City of Las Cruces. ROBERT GARZA. CITY MANAGER. JANUARY 4, 2013 Happy New Year! A new year brings hope of great things to follow. We often reflect at this time of year about personal goals and resolutions, all with the best intent and enthusiasm we can muster. On a professional level, I am optimistic of good things to come in the new year for the City of Las Cruces and I have just one resolution for the City Manager s Office - to make 2013 an even better and more productive year than 2012! PRE-LEGISLATIVE SESSION ACTION RELATING TO CITY INITIATIVES The 2013 New Mexico Legislature convenes January 15th, and many are already working toward efforts and initiatives that will be presented for consideration. Two initiatives on the City s priority list have already experienced considerable discussion, debate, and had draft legislation prepared. It appears positive movement is being made that aligns with, and addresses, concerns expressed by the City. Discussion draft legislation has been prepared for the two items listed below: Manufacturing GRT Impacts We have had concerns about implications related to utility operational burdens put in place by the tax pyramiding legislation adopted during the 2012 legislative session (HB 184). The concerns are related to our ability to do differential billing to provide tax free utility services for those in the manufacturing sector. As approved, the legislation requires us to collect Gross Receipts Taxes (GRT) on utilities consumed by customers, but only the portion not used for manufacturing something that will later be sold. The challenge is not only with determining the appropriate credit scenario for potentially tens of thousands of eligible utility customers, but providing an accurate and timely billing and collection system to make it happen. Recognizing the challenges this new law puts on us and others who are similarly situated, there has been draft legislation prepared and presented to the Legislative Revenue Stabilization Committee for discussion and review. The draft legislation makes recommended changes to allow others to collect and report GRT revenues for public utilities, thus enabling the New Mexico Tax and Revenue Department to manage the credit/rebate of eligible GRT payments and disbursements. While the proposed draft solves billing-related impacts, it could cause concern with transparency relating to collection and reporting of GRT to the City. A copy of the draft bill is attached for your review. (#1 Special Tax Agreements) PERA Legislation We anticipate legislation to address the solvency of the Public Employee Retiree Association (PERA). Recent actuarial studies indicate the fund could be in financial trouble over the next several decades if remedies are not addressed at this time. Changes to the original plan amendment have been adopted by the PERA board of directors and put into draft legislation for further review and discussion. The proposed amendment includes changes to the cost of living adjustments (COLA) affecting both the size of the COLAs, as well as the time in which they will be made available. Several other changes including new provisions for employees hired after the adoption date are included. The City s primary concern is the potential loss of veteran staff in many key areas. The City s loss of this intellectual capital, as well as financial hits to the budget of up to $1.8 million for accrued benefits, are real concerns. Fortunately, the PERA board listened to the concerns and made some changes to their proposal. Additionally, there are many joining the debate, including retired Chief Justice Joseph F. Baca, New Mexico Supreme Court, who is questioning the constitutionality of the proposed legislation (ABQ Journal Sun, Dec 16, 2012). Progress has been made but the jury is still out on this one. (#2 PERA Proposed Legislation) (1)
City of Las Cruces. ROBERT GARZA. CITY MANAGER. JANUARY 4, 2013 INTERIM DIRECTOR NAMED FOR COMMUNITY AND CULTURAL SERVICES DEPARTMENT By BRIAN DENMARK, ACM/COO As reported at the pre-budget retreat, there have been some recent administrative changes that impact the Community and Cultural Services Department. With the retirement of Shelly Modell this past year, the need for a senior programs administrator was apparent. Lori Grumet has accepted this challenging position to ensure exceptional services are maintained for the seniors of the community. Ms. Grumet s years of experience will suit her well in performing the duties of senior programs administrator and the important role this position has as far as responsibilities to seniors. Ms. Grumet will start her new role January 7. David Dollahon has accepted the interim Community and Cultural Services Department director position to maintain stability within the department as the City moves