Update:  8.16.2005

 

Greetings, friends!  I’ve been watching the budget wrap-ups and Council meetings and simply had to report in this week.  (Plus, the long-overdue monsoon rains have driven me from my fishing hole, indoors to my computer.)  What else is an out-of-work fisher. . .person to do but focus on City Council?

 

Super-Sized Salaries

Folks, you frequently heard me complain about the amount of money being paid to attorneys when Lisa Elizondo drove the City Attorney's office into the ground.   I complained because folks were earning more at the City Attorney's office than they were in the private sector and in other government legal departments.  That is wrong, plain and simple.  I also disagreed with the practice because it set the Attorney’s Office apart from other departments that had professional staff.  While I know we need good, solid lawyers in the City Attorney’s Office, we need this in other areas of government as well.  But you won’t see, for example, City engineers or planners (who are not department heads) making over $100,000 per year, so I saw it as patently unfair.  I also disagreed with the practice because government lawyers don’t have to put in the same amount of time as private sector lawyers (they don’t have to turn in billable hours, for example).   

 

Unfortunately, I think I see the pattern continuing under Charlie McNabb, and I’d be a hypocrite if I didn’t mention it.  We first saw this when McNabb brought back Laura Gordon at $150,000 (and yes, while he makes the decisions about his own staff…really…$150,000 a year?!?).  This week it was the following appointment that was approved with no discussion:

 

4. Appointment of John Batoon as Assistant City Attorney effective August 16, 2005. [City Attorney, Charlie McNabb, (915) 541-4550] (Attachment )

 

Mr. Batoon will be earning $100,000.  This, too, struck me.  Now, I don’t know what Mr. Batoon’s experience is and what his value to the City is, and since there was no discussion and no resume provided as backup, the general public doesn’t know, either.  It would have been nice; maybe Mr. Batoon is worth $100 K.  Maybe he has a certain expertise that we need to pay for.  Maybe that position can’t be filled at a lower salary.  I don’t know…and we can’t know because no one bothered to include something as fundamental as his resume or an explanation.  Pity.

 

Next week, Mr. McNabb will be hiring another former City Attorney, Cindy Crosby, at $83,000, a much more reasonable salary.  I’m sure McNabb is hiring these folks to replace two exiting Assistant City Attorneys (Lisa Hayes and Michelle Little Locke, both of who were hired by Elizondo and who are rumored to be starting a new law firm with Elizondo.)

 

Now, my friends, I trust McNabb is trying to do the right thing – he’s an honest, hard-working, ethical professional.  And I also believe in paying people a fair and competitive salary.  But we ain’t competing with the private sector…we simply cannot.  And at the very least, if we’re going to spend this much money – in a starting salary – there should be a public explanation.

 

Railroading Good Plans?

The other issue that concerned me was the following:

 

11D. Discussion and action on assigning Staff to analyze rail issues (legislation and funding), to make recommendations to Council on best options for El Paso and the region, and to actively engage in tri-state and bi-national conversations about the future of rail in the region.       [Representative Susie Byrd , (915) 541-4416]

 

Susie Byrd explained that she had been told that staff had not been engaged in this issue (because Wardy had removed them from discussions), and she felt that this administration should indeed be involved. 

 

Mayor Cook said that the MPO (the Metropolitan Planning Organization) is looking at the issue and the MPO has regional people, including City staff and a couple of City Representatives on its board.  Lisa Turner was the only member of the public to comment and asked, "Why does New Mexico want our rail yards?" and said that the City should fight to keep the rail yards in El Paso.

 

I happen to support moving certain rail yards out of the way (the downtown yards come to mind), but I agree with Turner to a degree.  If we’re going to move forward on this (and I hope we do), I don’t want to lose everything to New Mexico, and I want to be sure our Council and City staff is fully engaged on this. 

 

Cook urged that no action be taken, so no action was taken.  I wish action had been taken, especially because a couple of folks have emailed me to let me know that Robert Cushing has been meeting with County Commissioner Barbara Perez and City Representative Eddie Holguin (both of whom are members of the MPO) on this very issue.

 

You know how I feel about Robert Cushing, that spittle-ejecting//woman-beating/dog-disembowling monster and card-carrying member of the Crony Crew (led by Luther Jones).  Now, why Cushing still cares about rail relocation is beyond me, but I know how this guy operates, and something needs to be in it for him in order to get involved (think cashola).  Who is paying and why are the questions…once I figure that out (or learn more) I’ll let you know.  Until then, suffice it to say that Barbara Perez and Eddie Holguin may be LUI (to use Lisa Turner’s brilliant phrase)—legislating under the influence—of your favorite ex-Council member and mine, Mr. Spit (not to be confused with Mr. Split—Alexandro Lozano). 

