Santa Fe advances $2.55m chemical-feed upgrade financing
City of Santa Fe Water Division, New Mexico · Meeting date: November 2, 2026 · Published: November 3, 2026
The Public Works and Utilities Committee approved the Water Project Fund loan/grant agreement for the Canyon Road Water Treatment Plant Chemical Feed Project. The package combines a $1.53 million grant with a $1.02 million loan supported by the water utility system’s net revenues.
Key points
- The $2.55 million NMFA package comprises a $1.53 million grant and a $1.02 million loan for the Canyon Road Water Treatment Plant Chemical Feed Project.
- Funding is designated for design and construction upgrades to chemical-feed equipment in Santa Fe’s water utility system.
- The $1.02 million loan carries a 0.25% annual administrative fee and is scheduled for 20 annual payments beginning June 1, 2029.
- Loan repayment and the administrative fee are pledged solely from net revenues of the city water utility system.
- The agreement identifies a further $510,000 of city funding required to complete the project.
Full report
Santa Fe has advanced a $2.55 million state-backed financing package for chemical-feed equipment upgrades at the Canyon Road Water Treatment Plant, combining a $1.53 million grant with a $1.02 million loan to be repaid from water-system revenues.
The Public Works and Utilities Committee approved Bill 2026-20 on its consent agenda on 2 November. The measure authorizes a Water Project Fund loan/grant agreement between the city and the New Mexico Finance Authority for the Canyon Road Water Treatment Plant Chemical Feed Project, identified as WPF-6928.
The project funding is intended for design and construction upgrades to chemical-feed equipment incorporated in the city-owned water utility system. The agreement describes the work as designing a new water-treatment-plant chemical-feed project, including related work and revisions needed to complete it.
The grant represents 60% of the $2.55 million award, while the loan represents the remaining 40%. Santa Fe is also required to provide an additional $510,000 in funding. The city has certified that the loan/grant amount, combined with other available funds, is sufficient to complete the project.
The loan carries no interest, but the city will pay a 0.25% annual administrative fee on the unpaid principal balance. Under the interim debt-service schedule, the city would make 20 annual principal payments beginning on 1 June 2029 and ending on 1 June 2048. Annual debt service is projected at about $52,524, with total debt service of $1.05 million.
Repayment is secured solely by net revenues of the water utility system, rather than by a general obligation of the city. The financing agreement places the new obligation behind existing and future liens on those revenues, except for certain NMFA and Colonias Infrastructure Act loans that would rank on parity.
Before funds can be disbursed, Santa Fe must meet the agreement’s conditions and readiness-to-proceed requirements. The city is also required to submit quarterly project status reports during implementation, covering expenditure progress, local-match spending, project completion and anticipated milestones.
This summary was generated by AI based on the source document and may contain errors.
Source: Public Works and Utilities Committee, City of Santa Fe Water Division