Fireworks funding sparks fireworks at meeting

CLOVIS — Just over two weeks before a July 4 fireworks display purchased with city and county funds is set to take place, there were some fireworks at the Clovis city commission meeting.

The Thursday meeting was held with public attendance for the first time since mass gathering restrictions went into place in mid-March. A total of 33 people were at the meeting, with audience chairs spaced six feet apart for social distancing.

Hotel owner Danny Jariwala blasted the commission and city leaders for using lodgers’ tax funding to provide $10,000 to Western Fireworks for an Independence Day fireworks display.

The contract with Western is $20,000, with Curry County adding $10,000 from the commission travel budget and County Manager Lance Pyle’s expense account.

Jariwala told commissioners during the meeting’s public comment period he had repeatedly asked for some type of deferment on small business taxes to be covered by lodgers’ tax dollars, but was told such a move would violate the state antidonation clause. He was then incensed to find out the city spent lodgers’ tax money on a fireworks show that is funded by business and individual donors in non-pandemic years.

Lodgers’ tax funding is derived from a 5% tax on hotel and motel rooms in the city. Of what’s collected, 30% goes into the general fund, 30% helps fund the Clovis Civic Center and the remaining 40% is distributed to help promote tourism-related events. Howalt said the $10,000 for fireworks came from the general fund portion.

Jariwala said frequent hotel guests ask about the 5% tax, and, “you don’t even want to know what words they use” when they find out what those taxes fund.

Jariwala thanked Commissioner Helen Casaus for casting the lone vote against the fireworks expenditure, and brought his son to the lectern to tell commissioners he would rather spend time with his father than see a 10- to 15-minute fireworks show.

Mayor Mike Morris reminded Jariwala that he and commission members, along with city staff, had talked to him at length about the issue in the days leading up to the meeting.

During the action item portion of the meeting, commissioners finalized an ordinance to take advantage of low interest rates with $9 million covering three loans the city took in the early 2010s.

One loan in 2010 was for wastewater treatment plant improvements, and the other two came in 2011 to purchase the Colonial Park Golf Course and fund various other parks and recreation projects.

Erik Haragan of RBC Capital Markets told commissioners the city had two options:

• Refinance the loans and save $640,633 in interest, keeping the loan close dates the same — 2030 for the 2010 loan and 2031 for the 2011 loans.

• Restructure the loans to delay payment cycles for a year. The city would keep $594,556 this year and push the loan end dates to 2031 and 2032 and save $504,455 in interest.

The numbers were based on conservative estimates from Haragan, and actual savings will depend on current rates when the loans are officially restructured.

City Manager Justin Howalt told commissioners he anticipates funding cuts from the state, and, “we may have projects we need to complete ourselves if we don’t get capital outlay dollars.”

Commissioners opted for the restructuring, after District 4 Commissioner Rube Render asked District 1 Commissioner Leo Lovett to weigh in.

Lovett, a bank president, noted the reduced interest savings and extra year of debt service were good tradeoffs for the extra cash on hand.

“Even with the restructuring, we’re saving significant money,” Lovett said. “With what’s coming from Santa Fe, or what’s not coming from Santa Fe, it gives us the opportunity to have funds available for city expenses.”

In other business at the Thursday meeting:

• The commission voted 5-3 to grant an easement encroachment on the 1300 block of Oakhurst Road.

The property owner wanted to build a fence to incorporate a pair of trees into his property, and the fence would encroach 19 feet north and 7 feet south.

The request was approved by Building Safety Director Pete Wilt and Public Works Director Clint Bunch. Howalt rejected the request, with concerns the move would set a precedent.

Lovett agreed with Howalt’s view, while Commissioner Juan Garza stressed a case-by-case approach and that, “just because we approve this one doesn’t mean we will approve the next one.”

Wilt said the property owner is aware he is responsible for replacing the fence if it must be removed for utility repairs.

Render, who lives down the street, said he viewed the proposed location and did not believe there would be an impediment before moving for approval.

Lovett, Casaus and Mayor Pro Tem Chris Bryant voted in dissent, with Casaus and Bryant noting the same concerns as Lovett.

• Shaundra Mahan, one of five organizers for a protest and vigil in honor of George Floyd, spoke about demands citizens had going forward. She conceded not every item fell under the city umbrella, but wanted to address them as a matter of record.

Demands provided to The News during the June 5 protest included 1) Quality education, 2) Strong vocational training, 3) Allow/celebrate diversity in schools, 4) Increased access to mental health services, 5) Police transparency and accountability, 6) Access to legal defense and accessible bail, 7) A living wage, 8) Better access and opportunity to start local businesses, 9) Revitalizing the community and 10) Participants holding themselves accountable to make change.

Mahan noted the need to have events to celebrate the area’s numerous cultures. Commissioners noted the city has an ethnic fair every July, and encouraged discussions with organizer Selmus Price.

• Eastern New Mexico Water Utility Authority Executive Director Orlando Ortega updated commissioners on the pipeline project, noting the desire to soon start Finished Water 3 to take the pipeline from Cannon Air Force Base to Portales.

Bryant, who serves on the water authority board, said the authority had been successful getting federal and state funding in recent years because its work has been “shovel-ready.” Ortega said it is a goal to always either be under construction or be ready to start construction, and presumed that was a reason the New Mexico Water Trust Board gave a $5.7 million award this year when the authority only requested $4.3 million.

• The city will continue to use the Clovis-Carver Library’s North Annex for lower board meetings due to its large space that allows limited public attendance and infrastructure to broadcast the meetings online. Upcoming meetings this week are a 5:30 p.m. Monday parks, recreation and beautification committee meeting and an 8:30 a.m. Wednesday public works committee meeting.

• The next commission meeting is scheduled for 5:15 p.m. July 2 at the North Annex of the Clovis-Carver Public Library.