not to Exceed $3,833,000 Plus Applicable Gross
Link: https://losalamos.legistar.com/gateway.aspx?m=l&id=/matter.aspx?key=23060 Receipts Tax, to Meet Forecasted Los Alamos Power Pool Load for the Months of April 2026 through June 2026
Link: https://losalamos.legistar.com/gateway.aspx?m=l&id=/matter.aspx?key=23060
March 18, 2026 Board of Public Utilities Agenda - Final
Presenters:
Philo Shelton, Utilities Manager
A - Los Alamos County Travel Policy
B - IRS Form W-9
Attachments:
9.a.
DPU Quarterly Report - Fiscal Year 2026/Quarter 2
Presenters:
Catherine D'Anna, Public Relations Manager
A - DPU Quarterly Report for FY26-Q2
Attachments:
9.b.
Status Reports - February 2025
Presenters:
Philo Shelton, Utilities Manager
A - Electric Reliability Report
B - Accounts Receivables Report
C - Risk & Safety Report
Attachments:
10.a.
Tickler File: March - June 2026
Presenters:
Board of Public Utilities
A - Combined Tickler Mar-Jun2026
Attachments:
If you are an individual with a disability who is in need of a reader, amplifier, qualified sign language interpreter, or any other form of
auxiliary aid or service to attend or participate in the hearing or meeting, please contact Human Resources at 505-662-8040 as soon as
possible.
Complete Board of Public Utilities agenda packets, past agendas, videos, legislation and minutes can be found online at
https://losalamos.legistar.com. Learn more about the Board of Public Utilities at https://ladpu.com/BPU.
County of Los Alamos Printed on 3/13/2026
Page 4 of 333
Pages 271 - 310 Pages 311 - 323 Pages 324 - 333
<County of Los Alamos
Staff Report
March 18, 2026
Los Alamos, NM 87544 www.losalamosnm.us
Agenda No.:
4.a.
Index (Council Goals): Presenters:
Board of Public Utilities
Legislative File: 20947-26
Title
Approval of Board of Public Utilities Meeting Minutes - February 2026
Recommended Action
I move that the Board of Public Utilities approve the February 4th and February 18th
meeting minutes as presented
[OR amended
].
Draft minutes are sent to members after each meeting for their review. Members may then send
changes to be incorporated prior to final approval of the minutes at the next regular meeting.
Attachments
A - Draft BPU Work Session Minutes - 2/4/26
B - Draft BPU Regular Session Minutes - 2/18/26
County of Los Alamos Printed on 3/13/2026
Page 5 of 333
<1000 Central Avenue Los Alamos, NM 87544
County of Los Alamos
Minutes Board of Public Utilities Work Session
Robert Gibson, Chair; Matt Heavner, Vice Chair Eric Stromberg, Charles Nakhleh and Jennifer Hollingsworth, Members
Philo Shelton, Ex Officio Member
Anne Laurent, Ex Officio Member
Ryn Herrmann, Council Liaison
5:30 PM Municipal Building, Council Chambers Wednesday, February 4, 2026
Public Participation ~ in person or https://us06web.zoom.us/j/87563449773
This work session of the Incorporated County of Los Alamos Board of Public
Utilities was held on Wednesday, February 4, 2026. Vice Chair Matt Heavner
called the meeting to order at 5:33 p.m. Members of the public were notified of
the ability to attend and provide public comment either in person or over Zoom.
The following board members were in attendance:
**********
Present: 5 - Members Heavner, Stromberg, Hollingsworth, Nakhleh, and Laurent
Remote 2 - Members Gibson and Shelton
Absent: 0 -
**********
Others present in Chambers:
Thomas Wyman, Assistant County Attorney
James Alarid, Deputy Utility Manager - Engineering
James Martinez, Senior Engineer
Ben Olbrich, Deputy Utility Manager - Power Supply
Dennis Astley, Deputy Utility Manager - Electric Distribution
Joann Gentry, Deputy Utility Manager - Finance & Administration
Cathy D'Anna, Public Relations Manager
Richard Valerio, Business Operations Manager
Jedidiah Bedo, IM Technical Support Specialist
Zoom participants:
Ryn Herrmann, Council VC & BPU Liaison
Clay Moseley, Deputy Utility Manager - GWS Services
Joni Arends, Concerned Citizens for Nuclear Safety
Vice Chair Heavner provided an opportunity for public comment on any topic; there was
none.
No action was taken on this item.
Vice Chair Heavner called for discussion or a motion to approve the agenda.
Page 1 County of Los Alamos
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<February 4, 2026
Board of Public Utilities
Work Session
Minutes
**********
Member Hollingsworth moved and Member Nakhleh seconded that the Board
approve the agenda as amended.
**********
The motion passed by the following vote:
Yes: 5 - Members Gibson, Stromberg, Nakhleh, Heavner, and Hollingsworth
No: 0
3.a.
Action to Suspend Procedural Rules for Work Session
Vice Chair Heavner called for discussion or a motion.
(Item 3.a. was voted upon before item 3 so the agenda was considered "amended.")
**********
Member Nakhleh moved and Member Hollingsworth seconded that the Board of
Public Utilities suspend their procedural rules for the February 4, 2026 work
session so that formal action may be taken.
**********
The motion passed by the following vote:
Yes: 5 - Members Gibson, Stromberg, Nakhleh, Heavner, and Hollingsworth
No: 0
4 PRESENTATIONS
4.a.
Approval of a Short-term Power Purchase Agreement with Tenaska Power
Services Co. in the amount of $566,481.39 to meet forecasted Los
Alamos Power Pool load for the month of March 2026.
Mr. Ben Olbrich, Deputy Utility Manager - Power Supply, presented. A copy of the
presentation slides was included in the meeting packet. Vice Chair Heavner provided an
opportunity for comments and questions from the public and the board. The following
individuals spoke:
1. Joni Arends, CCNS
2. Member Gibson
3. Mr. Shelton
4. Member Heavner
Vice Chair Heavner then called for discussion or a motion.
***********
Member Hollingsworth moved and Member Nakhleh seconded that the Board of
Public Utilities recommend approval of a short-term Power Purchase Agreement
with Tenaska Power Services Co. in the amount of $423,112.80, and a
contingency additional amount of $106,000.00 for a total of $529,112.80, plus
applicable gross receipts tax, for the purpose of buying power and energy to
serve the Los Alamos Power Pool's electric load and forward to Council for
approval.
***********
The motion passed by the following vote:
Yes: 5 - Members Gibson, Stromberg, Nakhleh, Heavner, and Hollingsworth
No: 0
4.b.
Distribution and Electrification Plan Implementation
Mr. Dennis Astley, Acting Deputy Utility Manager - Electric Distribution presented. A
Page 2 County of Los Alamos
Page 7 of 333
<February 4, 2026
Board of Public Utilities
Work Session
Minutes
copy of the presentation slides was included in the meeting packet. Vice Chair Heavner
provided an opportunity for comments and questions from the board. The following
individuals spoke:
1. Member Stromberg
2. Member Nakhleh
3. Member Hollingsworth
4. Member Gibson
5. Mr. Shelton
No action was taken on this item.
4.c.
Asset Management Team (AMT) - Capital Improvement Plan (CIP)
Budgets
Mr. James Martinez, Senior Engineer presented. A copy of the presentation slides was
included in the meeting packet. Vice Chair Heavner provided an opportunity for comments
and questions from the board. The following individuals spoke:
1. Member Gibson
2. Mr. Shelton
3. Mr. Moseley
No action was taken on this item.
4.d.
Semiannual Update: Transactional Survey Report for July through
December 2025
Ms. Cathy D'Anna, Public Relations Manager presented. A copy of the report was
included in the meeting packet. Vice Chair Heavner provided an opportunity for comments
and questions from the board. The following individuals spoke:
1. Member Hollingsworth
No action was taken on this item.
5.a.
Discussion and Possible Approval of BPU Member Travel: ECA Forum
Mr. Philo Shelton, Utilities Manager provided some information and details were included
in the meeting packet.
Vice Chair Heavner provided an opportunity for comments and questions from the board.
The following individuals spoke:
1. Member Heavner
2. Member Gibson
3. Vice Chair Herrmann
4. Member Hollingsworth
5. Member Stromberg
Page 3 County of Los Alamos
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<February 4, 2026
Board of Public Utilities
Work Session
Minutes
5.b.
**********
Member Nakhleh moved and Member Hollingsworth seconded that the Board of
Public Utilities approve travel expenses for Member Stromberg to attend the 2026
ECA Forum in Augusta, GA in April 2026.
**********
The motion passed by the following vote:
Yes: 5 - Members Gibson, Stromberg, Nakhleh, Heavner, and Hollingsworth
No: 0
Schedule and Selection of Members to Attend B&C Luncheons for the
2026 Calendar Year
Vice Chair Heavner introduced this topic. Board members were given an opportunity to
discuss and select dates to volunteer for the following dates:
March 5, 2026 - Member Stromberg
May 14, 2026 - Member Nakhleh
September 10, 2026 - Member Gibson (tentative)
November 12, 2026 - Member Hollingsworth
No action was taken on this item.
5.c.
BPU Member Participation at Farmers Market
Vice Chair Heavner introduced this topic. Board members were given and opportunity to
discuss and select dates to volunteer for tjhe following dates:
May 21 - Member Hollingsworth
June 25 - Member Gibson
July 23 - Member Nakhleh
September 24 - Member Heavner
October 22 - Member Stromberg
No action was taken on this item.
Vice Chair Heavner provided an opportunity for public comment on any topic; there was
none
No action was taken on this item.
Page 4 County of Los Alamos
Page 9 of 333
<February 4, 2026
Board of Public Utilities
Work Session
Minutes The meeting adjourned at 7:43 p.m.
***********************************************************
APPROVAL
_______________________________________
Board of Public Utilities Chair
_______________________________________
Date Approved by the Board
Minutes transcribed by:
Kathy Casados, Executive Assistant
Page 5 County of Los Alamos
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<1000 Central Avenue Los Alamos, NM 87544
County of Los Alamos
Minutes Board of Public Utilities
Robert Gibson, Chair; Matt Heavner, Vice Chair Eric Stromberg,, Charles Nakhleh and Jennifer Hollingsworth, Members
Philo Shelton, Ex Officio Member
Anne Laurent, Ex Officio Member
Ryn Herrmann, Council Liaison
5:30 PM Municipal Building, Council Chambers Wednesday, February 18, 2026
Public Participation ~ in person or https://us06web.zoom.us/j/82180323960
This regular meeting of the Incorporated County of Los Alamos Board of Public
Utilities was held on Wednesday, February 18, 2026. Chair Gibson called the
meeting to order at 5:30 p.m. Members of the public were notified of the ability to
participate and provide public comment in-person, remotely, or via email.
**********
The following board members were in attendance:
Present - 6: Members Gibson, Heavner, Stromberg, Hollingsworth, Shelton and
Laurent
Remote - 0:
Absent - 1: Member Nakhleh
**********
Others in attendance in Chambers:
Vice Chair Ryn Herrmann, Council Liaison
Mr. Thomas Wymann, Assistant County Attorney
Mr. James Alarid, Deputy Utility Manager - Engineering
Mr. Clay Moseley, Deputy Utility Manager - GWS Services
Mr. Dennis Astley, Acting Deputy Utility Manager - Electrical Distribution
Mr. Ben Olbrich, Deputy Utility Manager - Power Supply
Ms. Joann Gentry, Deputy Utility Manager - Finance & Administration
Ms. Cathy D'Anna, Public Relations Manager
Ms. Kathy Casados, Executive Assistant
Mr. Richard Valerio, Business Operations Manager
Ms. Paula Nelson, Management Analyst
Mr. Zac Parliman, IM Technical Support Specialist
Zoom participants:
1. James Martinez, DPU Senior Engineer
2. David Reagor, Citizen
Chair Gibson provided an opportunity for public comment on the Consent Agenda or those
not otherwise included on the agenda. There was none
No action was taken on this item.
Page 1 County of Los Alamos
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<February 18, 2026 Board of Public Utilities Minutes
Chair Gibson asked board members for amendments to the agenda, discussion or a
motion.
1. Member Gibson requested that item 4.b. be moved from the Consent to Department
Business as the first item.
Chair Gibson then called for further discussion or a motion.
**********
Member Stromberg moved and Member Hollingsworth seconded that the agenda
be approved as amended.
**********
The motion passed by the following vote:
YES - 4: Members Hollingsworth, Heavner, Stromberg, and Gibson
NO - 0:
ABSENT - 1: Member Nakhleh
Chair Gibson asked board members for further amendments to the consent agenda,
discussion or a motion.
**********
Member Stromberg moved and Member Hollingsworth seconded that the consent
agenda be approved as amended.
**********
The motion passed by the following vote:
YES - 4: Members Hollingsworth, Heavner, Stromberg, and Gibson
NO - 0:
ABSENT: Member Nakhleh
4.a.
Approval of Board of Public Utilities Meeting Minutes - January 2026
I move that the Board of Public Utilities approve the minutes of the January 15,
2025 Regular Session as presented.
None scheduled.
No action was taken on this item.
None scheduled.
No action was taken on this item.
4.b.
Approval of Budget Revision No. 2026-41 for Task Order No. 4 with
Souder Miller & Associates under AGR22-67b for Potable Water Storage
Tank Inspection and Maintenance Services
Mr. James Alarid, Deputy Utility Manager - Engineering presented. Chair Gibson provided
Page 2 County of Los Alamos
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<February 18, 2026 Board of Public Utilities Minutes
an opportunity for comments or questions from the Board. The following individuals spoke:
1. Member Gibson
Chair Gibson provided an opportunity for Public Comment; there was none. He then
called for additional discussion or motion.
**********
Member Hollingsworth moved and Member Heavner seconded that the Board of
Public Utilities approve Task Oder No. 4 with Souder Miller & Associates under
AGR22-67b for Potable Water Storage Tank Inspection and Maintenance Services
in the amount of $149,212 plus applicable GRT and including a 15% project
contingency, and recommend Budget Revision 2026-41 in the amount of
$185,441.00, and forward to Council for approval.
**********
The motion passed by the following vote:
YES - 4: Members Hollingsworth, Heavner, Stromberg, and Gibson
NO - 0:
ABSENT: Member Nakhleh
7.a.
Presentation of the DPU FY2027 Budget
Ms. Joann Gentry, Deputy Utility Manager - Finance & Administration presented.
Supporting documents were included in the meeting packet. Chair Gibson provided an
opportunity for comments and questions from the board. The following individuals spoke:
1. Member Gibson - Electric Production Fund question
2. Mr. Ben Olbrich responded
3. Member Gibson - Electric Distribution Fund question
4. Mr. Ben Olbrich responded
5. Member Heavner - Gas Distribution Fund question
6. Ms. Gentry responded
7. Mr. Philo Shelton responded
8. Member Hollingsworth - Gas Distribution Fund question
9. Mr. Philo Shelton responded
No questions regarding Water Distribution Fund
10. Member Gibson - Water Production Fund question
11. Ms. Gentry responded
No questions regarding Wastewater Treatment & Collection Fund
No questions regarding Administrative Fund
No questions regarding
FTE Summary
No questions regarding CIP Summary
No questions regarding Revenue Transfer Budget Option
12. Mr. Shelton commented on Revenue Transfer
13. Member Gibson - Ten Year Forecast Electric Utility question
14. Ms. Gentry responded
15. Member Gibson - Reserve Targets question
16. Ms. Gentry responded
17. Member Gibson - Ten-Year Fund Forecasts questions
18. Ms. Gentry responded
No questions regarding Gas Fund graph
No questions regarding Water Distribution Fund graph
No questions regarding Water Production Fund graph
No questions regarding Wastewater Fund graph
Mr. Richard Valerio then presented the Debt Coverage Ratio 2027 - 2036. Chair Gibson
Page 3 County of Los Alamos
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<February 18, 2026 Board of Public Utilities Minutes
provided an opportunity for comments and questions from the board. The following
individuals spoke:
1. Member Hollingsworth - ReserveTarget question
2. Ms. Gentry responded
3. Mr. Shelton responded
4. Member Gibson - Debt Ratio question
5. Ms. Gentry will research and provide additional information
6. Mr. Shelton responded
7. Member Gibson - Electric Distribution grant question
8. Mr. Astley responded
Ms. Gentry continued the presentation and discussed the Schedule of Funds.When the
budget presentation concluded Chair Gibson provided an opportunity for comments and
questions from the board. The following individuals spoke:
1. Member Heavner
2. Mr. Shelton
3. Member Gibson
4. Mr. Shelton
No action was taken on this item. The budget will be presented in March for
approval.
7.b.
Approval of Task Order No.3, AGR24-04d for the Purpose of White Rock
Substation Transformer Project with Sanbros Corp. in the Amount of
$299,719.24, plus Applicable Gross Receipts Tax for
the Term of 120 Days
Mr. Dennis Astley, Acting Deputy Utility Manager - Electric Distribution presented.
Supporting documents were included in the meeting packet. Chair Gibson provided an
opportunity for comments and questions from the board. The following individuals spoke:
1. Member Stromberg
2. Member Hollingsworth
3. Member Gibson
Chair Gibson provided an opportunity for Public Comment; there was none. He then
called for additional discussion or motion.
**********
Member Stromberg moved and Member Hollingsworth seconded that the Board
of Public Utilities approve Task Order No.3, AGR24-04d for the Purpose of White
Rock Substation Transformer Project with Sanbros Corp. in the Amount of
$299,719.24, plus Applicable Gross Receipts Tax for the Term of 120 days.
**********
The motion passed by the following vote:
YES - 4: Members Hollingsworth, Heavner, Stromberg, and Gibson
NO - 0:
ABSENT - 1: Member Nakhleh
8.a. Chair's Report
Chair Gibson spoke:
1. He thanked Vice Chair Heavner for running the last meeting.
Page 4 County of Los Alamos
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<February 18, 2026 Board of Public Utilities Minutes
2. He reminded members to inform Ms.Casados of upcoming travel and BPU meeting
availability.
Chair Gibson provided the opportunity for comments or questions from the board. There
were none.
No action was taken on this item.
8.b. Board Member's Reports
There were none
No action was taken on this item.
8.c. Utilities Manager's Report
Mr. Philo Shelton reviewed his report which was included in the meeting packet. Chair
Gibson provided an opportunity for comments or questions from the board. The following
individuals spoke:
1. Member Stromberg
2. Mr. Olbrich
3. Member Gibson
4. Member Stromberg
5. Member Hollingsworth
No action was taken on this item.
8.d. County Manager's Report
Ms. Anne Laurent provided highlights from the recent Council Meetings/Work Sessions.
1. Closing Aquatic Center except for Leisure Lagoon.
2. Bid out for Fire Station 4 - will rebuild next to existing structure.
3. Council has Special Meeting with the LAPS Board on February 26th.
4. LAC is in the final stages of selling bonds for the broadband project.
5. CMO recently met with Tim Walsh, DOE - Mr. Shelton joined them.
6. March 23 staff from the CMO's office will be in Washington, D.C.
7. NMED was fined by DOE-EM.
Chair Gibson provided an opportunity for comments and questions from the board. There
were none.
No action was taken on this item.
8.e. Council Liaison's Report
Vice Chair Herrmann provided highlights from the February 17th Council Meeting:
1. Recognized F&A for continued accomplishments.
2. Short term PPA approved.
3. Passed bonds for broadband.
Chair Gibson provided an opportunity for comments and questions from the board. There
were none
No action was taken on this item.
8.f. Environmental Sustainability Board Liaison's Report
Both Ms. Sue Barns and Ms. Shannon Blair were out of town. No written report was
Page 5 County of Los Alamos
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<February 18, 2026 Board of Public Utilities Minutes
submitted.
No action was taken on this item.
8.g. General Board Business
8.g.1.
Appointment of Board Member to County Audit Committee for 2026
Chair Gibson introduced the topic
(Member Heavner shared that he was the BPU
representative for the audit committee for Fiscal Year 2025. He summarized his
involvement and shared kudos to everyone involved in the audit. Only two meetings and
reading.
Chair Gibson called for volunteers or nominations to serve on the committee. The following
board members spoke:
1. Member Hollingsworth volunteered.
Chair Gibson then asked members whether he could appoint a member rather than call
for a motion. Members agreed to an appointment.
Chair Gibson appointed Member Hollingsworth to fill the vacant position on the
Countyâs Audit Committee and appoint them for remainder of Calendar Year 2025.
He further recommended that the Utilities Manager notify the Chief Financial
Officer of the nominee.
8.h. Board Expenses
None.
No action was taken on this item.
9.a.
Status Reports - January
Chair Gibson opened the floor for comments and questions on the status reports. There
were none
No action was taken on this item.
10.a.
Tickler File: March - June
Chair Gibson opened the floor for comments and questions on the tickler. The following
individuals spoke:
1. Mr. Shelton
2. Member Stromberg
3. Member Hollingsworth
CORRECTIONS TO TICKLER:
1. March 4th - remove UAMPS Presentation
2. EV Plan delayed to April Regular Meeting
3. Remove Broadband item
4. Gibson will be remote for April 1st. - delay performance planning to April 15 and final to
May 6th.
Page 6 County of Los Alamos
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<February 18, 2026 Board of Public Utilities Minutes
5. Member Hollingsworth will be on travel the week of April 15th and will be absent from
the BPU Regular meeting. .
NEW ITEMS FOR TICKLER:
1. March 4th - Add a Budget Review item.
Chair Gibson reminded Vice Chair Heavner that they would meet with Mr. Shelton on
Friday, February 27 to review the tickler and agenda items for March.
No action was taken on this item.
Chair Gibson provided an opportunity for public comment on any topic. There were none
.
The meeting adjourned at 8:02 p.m.
*******************************************************
APPROVAL
_______________________________________
Board of Public Utilities Chair
_______________________________________
Date Approved by the Board
Minutes transcribed by: Kathy Casados, Executive Assistant
ATTACHMENTS
(in agenda order):
7.b. Schematic of Proposed SCADA Location
8.c. Utilities Manager Report 2/18/26
Page 7 County of Los Alamos Printed on 3/13/2026
Page 17 of 333
<BOARD OF PUBLIC UTILITIES
ADDITIONAL MEETING DOCUMENTS
Additional or revised information or documents are often distributed to members at the meetings. Whenever possible, this informational cover page will accompany those documents.
MEETING DATE
February 18, 2026 - Regular Meeting
AGENDA ITEM
7.b. Approval of Task Order No.3, AGR24-04d for the Purpose
of White Rock Substation Transformer Project with Sanbros
Corp. in the Amount of $299,719.24, plus Applicable Gross
Receipts Tax for the Term of 120 Days
ATTACHMENTS
B â Schematic of Proposed SCADA Location
NEW OR REVISED?
Is this a revision that is different from what was in the agenda packet, or is it something entirely new?
NEW Attachment B
RECOMMENDED ACTION
If you have a new or revised recommended motion for the Board, enter it here.
Same as included in packet.
ADDITIONAL INFORMATION
Please VERY BRIEFLY explain the purpose of this information or document.
Page 18 of 333
<Page 19 of 333
<Utilities
Managerâs Rep
ort February 18, 2026
1.
The Sanbros task order will reroute control conduits and prepare the site for the foundation
â
s
five-caisson installation. The caisson work is out to bid again since the initial solicitation did
not result in a bid. Once these foundation elements are constructed, we can finalize the
schedule to complete this transformer installation.
The new transformerâs containment
vessel
and the transformer are ready to ship. For the tie line, LANL has mobilized to install poles
on their side of SR-4. DPU has installed the transformer and the three voltage regulators.
2.
For Elk Ridge, CID
âs
Mobile Home section has issued most of the green tags required for the
project. The challenge remaining is having the homeowner present to make the final
connections to the new system where we have 22 homes completed to date. Today we
discussed with Elk Ridge again emphasizing having Cartwright available after work hours,
on Fridays and on Saturdays when homeowners are present to make these final connections.
3.
Recruitment status: DPU is interviewing a Customer Care Specialist and Senior Management
analyst. Timo Martinez accepted the Electric Distribution Line Person Supervisor and DPU
is currently recruiting for a Lineperson. Other openings are for an Deputy Utility Manager
for Engineering, Electrician, Engineering Project Manager, Water Operator, and Engineering
Aid for utility locates.
4.
DPU is actively negotiating the new ECA and holding several meetings, and we have
engaged Kutak Rock to help us with reviewing of this agreement and assure agreement
protections that the existing ECA has will continue into the new agreement. Staff have
worked with NNSA site office and their consultant Exeter on the 10-yr contract value that
will be attached to the new ECA. Kutak Rock and County staff have a meeting scheduled for
next Wednesday with DOE attorneys to discuss proposed agreement protections. In the
meantime, DPU has asked NNSA/DOE for another 90-day extension on the current ECA, so
we can continue to negotiate and finalize a new agreement. Therefore, there will be future
agenda items to extend the current ECA and another short-term power purchase agreement to
parallel with the 90-day extension.
5.
