Shrake to Office of the Attorney General

Ward Shrake

October 1, 2011

Office of the Attorney General
State ofNew Mexico; Paul Bardacke Complex
P.O. Drawer 1508
Santa Fe, NM 87504-1508

Dear Attorney General:

      Roughly a week ago I wrote to your offices, hoping to have you folks enforce the
"Inspection of Public Records Act," in regards to the city of Raton. My earlier letter came
to you before the statute of limitations or the deadline had actually run out (on my written
request to Raton's records custodian; which they had received and signed for, on the
15th of September) - but now, the 15 calendar days that Raton had to either get me the records
I had asked for, or the proper type of written denials that IPRA laws call for, has passed.

     I'm hoping that you'll follow up on that matter, now, with the city of Raton.

Source: http://www.nmag.gov/pdf/Ward%20Shrake%20IPRA%20complaint%20City%20of%20Raton%5B1%5D.pdf

Rerecich/Engel to NM Attorney General

John Rerecich/Kathryn Engel

December 12,2011

NM Attorney General
Civil Division
P0 Drawer 1508
Santa Fe, NM 87504

Specific dates of potential violation

According to the City Mayor, Neil Segotta there was a meeting held on Dec 11, 2011, for the purpose of creating a Resolution that would restrict a Commissior [sic] from consulting with the City Attorney, or to undermine the majority by contacting other governmental agencies; or non-govermental [sic] agencies; in any official capacity.

Description of the public body that took the action in Question

The public body that took this action was certain members of the Raton City Commission together with the City Manager, Jeff Condrey. Commissioner Sandy Mantz was not informed of this meeting or its purpose. Others not informed were the citizens of Raton and the meeting was held in private. The other Commissioner not informed of the meeting was Chris Candelario. The Mayor, Neil Segotta, and the two remaining Commissioners who were involved were Charles Starkovich and Sarah Montoya, an Attorney At Law.

Description of specific circumstances surrounding the Allegation

The only elected Commissioner is Sandy Mantz who has been referred by the three aforementioned Commissioners as a rogue Commissioner, because she consults with her constituents and advises the Commission on financial matters as she is an accountant. She has been voted against by the three mentioned above, who are appointed Commissioners, on most issues brought before the Commission.

The most recent conflict has been the Commisssion [sic] decision to utilize Lodger's Tax money to pay for an economic impact study requested by a priviate [sic] developer. When it was pointed out to them by Commissioner Mantz that it was illegal use of the Lodgers Tax funds, they called for the vote and again voted

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it in, saying they were going to do it anyway. Commissioner Mantz consulted with the Municipal League, the City Attorney and the DFA who all supported her position. This was the final straw and the incident that drove the City Manager, the Mayor and the remaining Commissioners, excepting Chris Candelario, into this desparate [sic] move.

Other supporting documentation

Supporting documentation is a copy of the Resolution in question which was drafted without an OPEN MEETING or even a special closed meeting. It was released publicly on Monday Dec. 12 as already approved and dated Dec 13, 2011. It was voted on at the Commission Meeting Dec 13. I have also included a a [sic] statement made by myself during the "items from citizens present" at the end of the meeting.

In conclusion, if this move was initiated by the City Manager alone, it is clearly inappropriate and beyond his authority. If it was directed by one or more of the Commissioners, it is clearly a violation of the Open Meeting Law. Thank you for your consideration,

Kathryn Engel and John Rerecich

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Source: http://www.nmag.gov/pdf/OMA%20complaint%20against%20City%20of%20Raton%20complainant%20John%20Rerecich%20and%20Kathryn%20Engel%5B1%5D.pdf

"Thank You" Letter from MCMC to NM Land Commissioner

 November 4, 2011

Commissioner Ray Powell
New Mexico State Land Office
310 Old Santa Fe Trail
Santa Fe, NM 87501

Dear Commissioner Powell,

New Mexico is a state rich in history and culture. Since New Mexico was a Territory, state lands have been granted for the operation and maintenance of the Miners’ Hospital. For the past 105 years, Miners’ Hospital has never closed it’s [sic] doors. This fact is a tribute and testimonial to our Forefathers, and individuals such as yourself, that have made the best decisions possible to ensure that our miners have had a facility available to them "for the treatment and care of resident miners who may become sick or injured in the line of their occupation".