towards the development and ultimate adoption of the Fiscal Year 2013/14 Budget. David s background and expertise with federal grant programs, and years of experience here at the City, will benefit the department in maintaining service at expected levels while preparing an overall department budget that is in alignment with expectations for this upcoming year. While David performs his new duties starting January 7, there will be a sharing of responsibilities within the Planning and Neighborhood Services Section of the Community Development Department. Paul Michaud will be responsible for all planning activities, including the staff point of contact for all HUD grant activities. Andy Hume will take over the responsibilities of Downtown activities including the Farmers and Craft Market, and Vera Zamora will be responsible for oversight of the City s Family and Housing Services, which includes the CDBG and HOME Programs. David will maintain oversight of the Juvenile Citation Program. The City is fortunate to have dedicated and talented staff that can step into new roles to serve the community and achieve expected levels of service. CITY CONDUCTS HOUSING SURVEY As part of the City s HUD-required Analysis of Impediments to Fair Housing Choice, the City received a finding related to taking steps to improve housing opportunities for the disabled. The City is to conduct a review of accessibility needs. The City of Las Cruces adopted a new building code and as part of this code adoption, the City is to review the adequacy of its current requirement for accessible units. If after consulting with service providers and surveying people with disabilities about how well their homes meet their accessibility needs, the City may want to consider amending the code and raise the required percentage of accessible units in new construction. In addition, the City should create and maintain a list of providers of accessible rental units and provide this list to nonprofits and have it available at the senior center. As part of the accessibility needs review, City staff, in consultation with outside housing and social service providers that serve the disabled, developed an online survey focused on the needs of disabled persons and a separate survey for landlords. The surveys are being conducted online, with outreach through specific service providers to make the survey accessible to their disabled clients. Hard copies of the tenant survey will be available at Branigan Library, and to any service provider that requests a hard copy for their clientele. Tenants and landlords have until January 25th to complete the survey, and ads about the availability of the survey are being run in both the Sun-News and the Bulletin. The direct links to the respective surveys are as follows and they will also be available on the front page of the Community Development page on the City s website. For the disabled: http://www.surveymonkey.com/s/yrb5s5f For landlords: http://www.surveymonkey.com/s/ytvvmx3 Once the survey results are received, a ways to address the importance of accessible and affordable housing will be considered. ( 2)
City of Las Cruces. ROBERT GARZA. CITY MANAGER. JANUARY 4, 2013 CITY COUNCIL MEETING PREVIEW FOR MONDAY, JANUARY 7. Items listed reflect only some of the topics my office received inquiries about recently. A complete listing of all agenda items is available on the City s website at www.las-cruces.org or www.clctv.com. City Art Board Creation A resolution to establish a City Art Board that will make it possible for local community members to help guide City staff to responsibly acquire, maintain, preserve and share the art objects in its custody. We have evolved from a narrow focus on City Hall art, to an Art on Loan program, to an ad-hoc committee, to this new non-standard board approach. CDBG Public Services Application Guide A resolution to adopt this new guide that makes funding available for the implementation of public services through non-profit agencies. The guide has been updated to be in place for the fiscal cycle starting in July. Accept Reappropriated Legislative Funding The City has been offered $20,000 of legislative funds that were initially intended for a project in another part of the state. The funds were not spent and the City is very capable of accepting these additional funds and putting them to use in our Regional Recreation and Aquatics Center. Much credit goes to staff for diligently managing, reporting and spending grant funds in compliance with Department of Finance and Administration requirements. Credit also to our grants office for staying on top of this opportunity. WaterSMART Water and Energy Efficiency Grant A resolution to gain City Council approval to apply for this grant. Eligible projects must conserve water or result