The City’s preliminary budget, in most cities, would have comprised several meetings on its own.
The most important items include:
LOCAL ELECTION ACT ORDINANCE:
The City Commission will consider whether to publish an ordinance that would hand over local election duties to the Sierra County Clerk, an elected position.
If the City Commission decides to go through with the ordinance, it will probably come to public hearing next month.
Currently the City Clerk runs city elections, which is not an elected position. Elections take place the first Tuesday in March, with newly elected city commissioners and the municipal judge taking their seats April 1.
If the City Commission adopted the ordinance, about eight months would be added onto each city commissioner’s term. Mayor Sandra Whitehead’s term, for example, under city-run elections, would end March 2021, but under the county-run elections, would end December 2021.
REFUNDING STREET LOAN:
The City Commission will consider whether to publish an ordinance, which would come to public hearing in about a month, which proposes to borrow nearly $1.08 million principal to “refund” the remaining debt on a loan taken out in 2009. The original loan was for over $2 million, the money to be used to fix streets, put in curbs and sidewalks. The loan is with the New Mexico Finance Authority, as would be the refunding loan.
The documents in the packet do not include a debt schedule. Therefore it is impossible for the public to know what the refunding-loan interest rate is and therefore if the refinancing of the debt is economical.
The administration and financing fees are also not included in the documents. The pay-back period is not in the documents, the yearly pay-back amount, the principal, the interest are all unknown. If any cash beyond the refunding of old debt is included in the loan, it is also unknown.
The 2009 loan is being paid off at between $95,000 and $100,000 a year through 2030 at nearly 3.7-percent interest. According to the most recent audited financial report—fiscal year 2018-2019—the remaining debt owed was $1.2 million principal, which was the balance after nearly $100,000 was paid in 2020.
The debt was paid from the first .25 percent of the municipal Gross Receipts Tax collected from local businesses, a portion of which is disbursed back to the City by the state. The new loan will tap the same source, with an intercept agreement with the State to deposit the payment directly to the New Mexico Finance Authority.
It is unknown how the likely reduction in Gross Receipts Taxes, due to the coronavirus pandemic, will affect the loan.
BACK TO WORK RESOLUTION:
The City Commission passed a back-to-work resolution April 8. At the May 7 meeting the City Commission agreed to form an ad hoc committee under the guidance of City Commissioners Randall Aragon and Amanda Forrister to get public input and modify the resolution.
The new draft resolution goes beyond the current Governor’s executive order, which allows non-essential businesses to open at 25-percent capacity according to the fire marshal, through May 31.
The new resolution takes effect May 27 and states non-essential businesses may open at 50-percent capacity.
There is a clause in the resolution stating the Governor’s order takes precedence, therefore the draft resolution’s amendments are dead on arrival.
A City may pass back-to-work resolutions more stringent than the Governor’s order, but may not pass resolutions that are less stringent.
PRELIMINARY BUDGET RESOLUTION:
The City Commission will consider whether to pass a preliminary budget resolution. The preliminary budget is due to the State by June 1. The final budget is due to the state “before July 30,” according to the city packet.
The budget proposes spending about $22 million.
The General Fund, which pays for all governmental services, as opposed to enterprise services, such as the electric, water, wastewater and solid waste utilities, will expend $6.1 million of the $22 million.
The General Fund will only bring in an estimated $4.1-million in revenue, and will make up the deficit spending with an estimated $2-million transfer from the electric, water, wastewater and solid waste funds.
The General Fund revenue appears to be inflated. It uses last year’s figures to estimate Gross Receipts Taxes, the largest source of revenue for the General Fund. The budget again estimates GRT will be $1.7 million, amid the coronavirus pandemic, which has shuttered businesses.
BOARD MEMBER POSITIONS:
The City Commission will consider appointing all three board member positions it has on the Sierra Vista Hospital Governing Board.
The City and other local governments own the hospital. The Governing Board runs the day-to-day operations and is comprised of community members. The Joint Powers Commission is the big-picture, ownership board, comprised of elected officials.
For the second time the board is asked to reappoint Peggy “Cookie” Johnson to a second three-year term. The City Commission, at the last meeting, said it wanted to review all applicants for the board position. City Commissioner Amanda Forrister said she knew of at least one other applicant, but no other applicants are included in the city packet.
There are two other positions vacant on the governing board besides Johnson’s seat, whose term expires in June. Bruce Swingle, Sierra County manager, was a temporary appointment. His positon with the county precludes having him represent the City’s interests on the board. The other position was held by Lori Montgomery, who resigned.
The City Commission will also consider whom to appoint among them to serve on the Joint Powers Commission. Kathy Clark and Rolf Hechler had served, but did not seek reelection and are no longer on the City Commission. Evidently Mayor Sandra Whitehead and City Commissioner Paul Baca have been serving in their stead, according to the city-packet document.
HOW TO ATTEND:
According to City Clerk Angela Torres:
Submission for public input shall be submitted by email to torcpubliccomment@torcnm.org, by fax at (575) 894-6690, or a hard copy can be dropped in the Utility drop box at 505 Sims Street, Truth or Consequences, NM. Please submit any input you may have by Monday, May 25, 2020.
The in-person attendance for this meeting will be limited to the City Commission, Critical Council and Administrative Staff. The meeting will be broadcast live through KCHS on 101.9 FM and will be available by:
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