Last November a vast majority of T or C voters—81 percent and 80 percent—approved two ballot questions allowing the city to issue $3 million in general obligation bonds to fix streets ($1 million) and water and wastewater systems ($2 million). The ballot language was vague, indicating the people have faith the money will be used wisely, despite city leaders’ 60 years of neglect to infrastructure.
City Commissioners are also taking it on faith city staff will spend the money wisely.
During the Jan. 25 meeting, the city commission passed—unanimously and without question—a resolution “ratifying” an application to the New Mexico Finance Authority for grant money for a “project,” the city’s match to come out of G.O. bond funds.
No application was in the city packet and the city commission ratified it sight unseen.
Just before the vote, City Attorney Jay Rubin interrupted to point out, “The fourth ‘whereas’ in the resolution says you have the application. I’m just wondering what we’re approving here.”
Mark Valenzuela, the city’s bond counsel, managing principal of Bosque Advisors, LLC, of Albuquerque, assured Rubin that he will submit the application “for City Manager Bruce Swingle’s signature.”
The resolution gives city staff the authority “to take such other action as may be requested by the Finance Authority,” and “to further proceed with arrangements for financing and undertaking the project,” the city commission handing off all NMFA project and grant/loan decisions related to the $3 million bond revenue.
The “project,” as defined in the resolution, is broad: “(i) laying off, opening, constructing, repairing, and otherwise improving municipal alleys, streets, public roads and bridges, or any combination thereof, and (ii) enlarging, improving or extending the city’s water and wastewater system of fire engines and aerial fire trucks for the benefit of the Governmental Unit and its residents.”
The (ii) section is badly worded. It seems to indicate the G.O. bond money can be used to purchase fire trucks, which was not in the ballot language, but the ballot language was so broad that fire-truck purchases could be rationalized. This makes no sense, since the city’s fire department has historically been funded with generous state grants, including fire-engine purchases. The fire department’s budget has always been a “pass through” budget, city staff and the city commission having no input.
Fire Chief Paul Tooley, on Monday, Jan. 30, said he’s heard nothing about G.O. bond money being used to purchase fire trucks.
Valenzuela said the G.O. bond will increase city property taxes by 2.5 mills.
Currently T or C’s property taxes are 2.225 mills for nonresidential and 1.542 mills for residential properties; therefore property taxes will more than double.
The city will issue $750,000 in G.O. bonds a year for four years, Valenzuela said, which will cost $4.2 million total. Four issuances are about $350,000 cheaper than issuing the bonds all at once, Valenzuela said.
After four years, “$600,000 of principal will have been paid off and then we can ask the people for more, without having to raise taxes,” Valenzuela said.
Somebody said the definition of insanity is doing the same thing over and over again, expecting different results. This is totally insane. Sorry, I voted NOT to let the city borrow ANY money until they demonstrate fiscal responsibility.
I HOPE that those in charge will use these funds the way voters intended. Seems to me that a big reason for the MESS the city’s water/sewer infrastructure is in now is because for decades if not longer, people have insisted that “we can’t afford” to pay more to maintain water/sewer infrastructure. And now I’m reading that the city is in grave danger of whatever happens when a municipal water/sewer system completely fails/falls apart.
We’re on city electric and over the years have been very pleased w/ service AND w/ speed of getting service restored when it does go down. However, we’re outside the boundaries for water/sewer, so we pay our own costs for those, which can be considerable when one is on a domestic well and septic system.