At the Silver City-Grant County TEA Party Patriots special bond election forum Tuesday evening, the three panelists, Western New Mexico University President Joseph Shepard, Grant County Commission Chairman Brett Kasten and Silver City Town Manager Alex Brown answered questions, written and oral, from the audience.
"I have to get brutally honest," Bill Carliss, Silver City resident, said. "I looked at the list and I don't see any extra jobs, except maybe construction, which usually goes to outside contractors. We need to do secondary copper processing here. I would love to see a blue ribbon task force to try to get secondary copper processing here. There is a water crisis and we're talking about maintaining pools. We are already using water on all projects, like the parking lot at the conference center and in front of the hospital."
Skip Thacker, resident, said he and his wife chose Silver City and Grant County to retire, because it was friendly and affordable. "Twenty years ago when we moved here, there were three movie theaters and a country club with good food. Now the population is less and there are more storefront vacancies. We are stagnating, not progressing. We cannot expect federal help and not much from the state. We have to depend on ourselves. We can debate the issues, but we need to start now. I think 25 cents on $100 is a cheap investment."
Peter Burrows of the Tea Party asked for a spreadsheet on how the team that developed the plan got the numbers.
Brown said the state has the gross receipts taxes by county and by city for the entire year. "Sales from outside Silver City also go to the payment of the bond. Anyone who comes in from outside the county also pays the gross receipts tax.
Burrows said his water bill just went up. "I would like to see the numbers. I understand the phase out of the hold harmless will have a $1.8 million impact on Silver City."
Brown said the town has a 1/8 GRT to subsidize the sewer plant. "We developed a plan to increase the water bill, so that there is no subsidy, but it pays for itself. The 1/8 will help offset the hold harmless phase out over, I think, 14 years."
Kasten said he didn't think the Legislature was done with hold harmless, "because it didn't sit well with a lot of people."
A questioner pointed out: "The Idea Team is made up of all middle-aged men. How about women and youths?"
"My Idea Team member (his wife) just walked out the door to pick up the rest of my Idea Team," Kasten said.
"I represent my students and the people who come up to me," Shepard said. "Most of the swimmers have been female."
Another question was posed. In other counties where there were elections to raise the gross receipts tax, it was always bond specific, such as to fix water lines. "Why is this not specifically tied to a project?"
John Crow of Gila Community Forum said in the ordinance and on the ballot none are listed.
Julie Morales of WNMU said the ballot is generic. Shepard said when County Manager Jon Paul Saari was asked that question he said bond counsel had told him it had to be this way.
Brown said Silver City just issued $5 million in bonds, with a 1/8 capital infrastructure increment. "Counsel chose to dedicate it to the water and sewer fund. When we issued the bonds, they specified the purpose."
Kasten said he felt confident in Perry Bendicksen, bond counsel for the county.
A questioner asked what the term of the bond interest rate was.
"The bonds won't be issued unless the issue passes," Kasten said.
Another questioner asked when would the tax go away.
"It depends on the interest rate," Kasten said.
"A sunset date can be put in the bond ordinance," Brown said. "We have a law enforcement bond that will sunset in 2014."
"I'm not sure it will go away," Kasten said.
"We just did a 30-year revenue bond for the residence halls at 3.4 percent," Shepard said.
"We issued a 15-year bond at 2.56 percent," Brown said. "The bond market right now is the best it's going to get."
"I've been part of issuing bonds for the past 20 years," Shepard said. "The past four years are the lowest ever. They are getting ready to go up, and we are seeing the yield curve starting to change."
A questioner said Grant County citizens are the investors. "When do we see the business plan?"
"On economic development, we haven't used formal economic development tools," Shepard said. "There is plenty of literature to predict the return on investment."
"In this proposal we have a piece of economic development and the county being a better place to live," Kasten said.
"Our role is not to provide a business plan," Brown said. "Our role is to provide the infrastructure. A person, if living here, spends a larger amount of what he earns here. If you live elsewhere, you spend it elsewhere."
"Since this is a special election, why not put one proposal per general election ballot instead of going to the extra expense," a questioner asked.
"Because it's 16 months until the next general election, and then two years after that," Kasten said.
A person asked who would manage the proposals.
'"The conference center and the ball field belong to the county," Kasten said. "The pool belongs to the university; the golf course is the city's. The movie theater will ultimately pay for itself. It has to be at least three screens, because a theater has to keep a blockbuster for five to six weeks, but can move it to the smaller theaters as new movies arrive. Several entities have shown interest in a request for proposal to choose the operator. We don't know where it will be. That is a different set of RFPs. If the city takes it on, perhaps we can add the Silco to use as a genre theater."
"The biggest thing is not the actual theater," Brown said. "It's what goes on around a theater. Development begins to build around a theater."
"Who would own the theater? Wouldn't it better if it were privately owned?" a questioner asked.
Yes was the reply. The decision on who owns it has not been decided.
"Why were none of these on the county master plan done by Angelou?" was a question posed.