in other improvements that address water supply sustainability in the West. The grant request to the Bureau of Reclamation is for $200,000 and the City would have to match 50% or $100,000. Las Cruces Utilities staff are asking to pursue this grant to help fund the Automatic Meter Reading Program, which is targeted to increase water conservation and water use efficiencies by installing automated metering systems that are high tech and capable of providing consumers with real-time consumption data to help them be aware and modify their habits to conserve. Traffic Signal Maintenance Agreements Two separate resolutions to enter into reimbursement agreements with other governmental agencies in the region to enable the City to manage and operate traffic signals in the town of Mesilla (Hwy 28 at Calle Del Norte) and in Doña Ana County (Sonoma Ranch at Dripping Springs Road). The City of Las Cruces has a full-time, highly qualified traffic signal maintenance and operation crew that can undertake this work efficiently for the mutual benefit of our local governments. (3)
City of Las Cruces. ROBERT GARZA. CITY MANAGER. JANUARY 4, 2013 SPECIAL CLOSED MEETING FOR MONDAY, JANUARY 7. This special closed meeting of the City Council will immediately follow the regular City Council meeting and will be held in conference room 3608. Two topics will be discussed: 1. Threatened or pending litigation involving Romero vs Story, et al, U.S. District Court No 10cv0591 RB/LAM; which is closed pursuant to Section 10-15-1-H(7), NMSA 1978. 2. Limited personnel matters relating to the city manager s contract as part of an annual review prescribed by the employment agreement. This meeting is closed pursuant to Section 10-15-1-H(2), NMSA 1978. THE WEEK AHEAD STANDARD, NON-STANDARD, OPERATIONAL AND JOINT BOARD AND COMMITTEE MEETINGS Courtesy of the Public Information Office MONDAY JANUARY 7, 2013 10 a.m. 12 p.m. University District Citizens Design Review Board meeting City Hall, 700 N. Main St., room 1158 (CANCELLED) 1 5 p.m. City Council meeting City Hall, 700 N. Main St., Council Chambers TUESDAY JANUARY 8, 2013 6 8:30 p.m. League of Women Voters Campaign Finance Public meeting City Hall, 700 N. Main St., Council Chambers WEDNESDAY JANUARY 9, 2013 9 11 a.m Development Review Committee - City Hall, 700 N. Main St., room 1158 9 11 a.m. Mesilla Valley Regional Dispatch Authority Board of Directors meeting 130 W. Lohman Ave., MVRDA conference room 5 7 p.m. MPO Policy Committee meeting Doña Ana County Government Complex, 845 N. Motel Blvd., Commission Chambers THURSDAY JANUARY 10, 2013 9 11 a.m. Senior Programs Advisory Board meeting Munson Center, 975 S. Mesquite St. 11 a.m. 12 p.m. Juvenile Justice Continuum Board City Hall, 700 N. Main St., room 2007A 1:30 3 p.m. Las Cruces Utilities Board of Commissioners work session Utilities Center, 680 N. Motel Blvd., room 225 2 4 p.m. Extraterritorial Development Review Committee City Hall, 700 N. Main St., room 1158 3 5 p.m. Las Cruces Utilities Board Of Commissioners meeting Utilities Center, 680 N. Motel Blvd., room 225 FRIDAY JANUARY 11, 2013 No Scheduled Meetings Meeting dates for boards and committees is gathered from the public meetings calendar in Outlook. Meetings may be cancelled or scheduled after this notice is issued (4)
11/20/12 1 2 3 BILL 51ST LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2013 INTRODUCED BY 4 5 6 DISCUSSION DRAFT 7 8 9 10 11 12 13 14 15 AN ACT RELATING TO TAXATION; AMENDING THE GROSS RECEIPTS AND COMPENSATING TAX ACT; PROVIDING FOR SPECIAL AGREEMENTS TO ALLOW PAYMENT OF TAXES BY A PERSON OTHER THAN THE TAXPAYER; REMOVING REPORTING REQUIREMENTS FROM A DEDUCTION REGARDING SALES TO MANUFACTURERS. 16 underscored material = new [bracketed material] = delete 17 18 19 20 21 22 23 24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: SECTION 1. A new section of the Tax Administration Act is enacted to read: "[NEW MATERIAL] SPECIAL AGREEMENTS--ALTERNATIVE GROSS RECEIPTS TAXPAYER.-- A. To allow the payment of gross receipts tax by a person who is not the liable taxpayer, the secretary may approve the following special agreements: 25 (1) an agreement to collect and pay over taxes.190715.1sa
