City Council

Minutes of the Special Meeting of the Gallup City Council, City of Gallup, New Mexico, held in the Council Chambers at Gallup City Hall, 110 West Aztec Avenue, at 8:30 a.m. on Wednesday, April 25, 2018. The meeting was called to order by Mayor Jackie McKinney. Upon roll call, the following were present: 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 Topic: 1. Proposed Fiscal Year 2019 Budget Maryann Ustick, City Manager and — Patty Holland, Chief Financial Officer Ms. Ustick and Ms. Holland presented a power point presentation on the proposed budget for FY 2019. A copy of the power point presentation is attached hereto, marked as Exhibit A and made a part of these official Minutes. The Department and Division Directors presented their proposed budgets for Fiscal Year 2019. The schedule of the department presentations is attached hereto, marked as Exhibit B and made a part of these official Minutes. Ms. Ustick and the Department/Division Directors answered questions posed by the Mayor and Councilors. There was no official action taken by the Mayor and Councilors during the Work Session. There being no further business, Councilor Palochak made the motion to adjourn. Seconded by Councilor Garcia. Roll call: Councilors Palochak, Garcia, Kumar, Landavazo and Mayor McKinney all voted yes. ‘ \ ._. J%%*....U J .. -‘ - - Jackie McKinney Mayor : ‘ Approv’?i /8/2Oi8 I £0 I >< w CITY Of GALLUP PROPOSED FY20 19 BUDGET WORKSHOP PRESENTATION  Total FY19 City Budget $99,065,737 FOCUS: GENERAL FUND )) General Fund Expenditures: $27,704,112 (does not include Debt Service and Operating Grants from department 1025 $2,491,660) - General Fund Cash Reserves: $8,866,819 tEst. Year End) * General Fund Cash Reserves in the amount of $513,169 for capital equipment/projects needed to balance General Fund Budget  Miscellaneous, 893,720,3% 2019 Budgeted Revenue Charges for Services, 616,200 Interest on Investments, Licenses and Permits, 250,000, 1% 244,800, 1% Fines And Forfeits, 105,000, 1% Total Grants, 45,855, 0%....._— • Total Taxes • Total Grants I Licenses and Permits • Charges for Services S Fines And Forfeits S Interest on Investments • Miscellaneous Total Revenue $26,481,929 **Total Revenue above does not include transfer from Utility Enterprise Funds 8.5% ($3,200,674)  2019 Budget Expenditures Executive - Legislative, Judicial, 506,247 ,2% 837,042, 3% Elections, 301,747, 1% Other- Miscellaneous, 3929184 lAO) iO 1 I Culture and Recreation, I Executive Legislative - 4,336,082, 16% I Judicial I Elections I Finance & Administration I Public Safety LI Culture and Recreation I Other Miscellaneous - Total Expenditures $27,704,112  GRT Total Receipts 25,000,000 24,000,000 23,000,000 22,000,000 S Fiscal Year 21,000,000 20,000,000 19,000,000 2011 Total 2012 Total 2013 Total 2014 Total 2015 Total 2016 Total 2017 Total —  TOTAL GENERAL FUND EXPENDITURES 30,000,000 28,000,000 27,704,112 26,000,000 9,346 24,000,000 22,000,000 20,000,000 —TOTAL GENERAL FUND EXPENDITURES 18,000,000 —Linear (TOTAL GENERAL FUND EXPENDITURES) 1,669 16,000,000 14,000,000 12, 000, 000 10,000,000 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Actual 2018 2019 Bud Annualized Proposed FY 2019 Budget Highlights Key Issue: City has been able to “absorb” Hold Harmless increase of approximately $200,000 per year until it reaches 3.2 Million in year 15. This will make balancing the budget a greater challenge with each subsequent year. FY 2019 Hold Harmless amount approximately $800,000. 1. Vehicles: (General Fund Departments) A. Replacement vehicles: * One 1/2 ton pick up truck to replace truck in Code Enforcement * Replace utility bed truck for Building & Construction * Six police vehicles to replace high mileage vehicles over 10 years ($226,000 in legislative capital outlay funds) C. Council Special Project Funds: $150,000 ($30,000 for each elected official) D. No COLAs included in draft budget due to Hold Harmless revenue reduction. E. Health Insurance cost increase budgeted in draft FY 2019 Budget at 10%. Additional funds in 1025 as increase could be up to 22% ($476,897). Highlights cont’d 2. Enterprise Funds: A. Cost allocation/transfer from Utilities Funds to General Fund remains at 8.5% B. Wastewater rate ordinance will be presented to Council in May. C. Funding for GGEDC (Economic Development) is $200,000. Included in Electric and Water Budgets. ($100,00 in each budget) 3. Special Activities Funding: A. Funding for Special Activities. Prisoner Care amount not final. *BID $120,000 *BOYS AND GIRLS CLUB $6,000 *COG $65,000 *galIupARTs $10,000 *GALLUP EXPRESS $85,000 *]PSA $5,000 *MAIN STREET/ACD $40,000 *NMML $40,000 *PRISONER CARE $500,000 *SWIF $20,000 *VETERANS COMMITTEE $6,000 *COMMUNITY PANTRY $25,000 Highlights cont’d Special Activities Funding (cont’d): B. Received request from gallupARTS for $10,000 ($3,000 more than FY 2018 and increased in draft budget.) 