The Jemez Fire Protection Project phase II segment is nearing completion with a final round
of paving scheduled for next week. Pajarito LLC has been billed for the second $1 million in
compliance with the development agreement. Staff are preparing to bid on the last phase of
the project this month. It is unlikely that the FEMA grant will come through for the electric
portion of the project and once the bid results are obtained, staff will most likely recommend
we proceed with the project without the FEMA funding. The County and Pajarito LLC will
share 50-50 in these project costs, and this will allow for the project to be delivered on time
for delivering water up to the mountain to make snow next season. The project budget is
$18.9 million, and staff are estimating that the work should come in on budget. A special
rate for delivery of water will need to be established because of the additional energy needed
to raise this water up to the base of the mountain.
Page 20 of 333
<6.
For Foxtail Flats the final COD remains on June 18, 2027. This leaves 12 calendar days of
float remaining in their contracted schedule. Partial mobilization is underway, they have had
a team upgrading the road on site since early January, and a cultural team has been on site
flagging sites in advance of full mobilization. Full site mobilization is scheduled for April 30,
2026.
7.
For UAMPS, they are also in the middle of preparing their budget. The Geothermal projects
are still on hold because both projects need transmission access from Pacific Corp. However,
Rodatherm has begun to dig their pilot geothermal well with no cost share to the project
required.
8.
For Chromium Plume, NMED has filed a lawsuit on NNSA. This fact has suspended the
Working Group meetings. The lawsuit is concerned with the pace of the cleanup and finding
chromium concentrations above NMED 50 ppb threshold on the Pueblo de San Ildefonso.
On March 4
th
NMED will present the adaptive site management process to BPU and provide
any project updates. I am not sure how this new development will impact the timeline to
restart the interim measure with one extraction well at 60 GPM and its land application.
9.
The 18-inch water production line in Two Mile Canyon, staff have submitted the permit to
LANL and plan to submit the Army Corp permit next week. This will be a difficult project
to repair because of access to the canyon bottom. Staff are working with our on-call
contractor to cost the project, and a task order and budget revision will be presented next
month to BPU.
10.
The contract awarded tonight to Souder Miller will complete the remaining 18 items
identified for correction in the sanitary survey on our drinking water system.
11.
PM-4 and PM-5 wells are under well-head control upgrades, and we anticipate getting these
wells going within the next month and obtain raw water samples from these wells for PFAS.
The class action settlement extended sampling deadline until March 31
st
for PFAS. The only well that cannot be sampled is PM-3.
12.
DPU staff is coordinating with other county departments to develop a site plan on A-16-a to
have County staging area for operations and an area for contractor staging to support the
various capital improvement projects. Tonight
â
s budget presentation included some funds to help support site work required for this new staging area.
13.
For the vertical switch gear project, the substantial completion is planned for mid-May and
finial completion by the end of June. This $3.3 million project will be completed 2 months
earlier and the estimate to complete the project is coming in under the budget at $3,074,665.
Page 21 of 333
<County of Los Alamos
Staff Report
March 18, 2026
Los Alamos, NM 87544 www.losalamosnm.us
Agenda No.:
4.b.
Index (Council Goals):
Quality Excellence - Effective, Efficient, and Reliable Services; DPU FY26 -
1.0 Provide Safe and Reliable Utility Services
Presenters:
James Martinez, Senior Engineer
Legislative File: 21239-26a
Title
Award of Bid No. IFB 26-23 for the Purpose of the San Ildefonso Waterline Replacement Project
in the Amount of $1,617,673.80 and a contingency in the amount of $346,384.40, for a Total
Project Amount of $2,078,307, including NMGRT
Recommended Action
I move that the Board of Public Utilities recommend the Award pf Bid No. 26-23 for the
San Ildefonso 8â Waterline Replacement Project with the Base Bid Amount of
$1,617,673.80 and a contingency in the amount of $346,384.40, for a Total Project
Amount of $2,078,307
,
including NMGRT and forward to County Council for approval.
Utilities Manager's Recommendation
The Utilities Manager recommends that the Board approve the motion as presented.
Body
A single, 65-year-old water distribution line provides potable water to most residences on North
Mesa, in addition to the middle school
.
This pipeline and the valves required for its operation
experience frequent malfunctions that consume O&M resources. The pipeline will be replaced,
and its components will be replace or rehabilitated to meet County standards. This will reduce
the O&M resources required for operation, improve DPU staff safety, and lessen failure risk.
Finally this project will increase the waterline diameter to 12-inches to support expanded housing
on North Mesa and fire flow needs.
Alternatives
If the Board does not award the project, staff will continue to allocate staff resources to pipeline
and valve maintenance and pursue less desirable means to keep the system operational.
Fiscal and Staff Impact/Planned Item
The project has been budgeted through Water Distribution in FY 2026 in the amount of
$2,300,000.00 ($1.8M Grant / $200K Loan, $300k County Match). This is Loan/ Grant No.
WPF-6583, dated January 23, 2026 and included as Attachment âAâ.
Attachments
A - LAC WPF-6583 Executed Loan Grant Agreement
B - IFB 26-23 Construction Plans
County of Los Alamos
Page 22 of 333
<Loan/Grant No. WPF-6583
$2,000,000
WATER PROJECT FUND LOAN/GRANT AGREEMENT dated
January 23, 2026
by and between the NEW MEXICO FINANCE AUTHORITY
as Lender/Grantor,
and INCORPORATED COUNTY OF LOS ALAMOS, NEW MEXICO,
as Borrower/Grantee.
SAN ILDEFONSO ROAD WATERLINE REPLACEMENT
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Loan/Grant Agreement Los Alamos, Loan/Grant No. WPF-6583
WATER PROJECT FUND LOAN/GRANT AGREEMENT
THIS LOAN/GRANT AGREEMENT (the âAgreementâ or âLoan/Grant Agreementâ) dated January 23, 2026, is entered into by and between the
NEW MEXICO FINANCE AUTHORITY
(the âNMFAâ or âLender/Grantorâ), and THE
INCORPORATED COUNTY OF LOS ALAMOS, NEW MEXICO
(the âBorrower/Granteeâ).
W I T N E S S E T H:
WHEREAS, the NMFA is a public body politic and corporate, separate and apart from the State, constituting a governmental instrumentality, duly organized and created under and pursuant to the laws of the State, particularly NMSA 1978, §§ 6-21-1 through 6-21-31, as amended (the âNMFA Actâ); and WHEREAS, the NMFA Act provides that the NMFA may make loans and grants from the Water Project Fund to qualifying entities for Qualifying Water Projects; and WHEREAS, pursuant to the Act, the Water Trust Board has established the Board Rules governing the terms and conditions of loans and grants made from the Water Project Fund, as set out in Review and Eligibility of Proposed Water Projects, New Mexico Water Trust Board,
19.25.10 NMAC, pursuant to the Board Rules for Qualifying Water Projects; and WHEREAS, pursuant to the Board Rules, except as provided in the Policies, a qualifying entity is expected to receive some portion of its funding as a loan in order to maximize the potential for the return of funds to the Water Project Fund, thereby increasing the limited financial resources expected to be available in the Water Project Fund; and WHEREAS, the Borrower/Grantee is a legally and regularly created, established, duly organized and existing county under and pursuant to the laws of the State and more specifically, Article X, Section 5, of the New Mexico Constitution, is a qualifying entity under the Water Project Finance Act and is qualified for financial assistance as determined by the NMFA and approved by the Water Trust Board pursuant to the Board Rules, the Policies and the Act; and WHEREAS, the Borrower/Grantee has determined that it is in the best interests of the Borrower/Grantee and the constituent public it serves
that the Borrower/Grantee enter into this Agreement with the Lender/Grantor to borrow $200,000 from the Lender/Grantor and to accept a grant in the amount of $1,800,000 from the Lender/Grantor to finance the costs of the Project, this Project being more particularly described in the Term Sheet; and WHEREAS, the Borrower/Grantee submitted an Application dated September 10, 2024 and December 20, 2024 for the Project; and WHEREAS, pursuant to the Board Rules the Water Trust Board recommended the Project for funding as a Qualifying Water Project to the Legislature; and
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Loan/Grant Agreement Los Alamos, Loan/Grant No. WPF-6583
WHEREAS, Chapter 35, Laws 2025,
being House Bill 206 of the 2025 Regular New Mexico Legislative Session, authorized the funding of the Project from the Water Project Fund; and WHEREAS, the Water Trust Board has recommended that the NMFA enter into and administer this Agreement in order to finance the Project; and WHEREAS, the NMFA approved on May 22, 2025 that the Borrower/Grantee receive financial assistance in the form of the Loan/Grant; and WHEREAS, the Borrower/Grantee is willing to pledge the Pledged Revenues to the payment of the Loan Payments and Administrative Fee, with a lien on the Pledged Revenues subordinate to all other liens thereon present and future, except that the lien on the Pledged Revenues of any future loans from the Lender/Grantor to the Borrower/Grantee pursuant to the Water Project Finance Act or the Colonias Infrastructure Act, secured by the Pledged Revenues shall be on a parity with this Agreement; and WHEREAS, the plans and specifications for the Project have been approved by the NMFA (or by the New Mexico Environment Department or other appropriate agency or entity on behalf of the NMFA, pursuant to an agreement between such agency or entity and the NMFA), prior to the commencement of construction, and the plans and specifications
for the Project incorporate available technologies and operational design for water use efficiency; and WHEREAS, the execution and performance of this Agreement have been authorized, approved and directed by all necessary and appropriate action of the Water Trust Board and the NMFA, and their respective officers. NOW, THEREFORE, for and in consideration of the premises and the mutual promises and covenants herein contained, the parties hereto agree:
ARTICLE I DEFINITIONS
Capitalized terms defined in the foregoing recitals shall have the same meaning when used in this Agreement unless the context clearly requires otherwise. Capitalized terms not defined in the recitals and defined in this Article I shall have the same meaning when used in this Agreement including the foregoing recitals, unless the context clearly requires otherwise (such meanings to be equally applicable to both the singular and the plural forms of the terms defined). âACH Authorizationâ means the authorization for direct payment to the NMFA by ACH made by the Borrower/Grantee on the form required by the bank or other entity at which the account is held, from which the Pledged Revenues will be paid. âActâ means the general laws of the State, particularly the Water Project Finance Act, NMSA 1978, §§ 72-4A-1 through 72-4A-11, and enactments of the Governing Body relating to this Agreement, including the Ordinance, all as amended and supplemented.
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Loan/Grant Agreement Los Alamos, Loan/Grant No. WPF-6583
âAdditional Funding Amountâ means the amount to be provided by the Borrower/Grantee which includes the total value of the Soft Match or Hard Match (each as defined in Section 4.2 of the Policies) which, in combination with the Loan/Grant Amount and other moneys available to the Borrower/Grantee, is sufficient to complete the Project and to provide matching funds required to complete the Project. The Additional Funding Amount is $300,000. âAdministrative Feeâ or âAdministrative Fee Componentâ means an amount equal to one- quarter of one percent (0.25%) per annum of the unpaid principal balance of the Loan Amount, taking into account both payments made by the Borrower/Grantee and hardship waivers of payments granted to the Borrower/Grantee pursuant to Section 5.1(a)(iii) of this Agreement. âAgreement Termâ means the term of this Agreement as provided under Article III of this Agreement. âApplicationâ means the New Mexico Water Trust Board Application dated September 10, 2024 and the New Mexico Water Trust Board Readiness Application dated December 20, 2024 of the Borrower/Grantee and pursuant to which the Borrower/Grantee requested funding for the Project. âAuthorized Officersâ means, with respect to the Borrower/Grantee, any one or more of the Chair, Vice Chair, Utilities Manager, Deputy Utility Manager â Finance and Administration, Deputy Utility Manager â Engineering Division and County Clerk thereof; with respect to the NMFA, the Chairman, Vice-Chairman and Secretary of the Board of Directors and the Chief Executive Officer or any other officer or employee of the NMFA designated in writing by an Authorized Officer. âBoard Rulesâ means Review and Eligibility of Proposed Water Projects, New Mexico Water Trust Board, 19.25.10 NMAC. âClosing Dateâ means the date of execution and delivery of this Agreement by the Borrower/Grantee and the NMFA. âColonias Infrastructure Actâ means NMSA 1978, §§ 6-30-1 through 6-30-8, as amended.
âConditionsâ means the conditions to be satisfied prior to the submission of a request for payment or the disbursement of the Loan/Grant Amount, or any portion thereof, from the Water Project Fund, or which otherwise apply to the performance of this Agreement, including those set forth in the Term Sheet. âDepartment of Finance and Administrationâ or âDFAâ means the department of finance, and administration of the State. âEligible Itemsâ means eligible Project costs for which grants and loans may be made pursuant to NMSA 1978, § 72-4A-7(C), as amended, of the Act, the Board Rules and applicable Policies, and includes, without limitation, Eligible Legal Costs.
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âEligible Legal Costsâ means legal fees and costs for services rendered by legal counsel on behalf of the Borrower/Grantee for transaction of the Project, in an amount not exceeding ten (10) percent of the Loan/Grant Amount, but does not include adjudication services. âEvent of Defaultâ means one or more events of default as defined in Section 10.1 of this Agreement. âFinal Debt Service Scheduleâ means the schedule of Loan Payments due on this Agreement following the Final Requisition, as determined on the basis of the Loan Amount. âFinal Requisitionâ means the final requisition of moneys to be submitted by the Borrower/Grantee, which shall be submitted by the Borrower/Grantee on or before the expiration of the Interim Period as provided in Section 5.3 of this Agreement. âFiscal Yearâ means the period commencing on July 1 of each calendar year and ending on the last day of June of the next succeeding calendar year, or any other twelve-month period which any appropriate authority of the Borrower/Grantee may hereafter establish for the Borrower/Grantee as its fiscal year. âForce Majeureâ means acts of God and natural disasters; strikes or labor disputes; war, civil strife or other violence; an order of any kind of the Government of the United States or of the State or civil or military authority or any court of competent jurisdiction; or any other act or condition that was beyond the reasonable control of, without fault or negligence of, or not reasonably foreseeable by the party claiming the Force Majeure event; except for (i) general economic conditions; or (ii) an inability of a party claiming the Force Majeure event to pay any debts when due. âGenerally Accepted Accounting Principlesâ means the officially established accounting principles applicable to the Borrower/Grantee, consisting of the statements, determinations and other official pronouncements of the Government Accounting Standards Board, Financial Accounting Standards Board, Federal Accounting Standards Board, or other principle-setting body acceptable to the Lender/Grantor, establishing accounting principles applicable to the Borrower/Grantee. âGoverning Bodyâ means the duly organized County Council of the Borrower/Grantee, or any successor governing body of the Borrower/Grantee. âGrantâ or âGrant Amountâ means the amount provided to the Borrower/Grantee as a grant pursuant to this Agreement for the purpose of funding the Project and shall not equal more than $1,800,000. âGross Revenuesâ
means all income and revenues directly or indirectly derived by the Borrower/Grantee from the operation and use of the System, or any part of the System, for any particular Fiscal Year period to which the term is applicable, and includes, without limitation, all revenues received by the Borrower/Grantee, or any municipal corporation or agency succeeding to the rights of the Borrower/Grantee, from the System and from the sale and use of electric, gas, water and wastewater services or facilities, or any other service, commodity or facility or any combination thereof furnished by the System. In the event there is a conflicting description of
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Loan/Grant Agreement Los Alamos, Loan/Grant No. WPF-6583
Gross Revenues in any ordinance or resolution of the Borrower/Grantee, the language of such ordinance or resolution shall control. Gross Revenues do not include: (a)
Any money received as (i) grants or gifts from the United States of America, the State or other sources or (ii) the proceeds of any charge or tax intended as a replacement therefor or other capital contributions from any source which are restricted as to use; (b)
Gross receipts taxes, other taxes and/or fees collected by the Borrower/Grantee and remitted to other governmental agencies; and (c)
Condemnation proceeds or the proceeds of any insurance policy, except any insurance proceeds derived in respect of loss of use or business interruption. âHardship Waiverâ means a determination by the NMFA pursuant to Section 5.1(a)(iii) herein that the annual principal payment by the Borrower/Grantee should be forgiven because such payment would cause undue hardship for the Borrower/Grantee or the public it serves. âHerein,â âhereby,â âhereunder,â âhereof,â âhereinaboveâ and âhereafterâ refer to this entire Agreement and not solely to the particular section or paragraph of this Agreement in which such word is used. âInterest Componentâ means the portion of each Loan Payment paid as interest on this Agreement, if any, as shown on Exhibit âBâ hereto. âInterim Debt Service Scheduleâ means the anticipated schedule of Loan Payments due on this Agreement following the Final Requisition, assuming disbursement of the entire Loan Amount within twenty-four (24) months of the Closing Date. The Interim Debt Service Schedule is attached hereto as Exhibit âBâ. âInterim Periodâ means the period no greater than twenty-four (24) months, unless a longer period is approved by the NMFA as provided in Section 5.3 of this Agreement, beginning on the Closing Date, during which the NMFA will disburse moneys to the Borrower/Grantee to pay costs of the Project. âLender/Grantorâ means the New Mexico Finance Authority. âLoanâ or âLoan Amountâ means the amount provided to the Borrower/Grantee as a loan pursuant to this Agreement for the purpose of funding the Project and shall not equal more than $200,000. âLoan/Grantâ or âLoan/Grant Amountâ means the combined amount partially provided to the Borrower/Grantee as the Grant Amount and partially borrowed by the Borrower/Grantee as the Loan Amount pursuant to this Agreement for the purpose of funding the Project and shall not equal more than $2,000,000.
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âLoan Paymentsâ means, collectively, the Principal Component and the Interest Component, if any, to be paid by the Borrower/Grantee as payment of this Agreement as shown on Exhibit âBâ hereto. âNet System Revenuesâ means the Gross Revenues of the System minus Operation and Maintenance Expenses, indirect charges, amounts expended for capital replacements and repairs, required set asides for debt and replacement requirements, and any other payments from the gross revenues reasonably required for operation of the System.
âNMACâ means the New Mexico Administrative Code. âNMSA 1978â means the New Mexico Statutes Annotated, 1978 Compilation, as amended and supplemented from time to time. âOperation and Maintenance Expensesâ means all reasonable and necessary current expenses of the System, for any particular Fiscal Year or period to which such term is applicable, paid or accrued, related to operating, maintaining and repairing the System, including, without limiting the generality of the foregoing: (a)
Legal and overhead expenses of the Borrower/Grantee directly related and reasonably allocable to the administration of the System; (b)
Insurance premiums for the System, including, without limitation, premiums for property insurance, public liability insurance and workmenâs compensation insurance, whether or not self-funded; (c)
Premiums, expenses and other costs (other than required reimbursements of insurance proceeds and other amounts advanced to pay debt service requirements on System bonds) for credit facilities; (d)
Any expenses described in this definition other than expenses paid from the proceeds of System bonds; (e)
The costs of audits of the books and accounts of the System; (f)
Amounts required to be deposited in any rebate fund; (g)
Salaries, administrative expenses, labor costs, surety bonds and the cost of water, materials and supplies used for or in connection with the current operation of the System; and (h)
Any fees required to be paid under any operation, maintenance and/or management agreement with respect to the System. Operation and Maintenance Expenses do not include any allowance for depreciation, payments in lieu of taxes, franchise fees payable or other transfers to the Borrower/Granteeâs general fund, liabilities incurred by the Borrower/Grantee as a result of its negligence or other misconduct in the operation of the System, any charges for the accumulation of reserves for capital
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replacements or any Operation and Maintenance Expenses payable from moneys other than Gross Revenues. In the event there is a conflicting description of Operation and Maintenance Expenses in any ordinance or resolution of the Borrower/Grantee, the language of such ordinance or resolution shall control.
âOrdinanceâ means the Borrower/Granteeâs Ordinance No. 749, adopted by the Governing Body on December 16, 2025, authorizing the acceptance of the Loan/Grant, approving this Agreement and pledging the Pledged Revenues to the payment of the Loan Payments and the Administrative Fee as shown on the Term Sheet.
âParity Obligationsâ means this Agreement, and any other obligations, now outstanding or hereafter issued or incurred, payable from or secured by a lien or pledge of the Pledged Revenues and issued with a lien on the Pledged Revenues on a parity with this Agreement, as shown on the Term Sheet. âPledged Revenuesâ means the Net System Revenues of the System of the Borrower/Grantee pledged to the payment of the Loan Payments and the Administrative Fee pursuant to the Ordinance and this Agreement and described in the Term Sheet. âPoliciesâ means the Water Trust Board Water Project Fund Project Management Policies approved by the Water Trust Board and the NMFA, as amended and supplemented from time to time. âPrincipal Componentâ means the portion of each Loan Payment paid as principal on this Agreement as shown on Exhibit âBâ hereto. âProjectâ means the project(s) described on the Term Sheet. âProject Accountâ means the book account established by the NMFA in the name of the Borrower/Grantee for purposes of tracking expenditure of the Loan/Grant Amount by the Borrower/Grantee to pay for the costs of the Project, as shown in the Term Sheet, which account shall be kept separate and apart from all other accounts of the NMFA. âQualifying Water Projectâ means a water project for (i) storage, conveyance or delivery of water to end-users; (ii) implementation of the federal Endangered Species Act of 1973 collaborative programs; (iii) wastewater conveyance and treatment; (iv) restoration and management of watersheds; (v) flood prevention; or, (vi) water conservation or recycling, treatment or reuse of water as provided by law; and which has been approved by the state legislature pursuant to NMSA 1978, § 72-4A-9(B), as amended. âSenior Obligationsâ means any outstanding obligations with a superior lien on the Pledged Revenues as defined in the Term Sheet, or any such obligations hereafter issued and meeting the requirements of the Agreement applicable to the issuance of Senior Obligations. âStateâ means the State of New Mexico. âState Board of Financeâ means the State board of finance created pursuant to NMSA 1978, §§ 6-1-1 through 6-1-13, as amended.
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âSystemâ means the joint electric, gas, water and wastewater utility system of the Borrower/Grantee, owned and operated by the Borrower/Grantee, and of which the Project, when completed, will form part. The System consists of all properties, real, personal, mixed or otherwise, now owned or hereafter acquired by the Borrower/Grantee through purchase, condemnation, construction or otherwise, including all expansions, extensions, enlargements and improvements of or to the joint utility system, and used in connection therewith or relating thereto, and any other related activity or enterprise of the Borrower/Grantee designated by the Governing Body as part of the joint utility system, whether situated within or without the limits of the Borrower/Grantee. âTerm Sheetâ means Exhibit âAâ attached to this Agreement. âUseful Lifeâ means the structural and material design life of the Project including planning and design features as required by the Act and the Board Rules. âWater Project Fundâ means the fund of the same name created pursuant to the Act and held and administered by the NMFA. âWater Trust Boardâ or âWTBâ means the water trust board created and established pursuant to the Act.
