KIRTLAND — Kirtland officials received updates on a proposed sewer fee increase, audit-related infrastructure delays, former district audit findings and multiple capital improvement proposals during a recent Town Council meeting, according to records reviewed by San Juan Pulse.

The materials included updates on sewer system operations, infrastructure planning, grant-related delays and administrative matters involving several town projects.

Sewer fee increase request

The Lower Valley Water Users Association requested increasing its sewer collection service fee paid to the town from $418 per month to $1,100 per month, according to the request letter included in the meeting materials.

The request letter stated the association believed the increase was needed to maintain sewer operations and service reliability.

Meeting documents stated the sewer collection fee had not increased in approximately 11 years.

Financial reports included in the meeting materials showed the town recorded approximately $560,655 in sanitation-related expenses during the fiscal year through April 2026.

Documents reviewed by San Juan Pulse indicated the request was presented as part of the meeting materials. The materials did not indicate whether the council approved the proposed increase during the meeting.

Infrastructure projects and audit delays

Project status documents state the VWSD Forcemain Replacement Phase 3 project was awaiting completion of the town’s FY2024 audit.

Documents state the grant agreement for the VWSD Forcemain Replacement Phase 3 project cannot be issued until the town’s FY2024 audit is finalized by the state.

Financial reports included in the packet listed approximately $771,771 associated with the Forcemain 3 infrastructure project through April 2026, while capital grant revenue totaled approximately $740,075.

Audit records reviewed by San Juan Pulse state the Valley Water & Sanitation District dissolved in March 2024 and was subsequently adopted by the Town of Kirtland.

The audit records identified repeated findings involving the former Valley Water & Sanitation District, including failures to submit quarterly reports and budgets to the New Mexico Department of Finance and Administration, missing supporting documentation, incomplete capital asset inventory records and repeated late financial reporting.

According to the audit findings, auditors reported supporting documentation was not provided for two deposits totaling approximately $84,944.

The audit report stated no information indicating fraud, illegal acts or additional internal control deficiencies came to auditors’ attention during the agreed-upon procedures engagement.

Earlier council meeting minutes reviewed by San Juan Pulse show officials had previously discussed sewer system contract concerns, operational costs, procurement procedures and audit-related funding restrictions during multiple 2026 meetings.

Meeting materials also referenced additional infrastructure and recreation-related planning proposals.

The draft ICIP materials listed potential future projects including sidewalks, sewer expansion, basketball courts, storm drains and recreational facilities.

Capital improvement proposals

Project planning documents listed a proposed splash pad project estimated at approximately $1.5 million.

Financial records included in the meeting packet listed approximately $229,958 in expenditures associated with the splash pad project as of April 30, 2026.

The meeting materials reviewed by San Juan Pulse did not specify the nature of the splash pad-related expenditures.

The documents reviewed by San Juan Pulse did not indicate funding approval, project completion or final council action related to the proposed splash pad project.

Administrative and personnel matters

Meeting materials also included personnel and administrative items.

Meeting minutes state the council voted to hire Noah Baker as a full-time employee at a pay rate discussed during executive session.

Additional agenda materials included discussion items involving infrastructure planning, utility coordination and town operations.

SOURCE

According to Town of Kirtland meeting agenda materials, planning documents, audit records, financial reports and meeting minutes reviewed by San Juan Pulse.

The meeting materials reviewed by San Juan Pulse included agenda items, proposals, financial reports, audit findings and planning documents. Not all items reflected final council action.