 

Budget Wrap Up

Once the City Council meeting was adjourned, Council began a second meeting:  Its budget wrap-up.

 

The first issue to be taken up was a discussion of the most recent budget changes recommended by Council.  David Almonte from Financial Services explained that the changes included:

 

 

Almonte also gave a rundown of the important budget-related dates:

 

August 17:  Notice of the adoption of the budget was published

August 19:  Public notice to adopt the tax rate was posted

August 23:  Public hearing for the ordinance on the tax levy

August 26:  Posting for the adopted budget

August 29:  Special City Council meeting to adopt the budget by resolution August 30:  Adoption of the tax levy and the tax rate

 

Joyce Wilson explained that the budget resolution and the tax rate ordinance cannot be adopted at the same meeting, which is why the special meeting is scheduled for Monday the 29th at 4:00.

 

Then it was time for some discussion.

 

Break it Down

Eddie Holguin wanted to know if citizens’ tax bills could be kept the same as last year’s and both Joyce Wilson and Charlie McNabb had to explain to him that the City has no control over individual, comprehensive tax bills.  In fact, McNabb had to break it down in the simplest way possible:  The City sets its tax rate on property.  The Central Appraisal District sets the valuations of the property.  If property owners’ appraisals went up, they’d pay more this year in total taxes; if property owners’ appraisals went down, they’d pay less. 

 

“Sure,” replied Holguin, “and my concern is because people can’t, people normally can’t tell what’s going on, you know, and they don’t know anything about the tax rate or not, and the point that I’ve been trying to make is that all people see is an increase, I mean they’re not going to know that the rate was kept the same, they’re just going to know that they’re paying more taxes.”

 

Charlie McNabb interjected, “Actually, people do know what the rate is because the bills show that, and it shows last year’s rate.”

 

What a perfect moment.  I loved it.  I gotta tell you, Eddie Holguin’s rhetoric about “hidden” taxes has gotten old.  No one, Mr. Holguin, is trying to hide the ball here—except you.  McNabb was correct in pointing out to him that if folks want to know what this year’s rate is, they need only look at their tax notice.  Susie Byrd made the same point when she told Mr. Holguin at a previous meeting that “Nobody’s hiding anything; this is a public meeting.” 

 

Holguin, who finally seemed to get it, said the public would pay more “because of the valuations of their homes.” 

 

Yes, you got it mister.  And is the City of El Paso the Central Appraisal District?  No.  How else can we make it clear for you, Mr. Holguin?

 

Beto O’Rourke reminded Holguin that the City would be keeping the Maintenance and Operations (M&O) tax rate the same, and added “It’s gonna be 50.8 cents which is gonna be lower than last year’s, but because property values went up we come out even.  What we are increasing is the debt portion...and I think it’s our job to remind our constituents that was debt that voters agreed to take on in 2000 and 2004.  So, I think we can honestly go back to our constituents and say on the M&O portion, on operations, we kept your taxes even, and in fact we reduced the rate to keep it effectively even.  We are asking you to pay a little bit more on your debt service side, but you know, remember, you approved that and if you want these libraries, zoos and parks, um, you gotta pay for them.”

 

He’s absolutely correct. The increase O’Rourke was referring to comes out to about 2.3%, which isn’t much when one considers all the projects underway to improve our community.

 

Even Alexandro Lozano agreed and thanked staff for helping stabilize the budget.  Joyce Wilson also reminded everyone that only 22% of El Pasoans’ tax payments go to the City.  The rest—the vast majority—goes to the other taxing entities:  The school districts (the single biggest portion of the tax bill), the County, Thomason, El Paso Community College, etc.

 

There was a discussion (begun by Representative Byrd) on under-valued commercial property, and Byrd mentioned that when the larger commercial property owners aren’t appropriately paying into the tax base, the burden is shifted to other property owners (like you and me).  This discussion included downtown property, which many (including me) believe is seriously under-valued.

 

If I Only Use Half My Brain, Can I Deduct 50% Off My Income Taxes?