ARTICLE II REPRESENTATIONS, COVENANTS AND WARRANTIES
Section 2.1 Representations, Covenants and Warranties of the Borrower/Grantee: The Borrower/Grantee represents, covenants and warrants for the benefit of the NMFA as follows: (a)
Binding Nature of Covenants; Enforceability. All representations, covenants, stipulations, obligations and agreements of the Borrower/Grantee contained in this Agreement shall be deemed to be the representations, covenants, stipulations, obligations and agreements of the Borrower/Grantee to the full extent authorized or permitted by law, and such representations, covenants, stipulations, obligations and agreements shall be binding upon the Borrower/Grantee and its successors and enforceable in accordance with their terms, and upon any board or body to which any powers or duties affecting such representations, covenants, stipulations, obligations and agreements shall be transferred by or in accordance with law. Except as otherwise provided in this Agreement, all rights, powers and privileges conferred and duties and liabilities imposed upon the Borrower/Grantee by the provisions of this Agreement and the Ordinance
shall be exercised or performed by the Borrower/Grantee or by such members, officers, or officials of the Borrower/Grantee as may be required by law to exercise such powers and to perform such duties. (b)
Authorization of Agreement. The Borrower/Grantee is a qualifying entity as defined in the Act and the Board Rules. Pursuant to the laws of the State and in particular, the laws governing its creation and existence, as amended and supplemented from time to time, the Borrower/Grantee is authorized to enter into the transactions contemplated by this Agreement and to carry out its obligations hereunder. The Borrower/Grantee has duly authorized and approved its acceptance of the Loan/Grant and the execution and delivery of this Agreement and the other documents related to the transaction described in this Agreement, and this Agreement and the other
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documents related to the transaction to which the Borrower/Grantee is a party constitute legal, valid and binding special obligations of the Borrower/Grantee enforceable against the Borrower/Grantee in accordance with their respective terms. (c)
Nature and Use of Agreement Proceeds. The Borrower/Grantee acknowledges that the distribution of the Loan/Grant Amount shall be deemed to be a distribution to the Borrower/Grantee of proceeds representing the Loan Amount and the Grant Amount on a
pro rata
basis from the maximum Loan Amount and Grant Amount. The Borrower/Grantee shall apply the proceeds of the Loan/Grant solely to Eligible Items that will facilitate the completion of the Project, and shall not use the Loan/Grant proceeds for any other purpose. The Loan/Grant Amount, together with the Additional Funding Amount and other moneys reasonably expected to be available to the Borrower/Grantee, is sufficient to complete the Project in its entirety. (d)
Payment of Loan Amount. The Borrower/Grantee shall promptly pay the Loan Amount and Administrative Fee as provided in this Agreement, except when a Hardship Waiver is obtained pursuant to Section 5(a)(iii) of this Agreement. The Loan and Administrative Fee shall be payable solely from Pledged Revenues and nothing in this Agreement shall be construed as obligating the Borrower/Grantee to make the Loan Payments and to pay the Administrative Fee from any general or other fund of the Borrower/Grantee other than the Pledged Revenues; however, nothing in this Agreement shall be construed as prohibiting the Borrower/Grantee, in its sole and absolute discretion, from making such payments from any moneys which may be lawfully used, and which are legally available, for that purpose. (e)
Scope of Project; Completion of Project; Compliance with Laws. The Project is for storage, conveyance or delivery of water to end users. The Loan/Grant Amount will be used only for Eligible Items necessary to complete the Project. The Project is more particularly described in the Term Sheet. The Project will be completed with all practical dispatch and will be completed, operated and maintained so as to comply with all applicable federal, state and local laws, ordinances, resolutions and regulations and all current and future orders of all courts having jurisdiction over the Borrower/Grantee relating to the acquisition, operation, maintenance and completion of the Project and to the use of the Loan/Grant proceeds. (f)
Necessity of Project. The completion and operation of the Project under the terms and Conditions provided in this Agreement are necessary, convenient, and in furtherance of the governmental purposes of the Borrower/Grantee and are in the best interest of the Borrower/Grantee and the public it serves. (g)
Lien. The Loan Payments constitute an irrevocable lien on the distribution on the Pledged Revenues, the priority of which is consistent with that shown on the Term Sheet. (h)
Agreement Term Not Less than Useful Life. The Agreement Term is not less than the Useful Life of the Project as required by NMSA 1978, § 72-4A-7, as amended, of the Act. (i)
Amount of Agreement. The sum of the Grant Amount, the Loan Amount, and the Additional Funding Amount (and as set forth on the Term Sheet) does not exceed the cost of the Project.
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(j)
No Breach or Default Caused by Agreement. Neither the execution and delivery of this Agreement and the other documents related to the transaction, nor the fulfillment of or compliance with the terms and conditions in this Agreement and the other documents related to the transaction, nor the consummation of the transactions contemplated herein and therein, conflicts with or results in a breach of terms, conditions or provisions of any restriction or any agreement or instrument to which the Borrower/Grantee is a party or by which the Borrower/Grantee is bound or any laws, ordinances, governmental rules or regulations or court or other governmental orders to which the Borrower/Grantee or its properties are subject, or constitutes a default under any of the foregoing. (k)
Irrevocable Enactments. While this Agreement remains outstanding and unpaid, any ordinance, resolution or other enactment of the Governing Body applying the Pledged Revenues for the payment of this Agreement, including the Ordinance shall be irrevocable until the Project has been fully acquired and completed, and the Loan Amount, including all principal and interest has been repaid, or provision made for payment thereof, and shall not be subject to amendment or modification in any manner which would result in any use of the proceeds of this Agreement in a manner not permitted or contemplated by the terms hereof. The Borrower/Grantee shall not impair the rights of the NMFA or of any holders of bonds or other obligations payable from the Pledged Revenues while this Agreement is outstanding. (l)
No Litigation. To the knowledge of the Borrower/Grantee, no litigation or proceeding is pending or threatened against the Borrower/Grantee or any other person affecting the right of the Borrower/Grantee to execute or deliver this Agreement and the other documents related to the transaction or to comply with its obligations under this Agreement and the other documents related to the transaction. Neither the execution and delivery of this Agreement and the other documents related to the transaction by the Borrower/Grantee nor compliance by the Borrower/Grantee with the obligations under this Agreement and the other documents related to the transaction, requires the approval of any regulatory body, or any other entity, which approval has not been obtained or which is not reasonably expected to be obtained. (m)
No Event of Default. No event has occurred and no condition exists which, with the giving of notice or the passage of time or upon the execution and delivery of this Agreement and the other documents related to the transaction, would constitute an Event of Default on the part of the Borrower/Grantee under this Agreement and the other documents related to the transaction. (n)
Pledged Revenues Not Budgeted. The portion of the Pledged Revenues necessary to pay the Loan Payments, as and when due, is not needed or budgeted to pay current or anticipated Operation and Maintenance Expenses or other expenses of the Borrower/Grantee. (o)
Expected Coverage Ratio. The Pledged Revenues are reasonably expected to equal or exceedâfrom the Fiscal Year in which the Closing Date occurs and, on an ongoing basis during each Fiscal Year of the Agreement Termâone hundred percent (100%) of the maximum annual principal and interest due on all outstanding obligations of the Borrower/Grantee payable from the Pledged Revenues.
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(p)
Right to Inspect. The NMFA shall have the right to inspect at all reasonable times all records, accounts and data relating to the System and to inspect the System and all properties comprising the System, and the Borrower/Grantee shall supply such records, accounts, and data as are requested by the NMFA, within thirty (30) days of receipt of such request, written or oral. (q)
Financial Capability; Budgeting of Pledged Revenues. The Borrower/Grantee meets and will meet during the Agreement Term the requirements of financial capability set by the Water Trust Board and the NMFA. The Pledged Revenues will be sufficient to make the Loan Payments, as and when due. The Borrower/Grantee will adequately budget for the Loan Payments and other amounts payable by the Borrower/Grantee under this Agreement. (r)
Rate Covenant. The Borrower/Grantee covenants that it will at all times fix, charge and collect such rates and charges as shall be required in order that in each Fiscal Year in which the Loan is outstanding the Gross Revenues shall at least equal the Operation and Maintenance Expenses of the System for the Fiscal Year, plus one hundred percent (100%) of the maximum annual principal and interest payments due on all outstanding obligations payable from the Pledged Revenues. (s)
Borrower/Granteeâs Existence. The Borrower/Grantee will maintain its legal identity and existence so long as this Agreement remains outstanding unless another political subdivision, State agency, or other entity by operation of law succeeds to the liabilities, rights and duties of the Borrower/Grantee under this Agreement without adversely affecting to any substantial degree the privileges and rights of the Lender/Grantor. (t)
Use of Project; Continuing Covenant. During the Agreement Term, the Borrower/Grantee will at all times use the Project for the benefit of the Borrower/Grantee and the public it serves. The Borrower/Grantee shall not sell, lease, mortgage, pledge, relocate or otherwise dispose of or transfer the Project or System, or any part of the Project or System so long as this Agreement is outstanding; provided, however, that if the Project is a joint project of the Borrower/Grantee and other qualifying entities (as defined by the Act), the Borrower/Grantee and the other qualifying entities may, with the express written approval of the NMFA and not otherwise, enter into an agreement allocating ownership and operational and maintenance responsibilities for the Project during the term of the Agreement. Any such agreement shall provide that the Lender/Grantor, or either of them, shall have the power to enforce the terms of this Agreement, without qualification, as to each and every qualifying entity (as defined by the Act) other than the Borrower/Grantee, owning or operating any portion of the Project during the term of the Agreement. The Borrower/Grantee will operate and maintain the Project, so that it will function properly over its Useful Life. (u)
Title and Rights of Way. As required by NMSA 1978, § 72-4A-7(A)(3) of the Act, as amended, and the Board Rules, the Borrower/Grantee shall provide written assurance signed by an attorney or provide a title insurance policy ensuring that the Borrower/Grantee has proper title to, easements, rights of way or use permits on the real property upon or through which the Project is being constructed, located, completed or extended, and if any portion of the Project will be designed, constructed, located, completed or extended on real property owned by a qualifying entity (as defined by the Act) other than the Borrower/Grantee, such other qualifying
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entity has title to such real property, and the Borrower/Grantee shall provide written assurance signed by an attorney or provide a title insurance policy ensuring that such other qualifying entity has proper title to such real property. (v)
Additional Funding Amount. Together with the Loan/Grant Amount and other amounts available to the Borrower/Grantee, the Additional Funding Amount is now available to the Borrower/Grantee, and in combination with the Loan/Grant Amount, will be sufficient to complete the Project. If any other additional expenses are incurred, the Borrower/Grantee shall be responsible for payment of such expenses. (w)
Audit Requirement. During the Agreement Term the Borrower/Grantee shall comply with the requirements of the State Audit Act, NMSA 1978, §§ 12-6-1 through 12-6- 14, as amended. Upon request by the NMFA, the Borrower/Grantee shall provide the NMFA a copy of any review or audit, report of agreed upon procedures, or any other document prepared pursuant to or required by the State Audit Act. (x)
Reserved. (y)
Efficient Operation. The Borrower/Grantee will operate the System so long as this Agreement is outstanding, will maintain the System in efficient operating condition and make such improvements, extensions, enlargements, repairs and betterments to the System as may be necessary or advisable for its economical and efficient operation at all times and sufficient to supply reasonable demands for System services. (z)
Records. So long as the Agreement remains outstanding, proper books of record and account will be kept by the Borrower/Grantee in accordance with Generally Accepted Accounting Principles, separate from all other records and accounts, showing complete and correct entries of all transactions relating to the System. Such books shall include, but not necessarily be limited to, monthly records showing: (i) the number of customers for the System facilities; (ii) the revenues separately received from charges by classes of customers, including but not necessarily limited to classification by facilities; and (iii) a detailed statement of the expenses of the System. (aa)
Billing Procedure. Bills for water joint electric, gas, water and wastewater
utility services or facilities, or any combination, furnished by or through the System, shall be rendered to customers on a regular basis each month following the month in which the service was rendered and shall be due as required by the applicable ordinance, resolution or regulation of the Borrower/Grantee. If permitted by law, if a bill is not paid within the period of time required by such ordinance, resolution or regulation, joint electric, gas, water and wastewater utility services shall be discontinued as required by such ordinance, resolution or regulation, and the rates and charges due shall be collected in a lawful manner, including, but not limited to, the cost of disconnection and reconnection. Electric, gas, water and wastewater utility services may be billed jointly with each other, provided that each such joint bill shall show separately the water and sanitary sewer utility charges. (bb)
Competent Management. The Borrower/Grantee shall employ or contract for experienced and competent personnel to manage the System.
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(cc)
Readiness Requirements. The Borrower/Grantee has met the requirements of Executive Order 2013-006 and it has met or will meet prior to the first disbursement of any portion of the Loan/Grant Amount, the Conditions and the readiness to proceed requirements established for the Loan/Grant by the NMFA and the Water Trust Board. (dd)
Other Liens. Other than as provided in the Term Sheet, there are no liens or encumbrances of any nature, whatsoever, on or against the System or the revenues derived from the operation of the same. (ee)
NMFA Written Consent to Additional Loans. The Borrower/Grantee shall obtain the written consent of the NMFA prior to the issuance of additional Senior Obligations or Parity Obligations unless such Senior or Parity Obligation has been issued by the NMFA. Section 2.2 Representations and Warranties of the NMFA. The NMFA represents as follows: (a)
Authorization of Agreement. The NMFA is a public body politic and corporate separate and apart from the State, constituting a governmental instrumentality, and has all necessary power and authority to enter into and perform and observe the covenants and agreements on its part contained in this Agreement and, by proper action, has duly authorized the execution and delivery of this Agreement. (b)
Legal, Valid and Binding Obligation. This Agreement constitutes a legal, valid and binding obligation of the NMFA enforceable in accordance with its terms.
ARTICLE III AGREEMENT TERM
The Agreement Term shall commence on the Closing Date and shall terminate at the end of the Useful Life of the Project as required by NMSA 1978, § 72-4A-7, as amended, of the Act.
ARTICLE IV LOAN/GRANT AGREEMENT CONDITIONS
Section 4.1 Conditions Precedent to Closing of Loan/Grant. Prior to the Closing Date, the following Conditions and readiness to proceed items shall be satisfied: (a)
The NMFA, on behalf of the Water Trust Board, shall have determined that the Borrower/Grantee has met the Conditions and readiness to proceed requirements established for the Loan/Grant by the NMFA and the Water Trust Board including any Conditions set out in the Term Sheet; and (b)
The Borrower/Grantee shall have provided written assurance addressed to the NMFA and signed by an attorney (or shall have provided a title insurance policy) that the Borrower/Grantee has proper title to or easements, rights of way, or permits on the real property upon or through which the Project is being constructed, located, completed or extended; and
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(c)
If any portion of the Project will be constructed, located, completed or extended on real property owned by a qualifying entity (as defined by the Act) other than the Borrower/Grantee, the Borrower/Grantee shall have provided written assurance addressed to the NMFA and signed by an attorney (or shall have provided a title insurance policy) that such other qualifying entity has proper title to such real property; and (d)
Prior to the disbursement of any portion of the Loan/Grant Amount for purposes of construction of the Project, the plans and specifications funded with the proceeds of this Agreement will be approved by the NMFA as required by NMSA 1978, § 72-4A-7(B), as amended, or on behalf of the NMFA by the New Mexico Environment Department and the Office of the State of Engineer, and the Borrower/Grantee shall have provided written evidence of such approval to the NMFA; and (e)
Except as otherwise expressly provided in the Conditions, the Borrower/Grantee shall have certified to the Lender/Grantor that the Additional Funding Amount is available for the Project, and, in addition, shall have provided additional evidence reasonably acceptable to the Lender/Grantor of the availability of the Additional Funding Amount; and (f)
The Borrower/Grantee shall be in compliance with the provisions of this Agreement. (g)
Notwithstanding anything in this Agreement to the contrary, the NMFA shall not be obligated to execute the Agreement and may not make the Loan/Grant until the Borrower/Grantee has provided to the NMFA the documents listed on Exhibit âFâ attached hereto, all of which must be in form and content acceptable to the NMFA. Section 4.2 Determination of Eligibility Is Condition Precedent to Disbursement. No request for payment shall be made, nor shall any disbursement be made from the Water Project Fund, for any requisition of any portion of the Loan/Grant Amount, except upon a determination by the NMFA in its sole and absolute discretion that such disbursement is for payment of Eligible Items, and that the request for payment or disbursement does not exceed any limitation upon the amount payable for any Eligible Item pursuant to the Act, the Board Rules, and the Policies governing the Water Project Fund. The NMFA, as a condition precedent to submitting any request for payment to the State Board of Finance or making any requested disbursement from the Water Project Fund, may require submittal of such documentation as the NMFA deems necessary, in its sole and absolute discretion, for a determination whether any requested disbursement is for payment of Eligible Items and is fully consistent with the Act, the Board Rules, and the Policies, as applicable.
ARTICLE V LOAN TO THE BORROWER/GRANTEE; GRANT TO THE BORROWER/GRANTEE; APPLICATION OF MONEYS
Section 5.1 Loan and Grant to the Borrower/Grantee. (a)
Loan to the Borrower/Grantee. The Lender/Grantor hereby lends to the Borrower/Grantee and the Borrower/Grantee hereby borrows from and agrees to pay to the order
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of the Lender/Grantor, without interest, an amount equal to the Loan Amount, with the principal amount of the Loan Amount being payable as provided by Article VI and Exhibit âBâ of this Agreement. (i)
Subordinate Nature of Loan Amount and Administrative Fee Obligation. The obligation of the Borrower/Grantee to make the Loan Payments and to pay the Administrative Fee shall be subordinate to all other indebtedness secured by the Pledged Revenues existing on the Closing Date and, further, that may in the future be secured by the Pledged Revenues; except, however, that the obligation of the Borrower/Grantee to make the Loan Payments and to pay the Administrative Fee shall be on parity with any other obligation, present or future, of the Borrower/Grantee to repay a loan provided by the Lender/Grantor pursuant to the Act or the Colonias Infrastructure Act. (ii)
Administrative Fee. The Borrower/Grantee shall, on an annual basis beginning on the first payment date following the completion of the Project or exhaustion of all Loan/Grant Amounts as set out in Section 5.3 hereof, pay to the Lender/Grantor the Administrative Fee, taking into account both payments made by the Borrower/Grantee and Hardship Waivers granted to the Borrower/Grantee as provided by this Agreement. Any such Administrative Fee payment shall be due irrespective of whether or not a Hardship Waiver is granted to the Borrower/Grantee for the principal payment otherwise due on June 1 of the applicable year or any other year. (iii)
Hardship Waivers of Payment. Each year while any portion of the Loan Amount remains outstanding, no later than April 1 of each such year, the Borrower/Grantee may apply in writing to the NMFA for a determination of whether the annual principal payment on the Loan Amount otherwise due on the upcoming June 1 of such year should be forgiven because such payment would cause undue hardship for the Borrower/Grantee or the public it serves. The Borrower/Grantee shall submit such application to the NMFA for determination with sufficient documentation of the existence of such undue hardship as is reasonably required by the NMFA to make a determination, and the Borrower/Grantee shall promptly respond to additional requests for information from the NMFA. Such application for Hardship Waiver shall be executed by the Authorized Officers of the Borrower/Grantee. An âundue hardshipâ exists if the NMFA determines that the Borrower/Grantee is facing unforeseen events or an emergency that has caused the Borrower/Grantee to be unable to pay on a timely basis the annual principal payment on the Loan Amount. The NMFA may consult the Department of Finance and Administration in determining whether to grant the Hardship Waiver. The NMFA shall make a determination no later than May 15 of the applicable year, and the NMFA shall promptly communicate to the Borrower/Grantee in writing the results of its determination. Upon receipt of written notice of the determination, either the principal payment otherwise due on June 1 of such year shall be forgiven (in the event of a determination of undue hardship) or the principal payment shall remain outstanding and due and payable on June 1 (in the event no undue hardship is determined to exist). (b)
Grant and Acceptance. The Lender/Grantor hereby grants to the Borrower/Grantee and the Borrower/Grantee hereby accepts from the Lender/Grantor an amount equal to the Grant Amount.
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(c)
Project Account. The NMFA shall establish and maintain the Project Account as a book account only, on behalf of the Borrower/Grantee, which account shall be kept separate and apart from all other accounts of the NMFA. (d)
Constitutional and Statutory Debt Limitations. No provision of this Agreement shall be construed or interpreted as creating a general obligation or other indebtedness of the Water Trust Board, the NMFA, the State or the Borrower/Grantee within the meaning of any constitutional or statutory debt limitation. Section 5.2 Application of Loan/Grant Amount. Following the determination by the NMFA in its sole and absolute discretion that the Conditions to the disbursement of the Loan/Grant Amount have been satisfied, the NMFA shall make an entry in its accounts, and in particular in the Project Account, reflecting the proceeds of the Loan/Grant Amount made available for disbursement from the Water Project Fund to the Borrower/Grantee at its request, and as needed by it to acquire and complete the Project, as provided in Section 7.2 of this Agreement. Section 5.3 Final Requisition. The Final Requisition shall be submitted by the Borrower/Grantee within the Interim Period. The Interim Period may be extended only as approved in writing by an Authorized Officer of the NMFA, based on the Borrower/Granteeâs demonstration, to the reasonable satisfaction of the Authorized Officer of the NMFA, that unanticipated circumstances beyond the control of the Borrower/Grantee resulted in delaying the acquisition and completion of the Project, and submission of the Borrower/Granteeâs Final Requisition. Section 5.4 Investment of Monies. Money in the Water Project Fund, representing proceeds of this Agreement, held and administered by the NMFA, may be invested by the NMFA for the credit of the Water Project Fund.
ARTICLE VI LOAN PAYMENTS BY THE BORROWER/GRANTEE
Section 6.1 Loan to the Borrower/Grantee; Payment Obligations Limited to Pledged Revenues; Pledge of Pledged Revenues. The NMFA hereby lends to the Borrower/Grantee and the Borrower/Grantee hereby borrows from the NMFA an amount not to exceed the Loan Amount. The Borrower/Grantee promises to pay, but solely from the sources pledged herein, the Loan Payments and the Administrative Fees and other amounts owed by the Borrower/Grantee as herein provided. Subject to any outstanding Parity Obligations and Senior Obligations, the Borrower/Grantee does hereby grant a lien on and a security interest in and does hereby convey, assign and pledge unto the NMFA and unto its successors in trust forever all right, title and interest of the Borrower/Grantee in and to (i) the Pledged Revenues to the extent required to pay the Loan Payments, and to pay the Administrative Fees and other amounts owed by the Borrower/Grantee as herein provided, subject to and subordinate to all other pledges of the Pledged Revenues existing on the Closing Date and, further, that may exist in the future (except only that the pledge of the Pledged Revenues herein shall be on a parity with any other pledge of the Pledged Revenues by the Borrower/Grantee to repay any obligations issued by the Lender/Grantor pursuant to the Act or the Colonias Infrastructure Act); (ii) the Loan/Grant Amount including the Project Account; and (iii) all other rights hereinafter granted, for the securing of the Borrower/Granteeâs obligations
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under this Agreement, including payment of the Loan Payments, Administrative Fees and other amounts owed by the Borrower/Grantee as herein provided, however, that if the Borrower/Grantee, its successors or assigns, shall pay, or cause to be paid, all Loan Payments and Administrative Fees at the time and in the manner contemplated by this Agreement, or shall provide as permitted by Section 6.5 of this Agreement for the payment thereof, and shall pay all other amounts due or to become due under this Agreement in accordance with its terms and provisions then, upon such final payment, this Agreement and the rights created thereby shall terminate; otherwise, this Agreement shall remain in full force and effect. The schedule of Loan Payments, assuming the disbursal of the entire Loan/Grant Amount within twenty-four (24) months after the Closing Date, identified as the Interim Debt Service Schedule, is attached to this Agreement as Exhibit âBâ. Within thirty (30) days after the Final Requisition is made, the NMFA shall provide a Final Debt Service Schedule, reflecting the amount of the Loan/Grant Amount actually disbursed to the Borrower/Grantee pursuant to this Agreement. Such Final Debt Service Schedule shall supersede the schedule attached hereto as Exhibit âBâ. The NMFA shall additionally calculate the amount of the Administrative Fee that has accumulated during that twenty-four (24) month period from the Closing Date, and shall include such amount in the first Loan Payment due from the Borrower/Grantee on the Final Debt Service Schedule. The pledge of the Pledged Revenues and the lien thereon shall be effective upon the Closing Date. The Borrower/Grantee and the NMFA acknowledge and agree that the obligations of the Borrower/Grantee hereunder are limited to the Pledged Revenues; and that this Agreement with respect to the Loan Amount, the Administrative Fee and other amounts owed by the Borrower/Grantee as herein provided, and that the Agreement shall constitute a special, limited obligation of the Borrower/Grantee. No provision of this Agreement shall be construed or interpreted as creating a general obligation or other indebtedness of the Borrower/Grantee or the State within the meaning of any constitutional or statutory debt limitation. No provision of this Agreement shall be construed to pledge or to create a lien on any class or source of Borrower/Grantee moneys other than the Pledged Revenues, nor shall any provision of this Agreement restrict the future issuance of any bonds or obligations payable from any class or source of Borrower/Grantee moneys other than the Pledged Revenues. In addition, to the extent not required for the payment of obligations of the Borrower/Grantee hereunder, the Pledged Revenues may be utilized by the Borrower/Grantee for any other purposes permitted by law. Section 6.2 Deposit of Payments of Loan Amount to Water Project Fund. All Loan Payments made by the Borrower/Grantee to the NMFA to repay the Loan Amount and interest thereon, if any, shall be deposited into the Water Project Fund. Section 6.3 Manner of Payment. The Loan Amount and Administrative Fee shall be payable by the Borrower/Grantee to the Lender/Grantor in annual installments on June 1 beginning after expiration of the Interim Period and continuing through the expiration of the last Loan Payment due as outlined in the Final Debt Service Schedule. All payments of the Borrower/Grantee hereunder shall be paid in lawful money of the United States of America to the NMFA at the address designated in Section 11.1 of this Agreement or by electronic debit of the account identified in the ACH Authorization. The obligation of the Borrower/Grantee to make payments hereunder, from and to the extent of the available Pledged Revenues, shall be absolute and unconditional in all events, except as expressly provided hereunder. Notwithstanding any
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dispute between the Borrower/Grantee and the NMFA, any vendor or any other person, the Borrower/Grantee shall make all deposits hereunder, from and to the extent of the available Pledged Revenues, when due and shall not withhold any deposit hereunder pending final resolution of such dispute, nor shall the Borrower/Grantee assert any right of set-off or counterclaim against its obligation to make such deposits required hereunder. Section 6.4 Borrower/Grantee May Budget for Payments. The Borrower/Grantee may, in its sole discretion, but without obligation and subject to the Constitution of the State, governing laws, and its budgetary requirements, make available properly budgeted and legally available funds to make the Loan Payments and other amounts owed by the Borrower/Grantee hereunder; provided, however, the Borrower/Grantee has not covenanted and cannot covenant to make such funds available and has not pledged any of such funds for such purpose. Section 6.5 No Penalty for Prepayment of the Loan Amount. The Loan Amount shall be pre-payable by the Borrower/Grantee at the conclusion of the Interim Period without penalty. Section 6.6 Lender/Grantorâs Release of Lien and Further Assurances. Upon payment in full of the Loan Amount, Administrative Fee and other amounts owed by the Borrower/Grantee as herein provided in this Agreement and upon written request from the Borrower/Grantee the Lender/Grantor agrees to execute a release of lien and to give such further assurances as are reasonably necessary to ensure that the Lender/Grantor no longer holds or maintains any lien or claim against the Pledged Revenues.
