New Mexico Central

First, Do No Harm (Part One)

by Chuck Ring (GadAbout-BlogAlot ©2008)

 

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This Is Part One Of A Two Part Article

 

“First, do no harm.” A phrase many believe to be a part of the Hippocratic Oath taken by physicians. Actually, it has been adopted by some in the medical field, particularly in emergency medical services, as a credo of sorts, but it is not in the Hippocratic Oath. Perhaps though, some of our elected representatives, whether state, county or local might consider adopting the same or similar sentiments as they go about passing legislation.

There is a history of the New Mexico State Legislature (legislature) passing statutes that allow counties to place taxation issues on a county wide referendum. It appears that such legislation has been passed as a result of strong lobbying by the Association Of Counties (AOC), larger municipalities within those counties and influential individuals. These referendums are allowed with seemingly little thought and certainly no thorough consideration by many of the involved parties as to the impact that such legislation has on small municipalities in counties where such legislation is allowed. That is, unless the consensus among legislators is that other entities are more important than small villages, towns and cities. In any case, it is unlikely that a small town can prevent the passing of a county wide referendum, no matter the effort or monies expended by its governing body and citizens.

Edgewood, New Mexico has experienced the impact of two such gross receipts tax referendums and the taking of taxes from Edgewood as a result, has served to dampen economic development, infrastructure development and citizen services for Edgewood citizens and area residents. By far the most egregious of taxes passed through an almost bilateral process by Santa Fe County and its partner, the City of Santa Fe (county and city), is the ¼ of one cent tax passed as Santa Fe County Ordinance 2002-5 or the Santa Fe County Capital Gross Receipts Tax. Posted below are some of the more telling portions of the ordinance. Notice how the county and city have crafted the ordinance so that benefits from the tax fall heavily on the county and city … not only in total money dedicated to them, but also in percentage of the overall proceeds:

Section 4. General Dedication. Revenue from the County Capital Outlay Gross

Receipts Tax will be used for the purposes listed as follows:

A. 3/4 of the revenue will be used for the purposes of:

1. acquisition, construction or improvement of water or wastewater systems

or facilities and related facilities, including water or sewer lines and storm

sewers and other drainage improvements;

2. acquisition of land for open space, public parks or public recreational

facilities and the design, acquisition, construction, improvement or

equipping of parks and recreational facilities; and

3, construction, reconstruction or improvement of roads, streets or bridges,

including acquisition of rights of way.

B. 3/4 of the revenue will be used for any of the following purposes:

1. any of the purposes set forth in Section 4.A., above; and or

2. any of the other purposes allowed by law and as set forth in NMSA 57-

20E-2 1 (2001), as it now exists or as it may be amended.

Section 5. Specific Projects and Expenditures.

As long as it is imposed, at least half of all revenues generated from

the County Capital Outlay Gross Receipts Tax shall be used for joint

regional projects that benefit residents within the incorporated boundaries of

the City of Santa Fe (see Subsection A, below). Over the course of the next ten

years, no less than seventy five percent (75%) of the County Capital Outlay Gross

Receipts Tax revenues shall be dedicated to water and wastewater projects, no less than

fifteen percent (15%) shall be dedicated to open space, parks and recreational projects,

and no less than ten percent (10%) shall be dedicated to improving the safety of

existing roads, streets or bridges or for other public projects as permitted by law.

A. The following are specific projects that the County anticipates funding on a

joint basis with the City of Santa Fe:

I. The Buckman Rio Grande water diversion project and/or alternate

Rio Grande water diversion project(s);

2. Drinking water and wastewater infrastructure projects including, but

not limited to, development of new wells and re-drilling or refurbishing

of existing Buckman area wells;

3. Development of return flow, water recharge, storm water management

and or aquifer storage and recovery projects;

4. Development of water quality and quantity improvement projects

including, but not limited to, acquisition of additional water rights, and

replacement of leaking pipes and fixtures and other conservation

measures;

5. infrastructure for affordable housing as permitted by law;

6. The City Rail yard Park; and

7. River restoration and the acquisition of trail easements.

B. The County also anticipates funding the following specific projects:

1. Development of new wells and re-drilling or refurbishing existing wells

outside the Buckman area;

2. Water andlor wastewater projects to protect and improve the aquifers in

the La Cienega, Agua Fria, Edgewood and Eldorado areas;

3. Water andlor wastewater projects in Northern Santa Fe County,

including communities in the Pojoaque, Tesuque and Santa Cruz

Valleys;

4. Acquisition of land for open space, trail networks and improvement of

existing COLTPAC and similar open space projects including signage,

fencing, erosion control, improvements to trails and trailheads, parking

and public facilities;

5. The Santa Fe River Trail project;

6. The Santa Fe Rail Trail project; and

7. Various projects to enhance the safety of existing roads in Santa Fe

County.

There are additional control mechanisms in the ordinance that allow the county and city to see to it that control of most funds and most projects are completely controlled by them or by at least one of them through committees or boards appointed by Santa Fe County. A study of the following will verify the foregoing statement:

C. In addition, other projects will be funded as identified through the public review

process set forth in Section 6, below.

D. The decision to proceed with joint projects, as well as ownership, construction,

management and operation of such projects funded under Subsection A of Section

5 of this Ordinance shall be negotiated by the City of Santa Fe and the County in a

separate agreement, which agreement shall include, among other things, a dispute

resolution process. If designated revenue hereunder is not sufficient to fully fund

the project in question, the City of Santa Fe and the County shall negotiate and

determine each entity’s proportionate share necessary for completion.

Section 6. Public Review and Audit

A. All expenditures under this Ordinance shall be subject to an annual

independent audit.

B. County Capital Outlay Gross Receipts Tax funding for projects that the

County undertakes on a joint basis with the City of Santa Fe under Subsection

A of Section 5 of this Ordinance shall be reviewed and approved by the Santa Fe

Regional Planning Authority.

C. All other projects undertaken pursuant to Section 5 of this Ordinance shall

be reviewed by an advisory committee appointed by the Board of County

Commissioners containing representation from the areas affected by the

projects. By example, the Roads Advisory Committee may review road

projects and COLTPAC may review open space and park projects.

D. On a periodic basis as it deems necessary, the Santa Fe Regional Planning

Authority shall review the projects listed in Subsection A of Section 5 and assess the

progress made on such regional projects, and shall evaluate needed future joint funding

efforts.

Section 7. Effective Date.

The effective date of the County Capital Outlay Gross Receipts Tax

shall be January 1, 2003, this date being the first imposition date

allowed by law occurring after the expiration of three months from

the date when the results of the election are certified to be in favor

of the Ordinance’s adoption and the adopted Ordinance is delivered

or mailed to the Taxation and Revenue Department.

Although the tax bears the nickname of the “water and wastewater tax,” it actually has been used to fund a variety of projects. Everything from partial funding for the Santa Fe Farmers Market building, some funding for the Eldorado Senior Center, roads and other infrastructure projects. Most, if not all of the projects, funded through the tax have been located in the City of Santa Fe, the northern portion of Santa Fe County or areas located in close proximity to the City of Santa Fe. Millions have been spent and more millions will be spent for the county and city during the life or extension of the ordinance.

Click Here For Part Two Of The Article

Chuck Ring (GadAbout-BlogAlot ©2008)

Quote Freely From The Article — Leave The Pseudonym Alone

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