City Council

Minutes of the Special Meeting of the Gallup City Council, City of Gallup, New Mexico, held at the El Morro Events Center, 210 South Second Street, at 9:00 a.m. on Tuesday, April 19, 2016. At such meeting, the following were present, constituting a quorum: Mayor: Jackie McKinney Councilors: Linda Garcia Allan Landavazo Yogash Kumar Fran Palochak Also present: Maryann Ustick, City Manager George Kozeliski, City Attorney The Mayor and Councilors conducted a Work Session to review and discuss the following topics: 1. Presentation on General Obligation Bond Options — Paul Cassidy, RBC Capital Markets Mr. Cassidy provided a power point presentation on the City’s options to issue General Obligation Bonds for financing infrastructure and capital improvements. A copy of the power point presentation is attached hereto, marked as “Exhibit A” and made a part of these official Minutes. If the City moves forward with the bond issue, the Mayor and Councilors must identify the capital projects to be funded with the proceeds from the sale of bonds. The City must also hold a special bond election in August 2016 to obtain voter approval on the issuance of the bonds. Mr. Cassidy also provided an overview of a cycling program for the issuance of the City’s General Obligation Bonds, which provides a recurring source of funds for infrastructure and capital improvements. 2. 5-Year Community Improvement Plan Maryann Ustick, City Manager — and Stan Henderson, Public Works Director Mr. Henderson provided a power point presentation on the proposed Community Improvement Plan (CIP) for Fiscal Year (FY) 2017. The CIP identifies the capital needs for each department for the next fiscal year as well as the five-year funding needs with the use of the City’s General Fund, special revenue funds, enterprise funds, and third party/outside funding sources. A copy of the power point presentation is attached hereto, marked as “Exhibit B” and made a part of these official Minutes. 3. Proposed Fiscal Year 2017 Budget Maryann Ustick, City Manager and — Patty Holland, Chief Financial Officer Ms. Ustick presented a power point presentation on the proposed budget for Fiscal Year MINUTES Special City Council Meeting — 4/19/2016 Page 2 2017. A copy of the power point presentation is attached hereto, marked as “Exhibit C” and made a part of these official Minutes. The Mayor and Councilors conducted a review of the FY 2017 proposed budget. Ms. Ustick, Ms. Holland and the department heads answered questions posed by the Mayor and Councilors. There was no official action taken by the Mayor and Councilors during the Work Session. The Work Session adjourned at 5:25 p.m. Jackie McKinney, Mayor Approved 5/10/2016 City of Gallup, NM GO Bond Election and Bond Cycle Discussion April 19, 2016 Disclaimer This presentation was prepared exclusively for the benefit of and internal use by the recipient for the purpose of considering the transaction or transactions contemplated herein. This presentation is confidential and proprietary to RBC Capital Markets, LLC (“RBC CM”) and may not be disclosed, reproduced, distributed or used for any other purpose by the recipient without RBC CM’s express written consent. 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IRS Circular 230 Disclosure: RBC CM and its affiliates do not provide tax advice and nothing contained herein should be construed as tax advice. Any discussion of U.S. tax matters contained herein (including any attachments) (i) was not intended or written to be used, and cannot be used, by you for the purpose of avoiding tax penalties; and (ii) was written in connection with the promotion or marketing of the matters addressed herein. Accordingly, you should seek advice based upon your particular circumstances from an independent tax advisor. RBC Capital Markets  General Obligation Bonding Capacity Municipal GO Debt General Purpose Bonding Capacity • Can issue General Obligation Bonds per NM Constitution 2015 Assessed Valuation $ 345,833,833 • Bonds must be approved by voters &of’ssesed Valuation 1333353 GO. Debt Outstanding (795,000) • Tax rate in first year borrowing cannot exceed 12 mill rate Remaining Capacity $ 13,038,353 • Debt amortization cannot exceed 20 years % Bonded Capacity 5.75% • Bonds must be sold at a public sale, negotiated sale or privately placed with NMFA or other investors PROPERTY TAX DECREASE OF -0.972 NET FULL TAXABLE ANNUAL MONTHLY DAILY Series VALUE VALUE COST COST COST 2011 Date Principal Coupon Interest Total Total Debt Tax Rate $100,000 $31,333 ($30.46) ($2.54) ($0.08) 125,000 39,667 (38.56) (3.21) (0.11) 2016 145,000 3.000% 28,850 173,850 $173,850 1.487 150,000 48,000 (46.66) (3.89) (0.13) 2017 150,000 3.000% 24,500 174,500 174,500 0.515 175,000 56,333 (54.76) (4.56) (0.15) 2018 160,000 4.000% 20,000 180,000 180,000 0.531 200,000 64,667 (62.86) (5.24) (0.17) 2019 170,000 4.000% 13,600 183,600 183,600 0.542 225,000 73,000 (70.96) (5.91) (0.19) 2020 170,000 4.000% 6,800 176,800 176,800 0.522 250,000 81,333 (79.06) (6.59) (0.22) $ 795,000 $ 93,750 $ 688,750 Non-callable Net taxable value is computed as follows: 700% of market value of property divided by 3 less $2,000 for head of household deduction. If no Debt is issued in 2016 Debt Service tax rate will go down to approximately 0.515 in FY 2017 and 0.531 in FY 2018. 