ARTICLE VII THE PROJECT
Section 7.1 Agreement to Acquire, Complete and Maintain the Project. (a)
The Borrower/Grantee hereby agrees that in order to effectuate the purposes of this Agreement and to acquire and complete the Project it shall take such steps as are necessary and appropriate to acquire, complete, operate and maintain the Project lawfully and efficiently. The Project shall be constructed and completed substantially in accordance with the approved plans and specifications, and shall fully incorporate the available technologies and operational design for water use efficiency described in the approved plans and specifications. No Loan/Grant funds shall be used for items not constituting Eligible Items. (b)
As provided by NMSA 1978, § 72-4A-7(A)(1), as amended, of the Act, the Borrower/Grantee shall operate and maintain the Project in good operating condition and repair at all times during the Useful Life of the Project, so that the Project will function properly over the Useful Life of the Project; provided, that if any portion of the Project will be constructed, located, completed, installed or extended on real property owned by a qualifying entity (as defined by the Act) other than the Borrower/Grantee, the Borrower/Grantee may, prior to any use of the Loan/Grant funds for the Project on such real property, obtain the written agreement of such other qualifying entity to perform these obligations with respect to such real property (and the portion of the Project to be constructed, located, completed or extended on such real property), which written agreement shall be subject to approval by the Lender/Grantor and shall include an express
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statement by such other qualifying entity that the Lender/Grantor is a third party beneficiary of such written agreement. Section 7.2 Accounting for Amounts Credited to the Project Account. So long as no Event of Default shall occur and provided that all Conditions to the disbursement of the Loan/Grant Amount have been satisfied (including approval of the plans and specifications), upon receipt by the NMFA of a requisition substantially in the form of Exhibit âCâ attached hereto signed by an Authorized Officer of the Borrower/Grantee, supported by certification by the Borrower/Granteeâs project architect, engineer, or such other authorized representative of the Borrower/Grantee that the amount of the disbursement request represents the progress of design, construction, acquisition or other Project-related activities accomplished as of the date of the disbursement request, the NMFA shall, in its sole and absolute discretion: (1) submit a request for payment to the State Board of Finance for payment; and/or (2) disburse from the Water Project Fund, amounts which together are sufficient to pay the requisition in full. The NMFA shall make the appropriate entry in the Project Account reflecting the amount of the payment. The certification provided pursuant to this Section 7.2 in support of the requisition must be acceptable in form and substance to the NMFA and, at its request, the Water Trust Board. The Borrower/Grantee shall provide such records or access to the Project as the NMFA, and, at its request, the Water Trust Board, in the discretion of each, may request in connection with the approval of the Borrower/Granteeâs requisition requests made hereunder. Section 7.3 No Disbursement for Prior Expenditures Except upon Approval. No disbursement shall be made from the Water Project Fund of the Loan/Grant Amount, or any portion thereof, without the written approval of the NMFA and, at its request, the Water Trust Board, to reimburse any expenditure made prior to the Closing Date. Section 7.4 Borrower/Grantee Reporting to Lender/Grantor. During the acquisition implementation, installation and construction of the Project, the Borrower/Grantee shall provide the Lender/Grantor with a quarterly written report executed by an Authorized Officer of the Borrower/Grantee, in the form attached as Exhibit âDâ hereto or in another form reasonably acceptable to the Lender/Grantor, describing the status of the Project as of the report date, uses of Loan/Grant funds during the quarterly period ending on the report date, and requests for distributions of Loan/Grant funds anticipated to occur during the quarterly period immediately following the report date. The first quarterly report shall be due on March 31, 2026, and subsequent reports shall be due on each March 31, June 30, September 30 and December 31 thereafter until the report date next following final distribution of the Loan/Grant funds. No reports shall be required after the report date next following final distribution of the Loan/Grant Funds, unless specifically required by the NMFA or the Water Trust Board. The description of the status of the Project in each quarterly report shall include, among other information, (a) a comparison of actual and anticipated requests for distributions of Loan/Grant funds as of the report date with those anticipated as of the Closing Date, (b) a description of actual and anticipated changes in the cost estimates for the Project as of the report date compared with those anticipated as of the Closing Date, (c) a description of the percentage of completion of the Project; and (d) a timeline of projected milestones. Section 7.5 Completion of Disbursement of Loan/Grant Funds. Upon completion of the Project an Authorized Officer of the Borrower/Grantee shall deliver a certificate to the NMFA
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substantially in the form of Exhibit âEâ attached hereto, stating that, to his or her knowledge, either (1) the Project has been completed, or (2) that the portion of the Loan/Grant Amount needed to complete the Project has been disbursed in accordance with the terms of this Agreement. No portion of the Loan/Grant Amount shall be disbursed after expiration of the Interim Period. Section 7.6 Application of Project Account Subsequent to Disbursement of Loan/Grant Funds; Termination of Pledge. (a)
Upon the completion of the Project as signified by delivery of the completion certificate required by Section 7.5 hereof, the NMFA shall determine, by reference to the Project Account, whether any portion of the authorized Loan/Grant Amount remains unexpended and shall dispose of such unexpended proceeds in accordance with law. (b)
In the event that a portion of the Loan/Grant Amount remains unexpended after the expiration of the Interim Period, the NMFA shall dispose of such funds in accordance with law. Upon the occurrence of either event described in (a) or (b) above, the NMFA shall make the appropriate entry in the Project Account and, upon such entry, the pledge of the Loan/Grant Amount established in this Agreement shall terminate.
ARTICLE VIII COMPLIANCE WITH LAWS AND RULES; OTHER COVENANTS
Section 8.1 Further Assurances and Corrective Instruments. The Lender/Grantor and the Borrower/Grantee agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Project or of the Pledged Revenues and for carrying out the intention hereof. Section 8.2 Representatives of Lender/Grantor or of Borrower/Grantee. Whenever under the provisions hereof the approval of the Lender/Grantor or the Borrower/Grantee is required, or the Borrower/Grantee, or the Lender/Grantor is required to take some action at the request of either of them, such approval or such request shall be given for the Lender/Grantor or for the Borrower/Grantee, by an Authorized Officer of the Lender/Grantor or the Borrower/Grantee, as the case may be, and any party hereto shall be authorized to act on any such approval or request. Section 8.3 Selection of Contractors. All contractors providing services or materials in connection with the Project shall be selected in accordance with applicable provisions of the New Mexico Procurement Code, NMSA 1978, §§ 13-1-28 through 13-1-199, as amended, or, if the Borrower/Grantee is not subject to the New Mexico Procurement Code, shall be selected in accordance with a documented procurement process duly authorized and established pursuant to laws and regulations applicable to the Borrower/Grantee. Section 8.4 Non-Discrimination in Employment. Except as otherwise specifically provided in the laws, statutes, ordinances or regulations of the Borrower/Grantee, the Borrower/Grantee shall require in any contract or subcontract executed in connection with the
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Project to which the Borrower/Grantee is a party that there shall be no discrimination against any employee or applicant for employment because of race, color, creed, sex, religion, sexual preference, ancestry or national origin. Section 8.5 Little Miller Act. To the extent NMSA 1978, § 13-4-1 et seq., (the âLittle Miller Actâ) is applicable to the Project, the Borrower/Grantee shall comply with the requirements of the âLittle Miller Actâ. If bonding requirements of the Little Miller Act are not applicable to the Project, the Borrower/Grantee will require that the contractor to whom is given any contract for construction appertaining to the Project supply a performance bond or bonds satisfactory to the Borrower/Grantee. Any sum or sums derived from said performance bond or bonds shall be used within six (6) months after such receipt for the completion of said construction, and if not so used within such period, shall be treated as Gross Revenues. Section 8.6 Required Contract Provisions. The Borrower/Grantee shall require the following provisions in any contract or subcontract executed in connection with the Project to which the Borrower/Grantee is a party: (a)
There shall be no discrimination against any employee or applicant for employment because of race, color, creed, sex, religion, sexual preference, ancestry or national origin; and (b)
Any contractor or subcontractor providing construction services in connection with the Project shall post a performance and payment bond in accordance with the requirements of NMSA 1978, § 13-4-18, as amended. (c)
Any contractor or subcontractor providing construction services in connection with the Project shall comply with the prevailing wage laws in accordance with the requirements of NMSA 1978, § 13-4-11, as amended. Section 8.7 Application of Act and Board Rules. While this Agreement is outstanding, the Lender/Grantor and the Borrower/Grantee expressly acknowledge that this Agreement is governed by provisions and requirements of the Act and the Board Rules, as amended and supplemented, and all applicable provisions and requirements of the Act and Board Rules are incorporated into this Agreement by reference. Section 8.8 Continuing Disclosure. The Borrower/Grantee shall provide continuing disclosure to the NMFA, as the NMFA may require, that shall include, but not be limited to: annual audits and notification of any event deemed material by the NMFA, including but not limited to, any event which may or does affect the Pledged Revenues, the ability of the Borrower/Grantee to repay the loan, and the default of the Borrower/Grantee in performance or observance of any covenant, term, or condition contained in any other loan agreement.
ARTICLE IX INSURANCE; NON-LIABILITY OF LENDER/GRANTOR
Section 9.1 Insurance. The Borrower/Grantee shall carry general liability insurance or participate in the Stateâs risk-management program and, to the extent allowed by the New Mexico Tort Claims Act, NMSA 1978, §§ 41-4-1 through 41-4-30, as amended, shall and hereby agrees
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to name the Lender/Grantor as an additional insured with respect to all claims, by or on behalf of any person, firm, corporation or other legal entity arising from the acquisition, completion or implementation of the Project or otherwise during the Agreement Term; provided, that if any portion of the Project will be constructed, located, completed or extended on real property owned by a qualifying entity (as defined by the Act) other than the Borrower/Grantee, the Borrower/Grantee may obtain the written agreement of such other qualifying entity to perform these insurance/risk-management program requirements for Borrower/Grantee with respect to such real property (and the portion of the Project to be constructed, located, completed or extended on such real property), which written agreement shall include an express statement by such other qualifying entity that the Lender/Grantor is a third party beneficiary of such written agreement. Section 9.2 Non-Liability of Lender/Grantor. (a)
Lender/Grantor shall not be liable in any manner for the Project, Borrower/Granteeâs use of the Loan/Grant, the acquisition, implementation, construction, installation, ownership, operation or maintenance of the Project, or any failure to act properly by the Borrower/Grantee or any other owner or operator of the Project. (b)
Lender/Grantor shall not be liable for the refusal or failure of any other agency of the State to transfer any portion of the Loan/Grant Amount in its possession, custody and control to the NMFA for disbursement to the Borrower/Grantee, or to honor any request for such transfer or disbursement of the Loan/Grant Amount. (c)
From and to the extent of the Pledged Revenues, and to the extent permitted by law, the Borrower/Grantee shall and hereby agrees to indemnify and save the NMFA harmless against and from all claims, by or on behalf of any person, firm, corporation, or other legal entity, arising from the acquisition or operation of the Project during the Agreement Term, from: (i) any act of negligence or other misconduct of the Borrower/Grantee, or breach of any covenant or warranty by the Borrower/Grantee hereunder; and (ii) the incurrence of any cost or expense in connection with the acquisition or operation of the Project in excess of the Loan/Grant Agreement proceeds and interest on the investment thereof. The Borrower/Grantee shall indemnify and save the NMFA harmless, from and to the extent of the available Pledged Revenues, and to the extent permitted by applicable law, from any such claim arising as aforesaid from (i) or (ii) above, or in connection with any action or proceeding brought thereon and, upon notice from the NMFA, shall defend the NMFA in any such action or proceeding.
ARTICLE X EVENTS OF DEFAULT AND REMEDIES
Section 10.1 Events of Default Defined. Any one of the following shall be an âEvent of Defaultâ under this Agreement: (a)
Failure by the Borrower/Grantee to pay any amount required to be paid under this Agreement on the date on which it is due and payable; (b)
Failure by the Borrower/Grantee to observe and perform any covenant, condition or agreement on its part to be observed or performed under this Agreement for a period
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of thirty (30) days after written notice, specifying such failure and requesting that it be remedied, is given to the Borrower/Grantee by the Lender/Grantor unless the Lender/Grantor shall agree in writing to an extension of such time prior to its expiration; provided, however, if the failure stated in the notice can be wholly cured within a period of time not materially detrimental to the rights of the Lender/Grantor but cannot be cured within the applicable thirty (30) day period, the Lender/Grantor will not unreasonably withhold their consent to an extension of such time if corrective action is instituted by the Borrower/Grantee within the applicable period and diligently pursued until the failure is corrected; and provided, further, that if by reason of force majeure the Borrower/Grantee is unable to carry out the agreements on its part herein contained, the Borrower/Grantee shall not be deemed in default under this paragraph 10.1(b) during the continuance of such inability (but force majeure shall not excuse any other Event of Default); or (c)
Any warranty, representation or other statement by or on behalf of the Borrower/Grantee contained in this Agreement or in any instrument furnished in compliance with or in reference to this Agreement is false or misleading in any material respect; (d)
A petition is filed against the Borrower/Grantee under any bankruptcy, moratorium, reorganization, arrangement, insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction, whether now or hereafter in effect, and is not dismissed within thirty (30) days after such filing, but the NMFA shall have the right to intervene in the proceedings prior to the expiration of such thirty (30) days to protect their interests; (e)
The Borrower/Grantee files a petition in voluntary bankruptcy or seeking relief under any provision of any bankruptcy, moratorium, reorganization, arrangement, insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction, whether now or hereafter in effect, or consents to the filing of any petition against it under any such law; or (f)
The Borrower/Grantee admits insolvency or bankruptcy or its inability to pay its debts as they become due or is generally not paying its debts as such debts become due, or becomes insolvent or bankrupt or makes an assignment for the benefit of creditors, or a custodian (including, without limitation, a receiver, liquidator or trustee) of the Borrower/Grantee for any of its property is appointed by court order or takes possession thereof and such order remains in effect or such possession continues for more than thirty (30) days, but the NMFA shall have the right to intervene in the proceedings prior to the expiration of such thirty (30) days to protect their interests. (g)
Default by the Borrower/Grantee in performance or observance of any covenant contained in any other loan agreement, document or instrument of any type whatsoever evidencing or securing obligations of the Borrower/Grantee to the NMFA. Section 10.2 Remedies on Default. Whenever any Event of Default has occurred and is continuing and subject to Section 10.3 hereof, the Lender/Grantor may take any or all of the following actions as may appear necessary or desirable to collect the payments then due and to become due or to enforce performance of any obligations of the Borrower/Grantee in this Agreement:
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(a)
File a mandamus proceeding or other action or proceeding or suit at law or in equity to compel the Borrower/Grantee to perform or carry out its duties under the law and the agreements and covenants required to be performed by it contained herein; (b)
Terminate this Agreement; (c)
Cease disbursing any further amounts from the Project Account; (d)
Demand that the Borrower/Grantee immediately repay the Loan/Grant Amount or any portion thereof if such funds were not utilized in accordance with this Agreement; (e)
File a suit in equity to enjoin any acts or things which are unlawful or violate the rights of the Lender/Grantor; (f)
Intervene in judicial proceedings that affect this Agreement or the Pledged Revenues; or (g)
Cause the Borrower/Grantee to account as if it were the trustee of an express trust for all of the Pledged Revenues; (h)
Take whatever other action at law or in equity may appear necessary or desirable to collect amounts then due and thereafter to become due under this Agreement or to enforce any other of its rights hereunder; or (i)
Apply any amounts in the Project Account toward satisfaction of any and all fees and costs incurred in enforcing the terms of this Agreement. Section 10.3 Limitations on Remedies. A judgment requiring payment of money entered against the Borrower/Grantee shall be paid from only available Pledged Revenues unless the Borrower/Grantee in its sole discretion pays the judgment from other available funds. Section 10.4 No Remedy Exclusive. No remedy herein conferred upon or reserved to the Lender/Grantor is intended to be exclusive, and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the Borrower/Grantee or the Lender/Grantor to exercise any remedy reserved in this Article X, it shall not be necessary to give any notice, other than such notice as may be required in this Article
X. Section 10.5 Waivers of Events of Default. The Lender/Grantor may, in its sole discretion, waive any Event of Default hereunder and the consequences of any such Event of Default; provided, however, all expenses of the Lender/Grantor in connection with such Event of Default shall have been paid or provided for. Such waiver shall be effective only if made by a written statement of waiver issued by the NMFA. In case of any such waiver or rescission, or in case any proceeding taken by the Lender/Grantor, on account of any such Event of Default shall have been discontinued or abandoned or determined adversely, then and in every such case, the
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Lender/Grantor shall be restored to its former position and rights hereunder, respectively, but no such waiver or rescission shall extend to any subsequent or other Event of Default, or impair any right consequent thereon. Section 10.6 No Additional Waiver Implied by One Waiver. In the event that any agreement contained herein should be breached by either party and thereafter waived by the other party, such waiver shall be in writing and limited to the particular breach so waived and shall not be deemed to waive any other breach hereunder. Section 10.7 Agreement to Pay Attorneysâ Fees and Expenses. In the event that the Borrower/Grantee shall default under any of the provisions hereof and the NMFA shall employ attorneys or incur other expenses for the collection of payments hereunder, or the enforcement of performance or observance of any obligation or agreement on the part of the Borrower/Grantee herein contained, the Borrower/Grantee agrees that it shall, on demand therefor, pay to the NMFA the fees of such attorneys and such other expenses so incurred, to the extent such attorneysâ fees and expenses may be determined to be reasonable by a court of competent jurisdiction; provided, however, that the obligation of the Borrower/Grantee under this Section shall be limited to expenditures from and to the extent of the available Pledged Revenues of the Borrower/Grantee.
ARTICLE XI MISCELLANEOUS
Section 11.1 Notices. All notices, certificates or other communications hereunder shall be sufficiently given and shall be deemed given when delivered as follows: If to the Borrower/Grantee, to: Incorporated County of Los Alamos Attn.: Utilities Manager 1000 Central Avenue, Suite 130 Los Alamos, New Mexico 87544 If to the NMFA, then to: New Mexico Finance Authority Attn.: Chief Executive Officer 810 W. San Mateo Road Santa Fe, New Mexico 87505 The Borrower/Grantee or the Lender/Grantor may, by notice given hereunder, designate any further or different addresses to which subsequent notices, certificates or other communications shall be sent. Section 11.2 Binding Effect. This Agreement shall inure to the benefit of and shall be binding upon the Lender/Grantor and the Borrower/Grantee and their respective successors and assigns, if any.
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Section 11.3 Integration. This Agreement and any other agreements, certifications and commitments entered into between the Lender/Grantor and the Borrower/Grantee on the Closing Date constitute the entire agreement of the parties regarding the Loan/Grant and the funding of the Project through the Loan/Grant as of the Closing Date, and the terms of this Agreement supersede any prior applications, discussions, understandings or agreements between or among the parties in connection with the Loan/Grant, to the extent such prior applications, discussions, understandings or agreements are inconsistent with this Agreement. Section 11.4 Amendments. This Agreement may be amended only with the written consent of both of the parties hereto. The consent of the NMFA for amendments not affecting the terms of payment of the loan component of this Agreement may be given by an Authorized Officer of the NMFA. The execution of any such consent by an Authorized Officer of the NMFA shall constitute his or her determination that such amendment does not affect the terms of payment of the loan component of this Agreement. Section 11.5 No Liability of Individual Officers, Directors or Trustees. No recourse under or upon any obligation, covenant or agreement contained in this Agreement shall be had against any member, employee, director or officer, as such, past, present or future, of the Lender/Grantor, either directly or through the NMFA, or against any officer, employee, director or member of the Borrower/Grantee, past, present or future, as an individual so long as such individual was acting in good faith. Any and all personal liability of every nature, whether at common law or in equity, or by statute or by constitution or otherwise, of any such officer, employee, director or member of the Borrower/Grantee or of the NMFA is hereby expressly waived and released by the Borrower/Grantee and by the NMFA as a condition of and in consideration for the execution of this Agreement. Section 11.6 Severability. In the event that any provision of this Agreement, other than the obligation of the Borrower/Grantee to make the Loan Payments and the Administrative Fee hereunder, shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. Section 11.7 Execution in Counterparts. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Section 11.8 Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State. Section 11.9 Captions. The captions or headings herein are for convenience only and in no way define, limit or describe the scope or intent of any provisions or sections of this Agreement. Section 11.10 Further Assurances and Corrective Instruments. The NMFA and the Borrower/Grantee will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Project or of the Pledged Revenues, or for otherwise carrying out the intention hereof.
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Section 11.11 NMFA and Borrower/Grantee Representatives. Whenever under the provisions hereof the approval of the NMFA or the Borrower/Grantee is required, or the Borrower/Grantee or the NMFA is required to take some action at the request of the other, such approval or such request shall be given for the NMFA or for the Borrower/Grantee by an Authorized Officer of the NMFA or the Borrower/Grantee, as the case may be, and any party hereto shall be authorized to act on any such approval or request. Section 11.12 CONSENT TO JURISDICTION. THE BORROWER/GRANTEE IRREVOCABLY AGREES THAT ALL ACTIONS OR PROCEEDINGS IN ANY WAY ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE DOCUMENTS SIGNED IN CONNECTION WITH THIS TRANSACTION WILL BE LITIGATED IN THE FIRST JUDICIAL DISTRICT COURT, SANTA FE COUNTY, NEW MEXICO, PURSUANT TO NMSA 1978, § 6-21-26. [Signature pages follow] [Remainder of page intentionally left blank]
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Loan/Grant Agreement Los Alamos, Loan/Grant No. WPF-6583
IN WITNESS WHEREOF, the NMFA, on behalf of itself, has executed this Agreement, which was approved by the Water Trust Board on April 22, 2025 and by the NMFAâs Board of Directors on May 22, 2025, in its corporate name by its duly authorized officer; and the Borrower/Grantee has caused this Agreement to be executed in its corporate name and the seal of the Borrower/Grantee affixed and attested by its duly authorized officers. All of the above are effective as of the date first above written. LENDER/GRANTOR: NEW MEXICO FINANCE AUTHORITY By Marquita D. Russel, Chief Executive Officer PREPARED FOR EXECUTION BY OFFICERS OF THE NEW MEXICO FINANCE AUTHORITY: Sutin, Thayer & Browne A Professional Corporation As Loan/Grant Counsel By Eduardo A. Duffy APPROVED FOR EXECUTION BY OFFICERS OF THE NEW MEXICO FINANCE AUTHORITY: By Mark Chaiken, General Counsel
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Loan/Grant Agreement Los Alamos, Loan/Grant No. WPF-6583
BORROWER/GRANTEE: INCORPORATED COUNTY OF LOS ALAMOS, NEW MEXICO
By Theresa Cull, Chair [SEAL] ATTEST: By Michael D. Redondo, County Clerk
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<A-1
Loan/Grant Agreement Los Alamos, Loan/Grant No. WPF-6583
EXHIBIT âAâ
TERM SHEET
$2,000,000
WATER PROJECT FUND LOAN/GRANT TO THE INCORPORATED COUNTY OF LOS ALAMOS, NEW MEXICO
Project Description: The Project is for storage, conveyance or delivery of water to end users. The Loan/Grant Amount will be used only for Eligible Items necessary to complete the Project. In particular, the Project will consist of construction of a replacement waterline in San Ildefonso Road, and shall include such other related work and revisions necessary to complete the Project. The Project may be further described in the Application and in the final plans and specifications for the Project approved by the Water Trust Board and the NMFA as provided by this Agreement. However, in the event of any inconsistency, the description of the Project as stated in this Term Sheet shall control.
