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 8:30 a.m. on Thursday, April 25, 2019. 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 Curtis Hayes, City Attorney The Mayor and Councilors conducted a day-long Work Session to review and discuss the following Topic: 1. Proposed Fiscal Year (FY) 2020 Budget — Maryann Ustick, City Manager and Patty Holland, Chief Financial Officer Ms. Ustick and Tern Gray of the Finance Department presented a power point presentation on the proposed budget for FY 2020. 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 FY 2020. The schedule of the department presentations is attached hereto, marked as Exhibit B and made a part of these official Minutes. Ms. Ustick, Ms. Holland 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 ), 61 [N ç J (• Jackie McKinney, MayoN Approved 5/14/2019  CITY OF GALLUP PROPOSED FY2020 BUDGET WORKSHOP PRESENTATION Total FY20 city Budget $103,930,887 FOCUS: GENERAL FUND )) General Fund Expenditures: $31,438,156 (includes $1,559,140 from fund balance) General Fund Cash Reserves: $9,587,680 tEst. Year End)  FY 2020 General Fund Revenue Budget Miscellaneous, $561,503, 2% Interest on Investrnents, $l00,000,o% Fines and forfeits, \ $109,600,o% Charges for Services, S697,000,3% Licenses and Perrnits,_ $224,000, 1% **Total Revenue above does not include transfer from Utility Enterprise Funds 8.5% ($3249,295)  2020 Budget Expenditures - Executive Legislative, Judicial, $85,121, 5% Elections, 367,176, 2% Public Safety Finance & Administration, 4,851,067, 26% Executive - Legislative liudicial S Elections I Finance & Administration * Public Safety Total Expenditures $31,438,156  GRT Total Receipts 30,000,000 25,000,000 20,000,000 t II 15,000,000 10,000,000 I I I I 5,000,000 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Actual 2018 Actuals 2019 Bud 2020 Budget  TOTAL GENERAL FUND EXPENDITURES 35,000,000 31,438156 30,000,000 25,000,000 8,5 26,636 3,678,726 —TOTAL GENERAL FUND EXPENDITURES 20,000,000 Linear (TOTAL GENERAL FUND EXPENDITURES) 16,541,669 15,000,000 10,000,000 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Actual 2018 2019 Bud 2020 Actuals Budget Proposed FY 2020 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 2020 Hold Harmless amount approximately $1,000,000. General fund Expenditure Highlicjhts Red Rock Park Utilities expenditure ($183,000) moved from Lodger’s Tax to General Fund Rex Museum position moved from Lodger’s lax to General Fund No COLAs included in draft budget due to Hold Harmless revenue reduction. Health Insurance cost increase budgeted in draft FY 2020 Budget at 12% and Dental insurance at 5%. Council Special Project Funds: $150,000 ($30,000 for each elected official) Fire operation expenditures decrease of $75,000 from general fund. These operation expenditures are funded by the Fire Protection Fund (209). Police operation expenditures decrease of $586,976 from general fund, then allocated to a police special fund, funding from Infrastructure lax GRT. Highlights cont’d 2. Enterprise Funds: A. Cost allocation/transfer from Utilities Funds to General Fund remains at 8.5% 3. Special Activities Funding: A. Funding for Special Activities. Prisoner Care amount is $750,000. *BID $ 120,000 *Boys & Girls Club $ 6,000 *Community Pantry $ 25,000 *Gallup Mainstreet/ACD $ 40,000 *Gallup Rural Transit $ 85,000 * Gall u pArts $ 10,000 *JPSA $ 5,000 *NMML $ 44,000 *NWNMCOG $ 65,000 *prisoner Care $ 750,000 *SWIF $ 20,000 *Veteranls Committee $ 6,000 Highlights cont’U Special Activities Funding (cont’d): 4. Lodgers lax: A. Funding for budget unit for Tourism Manager (does not include Rex Museum position): $482,697 (FY 2019 $1 60,668) B. Total Red Rock Park operating budget proposed for funding by Lodger’s Tax includes maintenance, non-capital furniture, staff salaries, benefits and overtime): $404,297 (FY 2019 $830,722, includes capital) C. Other Services expenditure of $250,000 increase from prior year of $400,350. 