2 RBC Capital Markets History of Assessed Value Assessed Tax Year /oChange Valuation 2006 $303,670,060 323% 2007 335,815,449 10.59% 2008 341 703,493 1 .75% 2009 350,303,878 2.52% 2010 351,833,741 0.44% 2011 - 351798,125 -0.01% 2012 351,782,943 0.00% 2013 348,471,767 -0.96% 2014 353,196,152 1.36% 2015 345,833,833 -2.08% 5 Year Average Annual Growth -0.34% 10 Year Average Annual Growth 1.63% 360,000,000 12.00% 350,000,000 10.00% 340,000,000 8.00% 330,000,000 6.00% 320,000,000 4.00% 310000,000 2.00% 300,000,000 290,000,000 0.00% 280,000,000 -2.00% 270,000,000 -4.00% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Assessed Valuation —% Change 3 RBC Capital Markets Analysis of Assessed Value % Change Assessments 2015 2014 2013 2012 2011 2010 2010 to 2015 Value of Land $103,914,986 $103,160,041 $101,568,357 $99,364,874 $98,997,784 $95,937,314 8.32% Improvements 312,605,592 332,335,916 328,272,609 333,518,846 333,456,100 318,581,870 -1.88% Personal Property 12,456,410 11,818,410 12,441,490 12,190,790 12,021,870 12,912,640 -3.53% Manufactured Horn es 6,028,550 6,635,270 6,720,690 6,622,850 6,263,670 6,131,130 -1.67% Livestock - - 0.00% Assessor’s Total Valuation $435,005,538 $453,949,637 $449,003,146 $451,697,360 $450,739,424 $433,562,954 0.33% Less Exemptions Head of Family $4,387,340 $4,557,600 $4,655,330 $4,712,350 $4,804,360 $4,829,560 -9.16% Veterans 4,349,204 4,324,762 4,285,381 4,174,733 4,158,130 3933,151 10.58% Other 90,115,688 101,583,368 100,990,629 99,968,779 99,189,273 80,927,745 11.35% Total Exemptions $98,852,232 $110,465,730 $109,931,340 $108,855,862 $108,151,763 $89,690,456 10.21% Assessors’ Net Valuation $336,153,306 $343,483,907 $339,071,806 $342,841,498 $342,587,661 $343,872,498 -2.24% Centrally Assessed 9,680,527 9,712,245 9,399,961 8,941,445 9,210,464 7,961,243 2 1.60% TotalAssessed Valuation $345,833,833 $353,196,152 $348,471,767 $351,782,943 $351,798,125 $351,833,741 -1.71% 5 Year Average Annual Growth -0.34% 10 Year Average Annual Growth 1,63% Source: McKinley County Assessor’s Office. 4 RBC Capital Markets Historical Tax Rates - Residential Tax Rates per $1,000 Assessed ValuatIon Within 20 Mill Limit for General Purposes 2015 2014 2013 2012 2011 State of New Mexico $0000 $0000 $0000 $0000 $0000 McKinley County 6.033 5.895 5.859 5.719 5.524 Cityof Gallup 5.738 5.603 5.589 5.435 5.250 Gallup-McKinley County Schools 0.276 0.270 0.268 0.262 0.253 Total $12.047 $11168 $11.716 $11.416 $11.027 - Over 20 Miii Limit interest, Principal, Judgments, etc. 2015 2014 2013 2012 2011 State of New Mexico $1 .360 $1360 $1360 $1 .360 $1 .362 McKinley County 0.000 0.000 0.000 0.00g. 0.000 - University of New Mexico Gallup Branc 5.750 5.750 6.330 6.330 5.500 City of Gallup 1.487 1.113 1.502 1.717 1.414 Gallup-McKinley Schools 10.320 10.331 10.332 10.349 10.355 Rehoboth Christian Hospital 3.000 3.000 3.000 2.000 2.000 Total $21 .917 $21.554 $22.524 $21 .756 $20.631 Total Levy 2015 2014 2013 2012 2011 State of New Mexico $1 .360 $1360 $1 .360 $1 .360 $1362 McKinley County 6.033 5.895 5.859 5.719 5.524 Gallup Branch Comm. College 5.750 5.750 6.330 6.330 5.500 City of Gallup 7.225 6.716 7.091 7.152 6.664 Gallup-McKinley Schools 10.596 10.601 10.600 10.611 10.608 Rehoboth Hospital 3.000 3.000 3.000 2.000 2.000 - Total Residential Gallup $33.964 $33.322 $34.240 $33.172 $31.658 - Total Non-Residential Gallup $41 .917 $41.554 $42.524 $41 .756 $40.631 Total Residential in $26.739 $26.606 $27.1 49 $26.020 $24.994 Unincorporated Mckinley County Total Non-Residential in $32.780 $32.791 $33.372 $32.389 $31.567 Unincorporated Mckinley County Source: State of New Mexico, Department of Finance & Administration 5 RBC Capital Markets No Tax Rate Increase = $43MM One time issuance Series 2016 Date Existing Debt Principal Coupon Interest Total Total Debt Assessed Value Tax Rate 2016 173,850 0 4,25% 182,963 182,963 $356,813 $ 345,833,833 1.487 2017 174,500 145,000 4.25% 182,963 327,963 502,463 345,833,833 1.483 2018 180,000 145,000 4.25% 176,800 321,800 501,800 345,833,833 1.481 2019 183,600 150,000 4.25% 170,638 320,638 504,238 345,833,833 1.488 2020 176,800 165,000 4.25% 164,263 329,263 506,063 345,833,833 1.493 2021 345,000 4.25% 157,250 502,250 502,250 345,833,833 1 .482 2022 360,000 4.25% 142,588 502,588 502,588 345,833,833 1.483 2023 375000 4.25% 127,288 502,288 502,288 345,833,833 1.482 2024 390,000 4.25% 111,350 501 350 501 350 345,833,833 1 .479 2025 410,000 4.25% 94,775 504,775 504,775 345,833,833 1.489 2026 425,000 4.25% 77,350 502,350 502,350 345,833,833 1.482 2027 445,000 4.25% 59,288 504,288 504,288 345,833,833 1.488 2028 465,000 4.25% 40,375 505,375 505,375 345,833,833 1.491 2029 485.000 4.25% 20.613 505.613 505,613 345,833,833 1.492 $4,305,000 $1,708,500 $6,013,500 Assumes 0% Assessed Value Growth. Current Tax Rate $1,487 6 RBC Capital Markets GO Debt Management Plan — No Cycle Established Next bond election in August 2016 for up to $4.3 million — No tax rate increase will be required — Elections can be held every two or four years thereafter but require a tax rate increase • Constitution limits amount of bonds outstanding to 4% of assessed valuation. • Declining debt service to permit new bonds in future without tax increase. • 13 year final maturity (20-year maximum). • Retire debt as quickly $1 .487 levy will permit. • Actively manage debt service cash and principal maturities to maintain a stable debt service tax rate and retire debt as quickly as