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 for persons in a business relationship, which is an agreement that may be entered into by persons who wish to remit gross receipts tax on behalf of another person with whom the taxpayer has a business relationship; (2) an agreement to collect and pay over taxes for a direct sales company: (a) which agreement may be entered into by a direct sales company that has distributors of tangible personal property in New Mexico; and (b) in which the direct sales company agrees to pay the gross receipts tax liability of the distributor at the same time the company remits its own gross receipts tax; and (3) a manufacturer's agreement to pay gross receipts tax on behalf of a utility company, which agreement: (a) allows a manufacturer in New Mexico underscored material = new [bracketed material] = delete 17 18 19 20 21 22 23 24 25 to pay gross receipts tax on behalf of a utility company on sales of utilities that are not consumed in the manufacturing process; and (b) is only applicable to transactions between a manufacturer and a utility company that are associated with the gross receipts tax deduction pursuant to Subsection B of Section 7-9-46 NMSA 1978. B. To enter into the agreements authorized in this section, a person shall complete a form prescribed by the.190715.1sa - 2 -
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 secretary and provide any additional information or documentation required by department rules or instructions that will assist in the approval of agreements listed in Subsection A of this section. C. Once approved, an agreement shall be effective only for the period of time specified in each agreement. Any person entering into an agreement to pay tax on behalf of another person shall fulfill all of the requirements set out in the agreement. Failure to fulfill all of the requirements set out in the agreement shall result in the revocation of the agreement by the department. An approved agreement may only be revoked prior to expiration by written notification to all persons who are party to the agreement and shall be applied beginning on the first day of a month that occurs at least one month following the date on which the agreement is revoked." SECTION 2. Section 7-9-46 NMSA 1978 (being Laws 1969, underscored material = new [bracketed material] = delete 17 18 19 20 21 22 23 24 Chapter 144, Section 36, as amended) is amended to read: "7-9-46. DEDUCTION--GROSS RECEIPTS TAX--GOVERNMENTAL GROSS RECEIPTS--SALES TO MANUFACTURERS.-- A. Receipts from selling tangible personal property may be deducted from gross receipts or from governmental gross receipts if the sale is made to a person engaged in the business of manufacturing who delivers a nontaxable transaction certificate to the seller. The buyer delivering the nontaxable 25 transaction certificate must incorporate the tangible personal.190715.1sa - 3 -
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 property as an ingredient or component part of the product that the buyer is in the business of manufacturing. B. Receipts from selling tangible personal property that is used in such a way that it is consumed in the manufacturing process of a product, provided that the tangible personal property is not a tool or equipment used to create the manufactured product, to a person engaged in the business of manufacturing that product and who delivers a nontaxable transaction certificate to the seller may be deducted in the following percentages from gross receipts or from governmental gross receipts: (1) twenty percent of receipts received prior to January 1, 2014; (2) forty percent of receipts received in calendar year 2014; (3) sixty percent of receipts received in underscored material = new [bracketed material] = delete 17 18 19 20 21 22 23 24 25 calendar year 2015; (4) eighty percent of receipts received in calendar year 2016; and (5) one hundred percent of receipts received on or after January 1, 2017. C. The purpose of the deductions provided in this section is to encourage manufacturing businesses to locate in New Mexico and to reduce the tax burden, including reducing pyramiding, on the tangible personal property that is consumed.190715.1sa - 4 -
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 in the manufacturing process and that is purchased by manufacturing businesses in New Mexico. [D. The department shall annually report to the revenue stabilization and tax policy committee the aggregate amount of deductions taken pursuant to this section, the number of taxpayers claiming each of the deductions and any other information that is necessary to determine that the deductions are performing the purposes for which they are enacted. E. A taxpayer deducting gross receipts pursuant to this section shall report the amount deducted separately for each deduction provided in this section and attribute the amount of the deduction to the appropriate authorization provided in this section in a manner required by the department that facilitates the evaluation by the legislature of the benefit to the state of these deductions.]" SECTION 3. APPLICABILITY.--The provisions of this act underscored material = new [bracketed material] = delete 17 18 19 20 21 22 23 24 apply to gross receipts received in tax periods beginning on or after May 1, 2013. SECTION 4. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately. - 5-25.190715.1SA