City sends fee waiver issue to committee

CLOVIS — The Clovis city commission is going to take a second look at fee waiver requests, and possibly how to pay for the city services those fees are supposed to support.

The commission decided on a unanimous vote in Thursday evening’s meeting to refer the process of fee waiver requests to the Revenue Review Committee later this year, with a caveat that it consider lodger’s tax funds to help defray various facility rental and street closure costs.

The commission handles numerous requests for events, and they often require the use of city resources — for example, a 5K race at Hillcrest Park incurring park rental fees or a parade along Main Street requiring street closures.

Commissioner Fidel Madrid noted during the April 5 meeting the commission was simply approving all fee waivers, and was wondering if the city should bother establishing charges for things if the fees are never collected.

He raised concerns about the city violating the state’s antidonation clause. According to Article IX, Section 14 of the state constitution, “neither the state nor any county, school district or municipality, except as otherwise provided in this constitution, shall directly or indirectly lend or pledge its credit or make any donation to or in aid of any person, association or public or private corporation.”

City Attorney David Richards noted exemptions exist for economic development, affordable housing and certain scholarships, but it’s sometimes not black-and-white.

“There are probably 50 attorney general opinions on antidonation,” Richards said. “It’s a very simple philosophy, but it becomes very difficult when you try to apply it.”

The clause has been used to deny juvenile recreation activities for the Boy Scouts and Girl Scouts. A case that went to court was won by the city of Albuquerque regarding road improvements adjacent to the chamber of commerce. Though the chamber benefited from the city-funded roads, Richards said, it was viewed as an improvement to city property for the benefit of all citizens.

The key component Richards felt the commission should keep in mind is whether the event that would receive fee waivers benefits the community as a whole or just an isolated segment of the community.

“In my opinion, things like Draggin’ Main, the Smoke on the Water fireworks show, Clovis Music Festival ... involve the whole community,” Richards said. “They aren’t being put together for the benefit of the organizers.”

The city, to Richards’ knowledge, has no guidelines or rules on when it should or should not waive fees. Madrid noted that not having the policy had a cost, and said that since May 15 of last year the city had waived $76,078 in fees.

“There’s a lot of stuff we can do with $76,000,” Madrid said.

Commissioner Sandra Taylor-Sawyer said it would be possible to use lodger’s tax dollars to defray some of those city expenses. City Manager Justin Howalt pointed out that lodger’s tax money is meant for items that bring in tourists, and not all requests meet that criteria.