possible. • Debt Service Tax Rate Management — Optionally Redeem Bonds — Authorized But Unissued Debt — Defease Bonds 7 RBC Capital Markets General Bond Cycling Why establish a funding cycle? • A cycle provides a recurring source of funds for infrastructure and capital. • A cycle mitigates market rate risk. • The cycle takes advantage of growing property values and rapid pay off of bonds utilizing a stable tax rate. • The cycling approach provides built-in accountability mechanisms. • Without a long-term solution, competition for funds will continue to increase. How does a cycling approach work? • Elections are held once every two or four years, bond sales are held when funds are needed or dependent on Facilities Master Plan or cash needs. • Property taxes are maintained at a level sufficient for rapid repayment of bonds. a As the Issuer’s total valuation increases, capacity for new bonds is created. • As bonds are paid off, new bonds may be issued without raising the tax rate. 8 RBC Capital Markets Cycling Program - Example $3MM Every Other Year = $3.80 Tax Rate Series 2016 Series 2018 Series 2020 Series 2022 Existing Total Assessed Tax Date Debt Principal Interest Total Principal Total Principal Interest Total Principal Interest Total Debt Valuation Rate 2016 173850 173,850 $345,833,833 1.49 2017 174,500 960000 154600 1114,600 1,289,100 345,833,833 3.80 2018 180,000 990,000 116,200 1106,200 1,286,200 345,833,833 3.80 2019 183,600 95,000 76,600 171,600 780,000 935,338 1,290,538 345,833,833 3.81 2020 176,800 95,000 72,800 167,800 835,000 957,188 1,301,788 349,292,171 380 2021 95,000 69,000 164,000 125,000 211,700 775,000 164,250 939,250 1,314,950 352,785,093 3.80 2022 95,000 65,200 160,200 125,000 206,388 830,000 129,375 959,375 1,325,963 356,312,944 3.80 2023 95,000 61,400 156,400 125,000 201,075 125,000 92,025 217,025 610,000 163,875 773,875 1,348,375 359,876,073 3.82 2024 95,000 57,600 152,600 125,000 195,763 125,000 86,400 211,400 650,000 134,900 784,900 1,344,663 363,474,834 3.77 2025 95,000 53,800 148,800 125,000 190,450 125,000 80,775 205,775 160,000 104,025 264,025 809,050 367,109,582 2.25 2026 95,000 50,000 145,000 125,000 185,138 125,000 75,150 200,150 160,000 96,425 256,425 786,713 370,780,678 2.17 2027 95,000 46,200 141,200 125,000 179,825 125,000 69,525 194,525 160,000 88,825 248,825 764,375 374,488,485 2.08 2028 95,000 7,800 102,800 125,000 174,513 125,000 63,900 188,900 160,000 81,225 241,225 707,438 378,233,370 1.91 2029 100,000 4,000 104,000 125,000 169,200 125,000 58,275 183,275 160,000 73,625 233,625 690,100 382,015,704 1.84 2030 125,000 136,050 125,000 52,650 177,650 160,000 66,025 226,025 539,725 385,835,861 1.43 2031 135,000 140,738 125,000 47,025 172,025 160,000 58,425 218,425 531,188 389,694,219 1.39 2032 125,000 12,150 137,150 160,000 50,825 210,825 347,975 393,591,161 0.90 2033 145,000 6,525 151,525 160,000 43,225 203,225 354,750 397,527,073 0.91 2034 160,000 14,250 174,250 174,250 401,502,344 0.44 2035 140,000 6,650 146,650 146,650 405,517,367 0.37 2036 409,572,541 - Total 888,750 3,000,000 835,200 3,835,200 3,000,000 3,883,363 3,000,000 935,025 3,938,025 3,000,000 982,300 3,982,300 16,353,785 Ass urn ptions -Assessed valuation growth: 0% 2016-2020 , 1% 2021 and Thereafter -Collection rate at 98% PROPERTY TAX INCREASE OF 2.310 NET FULL TAXABLE ANNUAL MONTHLY DAILY VALUE VALUE COST COST COST $100,000 $31,333 $72.38 $6.03 $0.20 125,000 39,667 91.63 7.64 0.25 150,000 48,000 110.88 9.24 0.30 175,000 56,333 130.13 10.84 0.36 200,000 64,667 149.38 12.45 0.41 225,000 73,000 168.63 14.05 0.46 250,000 81,333 187.88 15.66 0.51 *Net taxable value is computed as follows: 100% of market value of property divided by 3 less $2,000 for head of household deduction. 9 RBC Capital Markets  Ci TY OF GALLUP, NEwMExIco SPECIAL ELECTION FOR GENERAL OBLIGATION BONDS FINANCING SCHEDULE DRAFT DATE ACTION RESPONSIBLE PARTI ES M °“ d M 16 Notify Local Government Division, DFA of proposal to issue City 6 ‘ bonds (include statement of outstanding general obi i gati on bonds). Bond Counsel M ust be done belore any proceedi ngs are initiated. (6-15-1) FA Adoption by Council of bond election resolution (pp. 1-5) and City Tuesday, May 24, supplemental resolution (pp. 1-18) aspecial election. Posting of Bond Counsel 2016 a copy of the bond election resolution in the office of the City Clerk. (3-8-35) City Council to point Election Board not less than 35 dis prior City Clerk Tuesday, May 24, to Election, two of whom can serveclerks and not less than two City 2016 alternates for eech billing ple who shall be the precinct board. (3-8-19(C)) File Election Resolution with McKinl’ County Clerk; Request City Clerk Th urs d M a 26 Rister&i Voter Lists and Signature Rosters, contaning only the 2016 qualified electors eligible to vote in the City’s election; Order Voting M hi nes from County Clerk. (3-8-7(B)) (3-8-14) Forward copy to Secrelary of State (3-8-35) Thursday, June 02, Submit election resolution to Gallup Independent for publication City Clerk 2016 (in English AND Spanish) for 4wesksbinning on Fridi, June _________________ 17, 2016_(deedline_12:00_noon)_(3-8-35) 1  DATE ACTION RESPONSIBLE PARTI ES Frida First day not more than 60 days prior for filing non-resident City Clerk June 10 2016 ‘ municipal electors certificates of eligibility with City Clerk (3-30-3) First publication of a total of 4 weekly publications of