The State Land Office has fulfilled their commitment to the Miners’ Hospital since it’s [sic] inception. The funds that are entrusted to the Miners’ Hospital are critical to it’s [sic] ability to sustain services to our resident miners and general public. The funds account for approximately 25% of the Hospital’s annual revenue. In 1987, Miner’s [sic] Hospital and Colfax County merged to create the Miners’ Colfax Medical Center (MCMC). MCMC has since been providing treatment and care for most of the northeastern population and is proud to continue this great tradition.

I want to commend and thank you for the job that you do. MCMC and the other beneficiaries owe their existence and ability to remain available to the citizens of New Mexico to individuals such as yourself.

Respectfully,

Thomas Poteste
Chief Financial Officer

Source: http://www.nmstatelands.org/uploads/files/Land%20Commissioner%20Letter%283%29.pdf

In Search of MCMC Financial Report

I have searched in vain for a posting of the Miners' Colfax Medical Center annual financial report.  I can find a picture of Britney Spear's naked hoo-ha and Justin Bieber's helmet hair, but I can't find this report.  Why is that?

Anyways, I did find this link: http://www.nmstatelands.org/Miners_Colfax_Medical_Center.aspx

which reports:

"This beneficiary (MCMC) received more than $2.3 million in income from state trust land revenue in fiscal year 2011."

So, regardless of whether MCMC has its own trust fund, it definitely received state money.  Some would argue that it's not "tax" money, but any money spent by the state on one endeavor means money from some other source (your taxes) must be spent on something that would have been covered by that money.  It all comes from the same pot.

New Mexico Lodgers' Tax ~ NMSA 1978

Below are the two statutes outlining the implementation and use of Lodgers' Tax Revenue from NMSA 1978.  Despite the reference to "1978", this is the current set of statutes in place for the state of New Mexico.

The title "Lodgers' Tax" is often seen with and without an apostrophe.  The NMSA uses an apostrophe, so that would seem to be the most official format.

3-38-15. Authorization of tax; limitations on use of proceeds.

		A.     A municipality may impose by ordinance an occupancy tax for revenues on lodging within the municipality, and the board of county commissioners of a county may impose by ordinance an occupancy tax for revenues on lodging within that part of the county outside of the incorporated limits of a municipality.

		B.     The occupancy tax shall not exceed five percent of the gross taxable rent.

		C.     Every vendor who is furnishing any lodgings within a municipality or county is exercising a taxable privilege.

		D.     The following portions of the proceeds from the occupancy tax shall be used only for advertising, publicizing and promoting tourist-related attractions, facilities and events:

		(1)     if the municipality or county imposes an occupancy tax of no more than two percent, not less than one-fourth of the proceeds shall be used for those purposes;

		(2)     if the occupancy tax imposed is more than two percent and the municipality is not located in a class A county or the county is not a class A county, not less than one-half of the proceeds from the first three percent of the tax and not less than one-fourth of the proceeds from the tax in excess of three percent shall be used for those purposes; and

		(3)     if the occupancy tax imposed is more than two percent and the municipality is located in a class A county or the county is a class A county, not less than one-half of the proceeds from the tax shall be used for those purposes.

		E.     The proceeds from the occupancy tax in excess of the amount required to be used for advertising, publicizing and promoting tourist-related attractions, facilities and events may be used for any purpose authorized in Section 3-38-21 NMSA 1978.

		F.     The proceeds from the occupancy tax that are required to be used to advertise, publicize and promote tourist-related attractions, facilities and events shall be used within two years of the close of the fiscal year in which they were collected and shall not be accumulated beyond that date or used for any other purpose.

		G.     Notwithstanding the provisions of Paragraph (2) of Subsection D of this section, any use by a municipality or county of occupancy tax proceeds on January 1, 1996 may continue to be so used after July 1, 1996 in accordance with the provisions of this section and Section 3-38-21 NMSA 1978 as they were in effect prior to July 1, 1996; provided, any change in the use of those tax proceeds after July 1, 1996 is subject to the limitations of that paragraph.

		H.     Notwithstanding the provisions of Paragraph (2) of Subsection D of this section, the payment of principal and interest on outstanding bonds issued prior to January 1, 1996 pursuant to Section 3-38-23 or 3-38-24 NMSA 1978 shall be made in accordance with the retirement schedules of the bonds established at the time of issuance. The amount of expenditures required under Paragraph (2) of Subsection D of this section shall be reduced each year, if necessary, to make the required payments of principal and interest of all outstanding bonds issued prior to January 1, 1996.

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	3-38-21. Eligible uses of tax proceeds.

