Former Colorado town administrator charged with embezzling $26,000 from federal water project

The former administrator and clerk of a tiny southern Colorado town is charged with multiple felonies after investigators say she stole more than $26,000 in federal grants and loans meant for a reservoir project.

Tyra Marie Avila, 47, is charged with theft, cybercrime, embezzlement of public property and forgery, all felonies, along with misdemeanor check fraud, the Colorado Bureau of Investigation said Tuesday.

Avila was the Aguilar town administrator, clerk and treasurer for 17 years before she resigned in September 2024, according to the agency. Aguilar, a Las Animas County town of less than 500 people, is located just off of Interstate 25, 65 miles south of Pueblo.

Investigators say money earmarked for an augmentation reservoir was combined with the town’s general fund and used for “unauthorized personal transactions and other town expenses, ultimately leaving contractors for the critical water project unpaid,” state officials said Tuesday.

According to the Walsenburg-based World Journal, the $5.7 million water project backed by the U.S. Department of Agriculture sent the town into a financial crisis.

The project was meant to protect the more senior water rights of users downstream while still making sure town residents had enough water, the newspaper reported.

But the reservoir was plagued with design and safety issues after construction started in December 2023.

State officials on Tuesday said town leaders have since “taken steps to implement stricter financial controls, including establishing a separate account for the water project accessible only by the current mayor and a USDA official, to ensure the project can move forward.”

Avila was released on $15,000 bail. Her next court date has not been set.

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