Town Sinking into Morass of Financial and Political Scandal

Rumor Walks Among Us

Since a district judge ruled in favor of the County’s lawsuit to quash the 6.5-mile shoestring annexation of the airport, the Town is expected to pay back a minute amount of gross receipts taxes (GRT) collected this year. The Town had hoped, however, to move forward on the airport project, collect the GRT from contractors when construction began to help pay their $1.2 million match for the $22 million grant.

But that projected income for the match is now up in the air, since the County can collect the subject GRT. Even if the Town follows a more legitimate annexation procedure, given the timeline for construction and more potential legal wrangling re: shoe string annexation, the town’s finances can be considered tentative or iffy, especially if the courts were to rule against them…again.

The obvious solution is “regionalization.” Regionalize the airport under the aegis of a JPA signed by the Town, County, and other government entities. Although the County offered to help the Town with the airport earlier this year, now, due to the Town’s intransigence, the County is moving forward to pay for its own E911-Dispatch center and no longer has extra cash for the airport. Insiders estimate the Town will run out of money to fund the E911-Dispatch Center at the KCEC Command Center during this fiscal year without the County’s income.

Claw backs?

Since the Town, as JPA agent, has apparently mislaid some $132,000 from the JPA E911-Dispatch, the state’s Department of Finance Administration (DFA), charged with overseeing municipalities and counties, is expected to begin asking questions. Furthermore, DFA is aware that the Town might have violated the anti-donation act when they passed a state legislative grant of some $175,000 for architectural-design services on to the Coop, after deciding against building the Command Center in 2007. The architect has said in recorded testimony that he was working for Kit Carson Electric Coop because the Town bowed out. So DFA might claw back the $175,000 from the Town.

In KCEC’s budget and loan from RUS, according to documents, the Coop included some $400,000 for architectural fees in its contract. Furthermore, there is a great deal of controversy regarding KCEC’s claims about the building they intended to build and the skeletal structure that was finally erected. The Board of Trustees at Kit Carson Electric Coop is either ignorant of the facts or in on a slippery slope deal, which includes constructing a building in a flood zone.

Frank Cruz’s Rainy Day Fund

And DFA might very well ask questions about what happened to the Town’s own reserves, believed to be in the millions of dollars, set aside under prior mayoral administrations. Councilor Cruz used to brag about the “rainy day fund.” According to insiders the Town has been spending money from bond proceeds on operating expenses, a “no no” in the lexicon of municipal administration.

Permits for Special Friends

Sometime earlier this year, the Town asked the County to take over code enforcement and issue building permits. In the last week or so, the Town dissolved the deal because a builder of low income housing behind the old Stop and Go in Midtown, wanted a temporary Certificate of Occupancy, which, due to violations of the code, the County apparently refused to issue. Allegedly the building didn’t have any doors or windows, so a C.O. was inappropriate.

But guess what? a highly placed elected official raised hell because he had a contract for, guess what? Doors and windows. That’s how we do business in town. Got a problem with your water bill, hook up your own well—in violation of the town water ordinances. Can’t get a building permit, come in and close the door and we’ll issue one. If the Historic Preservation Commission puts an item on the agenda referring to acequia rejuvenation, cancel the meeting lest the Spring Ditch parciantes hear about the hypocrisy.

Some might wonder why UNM-Taos got a sweetheart deal—free rent—on the Convention Center, the white elephant on Civic Plaza Drive that has cost the Town an estimated $400,000 a year for the last ten or fifteen years. Apparently, the Town can’t afford the deferred maintenance on the building. Be careful of Town Councilors bearing gifts.

There’s more, of course, much more.

Electoral Politics

The current mayoral and council election, expected to take place March 4, is bringing a great deal of pressure to bear on elected officials and town employees. The latter have been submitting resumes to the County and the former are considering their options.

Town government used to be a place where First State Bank notables did their public service before and after retirement. Due to the economic downturn and change in local entrepreneurial culture, puppet masters from the other bank moved in and began pulling the strings. A lack of checks and balances, compounded by arrogance, has created bad policy and bad politics. A failed town government will certainly result in calls for change.

In Taos local politicians tend to blame the “outsiders” first for their own failings. So you might see a Saturday night massacre if Town Manager Oscar Rodriguez and Attorney Brian James are fired. Ask El Weston about playing basketball with Fashito. It’s a deal breaker. Course the electorate won’t buy the massacre as excuse. But this is the Town that can’t shoot straight. Darren, Fred, and Rudy might all choose to hang together or not. They could resign and crawl back to their private businesses before the claw back comes on little crab feet.

Here’s the best rumor of all: what highly elected official got picked up on a domestic by the cops and turned loose pronto, while the paperwork seems to have disappeared? Or did it? The E911 records might have a file on what happened two weeks ago Thursday. Somebody phoned in an emergency and an unnamed inmate saw who’s who but ain’t talking.

But the Shadow knows.

Still you can’t believe everything you hear during the election season. That’s why some citizens are calling for a forensic audit and regional town-county government. We’ve got to protect ourselves from narrow-minded and selfish politicos: hubris, ladies and gentlemen—false pride—call it ego run amok.