"This has happened only in the past two years," Kasten said. "Angelou's plan is step by step, but it does say you have to do it for yourself."
Another questioner asked if the Silco had an asbestos problem.
Brown said he didn't know.
Nick Seibel, former MainStreet manager, said the Silco has had asbestos testing. "Almost any building of that age has asbestos. If there is restoration, it will not be disturbing where the asbestos is. The Silco will be used as a theater independently of this process, but if this passes, it will likely help to have movies at the Silco."
"Why not fix the city pool, which is unused nine months of the year?" an audience member asked.
"The issue is not about making money if we cover the pool," Brown said. "What about maintenance and lifeguards? Since the beginning of July, we have only about 12 people a day and they are lap swimmers. That's the difference between an outdoor pool and an indoor one, which can be used in any weather."
Shepard agreed that pools are expensive. "What I appreciate is that we are sharing the burden for all of us. We have a hole in the ground and it's covered. We have college students to be lifeguards. We came to the conclusion that it would be most efficient to use the university pool."
An audience member commented on the remark that families are leaving the area.
"It's a lack of things to do for young families," Kasten said. "Try to hire people to come here. It's tough. We have trouble recruiting the up and coming leaders."
"We have trouble with getting faculty," Shepard said. "The hospital is the same. Gila Regional is having trouble getting doctors. People want to live in a quaint community, but they want something to do. I get exit interviews from students and faculty who leave. They say there is not enough to do here."
A questioner asked about the specifics on the tax issue.
"We’ve told you exactly what they are," Kasten said. "Unfortunately, they are not on the ballot."
Another questioner asked how much each would cost.
"We're voting on the tax, and the County Commission will identify how much goes where," Shepard said. "These are the estimates we have made: There will be $10 million in bonding capacity, with $4.3 million for the pools; $3 million for the theater; $1.7 million for the conference center; $600,000 for the baseball field and $400,000 for the golf course."
"Why was the decision made to do the outside of the conference center first?" an audience member asked.
"I wasn't here then," Kasten said, so Brown answered the question.
"It was required by the Economic Development Administration for the funding," Brown said. "The EDA also said it was willing to put $2 million in for the interior, but not until the outside was completed. The economy then fell apart and sequestration happened. The $2 million disappeared."
"With $1.7 to $2 million, we will have a first class facility, with a full kitchen, a ballroom, and break out rooms," Kasten said. "We have basic drawings, but don't have the money for full architectural drawings. Estimates for these projects include the architectural and engineering reports."
Shepard said he understood the roof has to be redone for $700,000.
In answer to a question, why a new building was not built, Brown said the state funding given to the county was not enough to build a new building.
An audience member asked what conditions for performance bonds would be put in the bids that are let.
"Yes, there will be performance bonds required," Shepard said. "Tatsch Construction, for example has to guarantee its cost and its date of completion, or face fines. We will hold them to warranties. If we have a chance to use local and they are competitive, we prefer to use them, because they have skin in the game with their families here."
Brown said the city and county have the same requirements. The city gives a 5 percent preference to Grant County contractors, which it can do because it is still a territorial charter community. The county, by law, can give a 5 percent preference anywhere in the state.
"Our concrete at the university was poured in the 1920s, 1930s and 1940s," Shepard said. "That's not too shabby. Tatsch built the library. When the steps were crumbling, Tatsch fixed them."
Carliss got off on a tangent about the poor conditions of pouring concrete in the area.
"The university is state-owned," Crow said. "Does the pool make it part of county infrastructure?"
"We can lease or do memoranda of understanding back and forth," Shepard said. "I have dealt with a county and university owned pool before. Contracts are very important."
"There is a difference between whose asset inventory it is and who will use it," Brown said. "The county will use it."
"At the first meeting, Shepard and the town knew they needed to involve the county," Crow said. "There have been more demands on the pool. As the university grows, county use will go down."
"We will more tightly integrate the university to the community," Shepard said. "The reverse is equally true. Look at us and the students all together and don't differentiate the university from the community."
Crow insisted that the university would have first dibs on the use of the pool, so there would be decreased community use.
" In my mind, the university students are community residents," Shepard said.
An audience member thanked Shepard, Kasten and Brown for "jumping in front of this to keep the infrastructure up and families here."
A questioner asked how to keep families in the area "if they don't have a job."
"I believe jobs is not necessarily the issue," Kasten said. "A lot of jobs are available at the mine, the university and even Gila Regional. They are all hiring. Not any one makes a web, but all together we make a web to keep it together. I think people will want to stay here and all of us will do better."
Burk Fleming, resident, thanked Brown for letting people swim early at the city pool. "They are doctors. We can't afford to lose doctors."
"During the winter, if people have more options, they will want to stay here," Brown said.
"The TEA Party is an important element of the community," Shepard said. "I'm proud you are supporting the Constitution, which allows us to have these discussions. Thank you for your time and investment."
Kasten said he appreciated those present for sharing their opinions.