Grant Amount: $1,800,000 Loan Amount: $200,000 Pledged Revenues: âPledged Revenuesâ means the Net System Revenues
of the System of the Borrower/Grantee pledged to the payment of the Loan Payments and Administrative Fees pursuant to the Ordinance and the Agreement. Currently Outstanding Senior Obligations (Senior Lien Tier): Governmental Unitâs Utility System Revenue Bonds, Series 2010A-D (PPRF-2461) maturing in 2030 Currently Outstanding Parity Obligations (Subordinate Lien Tier): PPRF-3150 maturing in 2034 DW-5456 maturing in 2048 DW-5637 maturing in 2049 DW-5638 maturing in 2049 DW-6368 maturing in 2046 DW-6651 maturing in 2047 Currently Outstanding Subordinate Obligations (Super Subordinate Tier): OUTSTANDING JUNIOR LIENS OF THE JOINT UTILITY WPF-0318 maturing in 2035 WPF-0340 maturing in 2035 CWSRF 110 maturing in 2045
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<A-2
Loan/Grant Agreement Los Alamos, Loan/Grant No. WPF-6583
0.25% Conditions to be satisfied prior to first disbursement of Loan/Grant funds: Delivery to NMFA of (i) a copy of the agenda of the meeting of the Governing Body at which the Ordinance was adopted and at which this Agreement, the Ordinance and all other Loan/Grant documents were authorized by the Governing Body (the âMeetingâ), certified as a true and correct copy by the County Clerk of the Borrower/Grantee, (ii) a copy of the minutes or record of proceedings of the Meeting, approved and signed by the Chair and attested to by the County Clerk of the Borrower/Grantee, and (iii) a copy of the notice of meeting for the Meeting evidencing compliance with the Borrower/Granteeâs Open Meetings standards in effect on the date of the Meeting. Other Conditions applicable to the Loan/Grant: All Conditions defined in the Agreement.
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<B-1
Loan/Grant Agreement Los Alamos, Loan/Grant No. WPF-6583
EXHIBIT âBâ PAYMENT PROVISIONS OF THE LOAN
The Loan Amount and Administrative Fee shall be payable by the Borrower/Grantee to the
Lender/Grantor in twenty (20) annual installments of principal pursuant to the attached debt
service schedule, beginning June 1, 2028 and ending June 1, 2047. The Loan Amount shall be
pre-payable upon expiration of the Interim Period without penalty. The Administrative Fee shall
be due and payable annually on June 1 of each year while the Loan, or any portion thereof, remains
outstanding.
[INTERIM DEBT SERVICE SCHEDULE ATTACHED]
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<Nov 21, 2025 8:08 am Prepared by DBC Finance (Finance 8.901 clients:CLOSALAM-2025WPF) Page 3
DETAILED BOND DEBT SERVICE
Los Alamos County 2025 Los Alamos County Water Improvements Loan Component (LOAN)
Period Ending Principal Coupon Interest Debt Service
06/01/2028 20,198
0.250% 2,650.00 22,848.00 06/01/2029 22,117
0.250% 1,074.51 23,191.51 06/01/2030 22,172
0.250% 1,019.21 23,191.21 06/01/2031 22,227
0.250% 963.79 23,190.79 06/01/2032 22,282
0.250% 908.22 23,190.22 06/01/2033 22,338
0.250% 852.51 23,190.51 06/01/2034 22,394
0.250% 796.66 23,190.66 06/01/2035 22,450
0.250% 740.68 23,190.68 06/01/2036 22,506
0.250% 684.56 23,190.56 06/01/2037 22,563
0.250% 628.29 23,191.29 06/01/2038 22,619
0.250% 571.89 23,190.89 06/01/2039 22,676
0.250% 515.34 23,191.34 06/01/2040 22,732
0.250% 458.65 23,190.65 06/01/2041 22,789
0.250% 401.81 23,190.81 06/01/2042 22,846
0.250% 344.84 23,190.84 06/01/2043 22,903
0.250% 287.73 23,190.73 06/01/2044 22,961
0.250% 230.47 23,191.47 06/01/2045 23,018
0.250% 173.07 23,191.07 06/01/2046 23,076
0.250% 115.52 23,191.52 06/01/2047 23,133
0.250%
57.83 23,190.83 450,000 13,475.58 463,475.58
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<Nov 21, 2025 8:08 am Prepared by DBC Finance (Finance 8.901 clients:CLOSALAM-2025WPF) Page 4
BOND DEBT SERVICE
Los Alamos County San Ildefonso rd. waterline replacement (WPF-6583)
Period Annual Ending Principal Coupon Interest Debt Service Debt Service
06/01/2028 8,977
0.250% 1,177.78 10,154.78 10,154.78
12/01/2028
06/01/2029
9,830
0.250% 477.56 10,307.56 10,307.56
12/01/2029
06/01/2030
9,854
0.250% 452.98 10,306.98 10,306.98
12/01/2030
06/01/2031
9,879
0.250% 428.35 10,307.35 10,307.35
12/01/2031
06/01/2032
9,903
0.250% 403.65 10,306.65 10,306.65
12/01/2032
06/01/2033
9,928
0.250% 378.89 10,306.89 10,306.89
12/01/2033
06/01/2034
9,953
0.250% 354.07 10,307.07 10,307.07
12/01/2034
06/01/2035
9,978
0.250% 329.19 10,307.19 10,307.19
12/01/2035
06/01/2036
10,003
0.250% 304.25 10,307.25 10,307.25
12/01/2036
06/01/2037
10,028
0.250% 279.24 10,307.24 10,307.24
12/01/2037
06/01/2038
10,053
0.250% 254.17 10,307.17 10,307.17
12/01/2038
06/01/2039
10,078
0.250% 229.04 10,307.04 10,307.04
12/01/2039
06/01/2040
10,103
0.250% 203.84 10,306.84 10,306.84
12/01/2040
06/01/2041
10,128
0.250% 178.58 10,306.58 10,306.58
12/01/2041
06/01/2042
10,154
0.250% 153.26 10,307.26 10,307.26
12/01/2042
06/01/2043
10,179
0.250% 127.88 10,306.88 10,306.88
12/01/2043
06/01/2044
10,205
0.250% 102.43 10,307.43 10,307.43
12/01/2044
06/01/2045
10,230
0.250%
76.92 10,306.92 10,306.92
12/01/2045
06/01/2046
10,256
0.250%
51.34 10,307.34 10,307.34
12/01/2046
06/01/2047
10,281
0.250%
25.70 10,306.70 10,306.70 200,000 5,989.12 205,989.12 205,989.12
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<C-1
Loan/Grant Agreement Los Alamos, Loan/Grant No. WPF-6583
EXHIBIT âCâ
FORM OF REQUISITION (Water Project Fund)
RE: $2,000,000
Loan/Grant Agreement by and between the New Mexico Finance Authority, as Lender/Grantor, and the Incorporated County of Los Alamos, New Mexico, as Borrower/Grantee (the âAgreementâ or âLoan/Grant Agreementâ) Loan/Grant No. WPF-6583 Closing Date: January 23, 2026
TO: NEW MEXICO FINANCE AUTHORITY You are hereby authorized to disburse from the Project Account with regard to the above- referenced Agreement, the following:
I. PAYMENT INFORMATION
REQUISITION NO. PAYMENT AMOUNT: $ PAYEEâS NAME: PAYEEâS ADDRESS:
II. REQUISITION INFORMATION (complete for all payments) III. WIRING INFORMATION:
â¢
Attach proof of expenditures (cancelled check, wire transfer receipt, bank ledger, etc.).
â¢
List all Vendors, Payment Purposes, or Eligible Item Categories below or attach separate
page or spreadsheet if needed.
Vendor Name Total Amount $ Invoice No.(s) Purpose of Payment Eligible Item Category Vendor Name Total Amount $ Invoice No.(s) Purpose of Payment Eligible Item Category Vendor Name Total Amount $ Invoice No.(s) Purpose of Payment Eligible Item Category
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<C-2
Loan/Grant Agreement Los Alamos, Loan/Grant No. WPF-6583
BANK NAME: ABA ROUTING NUMBER: ACCOUNT NUMBER:
IV. MATCH INFORMATION
AMOUNT OF LOCAL MATCH EXPENDED SINCE LAST REQUISITION: $ AMOUNT OF LOCAL MATCH EXPENDED TO DATE: $ TOTAL REQUIRED MATCH: $300,000
Attach proof of expenditures for hard match (detailed invoices, cancelled checks, wire transfer
receipt, bank statement, etc.) and written certification of type and value of any soft match.
V. VERIFICATION AND AUTHORIZATION
Each obligation, item of cost or expense mentioned herein is for a loan/grant made by the Lender/Grantor pursuant to the Water Project Finance Act to the Borrower/Grantee within the State of New Mexico, is due and payable, has not been the subject of any previous requisition, and is a proper charge against the Project Account. All representations contained in the Agreement and the related closing documents remain true and correct, and the Borrower/Grantee is not in breach of any of the covenants contained therein. The proceeds of the Loan/Grant are to be used to pay the costs of Eligible Items, as defined in the Agreement. Eligible Items include (1) planning, designing, construction, improving or expanding a qualified project; (2) developing engineering feasibility reports for Qualified Projects; (3) inspecting construction of Qualified Projects; (4) providing professional services; (5) completing environmental assessments or archeological clearances and other surveys for Qualified Projects; (6) acquiring land, easements or rights of way; (7) eligible legal costs associated with development of Qualified Projects, within limits set forth in the Loan/Grant Agreement. All construction and all installation of equipment with proceeds of the Loan/Grant has or will be used in accordance with plans and/or specifications approved on behalf of the New Mexico Finance Authority by the New Mexico Environment Department and/or the Office of the State Engineer, has or will be acquired in compliance with applicable procurement laws and regulations, and has or will be inspected and approved in accordance with applicable laws and regulations. Capitalized terms used herein, are used as defined or used in the Loan/Grant Agreement.
DATE:
AUTHORIZED OFFICER
(As Provided in the Loan/Grant Agreement) Print Name: Print Title:
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<D-1
Loan/Grant Agreement Los Alamos, Loan/Grant No. WPF-6583
EXHIBIT âDâ W
ATER
P
ROJECT
F
UND
S
TATUS
R
EPORT
P
REPARED FOR THE
N
EW
M
EXICO
F
INANCE
A
UTHORITY
Fund Recipient:
Incorporated County of Los Alamos
Contact Name: Title:
Email Address:
Project Number
: WPF-6583
Project Name
: San Ildefonso Rd. Waterline Replacement
Project Type
: Construction
Reporting Period: From To_______________________
Quarterly Project Report: 1
st
2
nd
3
rd
4
th
Final Project Report Other _______________________________
WPF Funding Expiration
:
_______________________
Total WPF Award
: $2,000,000
Current Balance
: $____________________ Loan 10% Grant 90% Match $300,000
Expected WPF Award Expenditure Next Quarter
: $______________________________
Local Match Expenditure: To Date
$_____________
Next Quarter
$_______________
Project Phase:
Planning Design Construction
PROJECT COMPLETION:
Original Date
Current Date
______________
______
% Complete Days Remaining to Complete
_____
On Schedule? Yes No
Briefly Describe Project Progress During This Reporting Period:
Issues Addressed During This Reporting Period, including any current or anticipated issues that remain unresolved:
Goals/Milestones, With Timeline or Dates, For The Next Reporting Period:
Authorized Officer PRINT NAME:___________________________________ PRINT TITLE:____________________________________ SIGNATURE:
Date:
*All fields must be completed.
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<E-1
Loan/Grant Agreement Los Alamos, Loan/Grant No. WPF-6583
EXHIBIT âEâ FORM OF CERTIFICATE OF COMPLETION
RE: $2,000,000 Loan/Grant Agreement by and between the NMFA, as Lender/Grantor, and the Incorporated County of Los Alamos, New Mexico as Borrower/Grantee (the âAgreementâ or âLoan/Grant Agreementâ) Loan/Grant No. WPF-6583
Closing Date: January 23, 2026
TO: NEW MEXICO FINANCE AUTHORITY I, _______________________________, the ______________________________ of the [Name] [Title or position] Borrower/Grantee, hereby certify as follows:
1.
The project described in the Loan/Grant Agreement (the âProjectâ), or the applicable phase of the project if funding was for a phased Project, was completed and placed in service on ________________________, 20___.
2.
The total cost of the Project was $ ___________.
3.
Cost of the Project paid from the Loan/Grant Amount was $ _____________.
4.
Cost of the Project paid from the Additional Funding Amount was $ _________.
5.
The portion of the Loan/Grant Amount unexpended for the Project is $ ________.
6.
The Project was completed and is and shall be used consistent with and subject to the covenants set forth in the Loan/Grant Agreement. This certificate shall not be deemed to prejudice or affect any rights of or against third parties which exist at the date of this certificate or which may subsequently come into being. INCORPORATED COUNTY OF LOS ALAMOS,
NEW MEXICO
By: ___________________________________ Its: ___________________________________
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<F-1
Loan/Grant Agreement Los Alamos, Loan/Grant No. WPF-6583
EXHIBIT âFâ
DOCUMENTS
1.
Open Meetings Act Resolution No. 25-01 adopted by the Borrower/Grantee on January 7, 2025
2.
Ordinance No. 749 adopted on December 16, 2025, Notice of Meeting, Meeting Agenda, Minutes and Affidavits of Publication of Notice of Meeting and Intent to Adopt Ordinance and Notice of Adoption of Ordinance in the
Los Alamos Daily Post
3.
Loan/Grant Agreement
4.
General and No Litigation Certificate of the Borrower/Grantee
5.
Delivery, Deposit and Cross-Receipt Certificate
6.
Right of Way Certificate (to be executed prior to construction funding)
7.
Final Opinion of Counsel for the Borrower/Grantee
8.
Approving Opinion of Sutin, Thayer & Browne A Professional Corporation, Loan/Grant Counsel to the NMFA
9.
NMFA Application and Project Approval (informational only)
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<County of Los Alamos
Staff Report
March 18, 2026
Los Alamos, NM 87544 www.losalamosnm.us
Agenda No.:
4.c.
Index (Council Goals):
Quality Excellence - Effective, Efficient, and Reliable Services; Quality
Governance - Fiscal Stewardship; DPU FY26 - 1.0 Provide Safe and Reliable Utility
Services; DPU FY26 - 2.0 Achieve and Maintain Excellence in Financial
Performance
Presenters:
Joann Gentry, Deputy Utility Manager-Finance & Admin.
Legislative File: 21339-26a
Title
Approval of the Calculation of Revenue Transfer from Electric & Gas Funds for Operations during
Fiscal Year 2025 and Approval of Budget Revision 2026-48
Recommended Action
I move that the Board of Public Utilities recommend transferring 5% from the Electric
and Gas funds to the General Fund during fiscal year 2026, and that these amounts be
redirected for use within the Joint Utility Fund for the purposes designated by Council
in accordance with Incorporated County of Los Alamos Ordinance 02-324.
I further move that the Board recommend Budget Revision 2026-48 as summarized in
Attachment D, and that the attachment be made a part of the minutes of this meeting.
I further move that these actions be forwarded to Council with a recommendation for
approval.
I further move that the Board of Public Utilities recommend Council extend the profit
transfer redirection option per County Code Section 40-63(d) for an additional year to
FY2031.
Utilities Manager's Recommendation
The Utilities Manager recommends that the Board approve the motion as presented.
Body
The purpose of this agenda item is to 1) approve the calculation of the FY2026 revenue transfer
based on the FY2025 Annual Comprehensive Financial Report (ACFR); 2) approve the
associated budget revision; 3) forward to Council with a recommendation for approval, and 4)
recommend Council add another year to the redirection option.
In accordance with Charter Article V.509 and Chapter 40-63 (c)(12) b. of the County Code of
ordinances, the attached calculation reflects five percent of gross sales of the electric and gas
utilities, exclusive of sales to the County or the Schools, as the Revenue Transfer amounts.
These transfer amounts are computed following completion of the Countyâs annual financial audit
(ACFR). In January 2022, Council passed code ordinance 02-324, which continued the
transfer-back or revenue, âFor a five (5) year periodâ¦[which] may be extended by Council for
one (1) additional year at the time of Councilâs consideration of an annual redirection of a
revenue transfer "formally profit transfer.â Ordinance 02-324 further specifies that âupon approval
County of Los Alamos Printed on 3/13/2026
Page 81 of 333
<of the revenue transfer amounts by Council, the Council may, through formal action, redirect
some or all of the revenue transfer amounts for use within the joint utility system fund for purposes
designated by the Council. Those purposes may include, but are not limited to, accelerating
investment in utility infrastructure, investing in utility infrastructure to facilitate coordination with
roads projects, investing in utility infrastructure to facilitate economic development and housing
projects, facilitating utility debt restructuring, and transferring funds between individual utility
sub-funds.â
During the FY2026 budget hearings, the Utilities Department proposed, and Council approved,
using the revenue transfer for the Trinity Drive Gas line Replacement and the Trinity Drive
Waterline Replacement. This action is to review and approve the calculation of the Revenue
Transfer Amounts, and forward to Council for consideration and approval, and also approve the
associated budget revision.
The associated Budget Revision 2026-48 ensures the revised budget accurately reflects the
approved revenue transfer amounts. The budget revision adjusts the FY2026 budget to
incorporate the revenue transfer calculated from the FY2025 ACFR and retains these funds
within the Joint Utility Fund rather than transferring them to the General Fund. This allows the
funds to be used to partially fund the Council approved Trinity Drive Gas line Replacement and
Trinity Drive Waterline Replacement budget option.
County Code Section 40-63(d) included in Attachment A, states that "the above five (5) year
period may be extended by Council for one (1) additional year at the time of Council's
consideration of an annual redirection of a revenue transfer so that every year Council considers
an annual redirection, there is an option for Council to add an additional year to the original five
(5) year period. Last year, Council extended it by one year to FY2030 and this will be the third
request for an additional year to FY2031 for a total of nine years.
Alternatives
If the Board and Council do not approve the revenue transfers, the funds will remain with the
Department of Public Utilitiesâ electric and gas funds, pending further negotiation between the
parties or confirmation of the calculations in accordance with Ordinance 02-324.
Fiscal and Staff Impact
Revenue (profit) transfers computed for FY2025 retail sales total $702,838.13 for the electric
fund and $294,910.60 for the gas utility, for a combined revenue transfer of $997,748.73.
Attachment B provides the computation of the profit transfer based on the FY2025 ACFR.
Attachments
A - Incorporated County of Los Alamos Ordinance 02-324
B - Utilities Profit Transfer Schedule - FY2026 for FY2025 Sales
C - Budget Revision 2026-48
D - Revenue Transfer Presentation
County of Los Alamos Printed on 3/13/2026
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<INC COUNTY OF LOS ALAMOS Utilities Profit Transfer Schedule Fiscal Year 2026 Electric Distribution Fund 512
FY2025 Audited Sales Revenue Object 4301 Residential metered 9,036,510.21 4305 Private area lighting 16,071.14 4311 Commercial metered 4,986,793.93 4382 EV Charging Stations 17,387.35 14,056,762.63
0.05 702,838.13
Gas Fund 531
FY2025 Audited Sales 4301 Residential metered 4,827,711.43 4311 Commercial metered 1,070,500.61 5,898,212.04
0.05 294,910.60
Total Revenue Transfer
997,748.73
Page 87 of 333
<Fund & Department Org Object Revenue
(decrease)
Transfers In
(decrease)
Transfers Out
(decrease)
Fund Balance
(decrease) 1 General Fund 01140195 7653 (390,680) $ - $ 2 General Fund 01140195 7651 (829,404) $ - $ 3 Joint Utilities Fund - Gas 53185390 9601 (390,680) $ - $ 4 Joint Utilities Fund - Electric Distribution 51285290 9601 (829,404) $ - $ 5 Joint Utilities Fund - Gas 53185390 9654 221,183 $ - $ Joint Utilities Fund - Gas 53185390 9653 73,727 $ 6 Joint Utilities Fund - Electric Distribution 51285290 9654 527,129 $ - $ Joint Utilities Fund - Electric Distribution 51285290 9653 175,709 $ 7 Joint Utilities Fund - Water Distribution 54185499 7653 221,183 $ - $ 8 Joint Utilities Fund - Water Distribution 54185499 7651 527,129 $ - $ 9 Joint Utilities Fund - Gas 53185399 7653 73,728 $ - $ 10 Joint Utilities Fund - Gas 53185399 7651 175,709 $ - $
Budget Manager/Analyst Signature
County Manager Approval if Required
Preparer Date Department Director Signature
Budget Revision 2026 - 48
BPU Meeting Date: 03/18/2026 Council Meeting Date: 03/31/2026
Description:
The purpose of this budget revision is to modify the budgeted revenue transfer for FY2026 based on the FY2025 ACRF, aligning it with Council's decision to retain the revenue transfer within the Joint Utilities Fund rather than transferring it to the General Fund.
Fiscal Impact
: The net fiscal impact to the Joint Utilities Fund is a decrease in transfers out of $222,235 and an increase in transfers in of $997,749. The net fiscal impact to the General Fund is a decrease in transfers in, and a reduction in fund balance, totaling $1,220,084.
Page 88 of 333
<FY2026 Revenue (Profit) Transfer
Page 89 of 333
<Charter Language â
Budget Priorities
509. Priority of Budgeted Expenditures.
In order that the Department of Public Utilities can plan and utilize its proceeds for the maintenance, improvement and extension of the utilities system before any part of such proceeds is diverted to general County purposes, all funds derived from the operation of the utilities shall be managed and expended in accordance with the following policies. From the proceeds of the operation of the Department:
1. There shall first be set aside the funds required for current operations.
2. There shall next be set aside the funds required to redeem and pay interest on any bond issue for the utility
which shall become due and payable during the next fiscal year.
3. There shall next be provided an adequate reserve to finance replacements required by normal depreciation of
the utility plant or equipment as provided in the Schedule of Funds. These reserves may not be used by the County
for financing County operations.
4. There shall be paid to the General Fund those amounts set forth in the budget as payments to be made to the
County in lieu of franchise fees and taxes that would be normally assessed against privately owned gas and electric
utilities.
5. There shall next be a provision for additions and improvements foreseen as necessary to meet future
requirements for the utility systems as provided in the Schedule of Funds.
6. All remaining operating profits shall be transferred to the County General Fund.
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<Chapter 40-63. Budget
Revenue Transfer
(b)(4) Designation of any additional specific remaining amounts as operating profits transfers to the general fund beyond those planned for as indicated in subsection (c)(12). (c)(12) A profit transfer. Charter section 509 anticipates possible profit transfers from the utility system to the general fund. The county as owner should have a return on its investment in the utility system. It is also prudent fiscal management to plan for a specific level of return. Therefore, this paragraph clarifies that expectation and sets the following budget policy: a. After providing for the items specified in Charter section 509 1. through 5., the budget shall include an amount for planning purposes for each fiscal year of at least five percent of the electric and gas utilities gross retail revenue and exclusive of that from the county and schools for commodities for their sole use, and an additional amount representing a percentage of the revenue from the department of energy, generated
as a result of the department of energy/county joint power pool coordination agreement, for transfer to the general fund as operating profits.
b.
After completion and approval of the county's audit, the profit transfer amount for the current fiscal year shall be calculated based upon actual audited revenues from the previous fiscal year. Those calculated amounts will be presented to council to approve as profit transfers to
the general fund in the current fiscal year.
c.
For a five-year period, which may be extended as provided below, and beginning with fiscal year 2023, upon approval of the profit transfer amounts by council, the council may through formal action re-direct some or all of the profit transfer amounts for use within the joint utility system fund for purposes designated by the council. Those purposes may include, but are not limited to, accelerating investment in utility infrastructure, investing in utility infrastructure to facilitate coordination with roads projects, investing in utility infrastructure to facilitate
economic development and housing projects, facilitating utility debt restructuring, and transferring funds between individual utility sub-funds.
d.
The above five-year period may be extended by council for one additional year at the time of council's consideration of an annual redirection of a profit transfer so that every year council considers an annual redirection, there is an option for council to add an additional year to the original five-year period.
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<$
5,408,708
revenue
transfer retained in Joint
Utilities Fund FY20-FY25
Total including FY26
$6,406,457
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<Questions?
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<County of Los Alamos
Staff Report
March 18, 2026
Los Alamos, NM 87544 www.losalamosnm.us
Agenda No.:
7.a.
Index (Council Goals):
Quality Excellence - Effective, Efficient, and Reliable Services; Quality
Governance - Fiscal Stewardship; DPU FY26 - 1.0 Provide Safe and Reliable Utility
Services; DPU FY26 - 2.0 Achieve and Maintain Excellence in Financial
Performance
Presenters:
Joann Gentry, Deputy Utility Manager-Finance & Admin.
Legislative File: 21064-26
Title
Approval of the DPU FY2027 Budget
Recommended Action
I move that the Board of Public Utilities approve the Fiscal Year 2027 budget
(substituting gas fund option 2) as presented and forward to Council for adoption.
I further move that the Board of Public Utilities approve the FY2027 budget option as
presented and forward to Council for approval.
Utilities Manager's Recommendation
The Utility Manager recommends that the Board approve the budget and budget option as
presented.
Body
Attached is the proposed budget for FY2027 in the amount of
$94,688,744
for total Joint Utilities
Fund expenditures. Changes from the preliminary presentation in February are summarized in
the table "Changes to Budget since February BPU Meeting" as Attachment A. The budget option
is in the amount of
$900,000
for the Fairway Water project.
Rate Changes
The revenues proposed for FY2027 include assumptions of rate increases, which will have
ordinances being introduced on April 1, 2026.