4. Lodgers lax: A. Funding for budget unit for Tourism Manager (includes Rex Museum position): $157,726 (FY 2018 $167,366) B. Total Red Rock Park operating budget proposed for funding by Lodger’s Tax includes maintenance, non-capital furniture, staff salaries, benefits and overtime): $476,941 (FY 2018 $582,556) C. Lodger’s Tax funds in the amount of $285,000 are used to fund capital improvements at Red Rock Park (replacement of boiler $200,000, restroom renovation $22,000, and replacement 3/4 ton truck $63,000. (FY 2018 $150,000) D. Red Rock Park fee revisions to increase park usage and help reduce dependence on Lodger’s Tax approved by City Council. No significant change in budgeted fee revenues are recommended pending actual data on impact of new fee schedule. 5. Risk Management Funds: A. $105,400 in Risk Reserves used for capital. Highlights cont’U 6. Summary of capital equipment, vehicles and projects included in draft FY 2019 Budget (General Fund total -- $513,169 from Fund Balance). Planning & Development 1/2 ton 4WD Truck reg. cab w/tool box $32,000 Animal Control Animal Container Box 22,000 Information Technology 46 Desktops w/Monitors 67,000 Parks Pressure Sprayer 13,000 Aquatic Center Lane liming System 10,000 Police laser Replacement 75,000 Building Construction Ram 5500 4WD Truck/utility bed 55,132 Utility Trailer for Scissor Lift 14,000 Total Vehicles & Equipment $288,132 New Regional Animal Shelter Construction $40,000 El Morro Theatre Stage Floor Reconstruction 22,537 Ford Canyon Park Turf Replacement Phase I 82,500 New Larry Brian Mitchell Recreation Center Construction 40,000 New Public Safety Building Construction 40,000 Total Projects $225,037 Grand Total GE Capital $513,169 Highlights cont’d 7. Requested Positions/Reclassifications A. General Fund: Human Resources HR Coordinator $49,000 (pending) Library Archivist/Digital Curator $51,000 (pending) B. Enterprise Funds: Water 2 Water Operators $66,101 (funded) Electric Deputy Director $98,000 (funded) Wastewater 2 Operators $59,996 (funded) C. Reclassification/Increase: El Morro reclass position Theatre Manager, increase of $16,013 (funded) Municipal Court pay adjustment for Judicial Aides, total of $18,774 (funded) 8. Sign on/Retention Incentives for Police A. Reduce authorized Sworn positions from 72-70 (temporary) B. Utilize savings test. $100,000) for sign on incentives and retention incentives for Officers and Sergeants. Highlights cont’U 9. Reductions/Revenue Generation Opportunities: A. During FY 2018 new Policy on Take Home Vehicles was implemented, replaced vehicles have been auctioned and size of pool vehicles has been increased. Updated Vehicle Plan was presented to Council. 12 Take Home Vehicles approved for 2018 plus on call vehicles. B. Billing for Fire Medical Transport is still a work in progress but Fire Department continues to undertake licensing, etc. to put this revenue generation in place. C. Continue to expand the quality and quantity of tourism promotion/events and marketing of City to increase both Lodger’s Tax and GRT revenues. D. Build on strategic partnerships with BID, MainStreet/ACD and Gallup Arts to increase visitors and to promote/incent business expansion downtown which will increase both property tax and GRT revenues long term. Lack of MainStreet Executive Director has impacted progress. Future Event Street will have positive impact on downtown revitalization. E. Develop and implement revised Land Development Code to encourage and facilitate both commercial and residential development. New development and redevelopment will enhance both property tax and GRT long term. Will be brought to Council for approval May/June.  r • I S I 4  CITY COUNCIL BUDGET WORKSHOP SCHEDULE April 25th, 2018, 8:30 A1VI to close City Council Chambers EXHIBIT B TENTATWE SCHEDULE 8:30 AM -10:30 AM Facilities/fleet Senior Programs Community Services Customer Care/Metering Parks/Cemeteries Library Golf Course Technology Services/GIS Recreation/Larry Brian Mitchell Risk Management Harold Runnels/Aquatic Ctr./Fitness Ctr. El Morro 10:30 AM-lo:45 AM (Break) 10:45 AM Fire Department Emergency Management 11:00 AM Police Department Police Building Protective Custody 12:0 0 PM (Working Lunch Served) 12 15 -1245 PM Tourism Red Rock Park Rex Museum 12:45-1:00 PM Planning Animal Control 1:00-1:30 PM City Clerk City Attorney Human Resources Finance Purchasing/Warehouse 1:30-2:00 PM Municipal Court City Council/City Manager BHIZ/LET 2:00-2:45 PM Public Works Airport 2:45-3:00 PM (Break) 3:00-Close Solid Waste Water/Wastewater Electric