Finance Committee

Regular Meeting of the Finance Committee Held at the Roswell Convention Center Thursday, July 2, 2020 Notice of this meeting was given to the public in compliance with Sections 10-15-1 through 10-15-4 NMSA 1978 and Resolution 20-26. ROLL CALL The meeting convened at 9:00 a.m. with Chairman Perry presiding; Councilors Oropesa and Kennard being present, with Councilor Roebuck being absent. Staff present: Monica Garcia, Juan Fuentes, Steven Martinez, Stephanie Mervine, Juanita Jennings, Parker Patterson, Scott Stark, and Mike Mathews Guests present: Mayor Kintigh and Councilor Stubbs APPROVAL OF AGENDA Councilor Kennard moved to approve the July 2, 2020 regular Finance Committee amended meeting agenda as presented. Councilor Oropesa was the second. A voice vote was unanimous, and the motion passed 3-0, with Councilor Roebuck being absent. APPROVAL OF MINUTES Councilor Kennard moved to approve the June 4, 2020 regular Finance Committee meeting minutes as presented. Councilor Oropesa was the second. A voice vote was unanimous, and the motion passed 3-0, with Councilor Roebuck being absent. *For the record: Councilor Roebuck joined the meeting at 9:04 a.m. NON-ACTION ITEMS Information Reports: Mr. Martinez presented handouts for GRT% Change for May 2020 to June 2020 and GRT % Change June 2019 to June 2020 for the state of New Mexico for review and questions. Other reports were included in the agenda packet. Ms. Mervine presented the Lodgers’ Tax reports for review and answered questions from the Councilors. ACTION ITEMS Proposed Ordinance 20-05 to Update Article 1 Lodgers’ Tax: Ms. Jennings and Mr. Patterson presented the request to update Ordinance 20-05 Article 1 based on state legislature changes with regards to Lodgers’ Tax. An update was presented to the Legal Committee in April, but City Council referred back to Legal due to state legislation changing. The proposed ordinance was sent to Legal Committee on June 25, 2020, but due to lack of a quorum, it is being presented to the Finance Committee. Amendment SB 106 went into effect January 1, 2020 and Amendment HB 117 into effect July 1, 2020 changing the definition of “Short-term rental” in New Mexico; those used for transient accommodations, such as Air BnBs. Roswell has 64 that would fall under the new law. Rentals ~1~ offering fewer than three rooms are no longer exempt from collecting local lodging tax or paying state gross receipts tax. Collection of GRT and Lodgers’ Tax being handled by the Public Affairs Department going forward. Lodgers’ Tax for 30+ day temporary lodging only applies to employment stays, not leisure, per the state legislature passed. Councilor Kennard moved to send to full City Council to advertise and hold a public hearing on the proposed Ordinance 20-05 Update Article 1 Lodgers’ Tax chapter 23 of Roswell City Code. Councilor Oropesa was the second. A voice vote was unanimous, and the motion passed 4-0. Resolution 20-XX Airport Fee Structure: Mr. Stark presented a request to establish a master fees list and new fee structure for aircraft use of facilities and services furnished by the Roswell Air Center (ROW). Fees in Chapter 5 Aviation of City Code have not been updated since 1984. Landing and parking fees have not changed since 2010. Basing new numbers on reviews of comparable airports with similar services and operation numbers. This resolution would provide ability to negotiate with airlines on costs and allow to recoup current administration and supply costs and cover maintenance. Mr. Stark presented examples of previous rates and proposed changes. Councilor Perry suggested a re-evaluation every five years. Councilor Roebuck moved to send to full City Council on the consent agenda Resolution 20-XX for new fee structure for aircraft use and facilities and services provided by the Roswell Air Center. Councilor Kennard was the second. A voice vote was unanimous, and the motion passed 4-0. Resolution 20-XX Final Budget FY2021: Mr. Fuentes and Mr. Martinez presented this second opportunity for committee to address questions or concerns. A budget recap was provided to review and prepare amendments to present to City Council for action. City council will address any amendments on July 9, 2020. City Council Special Session meets July 23, 2020 to approve the final budget. Councilor Oropesa expressed concerns regarding the reclassification of positions and a plan to deal with the high-ranking positions that took the buyout. There was a discussion on the actual effect this has on the budget. Mr. Mathews noted that Fire Department Division Chiefs will be meeting with him and Mr. Neeb over next few weeks to determine finances and priorities moving forward. Councilor Roebuck moved to send to full City Council on the consent agenda the recommendation to approve the final budget as presented by staff, Resolution 20-XX Final Budget FY2021. Councilor Kennard was the second. The motion passed 3-1 in a voice vote with Councilor Oropesa voting no. PUBLIC PARTICIPATION None. ADJOURN The meeting adjourned at 10:14 a.m. ~2~