BDD Project Newsletter
Vol. 1, Issue 1 • July 2009
New Mexico Water Trust Board Awards $4 Million to BDD
The New Mexico Water Trust Board (WTB) has voted to award $4.0 million in State financing for construction of the Buckman Direct Diversion (BDD) Project. The $4.0 million includes a $3.2 million grant and an $800,000 low interest loan. The BDD Project in prior years has received an additional $13.45 million from the state.
“We are grateful to the New Mexico Legislature, the New Mexico Water Trust Board and the New Mexico Finance Authority for their continued financial support to pay for this essential regional drinking water project. We are particularly grateful to have received our full annual request for state funding assistance given the economic concerns and constraints of the State,” said Virginia Vigil, BDD Board Chair.
The City of Santa Fe and Santa Fe County are equal owners of the BDD Project. The $3.2 million grant award will equally reduce their costs. The City and County will each be responsible for repayment of one-half of the low interest loan. Las Campanas does not receive any benefit of the state funding contribution.
Total estimated cost of BDD construction is $216.3 million. BDD Project budget funding sources for the City include paying for its share of BDD construction costs with cash; revenue bond proceeds from City quarter-cent gross receipts taxes and water rates; City low-interest loan from the State drinking water revolving loan fund; and any future grants and loans. The County’s funding sources to pay for its share of BDD construction costs include cash from joint City/County regional gross receipts tax, County bond proceeds and any future grants and loans.
Las Campanas’ share as a limited partner for raw water facilities is approximately $11.2 million. Las Campanas will not benefit from the current WTB award or previous federal and state grants or low-interest loans. Las Campanas is paying for its share of construction of the BDD raw water facilities in cash. Once the BDD project is operational, each partner will pay a proportional amount for the share of water used.
The Water Trust Board determines funding after the projects have received legislative authorization and a funding status analysis has been completed with capital outlay, state appropriations and other federal funding sources. Funding is awarded in the form of a grant and loan combination. The Water Trust Board is a 15-member board representing many diverse water users and is charged with prioritizing and recommending to the Legislature projects for funding from the Water Project Fund. The New Mexico Finance Authority is named in statute as the administrator to the Water Trust Board.