		Subject to the limitations contained in Section 3-38-15 NMSA 1978, a municipality or county imposing an occupancy tax may use the proceeds from the tax to defray costs of:

		A.     collecting and otherwise administering the tax, including the performance of audits required by the Lodgers' Tax Act pursuant to guidelines issued by the department of finance and administration;

		B.     establishing, operating, purchasing, constructing, otherwise acquiring, reconstructing, extending, improving, equipping, furnishing or acquiring real property or any interest in real property for the site or grounds for tourist-related facilities, attractions or transportation systems of the municipality, the county in which the municipality is located or the county;

		C.     the principal of and interest on any prior redemption premiums due in connection with and any other charges pertaining to revenue bonds authorized by Section 3-38-23 or 3-38-24 NMSA 1978;

		D.     advertising, publicizing and promoting tourist-related attractions, facilities and events of the municipality or county and tourist facilities or attractions within the area;

		E.     providing police and fire protection and sanitation service for tourist-related events, facilities and attractions located in the respective municipality or county; or

		F.     any combination of the foregoing purposes or transactions stated in this section, but for no other municipal or county purpose.

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Section 3-38-23 and 3-38-24 NMSA 1978 pertain to issuing and paying the cost of bonds with the Lodgers' Tax and offer no new insights into the allowable uses for the funds.

It's Time to Plan for An Orderly Depopulation

It's time to call a pig a pig.  Raton's population is currently around 6,000; over the next 10 years, a population of 3,000 is not out of the question.  That would put Raton in the same league as Clayton, NM and Walsenburg, CO -- similar to each in different ways.

Is that necessarily such a bad thing?  Is growth the only way forward?  Nothing can grow forever.  If the town must shrink, then it might be time to do something RARELY done -- see the writing on the wall and plan for a smaller future.  One city which has done that very thing is Detroit, MI.

So, what must be done?

Stop Wasting Money Trying to Lure Businesses to Town

They aren't coming.  Okay, maybe one or two over the next ten years.  It's not like we haven't been trying.  It makes very little sense for a business of significant size to locate here.  Get over it.

Quit Worrying About the Casino

If a casino ever manages to be built in Raton, its impact will be minimal and short lived. Adding a prison with 300 jobs to Clayton had virtually no effect.  Walsenburg got a little bump from their prison -- until it left town.  If the new casino proved to be the biggest, brightest, most wonderful show in all of the Southwest, then maybe Raton could become the Vegas of the prairie.  I think that deep down, in their heart of hearts, most people really know the truth -- the casino would probably be a corrugated tin pre-fab wonder.  Maybe we would be lucky and it would have a shingled facade on the front.  Maybe even a fountain in which to toss your shiny pennies.

Bulldoze, Bulldoze, Bulldoze

Detroit took a hard look at it's empty, decrepit neighborhoods.  Then they bulldozed them.

 Why should Raton follow suit?

•  A small town with open areas looks better than a small town surrounded by a jungle of ruins.
• Empty lots can be rebuilt by folks with money if they want to move to Raton in the future.
• Removing the slums reduces the number of available dumps for ne'er-do-wells to inhabit.

 Quit Trying to Lure New Residents

Those who want to come here will come here of their own accord -- and for the right reasons.  Make it as unpalatable as possible for the jobless or barely employed.  This is NOT the place to be homeless!

Quit Building Shit With Government Money

Yep, the hospital, county court building, and the swimming pool would never have been built if they were funded by private money.  Why not?  Because private money is usually smarter money, and smart money knows better than to build in a town that is hanging by a thread.

Spend the Money Saved on Making Raton a More Beautiful Place

Focus the money inward -- plant flowers, trees, and grass.  Clean up lots and buildings.  Add sculptures.  Make it an enjoyable place for the remaining population.  If you want to improve something, work on the fundamentals first.  The rewards will follow.

Prepare to Lose a Few Businesses

More than a few businesses in Raton are hanging by the proverbial thread.  We are going to lose some restaurants, some gas stations, and perhaps a hotel or two.  We will probably keep the grocery store but may lose the K-Mart.  Is one dollar store enough?  Will you miss these businesses terribly? Do you even shop in them now? 

Only Hire City Managers from Within the Community

No matter how slim the pickin's.  Seriously.  Pay them the same amount as you would an outsider.  Yeah, that's gonna stick in somebody's craw.

Stop Whining and Complaining (as much)

Make it a point to spend at least as much time each day doing something constructive as you do whinging.

Wow -- think how much good we could do!

The word on the street is that Fire Chief Pasquale will be (and wants to be) the interim city manager.

Weird, huh?