[Editor's Note: This is the final portion of the almost six-hour long-meeting of the Grant County Commission on June 12, 2018. This article completes the business of the meeting.]

By Mary Alice Murphy

The Grant County Commission heard a bond presentation after the expenditure reports for the month at its June 12, 2018 meeting.

Grant County Financial Officer Linda Vasquez presented the expenditure report as of June 5, 2018.

Total expenditures were $2,107,869.95, including two payroll periods for an amount of $398,206.39.

Extraordinary expenses over $10,000 include those in this chart:

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Lalleh Dayeny of Hilltop Securities gave a presentation on a potential general obligation bond under consideration by the commissioners. She apologized that George Willaford of Hilltop had been unable to attend that morning. "I'm based in New Mexico. I formerly worked for the Department of Finance and Administration."

She said she would present the next steps on whether to move forward with putting the issue on the November ballot. "Several deadlines are approaching. General Obligation bonds or GO bonds are considered the most stable financing for a county because they are backed by the full faith and credit of the issuing jurisdiction and require voter approval prior to issuance. They are repaid from the proceeds from property in the county subject to ad valorem taxes. They are typically the highest rated debt and lowest interest cost, including favorable terms with no additional security of reserve funds required."

Total outstanding debt cannot exceed 4 percent of assessed valuation and maturity is limited to 20 years. Allowable uses of proceeds include construction or repair of public roads; construction and remodeling of courthouses, jails, bridges, hospitals, public libraries and airports; cultural facilities, athletic facilities, juvenile detention homes, administrative facilities; facilities for housing or repairing and servicing equipment, and sewerage facilities; purchase of books or other library resources; and construction and acquisition of water, sewer or sanitary landfill systems.

She said she knows the county has competing issues, including roads, buildings, and including the Administration Center parking lot.

"The key way is to frame the issue for voters," Dayeny said. "We can help form the question, so the voters can get behind it. Cycling the bonds helps you retire debt as quickly as possible and gives consistent access to capital when and where you should need it."

She noted that Grant County is uniquely positioned for a GO bond this year, as it has recently retired debt, so it can use the current taxes toward the new bond, with no increase in taxes.

The county has an overall positive outlook, with a 3.5 percent growth rate over the past 10 years, and a fairly even split between residential and non-commercial properties.

Dayeny also warned that if the county does not issue debt this year, the DFA would decrease the available level of debt possible to the county.

Bonding capacity of Grant County is actually almost $34 million, but Dayeny proposed a $6 million bond, with $3 million to be sold in 2019 and $3 million in 2020.

The bond, if on the ballot this year, would be voted on Nov. 6, 2018.

She was unable to show her presentation, but the commissioners had several charts and tables in their packet, offering different financing scenarios, including issuance of a single $6 million bond or even a single $8 million bond.

Dayeny said she took a conservative approach, with projected 2 percent growth and after five years, 1 percent growth. Debt repayment is front-loaded with higher costs the first few years going down toward the end.

For next steps, she said if they want to move forward, Hilltop would draft a resolution for the July commission meeting. "The request to be put on the ballot must be sent to the Secretary of State at least 70 days ahead of the election. August 28 is the hard deadline to notify the Secretary of State and to provide the resolution."

To a question from Commissioner Harry Browne, she said she had used historical data, but would fine-tune the numbers with the assessor. She said she was also in preliminary discussions with the treasurer.

County Manager Charlene Webb said she had also been in preliminary discussions with the treasurer.

Browne asked why the 2004 bond was paid off in 10 years. Commissioner Brett Kasten explained it was to refinance when rates went down. Dayeny said a 20 year-repayment might be beneficial as "we are in a rising rate environment."

Treasurer Steve Armendariz said he was happy to see projects getting done, "but I would like to ask about the three scenarios, and whether we have prepared projects. We still have about $100,000 in our 2014 bond that has not been expended. We are not allowed to invest it, so it's just sitting there."

Dayeny said January 1 is a place holder for the bond issuance. "We would see to match it with the existing bond payments and to match it with the receipt of revenues."

County Community Development and Planning Director Michael "Mischa" Larisch the Asset Management Plan shows the county needs money for roads, but $3 million is short. "Yes, we have projects. We also have a potential solar project on the table."

Next on the agenda was a report on the Grant County Airport from General Services Director Randy Villa and Airport Manager Rebekah Wenger.

"We had a lengthy report," Villa said, "but we'll cut it short."