When Eddie Holguin asked if the downtown property owners are only being taxed on the property that’s being used, McNabb replied, “Well, you don’t pay per room” (I chuckled inwardly as McNabb, clearly trying to maintain his patience, made this point).  He then explained to Holguin how the valuation process works.  When Holguin asked, “Is that fair?” McNabb replied, “It’s the market value, what the law requires the Appraisal District to do is to determine the market value of the building.  A building that you cannot rent for whatever reason has a lower market value than a building that you can show an income stream from that is higher because it’s fully rented.”

 

At this point, I asked myself, what’s next, will Eddie ask if he only uses half his house can he get a tax break?  And, by God, sure enough, Holguin asked, “Do the rules apply to the regular homeowners, to where if they can only afford to live in two rooms of their house that they still need to pay taxes on the entire house?” 

 

Really.  He asked that.

 

Now, of course, even Eddie Holguin isn’t so stupid as to not know the answer to this ridiculous question.  He’s just continuing to play the role of the champion of the simple, over-taxed single-family home owner struggling to make ends meet while those rich, greedy commercial property owners are getting all the breaks and while his evil peers on Council want to “tax and spend” us to death. 

 

McNabb answered Holguin’s absurd question, and said, no, a house isn’t taxed on how many rooms are used, but noted that the same market value issue that applies to commercial property owners applies to the owner of a rental home. 

 

Holguin pretended that he still didn’t get it (or maybe he wasn’t pretending…that’s a thought), and McNabb had to continue to explain the appraisal rules to him.  It was a painful exercise.  Again, I’m assuming here that Holguin really did get it (otherwise he would be one of the stupidest people ever to sit on City Council—right up there, or should I say down there, with Luis Sariñana).  The point is, Eddie, different rules apply to commercial property because one way you make money from commercial property (and from rental residential property) is by renting it.  If you buy a residential home to live in, then it’s not a business enterprise, is it?  Different rules apply.

 

Finally, Eddie Holguin stopped talking.

 

Representative O’Rourke suggested that some commercial property owners “take advantage” of the appeals process that allows them to get a reduction on their property because of their inability to rent it out, something that I know for a fact is happening with the downtown property owners.  Even Presi Ortega said that there are property owners who do not want to “attract any type of income to their property in order to keep those appraisals down.”  He’s absolutely right.  O’Rourke said he’d like to see the City have a role in that appeals process, and I think that’s a great idea.

 

Ray Gilbert was the first person to address Council, and once he spoke, I became confused.  Two weeks ago, Gilbert was congratulating Council on their budget and even suggested that they didn’t beef it up as much as they should have.  At this meeting, though, he was calling this the “largest tax increase in history.”  In that increase, he was including increased electric bills, the increase in garbage collection fees, the “Plaza Hotel” (he meant Theatre, of course), and called it an “$11 million” tax increase. 

 

How About Truth In Ankle-biting?

Now, folks, you all know how I feel about Gilbert.  He loves throwing Molotov cocktails.  Case in point:  During his time at the podium he stated that the City Council was having the El Paso Electric Company (as part of the new franchise agreement) increase their charitable contributions, and that this would be coming from El Paso taxpayers.  He knows that’s not true.  He was at the meeting where the Electric Company specifically responded to a question about their charitable giving when they said—clearly and emphatically—that their giving comes from profits and NOT from the ratepayer. 

 

But Gilbert, who loves to pontificate about the need for truth in taxation, has never been one to let the truth get in the way of what he’s trying to do:  Maintain his position as a local hero/community watchdog.  I’m all for watchdogs…heck, I’m a watchdog (Ruff!)…but the truth (not innuendo or misinformation) should always be what we dogs pursue.  Because Gilbert doesn’t pursue that truth, he has precious little credibility with me.  This dog just won’t hunt.

 

At one point he said, “Let’s not kid the people, let’s be truthful with them.”  Yes, indeed.  Let’s. 

 

Gilbert also claimed that “My problem with the debt levy and with the financial advisors and the financial people who allowed certain debts to have tremendous principal payments when they should’ve been stretched out …If we wouldn’t have had these errors or what I would call the fact that management did not properly, and this is in the past because these weren’t today, did not properly supervise our financial advisors and bond counsel, you wouldn’t have this increase today, you would actually have a decrease.”

 

Now, how much truth there is to that statement, I don’t know.  But again, because Gilbert has so little credibility, I can’t believe that there wasn’t some logical, legal explanation for what the bond counsel did.

 

When he was told he had run out of time, he complained about gag orders, not signing up in time, and then continued with his complaints about the bond counsel.

 

By the way, David Almonte, from Financial Services, disputed Gilbert’s characterization of the facts.