Electric Distribution: 8.0% (previously adopted)
Gas: 9.0% (ordinance to be introduced 4/1/26, to be effective 7/1/2026)
Gas Option 2
Discuss adding a Gas Recovery Rate of $0.25 for FY2027 & FY2028 to bring cash to a positive
cash flow by end of FY2028 and decrease future rate increases FY2029 through FY2036
Water Distribution: 8.0% (ordinance to be introduced 4/1/26, to be effective 7/1/2026)
Sewer: 7.0% (previously adopted)
The combined impact on a residential customer is approximately $20.27 per month or 7.02% net
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Page 95 of 333
<increase.
Changes to Budget Since February BPU Meeting
FY2027
Â
Joint Utility Fund Expenditures for FY2027are $94,688,744 compared to total presented in February of $100,071,991 for total Joint Utilities Fund expenditure.
Â
Electric Production:
o
Expenditure
§
Purchase Power cost decreased $6,530,997, updated purchase power costs
§
Administrative Allocation increased $315, updated allocation for revised administrative expenditures
o
Revenue
§
DOE LANL Sales decreased $3,728,589, updated revenue projections based on revised expenditures
§
Sales to Electric Distribution decreased $1,071,004, updated revenue projections based on revised expenditures
§
DOE Sales - SNL/KAFB Foxtail Flats PV increase $419,544, updated revenue projections based on revised expenditures
§
Economy Sales decreased $2,160,228, updated revenue projections based on revised expenditures
Â
Electric Distribution
o
Expenditure
§
Administrative Allocations increased $9,197, updated allocation for revised administrative expenditures
§
Cost of Power decreased $1,071,004, updated based on revisions in Electric Production
§
Capital increased $1,000,000, updated Capital Improvement Plan
o
Revenue
§
Grant/Loan/Bond Proceeds increased $1,500,000, updated Capital Improvement Plan, $1.5 for EA-4 project
Â
Gas
o
Expenditure
§
Distribution increased $6,600, moved expenditure for Zero Natural Gas Study from Cost of Gas
§
Interdepartmental Changes (IDCâs) increased $10,000, updated due to increase cost of Vactor
§
Administrative Allocation increased $7,907, updated allocation for revised administrative expenditures
§
Cost of Gas decreased $6,600, moved expenditure for Zero Natural Gas study to Gas Distribution
Â
Water Distribution
o
Expenditure
§
Interdepartmental Changes (IDCâs) increased $30,000, updated due to increased cost of Vactor
County of Los Alamos Printed on 3/13/2026
Page 96 of 333
<§
Administrative Allocation increased $7,581, updated allocation for revised administrative expenditures
Â
Water Production
o
Expenditure
§
Interdepartmental Changes (IDCâs) increased $10,000, updated due to increase cost of Vactor
§
Administrative Allocation increased $468, updated allocation for revised administrative expenditures
o
Revenue
§
Potable Sales Wholesale increased $437,767, updated revenue projections based on bulk rate Cost of Water and potable rate for wholesale
§
Interest on Utility Reserves increased $52,322, updated based on changes in cash projections
Â
Wastewater
o
Expenditure
§
Treatment increased $22,000, updated for increased cost of lab testing
§
Interdepartmental Changes (IDCâs) increased $50,000, updated due to increase cost of Vactor
§
Administrative Allocation increased $282, updated allocation for revised administrative expenditures
FY2028
Â
Electric Production:
o
Expenditure
§
Purchase Power cost decreased $8,889,169, updated purchase power costs
§
Administrative Allocation decreased $35, updated allocation for revised administrative expenditures
o
Revenue
§
DOE LANL Sales decreased $4,711,625, updated revenue projections based on revised expenditures
§
Sales to Electric Distribution decreased $1,060,090, updated revenue projections based on revised expenditures
§
DOE Sales - SNL/KAFB Foxtail Flats PV increase $4,113,694, updated revenue projections based on revised expenditures
§
Economy Sales decreased $7,223,254, updated revenue projections based on revised expenditures
Â
Electric Distribution
o
Expenditure
§
Administrative Allocations increased $9,363, updated allocation for revised administrative expenditures
§
Debt Service decreased $1,303,654, updated based on Capital Improvement Plan
§
Cost of Power decreased $1,060,090, updated based on revisions in Electric Production
§
Capital decreased $6,000,000, updated Capital Improvement Plan
o
Revenue
County of Los Alamos Printed on 3/13/2026
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<§
Grant/Loan/Bond Proceeds decreased $6,000,000, updated Capital Improvement Plan
Â
Gas
o
Expenditure
§
Distribution increased $6,798, moved expenditure for Zero Natural Gas Study from Cost of Gas
§
Administrative Allocation increased $7,998, updated allocation for revised administrative expenditures
§
Cost of Gas decreased $176,411, moved expenditure for Zero Natural Gas study to Gas Distribution & updated cost of Gas Expenditures
Â
Water Distribution
o
Expenditure
§
Administrative Allocation increased $7,464, updated allocation for revised administrative expenditures
Â
Water Production
o
Expenditure
§
Administrative Allocation decreased $52, updated allocation for revised administrative expenditures
o
Revenue
§
Potable Sales Wholesale increased $500,869, updated revenue projections based on bulk rate Cost of Water and potable rate for wholesale
§
Interest on Utility Reserves increased $64,963, updated based on changes in cash projections
Â
Wastewater
o
Expenditure
§
Treatment increased $22,660, updated for increased cost of lab testing
§
Administrative Allocation decreased $32, updated allocation for revised administrative expenditures
Gas Option 2
Discuss adding a Gas Recovery Rate of $0.25 for FY2027 & FY2028 to bring cash to a
positive cash flow by end of FY2028 and decrease future rate increases FY2029 through
FY2026.
February Staff Report Details
The ten-year capital plan and detailed project descriptions are included in the agenda packet.
The project plan shown by utility is included so will not be discussed further, except to address its
financial impact on the budget and any proposed or planned financing for these projects.
The following bullets highlight key points related to the current budget proposal:
All Divisions (reflects net change from FY2026 adopted budget)
⢠The proposed FY2027 budget increases $856,750 (11%) in direct labor costs. This reflects
planned salary adjustments, longevity and stability pay, retention pay in accordance with union
agreements, and additional funds in the administration budget for two overfill positions included
in the FY2027 FTE count.
⢠The proposed FY2027 budget increases $305,355 (9%) in benefits.
County of Los Alamos Printed on 3/13/2026
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<⢠The proposed FY2027 budget reflects an overall increase of less than 1% in interdepartmental
charges (IDCs).
Debt Coverage Ratio
Objective 2.3 from the FY2027 Strategic Focus Areas, Goals & Objectives sets a goal to meet
financial reserve targets within our 10- year financial policy, with a debt coverage ratio of 1.3 or
greater every fiscal year. The projected debt coverage ratio for FY2027 and FY2028 is 1.15 and
0.85, respectively. The main cause is that actual revenues in FY2026 are projected to be lower
than the adopted budget. Gas therm sales in FY2026 are projected to be 19% lower due to
warm winter weather conditions. Water Distribution sales are projected to be 5% lower due to
consumer use. Potable water sales that include LANL are projected to be 9% lower. Non-potable
water sales are projected to be 29% lower. Going forward this year's budget is using 5-year
historical averages for projected commodity use. Annual debt service payments of $1.2 million
for the White Rock Wastewater Treatment Plant and the Bayo Lift Station Elimination Pipeline
projects commence in FY2027. The capital improvement project budget anticipates increased
debt service to fund new projects over 10 years through a combination of bonds, low-interest
loans, and grants. The Board packet includes a second option for Electric Distribution which
assumes a $4 million grant for the EA-4 project in FY2028 and delays $4.5 million in bonding to
FY2029. The projected debt coverage ratio for FY2027 and FY2028 is 1.15 and 1.34
respectively.
Administration
The departmentâs administrative budget (which includes Engineering, Public Relations, Finance
and Administration, Billing, and Customer Care) will decrease by $221,963 (3%) in FY2027
compared to FY2026. The Finance and Administration Division allocates $35,000 for the annual
audit, a slight increase from FY2026 costs. Labor costs account for three vacant positions: one
in Finance and Administration, one in Customer Care, and one for the Deputy Utility Manager -
Engineering following a retirement for FY2026.
Electric Distribution
Capital Plan:
⢠The proposed FY2027 capital budget allocates $1,500,000 for the White Rock URD
Replacement (Aragon, Ridgecrest, Garver, and Catherine)
⢠$450,000 for Overhead Systems Replacement
⢠$35,0 00 for the DP Road Staging Area
⢠$500,000 for East Gate Substation Design
We plan to seek a bond for CIP expenditures in FY2028. The total projected cost for FY2027
projects is $2,485,000.
O&M Costs:
Increase of $667,535 (8%), excluding In Lieu taxes, includes $183,750 in contractual services for
oil disposal and tree trimming services, $103,319 for Overhead maintenance to cover overhead
switches, $242,275 in underground maintenance for switch replacement and addition 3-phase or
single-phase transformer costs.
County of Los Alamos Printed on 3/13/2026
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<Labor and benefits cost include three vacant positions: Deputy Utilities Manager - Electric
Distribution, a journeyman lineman, and an Engineering Project Manager (shared with Electric
Production at a 60/40 split).
Rates:
The FY2027 budget incorporates an approved 8% rate increase, while FY2028 revenues reflect
an anticipated 9% rate increase. This anticipated rate increase is needed to strengthen cash
balances and even with these anticipated increases through FY2036 the cash balance for
Electric Distribution does not allow fund reserves by FY2036 per Board-adopted financial
guidelines (August 17, 2016).
Debt service:
Aligns with the FY2027 and FY2028 current amortization schedule.
Electric Production
Capital Plan:
The proposed budget allocates $200,000 for the Abiquiu Wicket Gate Hydraulic Servo Motor
Replacement.
O&M Costs:
The O&M budget for Electric Production is about $4million (7%) lower higher than FY2026, due
primarily to decreases increases in purchased power costs, and costs associated with the
landfill photovoltaic array, and the administrative allocation. LANL system upgrades. The O&M
budget for Abiquiu Generation includes $2.2 million for the vent shaft repair project which has
been delayed from FY2026. The purchased power costs in FY2027 include anticipated power
purchases for SNL/KAFB of $6.3 million due to delays in the Foxtail Flats project. SNL/KAFB
may not be able to procure a PPA timely. A budget revision to reduce costs will be taken to BPU
and Council in the event a PPA is procured. LANLâs load forecast is lower by 44,769 MWh in
FY2027 this year as compared to FY2026 last year. Labor and benefits cost include an
Engineering Project Manager (shared with Electric Distribution at a 60/40 split).
Gas
The NMMEAA agreement provides a guaranteed discount of $0.586 per MMBTU, which is
reflected in the FY2027 budget. Natural gas market prices remain uncertain, and purchases for
FY2027 are budgeted at $4.1690 per MMBTU, based on the five-year average of the San Juan
Index.
Capital Plan:
The proposed FY2027 budget allocates $100,000 for Pipeline Repair &
Replacement/Equipment and $35,000 for the DP Road Staging Area
O&M Costs:
Excluding cost of gas, the O&M budget increased $184,244 (5%). Contractual services of
$133,777 for uniforms, concrete and asphalt, SCADA services, $20,000 for pipe to soil cathodic
monitoring and utility locating equipment, and remaining costs for Pathway to Zero Natural Gas
study. The maintenance and Repair budget of $58,195 includes on-call assistance with line
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Page 100 of 333
<maintenance, cathodic protection, PRV maintenance, and a line locate contractor. Gas funds
IDCs include $45,000 or 10% of $450,000 Vactor (Vacuum Excavator) cost.
Sales and Rates:
Sales for gas have decreased from projected 800,000 therms to 760,000 therms in FY2026,
therefore decreasing sales revenues.
The FY2027 and FY2028 budgets propose a 9% increase to fixed gas and service charges.
Current rates are $0.34 per therm and $14.25 for the monthly service charge. Proposed rates
are $0.37 per therm and $15.53 per month in FY2027, and $0.40 per therm and $16.93 per
month in FY2028. Variable rate is budgeted at $0.42 per therm. This anticipated rate increase is
also needed to strengthen cash balances and fund reserves by FY2036.
Water Production and Distribution
Capital Plan Water Production:
⢠$2,640,000 in grants and low-interest loans from the Water Trust Board for repainting Pajarito
Tank 4A and Phase I of the Pajarito Road Transmission Line Replacement.
⢠$995,000 in CIP funds:
o $320,000 - Repainting Pajarito Tank 4A
o $340,000 - Phase I of Pajarito Road Transmission Line Replacement
o $300,000 - Pajarito Well No. 3 Replacement Wall Design
o $35,000 - DP Staging Area
Non-potable projects funded through Water Trust Board grants/loans will proceed only if funding
is secured.
O&M Costs:
Increase of $420,437 (7%) from FY2026 to FY2027, the increase includes $49,000 for
treatment, which includes disinfection unit upgrades and disinfection tablets. For storage tanks,
$300,000 is budgeted for tank inspection and cleaning services, which is a new cost in FY2027.
IDCs increased $106,070 (24%) in FY2027 from FY2026. Water Distribution funds IDCs include
$45,000 or 10% of $450,000 Vactor cost.
Rates:
Proposed 8% rate increases are proposed for both potable and non-potable water rates.
Additional increases are included in the 10-year forecast to meet reserve targets by FY2036.
Debt Service: Aligns with the FY2027 and FY2028 current amortization schedule.
Capital Plan for Water Distribution:
⢠$1.2 million in projects funded with low-interest Drinking Water State Revolving Fund grant/loan
for Denver Steel Phase III (with Public Works).
⢠$35,000 in CIP funds for DP Staging Area
O&M Costs:
Excluding cost of water, O&M costs increased $217,764. The water distribution budget includes
County of Los Alamos Printed on 3/13/2026
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<$106,887 for PRV replacements, $100,000 for water line repair kits and couplings, and
$358,955 for contractual services. Water Distribution funds IDCs include $135,000 or 30% of
$450,000 Vactor cost.
Sales & Rates:
Water sales have declined over the past five years, with projections decreasing from 800,000
Kgal to approximately 760,000 Kgal over the next decade. To strengthen cash balances and
meet reserve funding requirements by FY2036 in accordance with Board-adopted financial
guidelines, proposed rate increases of 8% are planned for FY2027 and FY2028. Additional rate
adjustments are included in the 10-year forecast.
Debt Service: Aligns with the FY2027 and FY2028 current amortization schedule.
The capital budget for water production and distribution continues to leverage low-interest
financing.
Wastewater Division
Capital Plan:
Sewer Collection
⢠$150,000 - Denver Steels Phase II (Public Works road project)
⢠$1,700,000 - Sewer Line Replacement (RIP Loan)
o $800,000 - Fairway St
o $600,0000 - Sycamore St
o $300,000 - North Community/Western Area sewer mains and services
Capital expenditure decreased $510,000 (19%).
O&M:
Increased by $448,590 (6%) due to additional operations staffing for collections and treatment.
This increase is primarily driven by several departmental promotions tied to certification.
Wastewater funds IDCs also include $250,000 or 50% of $450,000 Vactor cost.
Rates:
FY2027 currently has a 7% increase, and we are anticipating an 8% increase for FY2028.
Additional increases are included in the 10-year forecast to meet reserve targets by FY2036.
Profit Transfer/ Budget Options
The budget presented in the Financial Statement Fund Flow excludes projects proposed for
funding through Profit Transfer funds. A five-year schedule of projected project recommendations
is provided in the 10-Year CIP and Budget Option Plans. For FY2027, one project is proposed to
coordinate utility infrastructure replacements with planned road construction on Fairway. Profit
Transfer funding from sales for FY2027 totals $1,203,059, with $900,000 in projects proposed.
The recommended motion for budget approval, when presented, will include a clause for
approval of use of profit transfer funds of spending authority for this project as âbudget options.â
Budget Packet Report Descriptions
Â
Financial Statement Fundflows: building the budget from the ground up, including revenues, operating expenses, capital expenditures, and other financing and expenditure
County of Los Alamos Printed on 3/13/2026
Page 102 of 333
<types
Â
Full-Time Equivalent (FTE) Employee Count
Â
10 -Year Capital Improvement Plan (CIP) and 5-Year Budget Option Projects: Listing
capital projects by utility and fiscal year, with any associated planned loan, grant and bond
funding
Â
10-Year Forecast Graphs for Revenue, Expense, and Cash
Â
Typical Monthly Bill: Historical and Projected Monthly Bill for Residential Customers
Â
10-Year Financial Forecast: Load Forecast, Rate Forecast, Cash Inflows, Cash Outflows, Net Cash, Projected Reserve Balances, and Reserve Targets.
Â
Debt Coverage Ratio Projection: Demonstrate compliance with the Strategic 2.3 debt coverage ratio of 1.3 or greater
Â
Schedule of Funds: Schedule required by Charter and Ordinance, details cash and reserve projections, approved by County CFO
Alternatives
The Board could make changes to the recommended total budget, which would be included for
consideration at the Council deliberation.
Fiscal and Staff Impact
Details attached
Attachments
A - Changes to Budget Since February BPU Meeting
B - DPU FY2027 Budget Packet
C - DPU Budget Option FY2027
County of Los Alamos Printed on 3/13/2026
Page 103 of 333
<Los Alamos County - Department of Public Utilities
Changes to Budget Since February BPU Meeting
FY2027 BUDGET
Fund Budget Category FEB Amount MAR Amount Delta
Joint Utilities Fund Total Expenditure Budget 100,071,991 $ 94,688,744 $ (5,383,247) $
Fund Budget Category FEB Amount MAR Amount Delta
Electric Production Purchased Power 36,465,864 $ 29,934,867 $ (6,530,997) $
Fund Budget Category FEB Amount MAR Amount Delta
Electric Production Administrative Allocation 1,696,566 $ 1,696,881 $ 315 $
Fund Budget Category FEB Amount MAR Amount Delta
Electric Distribution Administrative Allocation 1,475,313 $ 1,484,510 $ 9,197 $
Fund Budget Category FEB Amount MAR Amount Delta
Electric Distribution Cost of Power 10,415,541 $ 9,344,537 $ (1,071,004) $
Fund Budget Category FEB Amount MAR Amount Delta
Electric Distribution Capital 2,485,000 $ 3,485,000 $ 1,000,000 $
Fund Budget Category FEB Amount MAR Amount Delta
Gas Distribution 284,829 $ 291,429 $ 6,600 $
Fund Budget Category FEB Amount MAR Amount Delta
Gas Interdepartmental Charges (IDCs) 602,062 $ 612,062 $ 10,000 $
Fund Budget Category FEB Amount MAR Amount Delta
Gas Administrative Allocation 916,376 $ 924,283 $ 7,907 $
Fund Budget Category FEB Amount MAR Amount Delta
Gas Cost of Gas 2,836,777 $ 2,830,177 $ (6,600) $
Fund Budget Category FEB Amount MAR Amount Delta
Water Distribution Interdepartmental Charges (IDCs) 596,902 $ 626,902 $ 30,000 $
Fund Budget Category FEB Amount MAR Amount Delta
Water Distribution Administrative Allocation 1,035,623 $ 1,043,204 $ 7,581 $
Moved expenditures for Pathway to Zero Natural Gas Study to Gas Distribution Updated allocation based on revised budget for Vactor purchase Moved expenditures for Pathway to Zero Natural Gas Study from Cost of Gas
Total Change from February to March - Detailed explanations below
Updated Capital Improvement Plan Updated allocation based on revised budget for Vactor purchase Updated power purchases Updated allocation for revised Administrative expenditures Updated allocation for revised Administrative expenditures Updated based on revisions in Electric Production Updated allocation for revised Administrative expenditures
Page 104 of 333
<Los Alamos County - Department of Public Utilities
Changes to Budget Since February BPU Meeting
FY2027 BUDGET
Fund Budget Category FEB Amount MAR Amount Delta
Water Production Interdepartmental Charges (IDCs) 547,362 $ 557,362 $ 10,000 $