Wenger gave some statistics on the airport. "We have four runways, with one paved, a terminal, 16 T-hangars, five private, and the fire cache on 740 acres, with 2 ½ employees. We operate seven days a week. Runway 6802 is too short for the current Forest Service tankers, so they have been flying out of other airports."

The fuel depot averages selling about 13,000 gallons a month, with 30,000 sold in May. "We have a self-serve pump for the general aviation community. The cost is tricky. It can be cheaper at larger airports, but we can fuel and turn a flight around in 15 minutes, while the planes usually have to wait at larger airports. We budgeted to sell about $400,000 worth of fuel. As of yesterday, we have sold $538,000 worth. We have hit record enplanements, which is critical to the FAA. If we get more than 10,000 enplanements, we will qualify for up to $1 million in funding. That way we can fund for projects. We're looking at the apron, which is about 20 years overdue for replacement."

Wenger noted that the essential air service contract with Boutique ends at the end of 2018. "We heard from Boutique and from Advanced Air. We want to have our comments in by July 17, but the Department of Transportation prefers them sooner."

Browne asked if Wenger had any thoughts for the commissioners on the proposals.

"There are a lot of variabilities," Wenger said. "As a community, the DOT values the input of the people who are out flying. We have gone from flying 1,000 a year with the previous provider to flying more than 11,000 annually with Boutique. Yes, Boutique had some issues earlier this year, but they have addressed them. It was also a good proposal from Advanced Air."

Villa said comments from those who are flying is important, with pros and cons from each. "I don't think we will go wrong with either. Boutique leases our facility for overnight stays for pilots. Advanced Air indicated it might prefer to purchase a place for the pilots to stay. Rental cars are another issue."

Browne noted that Advanced Air said it was easier to get parts for the King Air 350 models. Wenger said Boutique has purchased new Pilatus PC aircraft and can get parts from Denver. "Boutique has also proposed using King Airs."

Commissioner Gabriel Ramos asked if Silver City had made a recommendation.

Wenger said not that she knew of. "I would be happy to put together the salient points for you to consider which would best serve the community."

Commissioner Alicia Edwards asked about the too-short runway and the tankers not being able to lift off with a full load of fuel. "Should we be thinking about extending the runway?"

Wenger said she was a proponent of a cross-wind runway. "The current runway can't be extended. We don't have the land for it."

Larisch said: "We have an upcoming meeting with the Forest Service. One of the current concerns is that they will stop using our runway. We would have to acquire more land to extend it. We need to bring it up to the forefront of the ICIP."

Villa noted the Forest Service also has helicopters, attack planes and spotters, not just the large tankers. "The Chinooks are dropping water."

Wenger said the estimate to extend the runway or create a cross-wind runway has an estimate of about seven years and $26 million. "We do a capital plan with the FAA. We are trying to move it ahead."

Edwards asked: "If we built the runway, would it be usable for large commercial aircraft?"

"I'm not sure it could support commercial aircraft," Wenger said. "Even a large corporate jet couldn't take off now."

Villa said another problem, if they decided to build a cross-wind runway, was that they couldn't use the airport during construction.

Browne noted there is a waiting list for hangars. "Should we build more?"

Wenger said it's good to have a couple on the waiting list.

"Having Rebekah has given me an opportunity to learn from her, and Charlene is also enlightening me," Villa said.

On the EAS issue, the commissioners set a special meeting for July 10 to make a recommendation.

[Editor's Note: Also on that special meeting agenda is an executive session on GRMC.]

Wenger said community input is also valuable. "But the DOT will make the final decision."

Clerk Marisa Castrillo said the recent primary election brought a 36 percent turnout of eligible voters. "By 8 p.m., we had the results to the Secretary of State." She asked for the commissioners to approve the election vote canvass, which they did.

Commissioners appointed one peer consumer, Douglas Shelley to the Tu Casa Advisory Committee.
Commissioners re-appointed Scott Nielson and Sean Rees for one-year terms on the Grant County Public Shooting Range Advisory Board.
Four agreements or amendments to agreements pertaining to the Grant County DWI Program were approved. They included an item between the DFA Local Government Division for the DWI grant program, a professional services amendment to an agreement and an agreement between the DWI program and Chris Helgert of The Recovery Management Center, and a professional services agreement between the DWI program and Michael McGee.

An agreement with Gila Regional Medical Center to provide EMS services was approved.

Vasquez reported budget adjustments for the fiscal year 2017-18. Browne noted there was an unusually large indigent fund deficit.

