Mayor wants city payday loan rules

By Zsombor Peter
Staff Writer

GALLUP — With another session of the New Mexico Legislature over and still no new rules on how much the state's payday lenders may lend and charge, the City Council will once again consider taking matters into its own hands.

Critics of the industry Mayor Bob Rosebrough among them blame lenders for demanding exorbitant interest rates and short repayment terms that trap many of their customers into extended periods of debt. Absent the political will in Santa Fe to approve stricter lending practices, Rosebrough wants to gauge the rest of the Gallup City Council's interest in imposing its own rules on local lenders. He's scheduled to raise the issue during Tuesday's council meeting.

The council postponed a proposal by Rep. Patricia Lundstrom, D-Gallup, for local action late last year in hopes of action by the Legislature, whose rules would supersede the city's; however, the Legislature adjourned Feb. 16 without passing any new payday lending rules.

After easily passing the House, a payday bill Lundstrom sponsored was filibustered with the help of Sen. Leonard Tsosie, D-Crownpoint, who called the proposal too weak.

Rosebrough also wants the council to consider the possibility of raising the city's minimum wage. Some New Mexico cities have already passed their minimum wage increases.

Neither issue will be voted on Tuesday.

The discussion is scheduled to follow a report on the Legislature's 2006 session by Rep. Lundstrom.

The agenda also includes a discussion of concerns by some local Muslims, including allegations of FBI harassment and the publication in The Independent Feb. 15 of cartoons depicting the prophet Mohammed that have sparked protests by Muslims across the globe. Many Muslims consider any depiction of the prophet blasphemous.

Two rocks, inscribed with the words "public apology or else" and "think twice" were used the shatter The Independent's front doors the same day the cartoons ran in the paper. No one has been charged in connection with the incident.

Early on in the meeting, the council will hear an update on the city's aquatic center which broke ground in January of 2005 and is scheduled for completion in May and consider the renewal of City Manager Eric Honeyfield's contract. The contract would raise Honeyfield's salary to $110,000 per year; including travel and cell phone allowances, he earned approximately $104,500 in 2005.

The council meeting begins at 7 p.m. inside City Hall.