Fund Budget Category FEB Amount MAR Amount Delta
Water Production Administrative Allocation 742,645 $ 743,113 $ 468 $
Fund Budget Category FEB Amount MAR Amount Delta
Wastewater Treatment 1,123,440 $ 1,145,440 $ 22,000 $
Fund Budget Category FEB Amount MAR Amount Delta
Wastewater Interdepartmental Charges (IDCs) 1,177,897 $ 1,227,897 $ 50,000 $
Fund Budget Category FEB Amount MAR Amount Delta
Wastewater Administrative Allocation 780,224 $ 780,506 $ 282 $
Updated allocation for revised Administrative expenditures Updated allocation based on revised budget for Vactor purchase Updated allocation for revised Administrative expenditures Updated budget for lab testing Updated allocation based on revised budget for Vactor purchase Updated allocation for revised Administrative expenditures
Page 105 of 333
<Los Alamos County - Department of Public Utilities
Changes to Budget Since February BPU Meeting
FY2027 BUDGET
Fund Budget Category FEB Amount MAR Amount Delta
Joint Utilities Fund Total Revenue Budget 98,183,462 $ 94,730,279 $ (3,453,183) $
Fund Budget Category FEB Amount MAR Amount Delta
Electric Production DOE Sales - LANL 36,435,143 $ 32,706,554 $ (3,728,589) $
Fund Budget Category FEB Amount MAR Amount Delta
Electric Production Sales to Electric Distribution 10,415,541 $ 9,344,537 $ (1,071,004) $
Fund Budget Category FEB Amount MAR Amount Delta
Electric Production DOE Sales - SNL/KAFB Foxtail Flats PV 1,029,080 $ 1,448,624 $ 419,544 $
Fund Budget Category FEB Amount MAR Amount Delta
Electric Production Economy Sales 8,660,228 $ 6,500,000 $ (2,160,228) $
Fund Budget Category FEB Amount MAR Amount Delta
Electric Distribution Grant/Loan/Bond Proceeds - $ 1,500,000 $ 1,500,000 $
Fund Budget Category FEB Amount MAR Amount Delta
Water Production Potable Sales Wholesale 1,110,057 $ 1,573,824 $ 463,767 $
Fund Budget Category FEB Amount MAR Amount Delta
Water Production Interest on Utility Reserves 125,811 $ 178,133 $ 52,322 $
Updated based on budget cash projections Updated revenue projection based on bulk rate Cost of Water and potable rate for wholesale Updated Capital Improvement Plan. $1.5M for EA-4 project Updated revenue projections based on revised expenditures Updated revenue projections based on revised expenditures Updated revenue projections based on revised expenditures Updated revenue projections based on revised expenditures
Total Change from February to March - Detailed explanations below
Page 106 of 333
<Los Alamos County - Department of Public Utilities
Changes to Budget Since February BPU Meeting
FY2028 BUDGET
Fund Budget Category FEB Amount MAR Amount Delta
Joint Utilities Fund Total Expenditure Budget 145,507,481 $ 129,192,412 $ (16,315,069) $
Fund Budget Category FEB Amount MAR Amount Delta
Electric Production Purchased Power 57,749,790 $ 48,860,621 $ (8,889,169) $
Fund Budget Category FEB Amount MAR Amount Delta
Electric Production Administrative Allocation 1,752,991 $ 1,752,956 $ (35) $
Fund Budget Category FEB Amount MAR Amount Delta
Electric Distribution Administrative Allocation 1,526,295 $ 1,535,658 $ 9,363 $
Fund Budget Category FEB Amount MAR Amount Delta
Electric Distribution Debt Service 2,459,026 $ 1,155,372 $ (1,303,654) $
Fund Budget Category FEB Amount MAR Amount Delta
Electric Distribution Cost of Power 12,527,744 $ 11,467,654 $ (1,060,090) $
Fund Budget Category FEB Amount MAR Amount Delta
Electric Distribution Capital 9,450,000 $ 3,450,000 $ (6,000,000) $
Fund Budget Category FEB Amount MAR Amount Delta
Gas Distribution 293,415 $ 300,213 $ 6,798 $
Fund Budget Category FEB Amount MAR Amount Delta
Gas Administrative Allocation 948,366 $ 956,364 $ 7,998 $
Fund Budget Category FEB Amount MAR Amount Delta
Gas Cost of Gas 3,091,493 $ 2,915,082 $ (176,411) $
Fund Budget Category FEB Amount MAR Amount Delta
Water Distribution Administrative Allocation 1,072,674 $ 1,080,138 $ 7,464 $
Fund Budget Category FEB Amount MAR Amount Delta
Water Production Administrative Allocation 770,902 $ 770,850 $ (52) $
Updated based on revised Capital Improvement Plan Updated allocation for revised Administrative expenditures Moved expenditures for Pathway to Zero Natural Gas Study from Cost of Gas Updated allocation for revised Administrative expenditures Moved expenditures for Pathway to Zero Natural Gas Study to Gas Distribution. Updated Cost of Gas expenditures Updated allocation for revised Administrative expenditures Updated Capital Improvement Plan
Total Change from February to March - Detailed explanations below
Updated power purchases Updated allocation for revised Administrative expenditures Updated allocation for revised Administrative expenditures Updated based on revisions in Electric Production
Page 107 of 333
<Los Alamos County - Department of Public Utilities
Changes to Budget Since February BPU Meeting
FY2028 BUDGET
Fund Budget Category FEB Amount MAR Amount Delta
Wastewater Treatment 1,165,316 $ 1,187,976 $ 22,660 $
Fund Budget Category FEB Amount MAR Amount Delta
Wastewater Administrative Allocation 808,614 $ 808,582 $ (32) $
Updated budget for lab testing Updated allocation for revised Administrative expenditures
Page 108 of 333
<Los Alamos County - Department of Public Utilities
Changes to Budget Since February BPU Meeting
FY2028 BUDGET
Fund Budget Category FEB Amount MAR Amount Delta
Joint Utilities Fund Total Revenue Budget 143,540,617 $ 130,285,263 $ (13,255,354) $
Fund Budget Category FEB Amount MAR Amount Delta
Electric Production DOE Sales - LANL 56,495,870 $ 51,784,245 $ (4,711,625) $
Fund Budget Category FEB Amount MAR Amount Delta
Electric Production Sales to Electric Distribution 12,527,744 $ 11,467,654 $ (1,060,090) $
Fund Budget Category FEB Amount MAR Amount Delta
Electric Production DOE Sales - SNL/KAFB Foxtail Flats PV 3,121,070 $ 7,234,764 $ 4,113,694 $
Fund Budget Category FEB Amount MAR Amount Delta
Electric Production Economy Sales 13,723,254 $ 6,500,000 $ (7,223,254) $
Fund Budget Category FEB Amount MAR Amount Delta
Electric Distribution Grant/Loan/Bond Proceeds 8,500,000 $ 2,500,000 $ (6,000,000) $
Fund Budget Category FEB Amount MAR Amount Delta
Water Production Potable Sales Wholesale 1,198,861 $ 1,699,730 $ 500,869 $
Fund Budget Category FEB Amount MAR Amount Delta
Water Production Interest on Utility Reserves 102,503 $ 167,466 $ 64,963 $
Updated based on budget cash projections Updated revenue projections based on revised expenditures Updated revenue projections based on revised expenditures Updated revenue projections based on revised expenditures Updated revenue projections based on revised expenditures Updated Capital Improvement Plan Updated revenue projection based on bulk rate Cost of Water and potable rate for wholesale
Total Change from February to March - Detailed explanations below
Page 109 of 333
<Department of Public Utilities
FY202
7-2028
Proposed Budget Packet
Attachment B
Page 110 of 333
<PAGE SECTION 3 Financial Statement Fund Flow 13 Full Time Equivalent (FTE) Summary 15 10-Year CIP and Budget Option Plans 56 10-Year Forecast Graphs for Revenue, Expense and Cash 61 Customer Impact (Rates) 63 10-Year Financial Forecast 73 Debt Coverage Ratio Projection 75 Schedule of Funds 105 Gas Fund Option 2 109 Utilities Financial Guidelines
DEPARTMENT OF PUBLIC UTILITIES FY2027-2028 PROPOSED BUDGET PACKET INDEX
Page 111 of 333
<Financial Statement Fund Flow
Page 112 of 333
<Los Alamos County Utilities Department Fiscal Year 2027-2028 Budgets Summary Of Expenditure Budget
FY2024 Actual FY2025 Actual FY2026 Adopted FY2026 Projected FY2027 Proposed $ Variance FY2027 vs FY2026 % Variance FY2027 vs FY2026 FY2028 Projected % Variance FY2028 vs FY2027
Electric Production 45,607,979 48,745,903 61,010,331 62,261,544 49,821,242 (11,189,089) -18% 80,037,884 61% Electric Distribution 16,704,451 20,322,341 21,864,972 26,222,736 22,122,964 257,992 1% 24,510,942 11% Less Interdivision Electric Sales (8,966,804) (11,534,782) (11,110,992) (11,110,992) (9,344,537) 1,766,455 -16% (11,467,654) 23% Total Electric Fund 53,345,626 57,533,462 71,764,311 77,373,288 62,599,670 (9,164,641) -13% 93,081,172 49% Gas 5,553,848 $ 6,474,613 $ 7,738,714 $ 7,936,105 $ 6,643,642 $ (1,095,072) $ -14% 6,767,628 2% Water Production 10,992,631 16,338,001 10,199,583 30,864,798 9,806,988 (392,595) -4% 11,605,070 18% Water Distribution 7,715,142 8,836,656 12,539,733 13,825,752 9,518,350 (3,021,383) -24% 10,026,341 5% Less Interdivision Water Sales (4,675,871) (4,553,886) (4,200,000) (4,200,000) (4,588,272) (388,272) 9% (4,955,334) 8% Total Water Fund 14,031,903 20,620,770 18,539,316 40,490,549 14,737,066 (3,802,250) -21% 16,676,077 13% Wastewater 18,003,469 $ 10,699,221 $ 10,697,494 $ 13,978,649 $ 10,708,366 $ 10,872 $ 0% 12,667,535 18%
Total Expenditure Budget 90,934,845 95,328,065 108,739,835 139,778,591 94,688,744 (14,051,091) -13% 129,192,412 36%
Page 113 of 333
<Los Alamos County Utilities Department Fiscal Year 2027-2028 Budgets
Department of Public Utilities FY2024 Actual FY2025 Actual FY2026 Adopted FY2026 Projected FY2027 Proposed $ Variance FY2027 vs FY2026 % Variance FY2027 vs FY2026 FY2028 Projected % Variance FY2028 vs FY2027 Revenues
Wholesale Sales 37,021,956 38,272,301 53,008,007 52,625,863 42,229,003 (10,779,004) -20% 70,458,739 67% Retail Sales 35,427,083 36,694,058 42,515,988 39,465,001 43,240,217 724,229 2% 46,669,191 8% Non Potable Sales 325,360 398,550 214,807 362,580 391,586 176,779 82% 422,913 8% Bond Federal Subsidy 118,249 104,221 93,298 93,298 75,788 (17,510) -19% 57,731 -24% Other Revenues 964,038 252,476 246,000 246,000 266,472 20,472 8% 266,472 0% Repayment of Intra Subfund Loan 93,784 - - - - - 0% - 0% Interest Income 2,094,317 5,253,944 2,663,795 2,663,795 2,185,271 (478,524) -18% 2,167,466 -1% Revenue on Recoverable Work 275,311 480,208 205,000 205,000 205,000 - 0% 205,000 0%
Total Revenues
76,320,098 $ 81,455,759 $ 98,946,895 $ 95,661,537 $ 88,593,338 $ (10,353,557) $ -10% 120,247,512 $ 36%
Operating Expenses by Program
Electric 51,386,836 55,849,110 68,909,311 69,073,466 58,914,670 (9,994,641) -15% 88,581,172 50% Gas 5,271,162 6,268,746 6,913,714 6,911,105 6,508,642 (405,072) -6% 6,657,628 2% Water 7,555,821 7,892,150 9,180,816 9,561,549 9,867,066 686,250 7% 10,156,077 3% Wastewater 5,699,449 5,668,804 8,002,494 8,021,326 8,523,366 520,872 7% 8,517,535 0%
Total Operating Expenses by Program
69,913,268 $ 75,678,811 $ 93,006,335 $ 93,567,446 $ 83,813,744 $ (9,192,591) $ -10% 113,912,412 $ 36%
Operating Income (Loss) 6,406,830 $ 5,776,948 $ 5,940,560 $ 2,094,091 $ 4,779,594 $ (1,160,966) $ 6,335,101 $ Capital Expenditures
Capital Expenditures 21,021,577 19,649,255 15,733,500 46,211,145 10,875,000 (4,858,500) -31% 15,280,000 41%
Other Financing
Grants/Loan Proceeds 14,778,924 13,733,083 8,000,000 12,688,450 7,340,000 (660,000) -8% 11,336,000 54% County/External Reimbursement 1,176,296 736,958 - 9,400,153 - - 0% - 0% Transfer from General Fund 394,892 3,050,000 100,000 3,150,000 - (100,000) -100% - 0% Transfer to Fleet (48,066) - - - - - 0% - 0% Revenue Transfer (490,612) - (1,220,084) (1,220,084) (1,203,059) 17,025 -1% (1,298,249) 8% Revenue Transfer Council Redirect 1,095,598 - - - - - 0% - 0% Other Judgments/Settlements 58,112,113 23,390 - - - - 0% - 0%
Total Other Financing
75,019,147 17,543,430 6,879,916 24,018,519 6,136,941 (742,975) -11% 10,037,751 64%
Net Income (Loss) 60,404,400 $ 3,671,123 $ (2,913,024) $ (20,098,536) $ 41,535 $ 2,954,559 $ 1,092,852 $ Expenditures by Type:
Salaries 7,224,254 7,972,740 8,068,128 8,068,128 8,924,878 856,750 11% 9,097,269 2% Benefits 2,680,591 3,038,760 3,333,968 3,333,968 3,639,323 305,355 9% 3,685,202 1% Professional/Contractual Services 65,161,098 68,092,232 77,551,550 108,427,820 61,681,498 (15,870,052) -20% 95,444,892 55% Materials/Supplies 2,274,793 2,357,002 2,058,914 2,109,002 2,345,073 286,159 14% 2,401,033 2% Interfund Charges 9,948,833 10,471,979 12,336,946 12,376,946 12,394,704 57,758 0% 13,164,062 6% Capital Outlay 720,170 397,737 621,796 694,194 1,050,633 428,837 69% 489,124 -53% Fiscal Charges 2,925,107 2,997,614 4,768,533 4,768,533 4,652,635 (115,898) -2% 4,910,830 6%
Total
90,934,845 95,328,065 108,739,835 139,778,591 94,688,744 (14,051,091) -13% 129,192,412 36%
Page 114 of 333
<Los Alamos County Utilities Department Fiscal Year 2027-2028 Budgets
Electric Production
FY2024 Actual FY2025 Actual FY2026 Adopted FY2026 Projected FY2027 Proposed $ Variance FY2027 vs FY2026 % Variance FY2027 vs FY2026 FY2028 Projected % Variance FY2028 vs FY2027
Revenue
Mwh Sales - LANL 381,849 365,967 485,207 485,207 440,492 (44,715) -9% 569,058 29% Mwh Sales - LAC Distribution 118,952 118,484 123,455 123,455 123,401 (54.29) 0% 124,018 0% Total Mwh Sales 500,801 484,451 608,662 608,662 563,893 (44,769) -7% 693,076 23% LAPP Revenue per Mwh
75.68 $
91.53 $
90.00 $
90.00 $
74.25 $ (15.75) -18%
91.00 $ 23% DOE Sales - LANL 28,931,780 32,806,216 43,668,618 43,668,618 32,706,554 (10,962,064) -25% 51,784,245 58% Sales to Electric Distribution 8,966,804 11,534,782 11,110,992 11,110,992 9,344,537 $ (1,766,455) -16% 11,467,654 23% DOE Sales - SNL/KAFB Foxtail Flats PV - - - - 1,448,624 1,448,624 100% 7,234,764 399% SNL/KAFB Foxtail Flats BESS Fixed Charge - - - - - - 0% 3,240,000 100% Economy Sales 6,557,348 4,757,393 7,500,000 7,500,000 6,500,000 (1,000,000.00) -13% 6,500,000 0% Interest Income 1,080,280 3,633,419 2,000,000 2,000,000 2,000,000 - 0% 2,000,000 0% Bond Federal Subsidy 30,866 27,027 24,080 24,080 19,561 (4,519.00) -19% 14,900 -24%
Total Revenue
45,567,079 $ 52,758,837 $ 64,303,690 $ 64,303,690 $ 52,019,276 $ (12,284,414) $ -19% 82,241,563 $ 58%
Operating Expenses
El Vado Generation 743,736 991,272 870,812 871,575 975,162 104,350 12% 994,052 2% Abiquiu Generation 758,550 686,434 3,131,147 3,131,692 2,979,836 (151,311) -5% 759,370 -75% Contract Administration 61,901 11,257 89,755 89,755 68,969 (20,786) -23% 71,038 3% Load Control 2,037,401 2,102,113 2,699,178 2,699,178 2,867,688 168,510 6% 2,189,695 -24% Transmission - PNM 3,444,480 3,106,142 3,577,249 3,577,249 3,761,111 183,862 5% 3,948,917 5% Transmission - Other 3,094,458 3,236,801 3,700,528 3,700,528 3,885,554 185,026 5% 4,079,832 5% Purchased Power 30,268,359 33,446,364 39,582,229 39,582,229 29,934,867 (9,647,362) -24% 48,860,621 63% Landfill Photovoltaic Array 20,346 979,383 1,450,050 1,450,050 258,500 (1,191,550) -82% 8,500 -97% Debt Service 441,377 432,136 577,462 577,462 416,362 (161,100) -28% 413,957 -1% Energy Storage Agreement - - - - - - 0% 12,960,000 100% Laramie River Operations 2,445,121 2,028,682 2,067,858 2,067,858 2,100,000 32,142 2% 2,205,000 5% SMR Project 321,127 - - - - - 0% - 0% Interdepartmental Charges 600,732 601,991 637,973 637,973 676,312 38,339 6% 743,946 10% Administrative Allocation 730,941 858,209 1,846,090 1,846,090 1,696,881 (149,209) -8% 1,752,956 3%
Total Operating Expenses
44,968,529 $ 48,480,784 $ 60,230,331 $ 60,231,640 $ 49,621,242 $ (10,609,089) $ -18% 78,987,884 $ 59%
Operating Income (Loss) 598,550 $ 4,278,053 $ 4,073,359 $ 4,072,050 $ 2,398,034 $ (1,675,325) $ 3,253,679 $ Capital Expenditures
Capital Expenditures 639,450 265,119 780,000 2,029,904 200,000 (580,000) -74% 1,050,000 425%
Other Financing
Other Judgments/Settlements 58,112,113 23,390
-
- -
- 0%
-
0%
Transfer to ED for Capital Plan
- -
(2,000,000) (2,000,000) (2,000,000)
- 0%
(2,000,000)
0%
Net Income (Loss) 58,071,213 $ 4,036,324 $ 1,293,359 $ 42,146 $ 198,034 $ (1,095,325) $ 203,679 $ Expenditures by Type:
Salaries
1,720,337 1,816,713 1,781,619 1,781,619 1,658,342 (123,277) -7% 1,722,485.00 4%
Benefits
655,986 697,458 707,228 707,228 663,246 (43,982) -6% 681,713.00 3%
Professional/Contractual Services
41,269,738 43,981,933 55,169,646 56,420,859 44,335,055 (10,834,591) -20% 74,350,544 68%
Materials/Supplies
123,759 221,257 225,952 225,952 248,944 22,992 10% 242,853 -2%
Interfund Charges
1,331,673 1,460,200 2,484,063 2,484,063 2,373,193 (110,870) -4% 2,496,902 5%
Capital Outlay
65,108 136,205 64,361 64,361 126,100 61,739 96% 129,430 3%
Fiscal Charges
441,377 432,136 577,462 577,462 416,362 (161,100) -28% 413,957 -1%
Total 45,607,979 $ 48,745,903 $ 61,010,331 $ 62,261,544 $ 49,821,242 $ (11,189,089) $ -18% 80,037,884 $ 61%
Page 115 of 333
<Los Alamos County Utilities Department Fiscal Year 2027-2028 Budgets
Electric Distribution
FY2024 Actual FY2025 Actual FY2026 Adopted FY2026 Projected FY2027 Proposed $ Variance FY2027 vs FY2026 % Variance FY2027 vs FY2026 FY2028 Projected % Variance FY2028 vs FY2027 Revenue
kWh Sales 118,952,361 118,484,231 123,455,462 120,815,751 123,401,169 (54,293) 0% 124,018,175 0% Revenue per kWh
0.1241 $
0.1430 $
0.1562 $
0.1559 $
0.1683 $
0.0121 $ 8%
0.1801 $ 7% Sales Revenue 14,758,522 16,942,566 19,288,456 18,830,797 20,772,471 1,484,015 8% 22,337,677 8% Interest Income 264,540 819,599 166,894 166,894 - (166,894) -100% - 0% Bond Federal Subsidy 66,045 62,533 58,759 58,759 47,731 (11,028) -19% 36,359 -24% Miscellaneous/Pole Rentals 586,206 143,476 186,000 186,000 186,000 - 0% 186,000 0% Revenue on Recoverable Work 164,445 480,231 150,000 150,000 150,000 - 0% 150,000 0% EV Charge Stations 16 17,387 - - 20,472 20,472 100% 20,472 0%
Total Revenue
15,839,774 $ 18,465,792 $ 19,850,109 $ 19,392,450 $ 21,176,674 $ 1,326,565 $ 7% 22,730,508 $ 7%
Operating Expenses
Operations Staffing Related 2,391,398 2,769,648 3,016,111 3,016,111 3,560,650 544,539 18% 3,630,939 2% Substation Maintenance 1,715 1,608 95,300 95,300 91,350 (3,950) -4% 94,133 3% Switching Station Maintenance 10,661 16,314 90,760 90,760 88,300 (2,460) -3% 90,950 3% Overhead Maintenance 196,223 246,365 329,820 375,795 499,634 169,814 51% 514,624 3% Underground Maintenance 144,082 208,390 333,788 341,345 357,396 23,608 7% 368,119 3% Meter Maintenance 718 9,304 23,950 23,950 24,269 319 1% 25,015 3% EV Charge Stations - 17,041 - 39,313 33,780 33,780 100% 33,780 0% Interdepartmental Charges 1,198,599 1,182,446 1,355,469 1,425,469 1,352,784 (2,685) 0% 1,488,066 10% Eng. Cust Svc. MR and Admin 940,908 1,304,006 1,554,403 1,554,403 1,484,510 (69,893) -4% 1,535,658 3% In Lieu Taxes & Franchise fee 558,695 605,457 701,068 701,068 638,784 (62,284) -9% 656,632 3% Debt Service 975,308 1,007,749 1,178,311 1,178,311 1,161,971 (16,340) -1% 1,155,372 -1% Cost of Power 8,966,804 11,534,782 11,110,992 11,110,992 9,344,537 (1,766,455) -16% 11,467,654 23%
Total Operating Expenses
15,385,111 $ 18,903,108 $ 19,789,972 $ 19,952,818 $ 18,637,964 $ (1,152,008) $ 21,060,942 $ 13%
Operating Income (Loss) 454,663 $ (437,316) $ 60,137 $ (560,368) $ 2,538,710 $ 2,478,573 $ 1,669,566 $ Capital Expenditures
Capital Expenditures 1,319,340 1,419,233 2,075,000 6,269,918 3,485,000 1,410,000 68% 3,450,000 -1%
Other Financing
Grants/Loan/Bond Proceeds - - - - 1,500,000 1,500,000.00 0% 2,500,000 100% Transfer from Electric Production - 2,000,000 2,000,000 2,000,000 - 0% 2,000,000 0% Transfer from General Fund 80,416 - - - - - 0% 0% Transfer to Fleet (48,066) - - - - - 0% 0% Revenue Transfer - - (829,404) (829,404) (893,217) (63,813.00) 8% (960,521) 8% Revenue Transfer Council Redirect (563,200) (615,309) - - - 0 0% 0%
Net Income (Loss) (1,395,528) $ (2,471,858) $ (844,267) $ (5,659,690) $ 1,660,493 $ 2,504,760 $ 1,759,045 $ Expenditures by Type:
Salaries 1,744,103 1,951,435 1,913,867 1,913,867 2,333,844 419,977 22% 2,383,669 2% Benefits 636,624 745,643 836,414 836,414 956,662 120,248 14% 970,353 1% Professional/Contractual Services 1,077,740 1,767,851 3,079,568 7,288,714 4,468,500 1,388,932 45% 4,460,696 0% Materials/Supplies 1,046,321 743,018 582,886 619,105 723,278 140,392 24% 744,141 3% Interfund Charges 2,139,982 2,504,210 2,920,034 2,960,034 2,851,585 (68,449) -2% 3,038,045 7% Capital Outlay 64,585 67,653 242,900 315,298 282,588 39,688 16% 291,012 3% Fiscal Charges 1,028,292 1,007,749 1,178,311 1,178,311 1,161,971 (16,340) -1% 1,155,372 -1%
Total 7,737,647 $ 8,787,559 $ 10,753,980 $ 15,111,744 $ 12,778,428 $ 2,024,448 $ 19% 13,043,288 $ 2%
Page 116 of 333
<Los Alamos County Utilities Department Fiscal Year 2027-2028 Budgets
Gas Distribution
FY2024 Actual FY2025 Actual FY2026 Adopted FY2026 Projected FY2027 Proposed $ Variance FY2027 vs FY2026 % Variance FY2027 vs FY2026 FY2028 Projected % Variance FY2028 vs FY2027
Revenue
Therm Sales 7,533,515 7,378,988 8,400,000 6,600,000 6,800,000 (1,600,000) -19% 6,800,000 0% Revenue per Therm
1.0243 $
0.8485 $
0.9959 $
0.8951 $
0.9757 $ (0.0202) $ -2%
1.0635 $ 9% Sales Revenue 7,716,412 6,260,836 8,365,728 5,907,883 6,634,731 (1,730,997) -21% 7,231,857 9% Interest on Utility Reserves 3,281 45,076 37,825 37,825 - (37,825) -100% - 0% Revenue on Recoverable Work 35,199 42,248 20,000 20,000 20,000 - 0% 20,000 0% Misc. Service Revenues 162,425 - - - - - 0% - 0%
Total Revenue
