Editor’s Note: This is the final part of the Sun’s examination of the budgeting process underway in the City of Truth or Consequences. In addition to contending with a $1.6 million deficit in the fiscal year 2021-2022 draft budget, new city manager Bruce Swingle has informed the city commissioners that they must play a lead role in identifying departmental spending priorities and cuts and devising a plan within two years to end the practice of balancing the budget with transfers from utility fees.
Commission budget deliberations began at an all-day public session on Wednesday, May 5, at which department heads presented their budget requests. Commissioner Frances Luna typically took the lead in questioning certain expenses, while her colleagues remained largely silent. The picture of city operations that emerged over the course of the day is one of inefficiency and waste. A key factor in the city’s financial mismanagement has been the commission’s historic inattention to budget details, a habit to which Swingle had called halt early in the day.
Here follows the third set of department-by-department summaries of the budgeting and policy issues that were discussed.
COMMUNITY SERVICES DEPARTMENT
O. J. Hechler, the city’s former head of parks and recreation, presented the budget for this new department, of which he is now director.
Hechler offered no explanation of the department’s function or details about how or when he was hired.
The department’s budget includes an increase of Hechler’s nearly $58,700 salary to nearly $67,000, which he said was not a raise. (With benefits, Hechler’s compensation is over $88,000, according to the department’s preliminary budget figures.) He was hired at the lower salary with the understanding that, after three months, his pay would be increased, Hechler said. He did not divulge with whom the agreement was made.
The commissioners made no comments about the creation of a new department and accepted the preliminary figures that set the total budget at about $120,000.
UTILITY OFFICE
Sonya Williams, director of the utility office, said her budget included a $40,000 line item for credit-card charging fees. She assured the commissioners that most of the amount would be “reimbursed” by the credit card companies, but did not explain the reason why.
Commissioner Luna moved on to the issue of overdue utility fees. During a March city commission meeting, Acting City Manager Traci Alvarez reported overdue utility fees had reached a total of $700,000. Luna shared the news that red-tagging and other collection efforts over the last several intervening weeks had reduced the overdue amount to $500,000.
Most of the monies collected were from recent past-due bills. “Going back to 2008 there is $1.5 million past due,” Luna said, “and these are for customers still in our community.”
She asked Williams whether a collection company should be hired or whether a staff person’s time could be dedicated to collection efforts. A collection company had been hired in the past, Williams reported, “and it didn’t work out.” She insisted her staff should and could handle collections.
Williams offered an explanation for lax collection efforts in the past. “We would arrange a payment plan,” she said, “and then someone comes from outside and lets them make other arrangements.”
None of the city commissioners commented on Williams’ revelation that higher authorities in city government had improperly intervened on the behalf of certain delinquent utility customers.
Luna suggested that the utility office staff should file liens on properties with past-due balances, citing a case in which a business that had been leasing its space from a landlord closed, owing $25,000 in utility fees. The landlord now has the property up for sale. In the interim, the business owner has opened another business at another location. The city should quickly put a lien on the landlord’s property, Luna said. The lien will show up in a title search, forcing the landlord to clear up the debt to enable a sale.
At this point, Swingle jumped into the conversation, pointing out that a resolution clarifying collection policies was needed. “This is an important issue,” he agreed, announcing that he would work with City Attorney Jay Rubin to prepare such a resolution, which would be presented to the commission for approval at its next regular monthly meeting. “Once you define the policy statement, it will be the practice,” Swingle said.
FLEET MAINTENANCE DEPARTMENT
Solid Waste Department Director Andy Alvarez reported that, with former City Manager Morris Madrid’s permission, he had taken on directorship of the fleet maintenance department last July—the first public acknowledgment of this administrative change.
“For the last three years there was no management, no control,” Alvarez said. “Someone needed to build up the department again.”
Alvarez said he has made three hires: a master mechanic, a mechanic and an administrative assistant.
Luna asked about the department’s past financial records, which appear to be missing. She noted that other departments had included prior years’ expenses in their budget reports, but that his department had not. “It’s all zeros,” she observed about the dearth of historic data. Alvarez could give no explanation, and his silence implied that the department’s management problems in recent years included record keeping.
Alvarez reported that most of the department’s equipment needs to be replaced, without providing asset inventory records to back up that claim.
None of the commissioners commented on the news of the department’s past dismantling or current restoration.