Webb explained it was not a deficit, but the new provider of services had authorized an amount to go back into the General Fund. "We knew we would be putting in a transfer at the end of the fiscal year."

Three resolutions authorized entering into Local Government Road Fund cooperative agreements with the New Mexico Department of Transportation. Road Superintendent Earl Moore said they are capital and special project allocations, primarily for school bus routes.

A grant agreement between Grant County and the New Mexico Association of Counties provides $10,000 with a county 10 percent match for a program educating the community on being Firewise.

As the Grant County Health Care Claims Board, commissioners approved indigent claims for $2,812.27 as well as an indigent burial from Terrazas Funeral Chapels.

In county reports, Grant County Detention Center Administrator Mike Carillo reported four vacancies and an average daily population of 87, seven more than last month; high male population, 61, three more than last month; and high female 24, four more than last month.

Moore reported that it was "business as usual at the Road Department. We are working at Mule Creek, then we'll do maintenance. I would like you to consider roads for the bond project. I guarantee it will be spent. It can be used for paved and dirt roads."

Villa said the county has fire restrictions in place. He reported the Spurgeon and Willow fires were burning on Gila National Forest land. "We've had a few spot fires near the airport, coming from sparks from Freeport trains. We ask everyone to abide by the restrictions."

Commission Chairman Billy Billings said it made sense to him to have restrictions. "If sparks can start fires, then fireworks are an unnecessary evil."

Villa noted that even if the county prohibits the sale of fireworks, people will buy them wherever they can.

Larisch said the construction of Tu Casa is complete. "We have rekeyed the facility, and HMS has control of the keys. The Lower Mimbres water storage tank installation is almost complete. The Santa Rita Fire Station passed inspection. The draft asset management plan is in internal review. The ICIP public meetings are complete. We need to hear the county needs and cost estimates. For the Rosedale Road Colonias project, we received an extra $15,000 bringing the total expenditure to $1.078 million. The energy audit has a shortfall. It's a little too high, so we are looking at a smaller project to support with the savings. We will be doing an expansion of the Whiskey Creek fire station and for that we will need a sewer extension on Rosedale."

Edwards congratulated the completion of Tu Casa, which wouldn't have happened without the help of former Commissioner Ron Hall, Susie Trujillo and all the others who worked on getting the project done.

Browne asked Larisch about the ICIP input.

"We had four people here, one each attended in Cliff and Mimbres and one in Hachita," Larisch replied. "We didn't get as much input as I would have liked. I will present what we did get, so you can rank them. We have to complete the ICIP by September. I held the input meetings in April and May."

Elected officials spoke next. Treasurer Steve Armendariz said his office, as of June 11, had a 90.67 collection rate of property taxes. "We received $2.2 million for copper production. We have had people from the state Property Tax Division down here. We are scheduled for a June 28 delinquent tax sale. We ask the public to get here between 8 a.m. and 9 a.m. to register. We started with a list of 86 properties and 16 have already paid off. Potentially another 39 will be removed by the state. About 31 properties will be scheduled for auction."

"We have sent out courtesy letters for those who were delinquent for their 2015, 2016 and 2017 taxes," Armendariz continued. "We encourage them to pay their 2015 taxes in full. We have 4200 delinquent accounts. The staff is working diligently to get the notices out."

Matthew James, chief deputy assessor, gave the office's report.

"It had been my intention to present the yearly report, but it will be at the July meeting," Assessor Raul Turrieta said.

James said he and the assessor had sincere concerns on the budget, "which is overly conservative. We want a second budget meeting in July. It is of grave concern to us to allocate only $120,000 for the parcel appraisal fund. That is unacceptable. It fails to address the parcel mapping project."

Billings said there were still some outstanding questions that the assessor's office had not answered. "Mr. Browne's question was how the requested new staff would pay for itself."

Webb also said she was waiting on the request for a yield control report.

"I am creating a database as an approach to the two questions," James said. "They are on the back burner while I address the state assessment."

In commissioner reports, Edwards thanked every one of the public who spoke about their hospital concerns. "I also thank everyone who applied for the Board of Trustees."

Billings noted that a lot has changed since the commissioners first asked questions about the hospital, its management and its financial status.

"I agree with Dr. Diaz," he continued. "We got transparency from the administration. I agree it is not the time to sell the hospital. I think we can go down—I hope that will be the case—as the Commission that saved the hospital."

The commissioners went into a more than 1 1/2 -hour executive session and came out and announced no decision would be made that day. "It has to be done right," Commissioner Brett Kasten said.

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