City of Truth or Consequences

The agenda focuses on the selection of a Mayor and Mayor Pro-Tem and includes reports from the City Manager, City Commission, and City Attorney. Key business items comprise a budget adjustment resolution, an amendment to the municipal code regarding animals, and a discussion on municipal golf course fees. The Commission will also address purchase requisitions, the Colonias Infrastructure Fund application, an emergency funding grant agreement, and the Water and Wastewater Cost of Service and Rate Design Study. Additionally, the agenda features the selection of members for the Art in Public Places Committee and various appointments to regional boards and councils, including the Sierra Vista Hospital Joint Powers Commission, South-Central Council of Governments, and the Regional Planning Organization. An executive session regarding personnel matters is also scheduled.

The commission meeting included reports on city operations, specifically regarding infrastructure improvements such as water system repairs and road maintenance. Discussions highlighted successful legislative efforts to secure funding for municipal projects, including improvements to the Lee Belle Johnson Center, street developments, and water infrastructure. The primary focus of the meeting was a presentation on the proposed Sierra County Gateway Alliance, which elicited substantial public comment and commission deliberation regarding regional collaboration, public accountability, the role of private entities in government, and potential impacts on local economic and environmental resources.

The presentation focused on a comprehensive water and wastewater cost of services and rate design study. The discussion included the revenue requirements for utility operations and capital infrastructure needs, a transition to normalized fiscal test years, and proposed rate scenarios to ensure long-term financial integrity. Key recommendations included phasing in meter equivalent rates, eliminating the allowance of 2,000 gallons in minimum bills to promote water conservation, and establishing a standardized multiplier for outside customer rates to ensure fairness and defensibility. The session also addressed the necessity of securing funding for wastewater system compliance and the benefits of leveraging available grant opportunities.

This report details an independent water and wastewater cost of service and rate design study for the City of Truth or Consequences. The study forecasts revenue requirements and develops rates for Fiscal Years 2026 through 2029, with the objective of ensuring the financial integrity of the utility and full cost recovery. Key recommendations include implementing proposed rate Scenario 2 for both water and wastewater to achieve positive cash flow by FY 2029, phasing in meter equivalent minimum bills, phasing out included gallons in minimum bills, applying multipliers for outside-city customers, identifying unknown meter sizes, and considering the consolidation of water rate tiers.

The meeting included an acknowledgment of the municipal election results and official canvass. Key agenda items featured a discussion and action regarding a resolution to authorize a Water Project Fund loan/grant agreement for the Cantrell Dam reconstruction project, as well as a budget adjustment request. The Commission also reviewed a purchase report for items exceeding $60,000, specifically regarding annual insurance premiums. Additionally, the Commission convened in an executive session to discuss threatened and pending litigation and limited personnel matters.