BY DENISE DERKACS
Candidate for Re-election to Council
Editor’s note: None of the statements in this column have been fact-checked by the Los Alamos Reporter.
I am serving in my second year as Council Chair and my fourth year on Council. During my service on Council, I have gained a full understanding of Council procedures and authorities and in-depth knowledge of County operations and challenges. I have learned the complexities of the County budget and recognize the importance of fiscal responsibility. I have worked diligently with my fellow Councilors on strategic planning to establish County priorities and develop tools to track County performance. I am conscious of my role as a public servant and am accountable to my constituents for my decisions.
I’ll continue my discussion on the issues in the framework of County “powers necessary and proper to provide for the safety; preserve the health; promote the prosperity; and improve the morals, order, comfort, and convenience of any county or its inhabitants.” NM Stat § 4-37-1.
In this part, I will focus on providing background information and explaining prosperity-related issues, rather than address specific votes questioned by members of the opposing political party in letters, on the web, and on social media.
Housing
Housing, especially low- and moderate-income housing has been my number one priority on Council.
Council unanimously approved a revised Development Code in December 2022 that raised building heights to 86 feet in downtown Los Alamos and 54 feet in the White Rock town center; reduced parking requirements; allowed accessory dwelling units, and expanded mixed-use development. These changes will help facilitate higher density housing development and reduce housing construction costs.
Council also unanimously approved a revised Affordable Housing Plan in August 2024; that increased income eligibility from 80% to 120% of area median income (AMI). This change will enable the County to partner with the Los Alamos Public Schools to co-develop property at the Middle School site primarily for workforce housing.
Income-qualified housing, realistically, can be built only on publicly owned land. Privately owned properties are far too expensive. The Canyon Walk Apartments (70 units) and the Bluffs Senior Apartments (55 units) on DP Road are two such projects recently built on County-owned land. Additional affordable housing is planned for Tract A-8-a, along the southern edge of DP Road.
Additionally, increasing the overall number of available housing units in the County should help bring down the high costs of housing. The biggest hurdle in development appears to be the ability of developers to obtaining funding. As interest rates are lowered, funding should become more accessible. Our remote mountain location and the limited availability of crafts workers also contribute to delays in construction.
The County added some 488 new housing units in Los Alamos and in White Rock since 2019. Another 830 units are in various stages of approval through the Planning and Zoning Commission. And, some 500 units are in various stages of planning.
Progress on housing development has been slow, but there has been progress. I will continue to support future opportunities for housing development, particularly for low- and moderate-income housing for the workforce.
Small Business and Downtown Revitalization
Residents ask why the County does not do more to financially assist small businesses. The simple answer is that there are legal constraints on what the County can do.
The primary constraint is the NM Anti-Donation Clause, which states: “The State, counties, school districts, and municipalities cannot donate directly or indirectly to, or aid any person, association, or public or private corporation.”
Note that the County has distributed Federal American Rescue Plan Act (ARPA) funds totaling $1,871,998, with an additional $50,865 encumbered, to a total of 36 local businesses, to address the impacts of the COVID-19 shutdown.
The Local Economic Development Act (LEDA) allows public support of economic development to foster, promote, and enhance local economic development efforts while continuing to protect against the unauthorized use of public money and other public resources.
In essence, LEDA is used to enter into public-private partnerships to plan and support economic development projects. However, LEDA does require (a) demonstration of significant community impact and support; (b) evidence of job creation and increased wages; (c) proof of financial soundness, funding sources, and uses; (d) project capital investment; and more.
A Metropolitan Redevelopment Area (MRA) empowers municipalities with authorities to revitalize and redevelop areas that are deteriorated, blighted, or underutilized to stimulate economic development and community well-being, also while protecting against the unauthorized use of public money and other public resources.
Council’s creation of MRAs in the White Rock Town Center and in Downtown Los Alamos enables the use of tools such as public-private partnerships, building grants, tax increment financing, property tax deferrals or credits, and issuance of revenue bonds, that are otherwise unallowable under State law, to help facilitate mixed-use development in the areas.
The MRA Plan(s) will establish an MRA Board, likely composed of Councilors, to review proposed projects, gather broad public input, and determine whether projects should be approved. Only elected officials on Council, not advisory boards, have authority to approve the spending of taxpayer funds.
Note that the County has no plans to allocate $31.5M to Columbus Capitol for redevelopment of the MariMac Shopping Center, as the opposition party has falsely claimed on social media.