7,917,318 $ 6,348,159 $ 8,423,553 $ 5,965,708 $ 6,654,731 $ (1,768,822) $ -21% 7,251,857 $ 9%
Operating Expenses
Operations Staffing Related 1,049,979 1,390,430 1,463,390 1,433,504 1,606,451 143,061 10% 1,625,709 1% Gas Distribution 173,801 205,954 214,343 214,343 291,429 77,086 36% 300,213 3% Gas Meters 55,876 272,095 64,476 64,476 66,411 1,935 3% 68,404 3% Interdepartmental Charges 530,496 493,791 485,494 485,494 612,062 126,568 26% 612,771 0% Eng. Cust Svc. MR and Admin 599,932 836,900 927,190 927,190 924,283 (2,907) 0% 956,364 3% In Lieu Taxes & Franchise fee 291,007 274,588 314,821 314,821 177,829 (136,992) -44% 179,085 1% Cost of Gas 2,570,071 2,794,989 3,444,000 3,471,278 2,830,177 (613,823) -18% 2,915,082 3%
Total Operating Expenses
5,271,162 $ 6,268,746 $ 6,913,714 $ 6,911,105 $ 6,508,642 $ (405,072) $ -6% 6,657,628 $ 2%
Operating Income (Loss) 2,646,156 $ 79,413 $ 1,509,839 $ (945,398) $ 146,090 $ (1,363,749) $ 594,229 $ Capital Expenditures
Capital Expenditures 282,686 205,866 825,000 1,025,000 135,000 (690,000) -84% 110,000 -19%
Other Financing
Revenue Transfer (490,612) - (390,680) (390,680) (309,842) 80,838 -21% (337,728) 9%
Revenue Transfer Council Redirect
178,235 (362,814) - - - - 0% - 0%
Net Income (Loss) 2,051,093 $ (489,267) $ 294,159 $ (2,361,078) $ (298,752) $ (592,911) $ 146,501 $ Expenditures by Type:
Salaries 648,632 912,919 918,856 918,856 1,050,318 131,462 14% 1,063,039 1% Benefits 264,774 335,365 377,184 377,184 423,290 46,106 12% 425,962 1% Professional/Contractual Services 3,252,352 3,421,649 4,831,633 5,029,024 3,385,342 (1,446,291) -30% 3,453,707 2% Materials/Supplies 197,036 442,194 198,357 198,357 224,424 26,067 13% 231,158 3% Interfund Charges 1,127,577 1,332,690 1,412,684 1,412,684 1,483,443 70,759 5% 1,571,337 6% Capital Outlay 63,476 29,796 - - 76,825 76,825 100% 22,425 -71% Fiscal Charges - - - - - - 0% - 0%
Total 5,553,848 $ 6,474,613 $ 7,738,714 $ 7,936,105 $ 6,643,642 $
(1,095,072) $ -14% 6,767,628 $ 2%
Page 117 of 333
<Los Alamos County Utilities Department Fiscal Year 2027-2028 Budgets
Water Distribution
FY2024 Actual FY2025 Actual FY2026 Adopted FY2026 Projected FY2027 Proposed $ Variance FY2027 vs FY2026 % Variance FY2027 vs FY2026 FY2028 Projected % Variance FY2028 vs FY2027 Revenue
Sales in Thousand of Gallons 790,698 723,981 800,000 760,000 760,000 (40,000) -5% 760,000 0% Revenue per thousand gallons
8.2596 $
9.4154 $
9.5145 $
9.9803 $
10.7787 $
1.2642 $ 13%
11.6410 $ 8% Sales Revenue 6,530,852 6,816,567 7,611,636 7,585,044 8,191,848 580,212 8% 8,847,196 8% Interest on Utility Reserves 5,280 58,175 - - - - 0% - 0% Revenue on Recoverable Work 56,053 (24,876) 25,000 25,000 25,000 - 0% 25,000 0% Misc Service Revenues 80,203 91,612 60,000 60,000 60,000 - 0% 60,000 0%
Total Revenue
6,672,387 $ 6,941,479 $ 7,696,636 $ 7,670,044 $ 8,276,848 $ 580,212 $ 8% 8,932,196 $ 8%
Operating Expenses
Operations Staffing Related 1,116,772 1,220,438 1,269,796 1,269,910 1,243,681 (26,115) -2% 1,259,379 1% Water Distribution 235,519 408,006 501,278 716,320 706,980 205,702 41% 728,191 3% Water Meters 210,631 57,102 283,250 286,253 74,311 (208,939) -74% 76,540 3% Interdepartmental Charges 417,792 372,567 354,361 354,361 626,902 272,541 77% 508,094 -19% Eng. Cust Svc. MR and Admin 567,837 761,105 1,031,048 1,031,048 1,043,204 12,156 1% 1,080,138 4% Debt Service - - - - - - 0% 118,665 100% Cost of Water 4,675,871 4,553,886 4,200,000 4,200,000 4,588,272 388,272.00 9% 4,955,334 8%
Total Operating Expenses
7,224,421 $ 7,373,104 $ 7,639,733 $ 7,857,892 $
8,283,350 $
643,617 $ 8% 8,726,341 $ 5%
Operating Income (Loss) (552,033) $ (431,625) $ 56,903 $ (187,847) $ (6,502) $ (63,405) $ 205,855 $ Capital Expenditures
Capital Expenditures 490,721 1,463,551 4,900,000 5,967,860 1,235,000 (3,665,000) -75% 1,300,000 5%
Other Financing
Grants/Loan Proceeds - - 3,500,000 3,500,000 1,200,000 (2,300,000) -66% 1,000,000 -17% Revenue Transfer Council Redirect 879,411 978,123 - -
-
- 0% - 0%
Net Income (Loss) (163,343) $ (917,054) $ (1,343,097) $ (2,655,707) $ (41,502) $ 1,301,595 $ (94,145) $ Expenditures by Type:
Salaries 798,303 816,942 790,528 790,528 828,214 37,686 5% 838,968 1% Benefits 254,717 316,576 320,606 320,606 317,468 (3,138) -1% 319,472 1% Professional/Contractual Services 645,233 1,645,194 5,474,447 6,750,464 1,731,132 (3,743,315) -68% 1,811,017 5% Materials/Supplies 313,320 343,916 368,743 378,745 382,908 14,165 4%
394,395
3% Interfund Charges 983,589 1,133,815 1,385,409 1,385,409 1,505,356 119,947 9%
1,588,490
6% Capital Outlay 44,108 26,328 - - 165,000 165,000 0%
-
-100% Fiscal Charges - - - - - - 0% 118,665 100%
Total 3,039,271 $ 4,282,770 $ 8,339,733 $ 9,625,752 $ 4,930,078 $ (3,409,655) $ -41% 5,071,007 $ 3%
Page 118 of 333
<Los Alamos County Utilities Department Fiscal Year 2027-2028 Budgets
Water Production
FY2024 Actual FY2025 Actual FY2026 Adopted FY2026 Projected FY2027 Proposed $ Variance FY2027 vs FY2026 % Variance FY2027 vs FY2026 FY2028 Projected % Variance FY2028 vs FY2027 Revenue
Potable 1000-gallon production 1,240,726 1,099,647 1,150,000 1,050,000 1,050,000 (100,000) -9% 1,050,000 0% Non-potable 1000-gallon production 99,521 112,300 136,500 97,300 97,300 (39,200) -29% 97,300 0% Revenue per 1000 gallons
4.88 $
4.67 $
4.86 $
5.25 $
5.71 $
0.85 18%
6.17 8% Potable Sales to Water Distribution 4,675,871 4,553,886 4,200,000 4,200,000 4,588,272 388,272 9% 4,955,334 8% Potable Sales Wholesale 1,532,828 708,692 1,839,389 1,457,245 1,573,824 (265,565) -14% 1,699,730 8% Repayment of InterUtility Loan 93,784 - - - - - 0% 0% Interest on Utility Reserves 566,466 501,684 284,076 284,076 178,133 (105,943) -37% 167,466 -6% Bond Federal Subsidy 21,338 14,661 10,459 10,459 8,496 (1,963) -19% 6,472 -24% Non Potable 325,360 398,550 214,807 362,580 391,586 176,779 82% 422,913 8% Miscellaneous 135,187 - - - - - 0% - 0%
Total Revenue
7,350,834 $ 6,177,473 $ 6,548,731 $ 6,314,360 $ 6,740,311 $ 191,580 3% 7,251,915 $ 8%
Operating Expenses
Operations Staffing Related 1,989,299 1,978,357 1,803,108 1,803,108 1,900,337 97,229 5% 1,923,024 1% Pumping Power 726,082 866,918 885,800 885,800 936,272 50,472 6% 1,001,811 7% Wells 117,853 121,458 180,667 213,623 145,350 (35,317) -20% 149,711 3% Booster Pump Stations 148,110 94,239 382,246 499,665 231,364 (150,882) -39% 238,305 3% Treatment 15,038 59,110 8,863 12,730 58,288 49,425 558% 59,287 2% Storage Tanks 11,461 17,617 21,218 21,218 326,855 305,637 1440% 336,661 3% Transmission Lines 103,151 74,372 144,587 144,587 169,939 25,352 18% 175,038 3% Non Potable System 175,656 98,873 204,830 213,163 128,105 (76,725) -37% 135,996 6% Interdepartmental Charges 413,058 469,276 441,292 441,292 557,362 116,070 26% 552,600 -1% Eng. Cust Svc. MR and Admin 1,070,774 733,448 731,944 731,944 743,113 11,169 2% 770,850 4% State Water Tax 37,222 32,989 48,410 48,410 48,410 - 0% 49,863 3% Debt Service 199,569 526,275 888,118 888,118 926,593 38,475 4% 991,924 7%
Total Operating Expenses
5,007,271 $ 5,072,932 $ 5,741,083 $ 5,903,658 $ 6,171,988 $ 430,905 8% 6,385,070 $ 3%
Operating Income (Loss) 2,343,563 $ 1,104,540 $ 807,648 $ 410,702 $ 568,323 $ (239,325) 866,845 $ Capital Expenditures
Capital Expenditures 5,985,360 11,265,069 4,458,500 24,961,140 3,635,000 (823,500) -18% 5,220,000 44%
Other Financing
Grants/Loan Proceeds 4,323,029 8,513,506 2,500,000 7,188,450 2,640,000 140,000 6% 4,116,000 56% County/External Reimbursement 1,176,296 736,958 - 9,400,153 - - 0% - 0% Transfer from General Fund/Econ Dev 314,477 3,050,000 100,000 3,150,000 - (100,000) -100% - 0% Revenue Transfer Council Redirect 339,234 - - - - - 0% - 0% 0%
Net Income (Loss) 2,511,238 $ 2,139,936 $ (1,050,852) $ (4,811,835) $ (426,677) $ 624,175 (237,155) $ Expenditures by Type:
Salaries 1,061,841 1,089,726 1,136,438 1,136,438 1,175,368 38,930 3% 1,188,227 1% Benefits 393,888 406,865 474,938 474,938 515,163 40,225 8% 518,697 1% Professional/Contractual Services 6,293,257 11,632,688 5,432,939 26,094,287 4,568,182 (864,757) -16% 6,180,429 35% Materials/Supplies 241,915 280,177 186,790 190,657 272,091 85,301 46% 280,255 3% Interfund Charges 2,264,260 2,143,331 2,045,825 2,045,825 2,262,696 216,871 11% 2,412,686 7% Capital Outlay 152,854 - 34,535 34,535 86,895 52,360 152% 32,852 -62% Fiscal Charges 584,617 785,213 888,118 888,118 926,593 38,475 4% 991,924 7%
Total 10,992,631 $ 16,338,001 $ 10,199,583 $ 30,864,798 $ 9,806,988 $ (392,595) -4% 11,605,070 $ 18%
Page 119 of 333
<Los Alamos County Utilities Department Fiscal Year 2027-2028 Budgets
Wastewater Treatment - Collection
FY2024 Actual FY2025 Actual FY2026 Adopted FY2026 Projected FY2027 Proposed $ Variance FY2027 vs FY2026 % Variance FY2027 vs FY2026 FY2028 Projected % Variance FY2028 vs FY2027 REVENUE
Thousands of Gallons Processed 369,475 368,333 400,000 368,333 368,333 (31,667) -8% 368,333 0% Sales Revenue 6,421,297 6,674,090 7,250,168 7,141,277 7,641,167 390,999 5% 8,252,461 8% Interest on Utility Reserves 174,469 195,992 175,000 175,000 7,138 (167,861.51) -96% - -100% Revenue on Recoverable Work 19,615 (17,395) 10,000 10,000 10,000 - 0% 10,000 0%
TOTAL REVENUE
6,615,381 $ 6,852,687 $ 7,435,168 $ 7,326,277 $ 7,658,305 $ 223,137 $ 3% 8,262,461 $ 8%
OPERATING EXPENSES
Operations Staffing Related - Collections 781,795 815,380 1,005,493 1,005,639 1,182,079 176,586 18% 1,195,929 1% Operations Staffing Related - Treatments 1,018,345 1,192,106 1,209,498 1,209,498 1,559,045 349,547 29% 1,575,761 1% Wastewater Collection 97,409 431,629 270,684 270,684 290,455 19,771 7% 273,164 -6% Lift Stations 117,120 62,753 175,769 189,488 190,235 14,466 8% 197,022 4% Wastewater Treatment 629,921 598,872 1,069,347 1,074,313 1,145,440 76,093 7% 1,187,976 4% Interdepartmental Charges 1,094,160 1,190,890 1,367,223 1,367,223 1,227,897 (139,326) -10% 1,048,189 -15% Eng. Cust Svc. MR and Admin 1,090,454 604,657 779,838 779,838 780,506 668 0% 808,582 4% Debt Service 870,247 772,517 2,124,642 2,124,642 2,147,709 23,067 1% 2,230,912 4%
TOTAL OPERATING EXPENSES
5,699,449 $ 5,668,804 $ 8,002,494 $ 8,021,326 $ 8,523,366 $ 520,872 $ 7% 8,517,535 $ 0%
OPERATING INCOME (LOSS) 915,932 $ 1,183,883 $ (567,326) $ (695,049) $ (865,061) $ (297,735) $ (255,074) $ CAPITAL EXPENDITURES
Capital Expenditures 12,304,019 5,030,417 2,695,000 5,957,323 2,185,000 (510,000) -19% 4,150,000 90%
OTHER FINANCING
Grant/Loan Proceeds 10,455,896 5,219,576 2,000,000 2,000,000 2,000,000 - 0% 3,720,000 86% Revenue Transfer Council Redirect 261,918 - - - - - 0% 0 0%
NET INCOME (LOSS) (670,274) $ 1,373,042 $ (1,262,326) $ (4,652,372) $ (1,050,061) $ 212,265 (685,074) $ Expenditures by Type:
Salaries
1,251,037 1,385,005 1,526,820 1,526,820 1,878,792 351,972 23% 1,900,881 1%
Benefits 474,601 536,853 617,598
617,598
763,493
145,895
24% 769,005 1% Professional/Contractual Services 12,622,779 5,642,917 3,563,317
6,844,472
3,193,288
(370,029)
-10% 5,188,499 62% Materials/Supplies 352,442 326,440 496,186
496,186
493,428 (2,758) -1% 508,231 3% Interfund Charges 2,101,751 1,897,734 2,088,931
2,088,931
1,918,431 (170,500) -8% 2,056,602 7% Capital Outlay 330,039 137,755 280,000
280,000
313,225 33,225 12% 13,405 -96% Fiscal Charges 870,820 772,517 2,124,642 2,124,642 2,147,709 23,067 1% 2,230,912 4%
Total 18,003,469 $ 10,699,221 $ 10,697,494 $ 13,978,649 $ 10,708,366 $ 10,872 $ 0% 12,667,535 $ 18%
Page 120 of 333
<Los Alamos County Utilities Department Fiscal Year 2027-2028 Budgets
Administration
FY2024 Actual FY2025 Actual FY2026 Adopted FY2026 Projected FY2027 Proposed $ Variance FY2027 vs FY2026 % Variance FY2027 vs FY2026 FY2028 Projected % Variance FY2028 vs FY2027 Meter Reading 281,258 $ 282,286 $ 309,670 $ 309,670 346,172 36,502 $ 12% 356,209 3%
Salaries 164,690 171,078 $ 167,867 167,867 197,672 29,805 18% 202,305 2% Benefits 67,923 70,064 $ 74,851 74,851 83,416 8,565 11% 84,717 2% Professional/Contractual Services 4,694 3,282 $ 42,210 42,210 39,358 (2,852) -7% 41,326 5% Materials/Supplies 23,384 17,053 $ 6,825 6,825 8,756 1,931 28% 9,194 5% Interfund Charges 20,568 20,809 $ 17,917 17,917 16,970 (947) -5% 18,667 10% Capital Outlay - - $ - - - - 0% - 0% Fiscal Charges - - $ - - - - 0% - 0%
Customer Service 883,049 $ 920,665 $ 1,053,628 $ 1,057,153 1,073,941 20,313 $ 2% 1,108,137 3%
Salaries 433,770 456,162 $ 525,632 525,632 518,640 (6,992) -1% 536,704 3% Benefits 186,103 207,924 $ 245,263 245,263 240,152 (5,111) -2% 245,527 2% Professional/Contractual Services 256,555 252,105 $ 266,983 270,508 294,149 27,166 10% 308,856 5% Materials/Supplies 6,620 4,474 $ 15,750 15,750 21,000 5,250 33% 17,050 -19% Interfund Charges - - $ - - - - 0% - 0% Capital Outlay - - $ - - - - 0% - 0% Fiscal Charges - - $ - - - - 0% - 0%
Engineering 1,835,280 $ 1,984,334 $ 2,019,917 $ 2,019,917 2,146,891 126,974 $ 6% 2,228,735 4%
Salaries 1,234,419 1,321,766 $ 1,367,152 1,367,152 1,433,634 66,482 5% 1,489,550 4% Benefits 490,793 514,089 $ 543,732 543,732 553,001 9,269 2% 570,253 3% Professional/Contractual Services 54,466 60,749 $ 47,322 47,322 87,500 40,178 85% 91,875 5% Materials/Supplies 22,371 76,687 $ 53,000 53,000 54,900 1,900 4% 57,415 5% Interfund Charges 13,643 11,043 $ 8,711 8,711 17,856 9,145 105% 19,642 10% Capital Outlay 19,588 - $ - - - - 0% - 0% Fiscal Charges - - $ - - - - 0% - 0%
Administration 747,817 $ 807,234 $ 1,713,169 $ 1,713,169 1,554,720 (158,449) $ -9% 1,601,989 3%
Salaries 413,187 429,314 $ 1,092,921 1,092,921 749,622 (343,299) -31% 764,816 2% Benefits 185,823 192,749 $ 194,440 194,440 326,288 131,848 68% 331,490 2% Professional/Contractual Services 102,070 130,703 $ 348,448 348,448 393,966 45,518 13% 413,665 5% Materials/Supplies 9,021 5,578 $ 25,200 25,200 25,725 525 2% 27,012 5% Interfund Charges 37,716 48,431 $ 52,160 52,160 58,619 6,459 12% 64,481 10% Capital Outlay - 459 $ - - 500 500 0% 525 5% Fiscal Charges - - $ - - - - 0% - 0%
Finance 874,036 $ 721,134 $ 1,284,679 $ 1,288,204 1,078,511 (206,168) $ -16% 1,114,918 3%
Salaries 502,615 490,376 $ 528,863 528,863 578,088 49,225 9% 596,076 3% Benefits 193,865 184,758 $ 221,275 221,275 233,652 12,377 6% 239,057 2% Professional/Contractual Services 167,719 33,325 $ 510,391 513,916 234,752 (275,639) -54% 246,408 5% Materials/Supplies 4,655 4,590 $ 24,150 24,150 27,133 2,983 12% 28,491 5% Interfund Charges - - $ - - - - 0% - 0% Capital Outlay 5,184 4,886 $ - - 4,886 4,886 0% 4,886 0% Fiscal Charges - 3,200 $ - - - - 0% - 0%
Public Information 438,248 $ 440,444 $ 550,753 $ 573,617 533,565 (17,188) $ -3% 555,863 4%
Salaries 220,509 222,205 $ 245,351 245,351 245,226 (125) 0% 254,789 4% Benefits 81,455 90,386 $ 85,844 85,844 91,281 5,437 6% 94,161 3% Professional/Contractual Services 122,208 108,739 $ 191,808 214,672 159,508 (32,300) -17% 167,485 5% Materials/Supplies 14,075 18,734 $ 27,750 27,750 36,650 8,900 32% 38,483 5% Interfund Charges - - $ - - - - 0% - 0% Capital Outlay - 380 $ - - 900 900 0% 945 5% Fiscal Charges - - $ - - - - 0% - 0%
Total Administrative Division 5,059,687 5,156,096 6,931,816 6,961,730 6,733,800 (198,016) -3% 6,965,851 3% Expenditures by Type:
Salaries 2,969,190 3,090,901 $ 3,927,786 3,927,786 3,722,882 (204,904) -5% 3,844,240 3% Benefits 1,205,962 1,259,969 $ 1,365,405 1,365,405 1,527,790 162,385 12% 1,565,205 2% Professional/Contractual Services 707,712 588,903 $ 1,407,162 1,437,076 1,209,233 (197,929) -14% 1,269,615 5% Materials/Supplies 80,125 127,115 $ 152,675 152,675 174,164 21,489 14% 177,645 2% Interfund Charges 71,927 80,283 $ 78,788 78,788 93,445 14,657 19% 102,790 10% Capital Outlay 24,772 5,725 $ - - 6,286 6,286 0% 6,356 1% Fiscal Charges - 3,200 $ - - - - 0% - 0%
Total 5,059,687 $ 5,156,096 $ 6,931,816 $ 6,961,730 $ 6,733,800 $ (198,016) $ -3% 6,965,851 $ 3%
Page 121 of 333
<Full Time Equivalent (FTE) Summary
Page 122 of 333
<Los Alamos County Department of Public Utilities Fiscal Year 2027-2028 Budgets
FTE Summary
FY2024 Actual FY2025 Actual FY2026 Adopted FY2026 Projected FY2027 Proposed FY2028 Projected
FTE Summary:
Regular (full & part time)
98.00 101.00 101.00 102.00 102.00 102.00 Overfill
3.00
3.00
2.00
2.00
2.00 Limited Term
2.00
0.00
0.00
0.00
0.00
0.00 Casual, student & temp.
3.65
3.65
3.65
3.65
3.65
3.65 103.65 107.65 107.65 107.65 107.65 107.65 FTE by Division: Electric Production
14.00
13.40
13.40
13.40
13.40
13.40 Electric Distribution
13.00
14.60
14.60
15.60
15.60
15.60 Gas/Water/Sewer
23.45
23.45
23.45
23.45
23.45
23.45 Water Production
10.25
10.25
10.25
10.25
10.25
10.25 Wastewater Treatment
10.30
10.30
10.30
10.30
10.30
10.30 Administrative & General
32.65
35.65
35.65
34.65
34.65
34.65 103.65 107.65 107.65 107.65 107.65 107.65
Page 123 of 333
<10-Year CIP and Budget Option Plans
Page 124 of 333
<ELECTRIC PRODUCTION 200,000
Abiquiu Wicket Gate Hydraulic Servo Motor Replacement 200,000
ELECTRIC DISTRIBUTION 3,485,000
White Rock URD Replacement: Aragon, Ridgecrest,Garver,Catherine 1,500,000 Overhead System Replacement (polex, xarms, transformers) 450,000 DP Road Staging Area 35,000 EA-4 Power Line Replacement (State Grant) 1,500,000
GAS DISTRIBUTION 135,000
Pipeline Repair & Replacement / Equipment 100,000 DP Road Staging Area 35,000
WATER DISTRIBUTION 1,235,000
Denver Steels Phase III (Public Works Road Project) (DWSRF Loan) 1,200,000 DP Road Staging Area 35,000
WATER PRODUCTION 3,635,000
Repaint Pajarito Tank 4A (WTB $1,280,000 / CIP $320K) 1,600,000 Pajarito Road Transmission Line Replacement Phase I (WTB $1,360,000 / CIP $340K) 1,700,000 Pajarito Well No. 3 Replacement Well Design 300,000 DP Road Staging Area 35,000
WASTEWATER TREATMENT AND SEWER COLLECTION TOTAL 2,185,000 SEWER COLLECTION 1,885,000
Denver Steels Phase III (Public Works Road Project) 150,000 Sewer Line Rehabilitation (RIP Loan) Fairway Street 800,000 Sycamore Street 600,000 North Community/Western Area Sewer Mains & Services R&R - Phase 2 300,000 DP Road Staging Area 35,000
WASTEWATER TREATMENT 300,000
Convert Effluent Washwater to Gravity System (RIP Loan) 300,000
FY27 (1 July 2026 - 30 June 2027) Budget
Page 125 of 333
<ELECTRIC PRODUCTION 1,050,000
El Vado Shaft Seal Repair 250,000 El Vado Controls Upgrade 650,000 El Vado Synchronizer Replacement 150,000
ELECTRIC DISTRIBUTION 3,450,000
Overhead System Replacement (polex, xarms, transformers) 450,000
Townsite Circuit 16, 1 PHASE
White Rock Circuit1, Wire 1 PHASE
EA-4 Power Line Replacement (State Grant) 2,500,000 Los Pueblos Phase I 500,000
GAS DISTRIBUTION 110,000
Pipeline Repair & Replacement / Equipment 110,000
WATER DISTRIBUTION 1,300,000
34th & Little Urban Street Waterline Replacement (WTB $1,000,000 / CIP $300K) 1,300,000
WATER PRODUCTION 5,220,000
North Mesa Tank Altitude Valve (WTB $536k / CIP $134K) 670,000 Pajarito Road Transmission Line Replacement Phase II (WTB $1,800,000 / CIP $400K) 2,200,000 Booster Station Mech. and Elec. Upgrades Phase I - Design (WTB $280k / CIP $70k) 350,000 Booster Station Building Renovations Phase II 500,000 Pajarito Well No. 3 Replacement Test Well Drilling/Hydrogeology (Federal Allocation) 1,500,000
WASTEWATER TREATMENT AND SEWER COLLECTION TOTAL 4,150,000 SEWER COLLECTION 4,150,000
Old Pueblo Plant Canyon Drop Replacement (WTB $640 / CIP $160k) 800,000 Cooper Road Sewer Canyon Drop Repl. (WTB $1,080,000 /CIP $270k) 1,350,000 Sewer Line Rehabilitation (RIP Loan) Refurbish or Eliminate Pueblo Canyon Pipe Bridge 1,100,000 Aspen School Area Pipeline - Phase 2 (Public Works Project) 200,000 Sandia Drive 700,000
WASTEWATER TREATMENT 0
FY28 (1 July 2027 - 30 June 2028) Budget
Page 126 of 333
<FY29 (1 July 2028 - 30 June 2029) Budget ELECTRIC PRODUCTION 1,100,000
Abiquiu Excitation System Replacement Units 1 & 2 1,100,000
ELECTRIC DISTRIBUTION 6,750,000
Los Alamos URD Replacement: Tewa, Otowi, Nambe Loop, Santa Clara, 1,000,000 Overhead System Replacement (polex, xarms, transformers) 250,000
Townsite Circuit 16, 1 PHASE
White Rock Circuit1, Wire 1 PHASE
Los Pueblos Phase II 750,000 SCADA 250,000 Los Alamos URD Replacement ; Sandia, 41st,thru 47th,Ridgeway Tie (Bond) 1,000,000 White Rock URD Replacement: Grand Canyon, Bryce, Richard CT, Rover (Bond) 2,000,000 La Senda (Bond) 1,500,000
GAS DISTRIBUTION 295,000
Pipeline Repair & Replacement / Equipment 120,000 Central Avenue - 9th St to Roundabout (Public Works Road Project) 175,000
WATER DISTRIBUTION 520,000
Central Avenue - 9th St to Roundabout (WTB $416k / CIP $104k) 520,000
WATER PRODUCTION 4,075,000
Booster Station Mech. and Elec. Upgrades Phase I (WTB $1,600,000 / CIP $400K) 2,000,000 Townsite 14" Pipeline Replacement - Phase 2 (WTB $1,700,000 / CIP $375K) 2,075,000
WASTEWATER TREATMENT AND SEWER COLLECTION TOTAL 1,700,000 SEWER COLLECTION 1,700,000
Sewer Line Rehabilitation (RIP Loan) Eastern Area Phase 1 Renewal & Replacement 1,000,000 Aspen School Area Pipeline - Phase 3 (Public Works Project) 300,000 Kimberly Sewer Lift Station & Wet Well 400,000
WASTEWATER TREATMENT 0
Page 127 of 333
<