Commish votes to draft property tax resolution

CLOVIS — After nearly two hours of heated debate on Tuesday, the city commission voted 6-2 to begin drafting a resolution to increase property taxes to fund the interim groundwater project portion of the Eastern New Mexico Rural Water System.

The project would connect Clovis, Portales and Cannon Air Force Base with a water pipeline and is the second stage of the rural water system.

The levy would raise local property taxes depending on the amount chosen for the debt service. Once the resolution is drafted, the commissioners will vote again before the measure could be adopted.

The minimum proposed amount of a $15 million debt service will mean the owner of a $100,000 home would pay $51.80 more per year in property tax. A $20 million debt service raises that to $69.07 annually, then $86.33 annually for $25 million and $120.87 annually for $35 million.

The resolution will be voted on during the commission's Nov. 7 meeting, where a new ordinance and an amendment to an existing ordinance will be introduced to later be voted on in December. The increase would be expected to take effect in 2020.

Mayor David Lansford, who also chairs the Eastern New Mexico Water Utility Authority, stressed the importance of funding the groundwater project for the long-term sustainability of the city. He said raising property taxes for funding would be the logical choice. He also said an unstable water supply could discourage local investment.

“Without water, our property values go down,” Lansford said. “There’s a sign outside Alamogordo that says ‘What’s your house worth without water?’ and I don’t want to see a sign like that in Clovis.”

The tax increase itself would not directly fund the groundwater project and would instead be used to fund city services like fire protection and drainage. This would free up the gross-receipts tax funds tied up for those operating costs, which could then go toward the water project.

The cost of the groundwater project would be $90 million, with contributions being $40 million federal, $30 million state and $20 million from local water authority members. Clovis’ share of the $20 million would be $15 million because it has a 75 percent stake in the Ute Pipeline Project.

The pipeline project, which has an estimated cost of $527 million, has its member communities expected to contribute 10 percent at $52.7 million. Clovis was expected to contribute over $39.3 million, but so far the city has contributed roughly $3 million of that amount, according to Lansford.

Lansford hopes that by securing Clovis’ portion of the funding, the other stakeholders will follow suit, accelerating the completion of the project.

The levy is not the commission’s only option to secure the needed funding, with a general obligation bond and increasing the GRT being other options. The former would go on the ballot for voters to decide.

Lansford stated the city’s GRT capacity was maxed out, with only two-eighths left, which are needed to offset the portion taken by the state. He also cited Clovis as having some of the lowest property taxes in the state, while having some of the highest GRT.

As for a bond, Lansford said securing funds to finish the project would be too important to the long-term wellbeing of the community to have a chance of not passing. He referenced the county’s repeated attempts to get the Adult Detention Center renovation project funded only to have it fail three times.

“If this was a quality of life issue and was not a fundamental necessity of a community’s economic survival, I’d be more than happy to leave it to the voters,” Lansford said. “But this is the kind of decision we’ve been elected to make.”

Commissioner Rube Render raised concerns that the federal government could back out of the project, possibly wasting the city’s investment. Lansford said that if that were to happen, the city could then offer a relief for the citizens for the quarter amount of GRT freed.

Render tentatively agreed to the tax hike, provided the other entities responsible for contributions such as the city of Portales came through with their contributions.

Commissioner Gary Elliott, who voted no on the tax hike along with Commissioner Helen Casaus, said that despite the importance of securing water for the city, such an increase should be left to the voters.

“Why not get this out to the voters and let them know how serious this is,” Elliott said. “Water is so important and if we don’t have water, we’re gone. But put it to the voters. I don’t feel right at all about making a decision on everyone else’s property tax. It’s legal, we can do it, but I’ve got numerous complaints from people saying, ‘We don’t want this.’”