The Truth or Consequences City Commission, for generations, transferred the people’s utility-fee revenue out of the utilities and into the general fund to make up for its deficit spending, often referring to the city’s electric utility as its “cash cow.”
That stopped in the 2023-2024 budget, but the practice may be rearing its ugly head again.
This past practice created the current water and wastewater infrastructure crises and in neglect of the electric utility. Just like a neglected house, to get it back in shape costs much more than if you had maintained it regularly.
The people are paying higher property taxes and higher utility bills for capital projects that must be done in a rush, when construction costs are at their highest.
It’s the increase in utility bills that bothers me most, because this is a regressive tax, not a progressive one, that hits the poor the hardest, and the current poverty rate in T or C is nearly 32 percent, according to census data, which is twice the national average.
There is no state law that prohibits cities from using their utilities as cash cows–from transferring utility revenue out of and into the general fund.
This bothers me too, because it allows the city commission to overcharge the people unknowingly for maintenance and capital projects without holding themselves to account. It also allows the city commission to deficit spend to support non-essential services–pet projects–that the city can’t afford without raising taxes or utility fees, also without telling the public or holding themselves to account.
The budget reflects a city’s values. Like the ancient Roman senate, I fear the city commission values circuses over bread in its effort to attract tourists, businesses and new residents, funded with utility revenue. Buying our way to prosperity? Or distracting us from higher taxes and utility fees? If it’s the former, I’d like to see the economic plan that explains how this will work.
The interim budget approved at the May 27 city commission meeting will transfer over $5 million out of the electric, water, solid waste and wastewater utilities. Last year’s budget transferred out $1.5 million.
About $200,000 will go to pay for the swimming pool. About $300,000 will go to the golf course. About $300,000 will go to the airport. All of these “business-like” activities should be self-sustaining through their fee structures, and come to $800,000 total. I hope you are sufficiently entertained by these facilities to not notice how they are upping your utility charges.
The electric, water, solid waste and wastewater utilities are newly being charged $150,000 a year to support the service center, which is $500,000 total. It’s hard to know if this is going to cause utility fees to go up, since we have been given no cost analysis that this will reduce higher service charges from private-sector mechanics. This new charge may be in the bread category, or it could be an expansion of government that further burdens the people. The city commission said not one word, asked not one question about it. The people should be given a cost analysis, not nothing; and not vague assurances or assumptions either.
About $800,000 will be transferred out of the utilities to pay yearly debt: electric $182,000, water $534,000, solid waste $0, wastewater $81,000. This is definitely an essential-bread charge.
About $1.6 million will be a “wash,” that is, transferred in and out of the utilities as grants. The electric department received $641,000 to build an electric vehicle charging station. But will this add or subtract from our electric bill? And why is the city jumping into a private-sector business? To attract tourists? The city commission never explained themselves. Until they do, I’m putting this new enterprise in the “circus” category.
The wastewater department received $990,000 from Governor Michelle Lujan Grisham in capital outlay money last session, which is the other portion of the $1.6 million in in/out grant transfers. This will go to essential-bread fixes to the wastewater treatment plant to address New Mexico Environment orders.
The following transfers out of the utilities are for bread. Insurance, which has gone up significantly City Manager Gary Whitehead told city commissioners, is $288,000. Reserves that must be set aside for emergencies, per city code, come to $155,000. As in prior years, the four utilities put in $100,000 each or $400,000 total to fund the utility billing office. As in years prior they also put in $10,000 each toward the audit or $40,000 total. These transfers come to $883,000 total.
What is new is transferring money out of the utilities for “general administration” and into the general fund. Electric will pay $88,000, water $17,300, solid waste $28,000 and wastewater $14,400, for a total of $147,700. Maybe this new charge is actually fair. Finance and the Community Development departments have the same number of personnel whose work loads have massively increased with the oversight of 10 times more capital projects. But the city commission needs to explain if this is so and how the utilities’ fees are being calculated.
Last but not least are greatly increased utility fees, ironically enough. Electric will pay an estimated $91,000 in “general utilities,” water $208,000, solid waste a whopping $548,000 and wastewater $207,000, which total $1.054 million.
The people are paying the city’s utility fees to the general fund? There are no transfers out of the general fund that disburses these fees back to the pertinent utility, such as solid waste’s water fees to the water department. So where is this money going? And are these at-cost fees? And why is solid waste’s utilities so high? Until we get answers to these questions, we don’t know if this is a bread or circus burden on the utility fee payer.
Unless the people question their elected officials they can expect to be exploited—to be appeased with circuses (that the people pay for) to fool them that the city is and will be more prosperous and happy with non-essential services that will attract tourists, businesses and residents.
Are you not entertained?
For far, I’m not distracted from rising taxes and utility fees and lack of questioning and accountability by the city commission.
I have sent questions into City Manager Gary Whitehead and will do a follow-up article on these increased transfers out of the utilities’ funds.
The final budget is due by the end of July for fiscal year 2026-2027, which starts July 1 and ends June 30, 2027. There is always a public hearing on the final budget, if the city follows state law, therefore it will probably be held the fourth Wednesday, July 22. But the public could go to the mic and question the budget during public comment in the interim. The budget can be found in the last 300 or so pages of the May 27 city packet: https://cms5.revize.com/revize/truthconsequencesnew/5-27-26%20CC%20Agenda%20Packet.pdf?t=202605271632030&t=202605271632030
Vote anything but Democrat!!
Just want to say how much I appreciate these emails. They are concise and informative and the content is not easily accessed for those of us that are homebound and can’t get to hearings or meetings. Thank you!
Thank you Kathleen for your continued monitoring of our city government! I really appreciate you keeping us up to date on TorC’s business.