City officials approve mediation settlement

The Tucumcari City Commission during a brief special meeting Wednesday approved a mediation settlement that will add more than $75,000 to its coffers.

City manager Mark Martinez explained the New Mexico Tax and Revenue Department had been negotiating on behalf of 44 entities to settle a lawsuit, and he recommended the commission accept the settlement.

Minus nearly $9,200 in contingency fees, the city will receive a total of $75,637.39. He anticipated the city would receive the funds by October.

“I feel we got a fair recovery of our portion,” Martinez said.

The lawsuit, City of Albuquerque et al vs. Stephanie Schardin Clarke and New Mexico Taxation and Revenue Department, was filed three years ago in 2nd District Court in Albuquerque. Schardin Clarke is the Taxation and Revenue secretary. The settlement document states the agency will pay $50 million to settle all claims.

The lawsuit claimed the department failed to share tax revenue accurately with municipalities.