election City Clerk Th urs d ay,une 16 J resolution (pp. 1-5); must be published once eech w for four consecutive weeks (in English AND Spanish). (3-30-6; 3-8-35) (First publication to bebctween 50 and 60 days b&orethe date of election). Broalcast in Naiqo aid Zuni. Friday, June 17, Not later than 5:00 p.m. the City Clerk shall order all election City Clerk 2016 supplies. (3-8-18(B)) (No later than 53rd day precedi ng election) Thursday, June 23, Second publication (in English AND Spanish) of election City Clerk 2016 resolution (pp. 1-5), one week after first publication. (3-30-6; 3-8-35)._Broacast_in_Naio aid Zuni. Last day for the City Clerk to reiuest in writing from the County City Clerk Thursday, June 30, Clerk the Ri stered Voter Lists aid Signature Rosters containing 2016 only the qualified electors eligible to vote in the City’s election. (3-8-7(B)) Thursda June 30 Third publication (in English AND Spanish) of election resolution City Clerk 2016 ‘ (pp. 1-5), two weeks after first publication. (3-30-6; 3-8-35). BroaJ cast in Najo and Zuni. The City Clerk shall post the nanes of the precinct boads aid the r City Clerk Tuesday, July 05, polling p1 aes in the City Clerk’s office (35th day prior). The City 2016 Clerk shall notify the precinct board in writing of thsir poi ntment. (3-8-19(C)) 2  DATE ACTION RESPONSIBLE PARTI ES Last day for the City Council to poi nt not less than three el ecti c City Council Tuesday, July 05, judges, two of whom may serve as clerks and not less than two City Clerk 2016 alternates for each polling place who shall be the precinct board. (3-8-19(C)) Tuesday, July 05, First day to mall absentee ballots to voters (3-9-4(M), City Clerk 2016 1-23-5: 35 days prior to election) Tuesday, July 05, Last day for printer to deliver ball otsto the City Clerk. (3-8-18(C)) City Clerk Fourth publication (in EnglishAND Spanish) of election resolution City Clerk Thursda Jul y 07 2016 (pp. 1-5), three weeks after first publication. (3-30-6; 3-8-35). Broaricast in Nao and Zuni. Monday, July 11, Post in City Clerk’s office and publish (in English AND Spanish) City Clerk 2016 Noticeof Voting Machineinspection aid Certification (3-8-14(D)) Tuesday, July 12, Last day to rister with McKinli County Clerk. County Clerk 2016 (1-4-8(C): Closa] at 5:00 p.m. on 28th day preca]ing election) Monday, July 1$, Voting Machine I nspecti on aid Certifi cati on with County Clerk (3- City Clerk 2016 8-14) Tuesday, July 19, Last day to receve Risterai Voter Listsfrom County Clerk (3-8- City Clerk 2016 7) Submit bond questions aid relatal polling information for publication (in EnglishAND Spanish) in Gallup lndepenthit for 2 City Clerk F ri d ay,u . 1 y 22 consecutiveweeks bi nni ng July 27, 2016 (dea]li ne 12:00 noon) (3-8-36) 3  DATE ACTION RESPONSIBLE PARTI ES City Clerk M On d ay,U . 1 25 Lest day (not less thai 15 days before election) for non-resident electors to file Certificate of Eligibility for voting on bond questions. (3-30-3) Submit Notice of election school to Gallup lnderid&it for City Clerk M On d 3,U 1 25 publication (in English AND Spanish) on July 27, 2016 (dealline 12:00 noon) (3-8-21 (A)) First day for first of two weskly publications (in English AND City Clerk Spanish) of bond questions, location and aidress of precinct e d flCSa3, d J U 1’ polling plaes, nanesof precinct boa-U membersfor h pIece (pp. 10-17 of the Supplemental Bond Election Resolution). The ‘ City Clerk shall publish twice, onewesk mat, for two successive wesks. The City Clerk shall also post in her office until election day. (3-8-36) Broaclcest in Navo aid Zuni. Friday, July 29, Lest day to publish (in English AND Spanish) notice of election City Clerk 2016 school, not less than five days prior to school. (3-8-21(A)) Tuesday, August Lest day for City Clerk to mail notice of election school to eech City Clerk 02 2016 preci nct board member and alternate, not less than seien days pri or ‘ to election school. (3-8-21(B)) Tuesday, August Voting M echi ne I nspecti on and Certifi cati on with County Clerk not City Clerk 02, 2016 less than sejen days prior to election. (3-8-14(E)) Lest day for second and lest wly publication (in English AND City Clerk Wednesday, Spanish) bytheCity Clerk of thebond questions, thelocation aid August03 2016 aidressof polling pIeces, andthenanesof precinct board members ‘ and alternates for eech polling pIece (pp. 10-17 of the Supplemental Bond El ecti on Resol uti on) (3-8-36) Broaicest_in_Navo and Zuni. 4  DATE ACTION RESPONSIBLE PARTI ES Wednesday, Election School (3-8-21(A)) City Clerk August 03, 2016 Thursday, August Last day for City Clerk to conduct or cause to be conducteri an City Clerk 04, 2016 election school for precinct workers. (3-8-21(A)) Thursday, August 04, 2016 Last day to mail alsenteeballotsto voters. (3-9-4) (1-23-5) City Clerk Thursday, August Last day to issue rqDlscement ballots (3-9-13(B)) City Clerk 04, 2016 Thursday, August At 5:00 p.m., the City Clerk publicly destroys all unusJ sentee City Clerk 04, 2016 ballots. (3-9-8(C)) Last day (not less than 5 days prior to election) for City Clerk to City Clerk Thursday, August pIece Certificates of Eligibility of non-resident voters on bond 04, 2016 questions in ristration book. (3-30-4(B)) Friday, August 05, Last day to vote in person. (3-8-81(B)) City Clerk 2016 Friday, August 05, Last day for recsipt of Pitions pointing