County manager raises concerns about events center operating funds

Curry County Manager Lance Pyle is concerned the county does not have the funds to operate the special events center under construction.

He told county commissioners Tuesday the county has more pressing financial concerns to address, including health insurance increases and dwindling gross receipts taxes while Cannon Air Force Base transitions to its new mission, and a potential loss of federal funding for indigent health care.

On Pyle’s recommendation, county commissioners tabled a decision to hire a firm to operate and book events for the $7 million facility during Tuesday’s regular meeting.

“It’s premature to go into contract with anybody at this point,” he said.

Construction of the event center will be complete in late August, according to Randy Kamradt, vice president of DavTek, which is managing construction of the facility.

A prospective management firm told the commission last week the special events center could lose up to $500,000 a year for the first four years of operation before breaking even.

Commissioners will ask state legislators for about $1.5 million to furnish the facility. Pyle said he will ask the governor for funding as well.

Otherwise, Pyle said the county will have to borrow money, raise taxes or dip into reserves to furnish and operate the events center.

The county has about $2.4 million in reserves, according to County Finance Director Mark Lansford.

Philadelphia-based Global Spectrum submitted a $96,000 bid for managing the events center and the Curry County Fairgrounds. Global Spectrum also operates the city’s 1 1/2-year-old civic center.

“I guess I’m starting to be called the doom and gloom commissioner because I’ve been preaching this same thing for the last six months. I’ve been telling the commission that we don’t have the money to do this (hire a management company),” Commissioner Bobby Sandoval said.

Pyle said he will hire a temporary manager for the Curry County Fairgrounds using funds already allocated for a permanent manager. Justus Anderson resigned as fairgrounds manager in December.

Pyle said he expects health insurance for county employees to rise 15 percent this year and gross receipt taxes to drop while Cannon’s population bottoms out until the Air Force base is repopulated with special operations personnel. He also said a potential change in Medicaid could cost the county about $300,000.

“And that’s a very conservative figure,” he said.

Global Spectrum representative Neil McMullin, who manages the city civic center, said last week the county could increase events center revenues by about $200,000 a year by allowing alcohol sales.

The commission voted against alcohol sales at the center in September.

In other business:

—Commissioners approved a resolution supporting a regional training facility for the Clovis Fire Department.

—Commissioners supported the Clovis Municipal School District's General Obligation bond election on Jan. 29.

The school district will be asking voters to continue a $12 million five-mil school tax bond for four years. The money will be used for maintaining and improving of school facilities, according to Clovis Schools Superintendent Rhonda Seidenwurm.

—Commissioners approved an amendment to the city/county joint powers agreement, which increases the amount the city pays the county for to house municipal prisoners in the county detention center.

The city has been paying the county $60,000 a year since 2000 for municipal prisoners housed in the county jail. Under the agreement, the city will pay the county $7,500 a month from January until Jun. 30. From July until Jun. 30, 2010, the city will pay the county about $8,300 a month. The increases will amount to about $15,000 every two years until the agreement expires in 2014.

Pyle said an increase in municipal prisoners brought on an increase in health care costs.

—Commissioners approved a request to Rep. Jose Campos to reauthorize the use of $300,000 in capital outlay funds for a criminal justice complex.

Pyle said the county will use half the funds for a needs-assessment analysis for the complex and the other half for courtroom improvements.

Pyle said the proposed complex could add more courtrooms and house the district attorney’s office.

The county pays about $123,500 a year to rent space at the post office for the district attorney’s office.