The Truth or Consequences City Commission approved a grant application for an unknown amount of grant money, for an unknown amount of City matching funds, which money will go to purchasing City equipment, which also went unnamed and unpriced.
The grant application was approved via a resolution at the Aug. 26 meeting.
There was a public hearing on the U.S. Department of Agriculture Rural Development Community Facilities Grant, but since the City packet did not include any information about the grant, it was no surprise there was no public input on the grant application.
City Commissioner Randall Aragon asked City Manager Morris Madrid if the purchase of equipment using the grant money and City matching funds would come back to the City Commission before the purchase was made.
Madrid said no, the resolution gave him authority to accept and spend grant and City money without coming back to the City Commission.
Aragon asked how the City Commission would know what the grant and matching City funds purchased.
Madrid said the equipment purchases might be in financial statements.
The City’s financial statements are part of the City audit, done every year by an independent auditing firm. Such statements are usually released six to eight months after the fiscal year is over. The financial statements and audit findings for the fiscal year just ending, June 30, 2020, will be released around February 2021.
The financial statements and audit findings for the current fiscal year, which started July 1, 2020 and ends June 30, 2021, will be released around February 2022.
Financial statements released more than a year after an equipment purchase is made, which may or may not be included in the financial statement, is therefore not the tool to inform the City Commission on current spending.
Madrid argued he should be given authority to submit applications and accept grant monies on the City’s behalf without City Commission oversight. Sometimes the USDA fund gets unexpected monies and a call for applications goes out, he said. The City would have to move fast to seize the opportunity.
“Each application is usually less than $100,000,” Madrid said, “which cumulatively could add up to hundreds of thousands of dollars” the City would spend in matching funds for equipment.
Madrid said the City applies for the grant every year. It has to put in a 55-percent match most of the time, but sometimes, if the USDA grant fund is flush, only a 45-percent match is required. Police cars automatically get the lower 45-percent match, he said.
City Commissioner Amanda Forrister, three and one-half months in that position, asked Madrid, whom the board is supposed to be overseeing, “Is it standard practice commissions do not get involved with large funds?”
“Yes, fairly standard,” Madrid said. Some City Commissions limit city-manager purchases to $50,000, Madrid said, above which it must come to the City Commission for approval.
The City of Truth or Consequences has no such spending cap on its city manager.
Forrister then asked Madrid “to send us a quick email telling us what we bought,” not requiring Madrid to report in public on how public monies were spent for public equipment.
Aragon said, “I agree. That’s all we want. We just want to know, in case one of our constituents asks about it.”
The City Commission therefore gave over its authority to exercise fiscal oversight on equipment purchases to the City Manager.
According to state law for commission-city manager forms of government, such as Truth or Consequences’, the City Commission’s duties are:
3-14-12. Powers vested in commission; duties of commission.
A. All powers of the municipality are vested in the commission. The commission shall:
(1) pass all ordinances and other measures conducive to the welfare of the municipality;
(2) perform all acts required for the general welfare of the municipality; and
(3) in addition to the office of manager, create all offices necessary for the proper carrying on of the work of the municipality.
B. The commission shall appoint a manager and shall hold him responsible for the proper and efficient administration of the municipal government.
The City Commission didn’t receive or seek enough information to make an informed decision on whether the USDA grant applications will be to the benefit of the people. It is also not requiring the City Manager to demonstrate such equipment purchases will be “proper and efficient” and to the benefit of the community and therefore it is not holding him “responsible.”