challengers and City Clerk 2016 watchers. (3-8-31) Tuesday, August Presiding Judgeshall causeall election materialsto bedel iveredto City Clerk 09, 2016 polling places not later than 6:00 am. on election day. (3-8-38(B)) 5  DATE ACTION RESPONSIBLE PARTI ES ELECTION DAY City Clerk Tuesday, August 7 am. to 7 p.m. (3-8-38(D)) 09, 2016 Tuesday, August Outer envelopes (ballots) from voters may be aDctaJ up to City Clerk 09, 2016 closing of polls at 7:00 p.m. (3-9-8(B)) Tuesday, August Deliver alsentes ballots to prnct board. (3-9-10) City Clerk 09, 2016 Tuesday, August At 7:00 p.m. the City Clerk dctermines number of ballots not City Clerk 09, 2016 recevei and ecutes the certificate of unrecelval ballots. (3-9-8(D)) Wednesday, 7:00 p.m. deail i nefor deli very of el ecti on rcturnsto the City Clerk. City Clerk August 10, 2016 TheCity Clerk’sofficemust remaln open until all election raturns aedeliverei. (3-8-47) Friday, August 12, No later than 12:00 Noon the City Clerk shall binthecanvsof City Clerk 2016 election rcturns, providJ that the official ca,vs shall be complcterl no later than 5:00 p.m. on this date. (3-8-53) City Coundl Work Seons every 1 and 3rd Tuesday City Coundi Meetings every 2’’ and 4th Tuesday 6 Appendix: 2003 Bond Election Brochure RBC Capital Markets  _________, THE BALLOT QUESTIONS WHERE DO I VOTE? 1. PUBLIC PARKS AND RECREATION BOND Precinct No. Polling Place QUESTION District # 1 (Northside) Shall the City of Gallup, New Mexico, be authorized to 34 Washington Elementary School 700W. Wilson issue its general obligation bonds, in one series or 34A Juan de Onate Elementary School more, in an amount not exceeding $4,190,000 for the 505 6. Vega purpose of acquiring, building, beautifying and 35 City Recreation Center City of Gallup, improving public parks and other public recreational 400W. Princeton facilities within and without the City boundary, 38 Rex Historical Building New Mexico including but not limited to acquiring sites by 39 Octavia Fellin Public Library purchase, lease or otherwise, (which may include but 115W. Hill is not limited to a new public downtown plaza for 40 Education Development Center 11006. Aztec community and cultural gatherings, open space District #2 (Eastside) projects, a new swimming pool, multi-use sports 46 J.F.K. Mid School fields, neighborhood play grounds and trails for 6005. Boardman walking, hiking and biking), said bonds to be payable 46A Jefferson Elementary School from general (ad valorem) taxes (except to the extent 300 MoNica Drive other moneys are available therefor) and to bear 47 Eastside Fire Station interest and mature and to be issued upon such terms 24206. Aztec and conditions as the City Council may determine? 48 Rocky View Elementary School 345 Basilio Drive Special Bond Election 2. STREET AND SIDEWALK IMPROVEMENT BOND 49 Indian Hills Elementary School QUESTION 3604 Ciniza Drive District #3 (Southside) Shall the City of Gallup, New Mexico be authorized to 42 Bethany Christian Church issue its general obligation bonds, in one series or 11105. Strong more, in an amount not exceeding $2,120,000 for the 42A Roosevelt Elementary School purpose of constructing, reconstructing, repairing and 400 6. Logan otherwise improving municipal alleys, streets, public 43 Gallup Mid School August 12, 2003 1001 S. Grandview roads and sidewalks, said bonds to be payable from 44 Red Rock Elementary general (ad valorem) taxes (except to the extent other 1305 Red Rock 7:00 A.M. to 7:00 RM. moneys are available therefor) and to bear interest 45 UNM Gallup Campus and mature and to be issued upon such terms and 200 College Drive conditions as the City Council may determine? 46B Golf Course Pro Shop 1109 Susan 3. FIRE PRTECTION BOND QUESTION District #4 (Westside) Shall the City of Gallup, New Mexico, be authorized to 31 Grace Navajo Baptist Church PLEASE VOTE Mentmore County Road 1 issue its general obligation bonds, in one series or 32 Western Skies M.H.P. Rec. Hall more, in an amount not exceeding $405,000 for the 200 Western Skies Road purpose of providing proper means for protection from 33 Stagecoach Elementary School fire, including but not necessarily limited to, 725 Freedom Drive purchasing apparatus for fire protection and providing, 37 Lincoln Elementary School Prepared under the direction of the City of enlarging and improving fire equipment and facilities 801 W. Hill Gallup Council to assist voters in reaching for the City, said bonds to be payable from general 41 Southside Fire Station a decision on the merits of the (ad valorem) taxes (except to the extent other moneys 1800 S. Second Street General Obligation Bond Issue are available therefor) and to bear interest and mature Absentee Voters: Office of the Gallup City Clerk and to be issued upon such terms and conditions as Gallup Municipal Building the City Council may determine? Second and Aztec Printed by: Gallup, New Mexico Gallup, NM  ______ ______ WHO MAY VOTE? BOND MEASURES WILL ACCOMPLISH BALLOT QUESTIONS IN BRIEF Anyone who is a registered voter residing within the • These bond measures represent a significant investment On August 12, 2003 you will be asked to vote on the boundaries of the City of Gallup. in Gallup’s future. Our small investment now, when bond following questions, (the full text is included in the OR interest rates are low, will reap economic benefits for years overIeaft: Any non-resident registered voter who has completed a to come through increases in tourism (and the attraction of new business and jobs to Gallup.) 