 

After one more speaker, Council adjourned the special City Council meeting and budget wrap-up.

 

You Can Pay Me Now or You Can Pay Me Later

Folks, I don’t like tax increases any more than you do, but I know this one (on the debt service side) is one we gave ourselves and voted for.  And on the Maintenance and Operations side, I’m with Lisa Turner.  She has said repeatedly that we need to fully fund our services.  Representative Susie Byrd said the same thing during one meeting.  When we don’t do that, we create problems for ourselves in the long run. 

 

What happened in 2001 was that Mayor Ray Caballero was forced to deal with severe under-funding occurring over decades that had caused crumbling infrastructure, declining services, and aging equipment—all because prior elected officials did not want to increase taxes just a little bit.  The prior elected officials were, frankly, political cowards who were only too happy to force future City Councils to raise taxes so that they (Caballero’s predecessors) could get re-elected on a “See, I didn’t raise your taxes” Eddie-Holguin-type of platform. 

 

I, for one, would rather have small, incremental tax increases than to be socked with an enormous tax increase somewhere down the road.  But then I’m funny that way.

 

Anyhow, I’ll keep watching and reporting back to you on this budget until it’s over.

 

Today the City, Tomorrow the County

As I’m sure you’ve heard…those of us who said Cobos would run for County Judge were correct.  He announced informally this week, and will be announcing formally tomorrow (http://www.kvia.com/Global/story.asp?s=3723364 and http://www.elpasotimes.com/apps/pbcs.dll/article?AID=2005508120366).  I have also heard that Barbara Perez is planning on running as is current County Judge Dolores Briones.

 

In Precinct 2, Betti Flores has announced she will run for re-election, as will former YISD trustee Robert Lerma (http://www.elpasotimes.com/apps/pbcs.dll/article?AID=2005508130323).

 

I’ve gotta tell you, folks, it’s been a delight to watch the solid block of progressive, ethical reps on City Council.  They are hard-working, they are smart, they are considerate and thoughtful.  Their decisions come from a desire to improve the community, and it shows.  And Mayor Cook has been a good, fair parliamentarian and handles the meetings professionally and courteously.  It’s a change that makes me proud of our City government.

 

Now it’s now time to turn our attention to County Commissioner’s Court.  (Not that we can be complacent about the City—the wolves are always at the door.  It’s just that now we have a little breathing room.)  Folks, with the very important annexation issues that are about to come up (among other important issues), we need effective, progressive, ethical leadership at the County level more than ever.  Let’s not forget what Anthony Cobos is:  A Luther Jones/David Escobar/Bobby Bowling puppet whose good ol’ boy cronyism and mean-spirited, unethical approach to politics and governance reached hitherto unknown depths while he sat on City Council.  He’s vowed to knock on thousands of doors, as John Cook did, in order to beat Briones.  And believe me, he’ll do it.  He desperately wants to be in elective office again—al that power, all those contributions, all those opportunities to fatten the coffers of his patrones—and his backers will do everything in their power to get him there.

 

And Barbara Perez…well, anyone who meets with Robert Cushing and does his bidding has cashed in her credibility and needs to go.  Period.

 

Betti Flores is herself a little Luther gal.  Remember this tidbit from “Lunch with Luther” in the Paseño Chronicles (from the old NewspaperTree?):

On December 22, 2003, the County Commissioners Court held a special meeting to discuss the sale of a large parcel of land to Catalina Development Inc. Commissioner Betti Flores jump-started the special meeting by making a motion to sell the land to Catalina. Catalina was represented at the meeting by Luther Jones. Thinking maybe they ought to discuss the item before plunging forward with a vote, the motion was not immediately seconded. The Commissioners discussed the sale with counsel in private, and when it was voted on, the motion passed with only one dissenting vote from Commissioner Scruggs.

Scruggs plaintively asked the Court if they were sure they felt "comfortable" ignoring the legal opinion of County Attorney José Rodríguez in moving forward with the sale of the land to Catalina. 2

A week later on December 30, Luther Jones had cocktails with Commissioner Betti Flores at the K Bar.

Jones has become one of the most sought after lobbyists in El Paso, a city where lobbying has yet to be institutionalized or regulated as in other large cities. And if his current record of wins is any barometer, Jones is probably able to command quite a large fee for his services. Seems he is cashing in on the old Texas saying, "You have to dance with the one who brung you." And he's planning to plant a whole new line up at the County in the March 9th Democratic Primary to fill up his dance card.

