Finance Committee

City of Roswell Special Finance Committee Tuesday, May 27, 2014, 8:00 a.m. City Hall Council Chambers Committee Members present: Caleb Grant, Chairman Art Sandoval, Councilor Jason Perry, Councilor Committee Members absent: None Other Elected Officials present: Steve Henderson Savino Sanchez Jr. Tabitha Denny Jeanine Best Natasha Mackey Juan Oropesa Elena Velasquez Staff Present: Larry Fry Monica Garcia Toni Reeves Arthur Torrez Deanna Garcia Mike Kirk Sharon Coll Renee Roach Others present: Randal Seyler Larry Connelly Clyde McKee Jimmy Craig Brian Roach C. Nichols Marissa J. Cootey Marie Heil The meeting was called to order at 8:04 a.m. by Chairman Grant. Committee members Caleb Grant and Art Sandoval and Jason Perry were all present, which represented a quorum. Councilor Sandoval moved to approve the May 1, 2014 minutes. Councilor Perry seconded, a voice vote was unanimous and the motion carried. 1 Sharon Coll was asked to call roll, with all committee members being present. Ms. Coll read legal description on the open meetings act. Councilor Perry moved to approve the Agenda dated May 27, 2014, Councilor Sandoval seconded, a voice vote was unanimous and the motion carried. Councilor Grant thanked everyone who worked on the preliminary budget, “this is a starting place for the City’s budget, we would like to move the City into a new direction beginning with this budget”. There are two proposed budgets which we will call budgets A&B of which 19 items have been added to comprise budget B. Regular Items: 1. Resolution #14-20, Preliminary Budget for Fiscal Year 2015 Mr. Fry spoke about Budget A, he stated Ms. Reeves, Budget Supervisor submitted this budget on May 16, 2014. Mr. Fry went through the Memo for the 2015 Preliminary Budget as follows; 1. Cash Reserve Balances 2. Gross Receipts Taxes 3. Ad Valorem (Property) Taxes 4. Other Revenues 5. Personnel Changes 6. Operating Expenditures 7. Capital Outlay Mr. Fry spoke of the process of the submitting the budget from preliminary to final budget process. Next Mr. Fry presented Budget #2 with the 19 changes Chairman Grant spoke regarding the $300K being removed from the Street fund this needs to be increased each year, of course the other the request for additional police officers, and for code enforcement, the $1.4 was to addressed to dilapidated buildings which was reduced to$ 20K. Councilor Mackey spoke about the increase in gross receipts which may be able to cover the street fund as well as the 3 additional officers and 1 sergeant. 1. Remove all travel & training except for police & fire and ½ of Municipal Court $208,856K 2 There were some concerns with item #1 since some of the departments require training as part of their particular job. 2. Correct phone expense in convention center from $20K to $2K 3. Move police attorney from police to financial administration $108K There were questions concerning item #3 with regards to adding police officers. This will free up the police budget to add the additional officers. Mr. Fry explained that this correction is simply an accounting issue moving the $108K from police to administration, both within the General Fund. 4. Correct financial administration contract services $80K 5. Add terminal demolition to airport fund $500K 6. Add $230K to $20K in code enforcement for demolition – total $250K 7. Return overlay in streets to $1M (add back $300K) 8. Reduce legal professional service in financial administration from $150K to $75K 9. Eliminate $500K in economic development from carry over added to cash balance 10.Reduce indigent council in judicial from $30K to $20K 11.Reduce computer professional services in financial administration from $45K to $30K 12.Reduce postage in financial administration from $45K to $30K 13.Reduce printing & publications in personnel from $46K to $15K 14.Eliminate Cemetery Sexton and Marketing Director positions cemetery $67,544K KRB $75,556 There were concerns with item #14 with regards to eliminating positions. Several councilors stated they would not approve at this time. 15. Eliminate KRB Department expenses $14,270 16. Correct financial administration salaries $105,731K 17. Remove car allowance for Mayor $2,400K 18. Add 3 officers and 1 sergeant in police $249,076K There were questions from the council regarding item #18. Mr. Fry stated that he could have Chief Smith at the City Council meeting to answer all questions. 19. Add $25K to economic development in financial administration for air service consultant The meeting was opened to public comment, the following citizens spoke on behalf of Ms. Roach regarding line item #14. 1. Marie Heil 2. Joanne Blodgett 3. Clyde McKee 3  4. Jimmy Craig 5. Alan Trever 6. Judy Stubbs Councilor Perry moved to take a recess from 10:18 am to 10:40 am so that he may speak with Mr. Fry. Councilor Sandoval seconded, a voice vote was unanimous and the motion carried. The Committee reconvened at 10:52 am. Councilor Perry moved to send to full council Budget A, with Councilor Sandoval asking if the committee could eliminate particular items. Chairman Grant proposed that Councilor Perry stipulate with the items that were merely corrections. Councilor Perry moved to send to full council Budget A, with the following stipulations; 2. Correct phone expense in convention center from $20K to $2K 3. Move police attorney from police to financial administration 4. Correct financial administration contract services $80K 8. Reduce legal professional services in financial administration from $150K to $75K 10. Reduce indigent council in judicial from $30K to $20K 11. Reduce computer professional services in financial administration from $75K to $5K 12. Reduce postage in financial administration from $45K to $30K 13. Reduce printing & publications in personnel from $46K to $15K 16. Correct financial administration salaries Councilor Sandoval seconded, a voice vote was unanimous and the motion carried. 2. DWSRF Project – Application to NM Finance Authority to proceed with project Arthur Torrez presented to the Finance Committee requesting to submit an application to the NMFA, New Mexico Finance Authority, for a loan to reconstruct 36” Water Mains. The proposed start date is summer 2014 with a completion date of winter of 2014. With Chaves County being a low income area we are entitled to lower interest rates. We are requesting a resolution be passed and sent to full council so that the City may secure a loan to complete the project for $2M. Mr. Torrez went over the water revenues with the implementation of the new water rates. Councilor Perry moved to send to full City Council for the June regular meeting to proceed with the loan application to NMFA. Councilor Sandoval seconded, a voice vote was unanimous and the motion carried. 3. Request for one time waiver of Lodger’s Tax Penalty 4 Staff is asking for approval from the committee to waive $399.13 penalty for Lodger’s Tax from the hotel requesting. This particular hotel has not been late for the past 5 years and has been in business for over 28 years. There were questions regarding how many a times this happens, which is very minimal. Councilor Perry moves to waive the tax penalty of the $399.13 one-time, on the hotel requesting. Councilor Sandoval seconded, a voice vote was unanimous and the motion carried Meeting adjourned at 10:52 a.m. 5