1. $4,190,000 Bond- City of Gallup, New Mexico Certificate of Eligibility with the City Clerk. general obligation bonds to acquire, build, beautify and If you have any questions, please call the City Clerk’s improve public parks? • These bond measures will improve the quality of life in office at (505) 863-1255 Gallup by, developing a new aquatic center, improving Downtown Plaza sports fields and neighborhood playgrounds and creating an interconnected network of trails. Swimming Pool! Aquatic Center • Recreational Open Space! Comprehensive WHAT WILL IT COST? • These bond measures will allow the city to revitalize Shared Use Trail System downtown through the creation of a new public downtown plaza for community and cultural gatherings, (and through • Field Turf Multi-Purpose Fields Approval of the bond issue will result in an increase of property taxes. The increase will be approximately improvements in traffic flow and presentation safety.) • Neighborhood Playgrounds $0996 per $1,000 of assessed valuation. The chart below illustrates the tax impact. REMAINING BACKLOG OF CAPITAL PROJECTS 2. $2,120,000 Bond- City of Gallup, New Mexico general obligation bonds to improve municipal alleys, • Electric Substation & Line Upgrades streets, public roads, and bridges? Net • Fire Station Renovations Full Taxable Monthly Annual • Gurley!College Avenue Reconstruction • Senior Citizen Centers Property Value lax Tax • Downtown Flood Control • Hassler Valley Road Realignment Value (1/3 offijll) Impact Impact • Wastewater Treatment Plant Improvements • Wastewater Line Rehabilitations • Sidewalk Projects:($200,000 per district) $75,000 $25,000 $2.08 $24.90 100,000 -- 33,333 2.77 33.20 • Water System Improvements • Nizhoni/College Intersection Improvements 125,000 41,667 3.46 41.50 WHY BONDS AND NOT EXISTING 150,000 50,000 4.15 49.80 CITY FUNDS? 3. $405,000 Bond- City of Gallup, New Mexico • General Fund revenue sources have not increased at the general obligation bonds to provide proper means for same rate as the cost of living increases causing short falls protection from fire? and the inability to fund capital improvement projects from • Northside Fire Station the General Fund. Future General Obligation Bonds, Revenue Bonds, and grants will help fund some of the unfunded backlog of capital projects. For additional information, please call Larry Binkley, Assistant City Manager at (505) 863-1230 PLEASE VOTE  RECOMMENDED COMMUNITY IMPROVEMENT PLAN BUDGET 2016To 2017 CITY OF CITY OF GALLUP GALLUP As of 19 April 2016 m x w -1 Ui RECOMMENDED 2016-2017 BUDGET SUMMARY • General Department(s) = $1,700,260 • Parks n Recreation Department = $ 683,000 • Public Works Department = $7,972,200 • JU I Electric Department = $1,826,250 • iU I Water n Solid Waste Department = $5,409,500 TOTAL = $17,591,210 Includes $6,429,260 in Earmarked, or Planned 3rd Party Funding  RECOMMENDED PROJECTS FOR GENERAL DEPIs GENERAL SERVICES mi 1. Customer Waiting Area Renovation = $100,000+ lEN 2. City Hall HVAC Replacement = $ 8,000 (Dsgn) IGF 3. El Morro Marquee Reconstruction = $ 14,260 (Dsgn) l3P 4. MunicipalAnnex Exterior Repairs = $ 50,000 lEN 5. North Side Neighborhood Ctr Repairs = $ 15,000 (Dsgn) 13P 6. Back Up Network Server = $ 10,000 (EQ) IGF 7. Desktop Computer Replacements = $ 63,000 (EQ) IGF  RECOMMENDED PROJECTS FOR GENERAL DEPIs LIBRARY 1. New Library Building Construction = $35,000 IGF (Technical Feasibility and Planning Cost Estimate) 2. Main Library Entrance Reconstruction = $65,000 1SF  RECOMMENDED PROJECTS FOR GENERAL DEPTs I FIRE DEPARTMENT 1. New 105’ Platform Fire Engine = $750,000÷ fVH) I GF/3P  RECOMMENDED PROJECTS FOR GENERAL DEPTs POLICE DEPARTMENT 1. Public Safety Bldg Improvements = $ 30,000 (Dsgn) I GE 2. Public Safety Bldg HVAC Replacement = $ 60,000 I GE 3. Public Safety Bldg Fire Sprinkler System = $150,000+ I GE 4. Police Dept Vehicles Replacement = $350,000-i- fVH) I SF/3P I ‘ ,l 14 t’ A  RECOMMENDED PROJECTS FOR PARKS n RECREATION DEPARTMENT 1. Topdresser 2500 For Golf Course = $ 12,000 (EQ) IGF 2. Arena Tractor For Red Rock Park = $ $1,000 (EQ) IGF 3. City Landscaping n ROW Drng Impr = $ 50,000+-i- 1SF 4. Aquatic Center Swimming Pool Coating = $ 70,000 (Ph 1) IGF 5. Indian Hills Park Lighting Replacement = $ 50,000 (Dsgn) 13P 6. New Concrete Skate Board Park = $370,000-i- I GF/3P 7. RR Park Hydraulic Stage Replacement $ 50,000 IGF  RECOMMENDED PROJECTS FOR PUBLIC WORKS DEPARTMENT 1. BC I PM 2000 10 Table Saw = $ 5,100 (EQ) IGF 2. BC Ilrailer w/ BT 14x7 Dump = $ 9,500 (EQ) IGF 3. STI 10 Ton Tandem Dump Truck = $ 215,000 fVH) SF 4. STI Case Loader Backhoe = $ 110,000 (VH) I SF 5. STI Bobcat 24” Planer Drum = $ 17,000 (EQ) 1SF 6. Reconstruct Airport Runway 6/24 = $4,725,000+ I SF/3P 7. ACE Little Puerco Flood Cntrl Dam CO = $ 60,000+ IGF 8. Church Rock Extension Overlay = $ 75,000÷ 1SF  RECOMMENDED PROJECTS FOR PUBLIC WORKS DEPARTMENT (Continued) 9. Country Club Drive Repavement Ph 2 = $ 80,000 I SF 10. DT Coal Ave Alley Reconstruction Ph 1= $500,000+ I SF/EN 11. DI Coal Ave Alley Reconstruction Ph 2= $ 65,000 (Dsgn) I SF/EN 12. East Nizhoni Blvd Reconstruction = $200,000 (Dsgn) I SF = 13. Ford n Aztec Conc Pvmnt Reconstruction $126,000+ I SF 14. Hasler Valley Rd Storm Drng lmprvmnts= $ 50,000 (Dsgn) I SF 15. Mill n Overlay Neighborhood Streets = $160,000++ I SF/3P 16. Ridgecrest Ave Repavement = $115,000 I SF Road Work  RECOMMENDED PROJECTS FOR PUBLIC WORKS DEPARTMENT (Confinued) 17. Sky City Roadways Reconstruction Ph 4 = $700,000+ I SF/EN/3P 18. West Jefferson Ave Reconstruction =$ 55,000 (Dsgn) IGF 19. Curb n Gutter Repair Program = $500,000++ 1SF 20. Sidewalk Repair Program = $300,000++ SF /  CURB, GUTTER, n SIDEWALK REPAIRS Country Club Dr Curb n Gutter Ph 1 Lessons Learned A. “One size fits all” concrete contract is not workable. B. Need existing contract for small reconstruction repairs such as utility cuts in small quantities and widely spaced locations. C. But it is not appropriate for larger concrete quantities. 