Luther Jones has a recipe that he has been fine tuning through various small races for city council and county commissioner - one that he worked to near perfection in the 2003 municipal election.

Luther Jones' Recipe for Building a Legislative Process Responsive to His Clients

First, add the necessary ingredients:

1.      Ambitious, but not particularly savvy or experienced candidate with a nice smile and/or a lovely wife and willing to bust his/her butt knocking on thousands of doors;

2.      Jobe's money and influence;

3.      A business community hoping to benefit from some "business friendly" contract opportunities if they drop a bit of cash in the bucket; and

4.      An unambitious and uniquely uncurious news corps.

Now that we have the ingredients, follow these steps. (Remember timing and consistency is everything.)

Step 1. Pre-heat the campaign by postering the community with a barrage of campaign signs and smiling billboards many months before the typical campaign season. (In most campaigns, material goes up about two months before the election).

Step 2. Begin a systematic, but consistent, negative attack against the opponent. Begin first with well placed rumors to influential social networks and slowly build to a boil using precinct walkers, phone bankers, push polls, and direct mail pieces. Repeat the attack again and again. Stay on message even if proven wrong or challenged.

Step 3. Send out a folksy, unsophisticated direct mail piece written by Jones introducing the candidate as a real El Pasoan anxious to serve and willing to listen, highlighting and footnoting the dreadful record of the candidate's opponent and closing with a sincere plea to support the candidate. 3

Step 4. Follow up the first direct mail piece with a full color newspaper tabloid mailer chock full of smiling photos of the candidate, his wife and some combination of schoolchildren, elected officials or close family members set atop a venomous, disingenuous, and dishonest attack against the opponent. 4

Step 5. Best not to be too upfront about the cash inflow and outflow. Look for creative ways to disguise or temporarily hide the amount of cash being expended and the amount of money being taken in - and the names of those backing the candidate. 5

In this last municipal race, Jones backed and helped coordinate the message of the campaigns for five candidates who won: Wardy, Rojas, Cushing, Cobos, and Lozano.

What links them to Jones is Jobe's money, the glaring similarity of their message and the medium used to convey the message; and the fact that they all used the editing services of Gail Mortimer, an old friend of Jones - who lived in California during the municipal election, but recently moved out North.

A mayor and four representatives makes for five votes - a majority on council. Jones' access to and influence over these five votes has built him a reputation of being able to guarantee political outcomes for clients at City Hall.

Jones also seems to have considerable pull down at the County if his recent victory representing Catalina Development Inc. is any indication.

As mentioned earlier, Commissioner Betti Flores jump-started the special meeting by making a motion to sell the land to Catalina. Her previous bid for city council against City Council Representative Rose Rodriguez proved instructive to her in her later career as a County Commissioner.

In Flores' first run for political office, she spoke out against Jobe's quarry and its impact on the health and property values of the surrounding neighborhoods - even signing onto the neighborhood lawsuit against Jobe Concrete. 6 Flores hammered the point that Rodriguez was silent on the Jobe issue because of her previous employment with Jones. Rodriguez had been a legal assistant in Jones' law firm. Flores stumped again and again on the message. "I will be there to represent the district. I'm not going to be bought and paid for. No one is going to control me," she told the El Paso Times in 2001. 7

She was soundly trounced in that election by Rose Rodriguez, an ambitious but not particularly savvy city council representative willing to bust her butt knocking on thousands of doors.

Being an astute student of politics, Flores realized that her Jobe stance and her campaign message - "no one is going to control me" - was standing in the way of her political ambitions. She dropped out of the lawsuit and signed up for Jobe's money, 8 Luther's expertise, and ran for Commissioner's Court the following year.

She won. And she came ready for the dance - she frequently lunches with Luther.

            http://newspapertree.com/view_article.sstg?c=a41cd46b2eee4ef0

 

I certainly never forgot about any of this, my friends, and I hope you didn’t either.

 

The upcoming County races are almost as important as the recent City races were.  The fact that the powers-that-be no longer have the same kind of control over City Hall that they had before means they will be re-doubling their efforts at the County and School Boards.  We must be awake for all of this and clean house at the County.  We must recruit, help, support and fight for good candidates at the County.  Sleeping through the County election cycle is not an option any more, and it is my hope that you will take action in this election as you did in the municipal races.

 

I will continue to watch from every angle I can.  Please do the same.

 

Until the next update…

 

 

Comments or questions: shmaven@yahoo.com

 

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