Officials to add new language to zoning

Language will be added to Tucumcari zoning laws to accommodate growing, processing and retail sales of marijuana products for recreation, the Tucumcari City Commission decided in a special meeting on Thursday.

While commissioners did not specify the wording, the commission decided to keep current city zones in place, especially commercial, agricultural and zones, but to add language that applies directly to cannabis-based production and sales.

The commission also decided to include mixed-use zoning that would allow a business owner to live on property that also includes the business.

As proposed by District 1 Commissioner Ralph Moya, one area along Allen Lane along the city’s eastern booundary, which is currently zoned residential but is used only for agriculture, would be allowed to accommodate the growing of marijuana plants.

Once drafted, the changed ordinance will have to be considered a new ordinance. It would have to undergo first reading, a public hearing and a city commission vote of approval to be put into effect, City Manager Mark Martinez said.

Martinez said that the city is trying to anticipate state policies to accommodate a legalized recreational marijuana industry, but state government has also just begun to set up a regulatory structure for the new cannabis industry.

“It’s a moving target,” he said.

Tucumcari’s location near the Texas border is widely expected to bring out-of-state residents to the city to purchase and consume cannabis products, which could benefit the city.

Martinez cautioned commissioners on Thursday, however, that the marijuana industry would not solve the city’s economic growth issues by itself.

Commissioners on Thursday also expressed concerns about keeping up the city’s traditional appearance, including architectural styles and neon lights associated with the heyday of Route 66.

Since cannabis business property would have to be operated by the property owners, Distric 5 commissioner Todd Duplantis said commissioners are concerned that shipping containers and old boxcars, which could be set up quickly and at low cost as marijuana dispensaries, might serve as business locations and mar the city’s appearance.

Scott Crotzer, executive director of the Tucumcari Chamber of Commerce, suggested requiring the business owners to seek permission to hook up utilities as a way of regulating business licenses to preserve appearances.

The commission on Thursday also continued discussion on cuts to the city’s 2021-2022 fiscal year budget, which is due for submission to the New Mexico Department of Finance and Administration (DFA) on July 30.

Commissioners seemed to agree that having city department suggest cuts might be a less painful way than cutting jobs or pay to make the hundreds of thousands of dollars in budget reductions necessary to balance the budget.

Arias said the city must budget on a “worst case” basis, which would maximizes deficit estimates for the 2021-2022 fiscal year that began on Thursday and ends June 30, 2022.

The city started out the 2020-2021 fiscal year in the black, she said, because revenues were greater than anticipated and expenses were smaller.

She said, however, that DFA officials were concerned because the city is depleting cash reserves designed to avoid deficit spending.

The city is required by ordinance to budget in reserves from 15% to 25% of the general fund, which is valued at about $5 million, to protect against deficit spending, and those required reserves are a factor in the projected budget deficits, she said.

Driving concern about the budget is an increase in the state’s minimum wage to $11.50 per hour, which has driven up estimated expenses for pay that produce deficits ranging from $550,000 to over $800,000, using different options, according to Rachelle Arias, the city’s finance director.

Martinez said if the city raises pay for those making less than the minimum wage, but does not change the pay of employees whose jobs require more experience and knowledge, the city could lose valuable employees.

For example, he said, “we could lose the licensed people who operate our wastewater treatment plant” and other licensed personnel.

Arias added that emergency medical personnel, who must be certified, would find themselves earning the same wage as unskilled McDonald’s employees.

Raising minimum wage and providing raises of 2% to other employees, however, would increase the city’s budgeted deficit to $800,000, Arias said.

Commissioners expressed reluctance to cut pay or positions.

Moya told commissioners, When we cut jobs, we’re affecting livelihoods.”

Duplantis cited similar thoughts when he suggested that department heads search for possible expenses they could do without.

“Nickel and dime” expenses, he said, can add up to significant amounts, he said. “That’s the first place I would look.”

District 4 Commissioner Chris Arias suggested the city look at some services that could be eliminated.

For instance, he noted, the city’s currently shut down swimming pool, which currently requires $250,000 in repairs to be operational again, might be shut down for a longer time.

The commission decided to schedule another special meeting at 3 p.m. July 14 to continue budget discussions.

In other action the commission:

• Approved renewal of a contract with the Egolf Ferlic Martinez Harwood LLC law firm to handle water rights issues for the city. The city pays about $25,000 for the services.

• Approved renewal of a contract with YLAW, another law firm, to handle personnel and human resources legal matters for the city at a rate of $200 per hour on an as-needed basis.

• Voted to renew its contract with Axiom to conduct audit services. Axiom will receive $52, 319. Axiom was the only firm to bid on the city’s proposal, Rachelle Arias said.