1) No economy of cost scale. 2) Inefficient expenditure of funding. 3) Prolonged neighborhood disruption. D. Larger scale reconstruction requires contracting in larger quantities in centralized locations.  CURB, GUTTER, n SIDEWALK REPAIRS Recommendations A. Using Asset Management Plan condition data, target “whole block” curb, gutter, and sidewalk reconstruction in each Council district. B. With “whole block” reconstruction, eliminate constituent cost participation. Allows reconstruction of sidewalks without breaks for existing landscaping, gaps, and constituent nonparticipation. C. Centralize Curb n Gutter and Sidewalk Program funding for “whole block” reconstruction. D. Advertise targeted blocks in a single construction contract once a fiscal year. 1) Competitive contractor bids (economy of scale) with larger concrete amounts in centralized locations. 2) Reduced contractor mobilization costs for each location.  CURB, GUTTER, n SIDEWALK REPAIRS Proposed Plan Of Action A. City Council approval to centralize Curb n Gutter and Sidewalk Program funding for “whole block” reconstruction and eliminate constituent cost participation. B. Based on “preliminary” Asset Management Plan condition data, DES is preparing a single construction contract: 1) — Bid Lot 1 (District 1) Strong/Lincoln Ave fr N 15t Street to E Adams Ave. 2) — Bid Lot 2 (District 2) Church Rock St fr Toltec Dr to Vanden Bosch Pkwy. 3) Bid Lot 3 (District 3)— Country Club Dr Ph 2 fr Philipin Ave to E Logan Ave. 4) — Bid Lot 4 (District 4) Saguaro Dr fr Day St to Red Bluff Court. 5) — Additive Bid Item Red Rock Dr ft Country Club Dr to Edith Ave.  CURB, GUTTER, n SIDEWALK REPAIRS Proposed Plan Of Action (Continued) C. DES is also preparing a second construction contract: 6) Downtown — Coal Avenue fr 1St Street to Street. D. Second contract is necessary for the downtown area because of • Existing monolithic concrete roadway section. • Laydown curb lAW Metropolitan Redevelopment Area Plan. E. Plan advertising first contract NLT May with City Council award NLT June. —  RECOMMENDED PROJECTS FOR JU I ELECTRIC DEPARTMENT 1. High Voltage Cable Fault Tester = $ 27,000 fEQ) 2. Two Reel Wire Trailer = $ 16,250 fEQ) 3. Single Reel Wire Trailer = $ 13,000 (EQ) 4. Digger Derrick Truck = $352,000 (VH) 5. Single Person Bucket Truck = $152,000 fVH) 6. LED Street Light Upgrades = $ 30,000++ 7. SCADA System Upgrades = $ 51,250+-i- 8. Transformer Upgrade Requirements = $123,000++  RECOMMENDED PROJECTS FOR JU ELECTRIC DEPARTMENT (Continued) 9. Allison Substation Upgrade = $300,000 (Dsgn) 10. Capital Service Line Extensions = $164,000-i-i- ELECTRICITY 11. System Power Factor Improvements = $15,000+ 12. Fiber Optic System Construction = $75,000-i-i- 13. Mentmore Feeder Loop Construction = $50,000-i- 14. New Equipment Bays n Material Storage = $90,000 (Dsgn) 15. Noe Substation Upgrade = $105,000 16. Reroute Underground Feeders #74 n #75 = $150,000-i-  RECOMMENDED PROJECTS FOR JU ELECTRIC DEPARTMENT (Continued) 17. WeH Field Feeder #75 Line Reconstruction = $ 10,250+ 18. Electrical Distribution System Improvements = $102,500+  RECOMMENDED PROJECTS FOR JU ISOLID WASTE DIVISION 1. SW Front Loader Refuse Truck = $300,000+ (VH) 2. SW I Side Loader Refuse Truck = $300,000+ fVH) 3. New Hasler Valley Solid Waste Facility = $200,000+ (Dsgn)  RECOMMENDED PROJECTS FOR . JUIWATERn WASTE WATER DIVISION t 1. Service Unit Replacement For Unit #267 = $ 42,000 (VH) 2. Grandview Water lank Rehabilitation Ph 1 = $3,470,000 3. Sewer Collection System Improvements = $ 260,000++ 4. Water Distribution System Rehabilitation = $ 260,000÷-i- 5. Water Well #11 Rehabilitation =$ 510,000 6. Water Well #12 Rehabilitation = $ 30,000 (Dsgn) 7. Southwest Water lank Rehabilitation = $ 37,500 (Dsgn)  2016-2017 YEAR ONE FUNDING • City General Funds = $ 723,600 • City Special/Bond Funds =$ 2,670,100 • City Enterprise/Bond Funds = $ 7,768,250 • 3rd Party/Outsid e Funding =$ 6,429,260 TOTAL FUNDING = $17,591,210  FY 2017-18-19-20-202 1 “FIVE YEAR” FUNDING NEED • City General Funds = $ 32,706,975 • City Special Funds = $ 33,988,325 WORK • City Enterprise Funds = $ 48,253,948 IN PROGRESS • 3rd Party/Outsid e Funding = $ 39,994,260 TOTAL FUNDING = $154,943,508  COMMUNITY IMPROVEMENT PLAN FEEDBACK Questions • Discussion Guidance CITY OF GALLUP FY 201 7 BUDGET PRESENTATION Total City Budget $87,850,283 FOCUS: GENERAL FUND Balanced General Fund Budget of: $28,449,181 General Fund Cash Reserves: $5,885,289 (20.69%) Proposed FY 2016 Budget Highlights Key Issue: Although we have seen a slight average increase in GRI Revenue Year to Date, the Hold Harmless increase of approximately $200,000 per year until it reaches 3.2 Million makes balancing the budget an ongoing and long term challenge. 