5. Risk Management Funds: A. No funds are utilized in Risk Reserves for capital. Highlights cont’U 6. Summary of capital equipment, vehicles and projects included in draft FY 2020 Budget (General Fund total -- $1,559,140 from Fund Balance). General Fund Vehicles’& Equipment Department Capital Description Amount General Services City Hall HVAC Replacement $ 100,000 IT - 42 desktops & GIS servers, Plotter 72,000 $ Police Department - Mobile Data Terminal Replacement Laptops 155,000 $ Police Department Interview Room Recording System $ 10,340 Planning Pick up Truck $ 45,000 Public Works S650 T4 Bobcat $ 50,000 Total Vehicles & Equipment $ 432,340  _______ ____ _______________Itc[ficI$ Highlights cont’U General Fund Capital Projects Department Capital Description Amount General Services Exhaust system for Vehicle Shop $ 22,300 Library Main Library Reflooring $ 50,000 Library New Region Library Building $ 25,000 Park Indian Hills Park Lighting Replacement $ 350,000 Park Picnic Shelters Reconstruction & Addition $ 30,000 Public Works Six inch curb and gutter concrete forms $ 11,000 Public Works Whole Block Sidewalk Reconstruction Program $ 350,000 Recreation LBM Reconstruction $ 135,000 - Recreation Aquatic Center Pool Rehabilitation $ 50,000 Recreation Aquatic Center ADA Pool Lifts $ 8,500 RRP campsites Electrical Pedestals Replacement Red Rock Park Phase 2 $ 20,000 Red Rock Park Auditorium Roof Repair $ 75,000 Total General Fund - Capital Purchases $ 1,559,140 Highlights cont’U 7. Requested Positions/Reclassifications A. General Fund: Library — Museum Clerk position B. Enterprise Funds: Solid Waste — Customer Service Representative position f Highlights cont’d 9. Reductions/Revenue Generation Opportunities: A. Billing tot Fire Medical Transport is still a work in progress but Fire Department continues to undertake licensing, etc. to put this revenue generation in place. B. Continue to expand the quality and quantity of tourism promotion/events and marketing of City to increase both Lodger’s Tax and GRT revenues. C. 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. D. Hold Harmless GRI fix is still in progress. * a S C .4  CITY OF GALLUP FY 2020 BUDGET WORKSHOP SCHEDULE EXHIBIT B April 25th, 2019, 8:30 AM to close El Morro Theater Event Center — TENATWE SCHEDULE 8:30 AM — 10:30 AM Community Services Parks/Cemeteries Golf Course Facilities/Fleet Recreation/Larry Brian Mitchell Fitness Center Customer Care/Metering Harold Runnels Senior Center IT Technology Services/GIS - Aquatic Center El Morro Ps Management (vWJt/v 10:30 AM — ro: AM (Break) 10:45 AM — 11:15 AM Fire Department Fire Protection Fund Emergency Management ii:; AM — 12:00 PM Police Department Police Building Protective Custody LEPF 12:00 PM Worldng Lunch Served) .12215 PM — 12245 PM Planning Planning Animal Control 12:45 PM — 1:00 PM Administration Finance Human Resources City Attorney City Clerk Purchasing/Warehouse 1:00 PM — 1230 PM Municipal Court City Council/City Manager BHIZ/LET 1:30 PM — 2:00 PM Lodger’s Tax Tourism Red Rock Park Rex Museum 2:00 PM — 2:45 PM Public Works Construction Streets Airport 2:45 PM — 3:00 PM (Break) 3:00 PM — Close (RPM) Utilities Solid Waste Water/Wastewater Electric