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Thursday, April 10, 2003

Bills Will Undermine Cooperation

By Martin Chávez
Mayor of Albuquerque
    The City Council and I have respectfully asked that Gov. Bill Richardson veto Senate Bills 241 and 887.
    Both bills are punitive in nature and improperly single out only one community in the state for unequal treatment.
    Both bills thwart city and county efforts to work together to become a unified government and will undermine many hours of work already dedicated toward that goal.
    Both bills will cost taxpayers thousands of dollars unnecessarily, and will send a negative message to prospective businesses at a time when we cannot afford to lose such prospects.
    The city's specific concerns with each bill are:
   
SB 241
    The state has long recognized the importance of counties and cities sharing planning, platting and zoning decisions with regard to land on the outskirts of the municipalities' boundaries. This is where growth and change occur, a process in which both governmental entities have a stake. All municipalities in the state have been granted this authority — until now.
    For reasons that are not based on sound policy or the good of the citizens, Albuquerque will now be the only city in the state that is stripped of its planning and zoning authority in the area surrounding the city.
    Albuquerque's annexation authority will be so diluted by extending veto authority to the county government that Albuquerque will no longer have control over its limits. There is no rationale for this inequity.
    The citizens of the extraterritorial area and the citizens of the city will lose a protection they should be allowed and that every other state citizen will be entitled to receive.
    The bill also introduces a new level of uncertainty into the business environment. It raises serious questions about the state's attitude toward its major metropolitan area. At best, the state appears ambivalent. More seriously, it looks punitive.
    The Albuquerque metro area is New Mexico's economic engine and has performed exceptionally well. An outsider — even a close observer of the scene — could conclude that politics, and not a genuine need for better performance, drove this legislation.
    Further, the bill creates an added layer of regulatory approval by requiring county approval before the city can review an annexation.
    This new layer will cause additional expense, a lengthier review process and more uncertainty — three factors that invariably frighten away prospective companies.
    The bill also creates inconsistency within the statutory requirements.
    The extraterritorial platting and subdivision laws were compatible with the planning and zoning laws in effect prior to the passage of SB 241.
    With the passage of SB 241, the laws will be inconsistent and will create confusion for those who will try to wend their way through the review process — but only in Bernalillo County.
    When a new development locates in the extraterritorial zone, it has short- and long- term impacts on city funds. The larger the development, the greater the impact.
    The city determined in 1999 that the proposed master plan for Black Ranch, north and west of the city's boundaries, would result in a net deficit to the city's general fund of $5 million a year after build out, and an accrued deficit to the city's capital fund of $23 million at build out.
    However, through its role on the Extraterritorial Land Use Authority, the city was able to adopt conditions of approval to address those costs and protect its taxpayers.
    The city and Bernalillo County have had a history of participating together in such decisions in a positive way that has benefited both governments and their taxpayers.
    The city and county have invested hundreds of hours on efforts to unify the two governments, and great progress has been made. This bill drives a wedge in that process.
    If the citizens of Bernalillo County vote to approve a unified charter this fall, the city and county should be working together, not along separate paths.
    If the voters reject the charter, the city should continue to have the ability to participate in decisions affecting areas that may eventually be incorporated into the city limits.
   
SB 887
    This bill raises legal issues and will result in a large, unnecessary financial impact on the city at a time when the city can least afford it.
    SB 887 creates an Albuquerque-Bernalillo Water Utility Authority as a joint agency to administer the city's water and wastewater utility — despite the fact that only 6 percent of the utility's ratepayers are located outside the city limits in the unincorporated areas of the county.
    The bill requires the city to transfer all functions, money, records, equipment and real and personal property to this proposed authority. In the most recent water and sewer system revenue bond issue, the city agreed not to dispose of any part of the water and wastewater system.
    The city's bond counsel has advised the City Council that SB 887 results in the city disposing of the water and wastewater system because it causes a transfer of assets away from the city to the authority. Bond counsel has further advised that if SB 887 were found to violate the bonds' "no alienation" covenant, the bond would default.
    This default would trigger the bond holders' rights to pursue remedies against the city, which could result in a receiver taking possession of the system. The city's other choice would be to refund the outstanding indebtedness when the new authority issues bonds to cover the debt.
    For the last several years, the city, county and Village of Los Ranchos have jointly served on the Albuquerque Metropolitan Water and Waste Water Board, which serves as a mechanism to include the county and Village of Los Ranchos in the policy and rate setting process. This entity has been successful and responsive to county needs.
    For example, an aggressive plan to extend water and sewer into the developed areas of the north and south valleys was approved and is being carried out today.
    The city and county are working toward a unified government in a time period that would allow the city sufficient time to address the bond holders' rights. SB 887 is a costly and hasty approach to a complicated process.
    Finally, in 2001, the city and county revised a Joint Powers Agreement concerning the Albuquerque/Bernalillo County Government Commission, authorizing work toward unifying the two governments and to resolve differences where the two governments had established agreements.
    To date, the city and county have more than 64 shared functions established under such agreements. The issues SB 241 and SB 887 seek to address should be addressed through this avenue.
    Based on these reasons, we strongly urge a veto of SB 241 and SB 887.
   

    Editor's note: A letter stating the above points was sent to Gov. Bill Richardson and signed by Chávez, City Council President Vincent E. Griego and City Councilors Miguel Gomez, Hess Yntema, Michael Cadigan, Greg Payne, Eric Griego and Brad Winter.