1. General Fund: A. No new full time positions B. No new vehicles (except for 10 Police vehicles included in CIP and funded by $285,000 in Capital Outlay and $65,000 in Infrastructure GRT funds) C. Building Maintenance funding has been centralized in Facilities Maintenance budget (with exception of grant funded programs and a small amount of funding for Emergency Maintenance) D. Placed freeze on vacant Non-Public Safety Positions (including General Services Director, Mechanic and GIS Tech) E. No funding for COLAS or Council Special Projects is included in draft budget but unallocated funds in the amount of $1 61,500 are available for Council direction. Highlights cont’d 2. Enterprise Funds: A. Cost allocation/transfer from Utilities Funds to General Fund remains at 8% pending a cost allocation plan to be developed during FY 2017 B. Long Range Financial Projections for Water, Wastewater and Solid Waste Funds are still in progress. C. Funding for Economic Development in the amount of $250,000 is included in Electric and Water Budgets ($125,000 charged to each budget) 3. Special Activities Funding: A. Level funding for Special Activities except for MainStreet/ACD, Metro Dispatch and Prisoner Care as follows: *BID $120,000 *BOYS AND GIRLS CLUB $6,000 *COG $65,000 *GALLUP EXPRESS $85,000 *MAIN STREET/ACD $40,000 (INCREASED FROM $10,000) *METRO DISPATCH $25,000 (NEW) *NMML $40,000 *PRISONER CARE $350,000 *SWIF $20,000 *YCC $85,000 (GRANT NOT FUNDED BY STATE) Highlights cont’U Special Activities Funding (cont’d): B. Received request from gallupARiS for $10,000 (Not Funded pending decision on County Funding. 4. Lodgers lax: A. Funding for budget unit for Tourism Manager: $104,247 B. Funding for current Red Rock Park Staff (Foreman and Two Laborers and Seasonal PT Positions): $133,973 C. Funding proposed for additional Red Rock Park Personnel (Red Rock Park Manager and PT Clerical Staff): $84,863 D. Total Red Rock Park Budget proposed for funding by Lodgers Tax (including Utilities of $1 66,000 and Staff Benefits and Overtime): $435,906 E. Review/reduce Red Rock Park fees to increase Park usage/revenues and reduce long term dependence on Lodger’s lax F. Significant Lodgers Tax Fund balance for promotional activities must be expended (Over One Million from previous years. FY 2017 Proposed Budget reflects use of $239,184 in funds from previous years. G. Will be restructuring Lodgers Tax budget for next FY to reflect promotional (40 percent) and Non-Promotional/Events and City Events Centers (60 percent) requirements by State Statute. Highlights cont’U Lodgers lax cont’d H. Currently all sub recipients funding has been included in Non-Promotional category which reduces the amount the City can use for Events/Events Center operations. Per State guidance, Tourism Manager will be developing contracts with all sub-recipients to ensure compliance with State Statute and Audit requirements. 5. Future Reductions/Revenue Generation Opportunities: As Hold Harmless increases by approximately $200,000 each year to over 3 Million a year, there will have to be significant increases in revenues based on growth and/or significant reductions in Services and Personnel. During FY 2017 we’ll be focusing on: A. Reductions in Fleet and Associated Costs B. Attrition (Freeze/review of each Non-Public Safety Position) C. Organizational Structure (Potential consolidations/reductions in overhead) D. Energy efficiency audit results (Long term reductions in energy costs) E. Create separate Municipal Facility Repair and Replacement Reserve Fund to ensure adequate funding to maintain facilities. Highlights cont’U Future Reductions cont’d F. Explore potential billing for Fire Medical Transport G. Expand Tourism Promotion/Events and Sports Tourism to increase Lodgers Tax and GRT Revenues H. Focus on Downtown Redevelopment and Business Expansion to increase Property Tax and GRI Revenue GENERAL FUND REVENUES MAJOR SOURCES — RECURRING VS NON-RECURRING • Taxes (Gross Receipts, Property, State Shared, Franchise) • Service Charges (Licenses, Registrations, Fines, Permits) • Miscellaneous Income (Rental, Discounts, Sale of Fixed Assets, Interest Income) • Grants (Intergovernmental, ]PAs, Lodgers lax)  Grants, $1,077,343 Miscellaneous, $394,278 Service Charges, $891,947 General Fund Revenue Make Up The City relies heavily on taxes. So a small decrease in actual tax distributions dramatically affects our overall budget. GENERAL FUND REVENUE SOURCES $30,000,000 $25,000000 $20,000,000 i Grant Income $15,000000 sMisceHOfleOUS Income • Charges for Services $10,000,000 •State Shared Taxes •Iaxes $5,000,000 FY2016 FY 2017 GENERAL FUND EXPENDITURES MAJOR USES RECURRING VS NON-RECURRING • Personnel (Salaries and Benefits) • Operating (Professional Fees, Maintenance, Supplies, Travel, Rentals) • Capital Outldy = Asset Purchase Over $5,000 (Buildings, Land, Improvements, Equipment, Vehicles)  GENERAL FUND BUDGETED EXPENDITURES $35,000,000 $30,994,742 $30,505,184 $30,000,000 —Budget 91 7 $28,449,181 $25,000,000 FY 2014 FY2015 FY2016 FY 2017 GRT Total Receipt History GRT Total Receipts 25,000,000.00 20,000,000.00 15,000,000.oo 10,000,000.00 Fiscal Year 54,000,000.00 2011 2012 2013 2014 2015 2016 Totat Total Total Total Total Total 0 C (D U) 0 U) ..4) .%)