Update on TPWUC

Information on the rate increase and the status of Tranquillo Pines Water Users Co-Operative. A letter sent to the membership on May 2, 2024, spelled out the background behind our recent water and financial problems. Please find this letter in the news section of the website to refresh your memory.

On May 22, 2024, well 10 was approved by the New Mexico Environment Department to connect to our system and on May 23rd it was put online. This well produces ~8 gallons per minute and is showing to be a good producer. The water hauling ended as soon as this well came online, but the damage to our finances had been done. As was stated in the previous letter, due to water hauling cost, our savings accounts went from $118,657 to zero, we were out of money and facing bankruptcy. The total amount spent on water hauling was astronomical in the tune of $166,043, if 10 didn’t come online when it did, we would be having a very different discussion now. Fortunately, several anonymous benefactors came forward with a $20,000 loan to keep us out of bankruptcy and the Co-Op solvent. This money was used to pay for a $5000 hookup fee to PNM for well 10 and $15,000 to keep the Co-Op running day to day. We are not out of the woods. We need to continue to pay our debts, run the business of the Co-Op and build our savings back up to finance system maintenance and future projects. Currently we are able to pay our bills and keep the pumps on. 

Moving forward the water assessment cost will need to be in force for several more months to build our accounts to a sustainable level. We need a cash flow of ~$20,000 per month to run the business of the Co-Op. As discussed in the May 2 letter the board will meet to review the assessments and adjust accordingly.  Hopefully, with the membership’s blessing, we can continue some of the assessment and continue to build our savings. It is important to build our savings for future projects such as a new well and repairs on an aging system. Creating a strong savings account is imperative to getting loans. Moving forward, since we are a 501(c)(12) organization, we are limited to not receiving grants. Low interest loans from New Mexico Rural Water are our best option for large capital projects. 

Please review the Board of Directors webpage for the position we hold at https://tpwuc.net/board-members.  As Board Members we are all volunteers and give a lot of our time. We are open to correspondence but please be respectful of our private lives. 

Sincerely,

Board of Directors, Tranquillo Pines Water Users Co-Op