MUNICIPAL GOLF COURSE
Interim Director Wes Owens and Community Services Director Hechler presented the golf course budget. They requested a $77,000 increase over 2020-2021’s nearly $245,000 budget, which included a $66,000 increase from the 2019-2020 budget. In other words, the facility’s expenditures are expected to increase $143,000 in a little over a year.
A continuing problem is the poor condition of the greens, Owens explained, due to a faulty water pumping system and poor water quality.
The department’s preliminary budget had included $31,000 to hire an irrigation specialist, but Hechler had earlier agreed to cut that line item at Swingle’s request.
Hechler said a “halfway” effort had been made to increase golf course revenues and “we need to be all in or do something else” with the facility.
Owens offered several ideas about potential new sources of revenue, including restoring the city’s liquor license at the golf course so that alcoholic drinks can be sold; increasing tournament play; selling goods at the pro shop; and doing a better job of collecting membership and green fees. Implementing these ideas would require additional personnel—at least one more full-time employee and one more part-time worker, Owens estimated.
The city commission did not cut the new positions, therefore they remained in the budget.
After examining the line items in the golf course’s budget for communications, insurance and a copy machine, Luna remarked: “We should have one phone company, one credit card company, one insurance company, not everyone doing their own thing.”
Swingle agreed that contracts for such services should be “centralized.”
MUNICIPAL ANIMAL SHELTER
Animal Shelter Manager Tara Manning presented the facility’s budget of about $200,000. She reported that the shelter takes in “1,057 animals a year, and there are a ton more surrenders since September last year.” She attributed the increasing numbers partly to elderly people who are unable to take their pets with them when entering nursing homes. She said nothing about irresponsible owners who allow their pets to bred indiscriminately or allow them to run loose.
The increase in the animal shelter’s intake will require an increase in adoption fees, Manning said, noting that T or C’s charges are “much cheaper than surrounding areas.”
Swingle asked if animal control fines support the shelter’s operation. Luna informed the new city manager that “there is no fine,” as the municipal court that hears cases involving violators of the city’s animal control ordinances only charges court fees.
Luna then questioned how the animal license fees are collected, learning that the city clerk’s office issues them. Luna suggested the animal shelter issue the licenses and collect the fees. Manning expressed favor with this suggestion, noting that this change would allow the shelter to return registered animals who were lost to their owners.
Luna deplored the present practice of the clerk’s office not sharing licensing data with the animal shelter, when electronic sharing is a simple matter “in this day and age.”
Manning said she is currently working with Traci Alvarez, the city’s grants coordinator, to identify possible sources of grant monies for the shelter, using the city’s subscription to a granting agency database. She will apply for grants when that is accomplished.
Another goal is to increase the number of pet sterilizations. The current contract with the local veterinarian only allows “one a month,” Manning said. She is negotiating with another veterinarian who she believes will provide the service at a lower rate, thus allowing the shelter to spay and neuter greater numbers of animals.
GOVERNING BODY
City Clerk Angela Torres explained that the 2021-2022 budget will include a salary increase for city commissioners. Their pay will go from $500 a month to $1,000 a month beginning in January 2022. The mayor’s salary will increase from $600 a month to $1,200 at that time.
Luna noted that sitting commission members “cannot approve a raise for themselves.” These pay raises were approved by the members of the city commission two years ago.
Luna brought up the issue of retirement contributions. “I was told the city does not offer PERA [Public Employee Retirement Association of New Mexico] to elected officials,” Luna said. She had checked with her “private attorney,” who told her that these benefits must be offered, according to state law.
“My private attorney said we can force the city to back pay for us,” Luna said. “We need to address that.”
“I’ll work with Jay [City Attorney Jaime F. Rubin] and fix it,” Swingle promised.
Excellent reporting! Thank you so much for the clarity of pressing (and dire) fiscal issues facing the city and we citizens. I find it disturbing in the three articles that two of the commissioners seemed unengaged. Are they really earning the $500 they get a month? If they don’t want to be engaged, informed and participate, surely they shouldn’t be getting raises come January.
Mr. Easley had to have known how old his transformers were BEFORE he, his department and Mr. Madrid and the commission shoved smart meters down our throats for well over the $1 million that the former city manager’s “promised.” As Mr. Heschler seemed to fail with his new position and his new department to explain exactly what it is he does, and it seems to have materialized out of “nowhere,” I’d urge the city to slash those expenses out of the budget. Goodbye.
I weep over the dying trees in Ralph Edwards Park. The constant desire of city staff to want to add more additional staff is alarming. Excuse me, City, but our population is dropping: cut costs. Tighten your belts. Drive an older vehicle, like so many of us do.