Downtown revitalization, in Los Alamos and in White Rock, is essential for a thriving community. I support policies and processes that facilitate small business development and sustainability, within legal constraints, to expand employment, shopping, and social activities necessary for a growing population and a well-rounded community.
Utility Rates
In accordance with the County Charter, the County-owned electric, gas, water, and sewer utility systems are operated as an enterprise fund, an accounting and financial reporting mechanism for which revenues and expenditures are segregated into a fund separate from all other governmental funds. Each utility is its own fund with rates set to cover anticipated expenditures.
The Department of Public Utilities (DPU) operates the County-owned utility systems under jurisdiction and control of the Board of Public Utilities (BPU).
Utility rates are proposed by the BPU and become effective upon approval by the County Council. The rates must cover the total cost of current staffing and operations, the cost for replacements required by normal depreciation of plants or equipment, a reserve to meet future requirements for the utility systems, and set-aside funds to redeem and pay interest on any bond issues for the utilities.
Utility rates must be reasonable and comparable to those in neighboring communities. Rates must be uniform for all consumers of the same class, although different rate schedules may be established for different classes of consumers. The DPU conducts a rigorous analysis for each proposed utility rate increase.
To minimize cost fluctuations, most electric supplies are purchased through power purchase agreements (some comes from County-owned hydro plants), and gas supplies are purchased through a bulk purchasing group. Gas charges also include a monthly commodity cost pass-through.
DPU coordinates with the Public Works Department in five-year planning to perform utility equipment upgrades in conjunction with road improvement projects to reduce costs and minimize disruption to County residents.
Not approving utility rate increases would necessitate delays in equipment upgrades, would reduce reliability, and could result in additional service interruptions. Only one Councilor (Reagor) opposed rate increases.
Budget and GRT
The budget of the Incorporated County of Los Alamos, which is a combined city-county government, is not readily comparable to the budgets of other government entities. One must factor both the city’s budget and the portion of the county budget allocated to that city for comparison. Our County budget also includes funding for a 176-person Fire Department, that services the Laboratory as well as the community, and a Department of Public Utilities that provides gas and electricity, which typically are provided by private for-profit entities.
The County’s primary source of revenue, 75%, is through the gross receipts tax (GRT). About 70% of the GRT revenue comes from taxes paid by the Laboratory. GRT revenues are expected to drop significantly in FY2027 when the Laboratory transitions its pit production mission from research and development to manufacturing and becomes eligible for a State manufacturing exemption.
The County’s FY2024 budget, adopted by Council in April 2023, was formulated based on the assumption of a 0.5% increase in the County’s portion of the gross receipts tax. This proposed increase would have been offset by State decreases in its GRT rate of 0.125% in July 2022 and a second decrease of 0.125% in July 2023. In June 2023, after approving the budget, Council did not pass the assumed 0.5% GRT increase.
The County’s FY2025 budget, approved by Council in April 2024 (only one Councilor, Reagor, opposed), includes $377.5 in expenditures and $410.9 million in projected revenues. Because Council did not approve a GRT increase last year, this year’s budget reflects a reduced reserve balance into the outyears.
A GRT increase of 0.25% is expected to be considered for FY2027. The County’s current GRT rate is the second lowest in New Mexico. The County’s GRT rate was last increased in 2009.
Transparency and Engagement
Transparency and public engagement are essential for building and sustaining trust in County government.
The County developed and implemented an overarching communication plan and launched a more user-friendly website. It issues press releases, publishes and distributes the County Line newsletter weekly, and maintains an active presence on social media to keep residents informed of County activities and issues. It also recently added an online Operational Excellence Dashboard to track County performance against Council goals and priorities.
The County publishes Council meeting agendas 96 hours in advance (NM Open Meetings Act requires 72 hours) and a tickler of agenda topics four weeks in advance. The public can comment on items not on the agenda at the beginning of meetings and on individual agenda items during meetings. The public also can use the new online eComment tool to comment on individual agenda items and, as always, contact Council by email.
The County also conducts surveys, holds public forums and town halls, and encourages public participation in boards and commissions.
And importantly, I and other Councilors are readily available to meet and engage with County residents on specific issues.
Conclusion
I have addressed the issues in the framework of the County’s authorities and responsibilities for public safety, health, and prosperity. For further information about my campaign for re-election to County Council, please contact me by email and/or visit my website and Facebook page.
Email: denise4countycouncil@gmail.com
Website: https://denise4countycouncil.com