Finance Committee

SPECIAL FINANCE COMMITTEE MEETING Thursday, February 24, 2022 at 3:30 p.m. Roswell Convention & Civic Center 912 N. Main St. Meeting Room A Roswell, NM 88201 Committee Chair: Jason Perry Committee Vice Chair: Juan Oropesa Committee Members: Jacob Roebuck, Margaret Kennard Staff Liaison: Juan Fuentes A. Call to Order B. Roll Call C. Approval of the Agenda D. Action Items 1. Consideration of Resolution 22-XX to provide for an inter-fund loan from the General, Solid Waste, Water and Wastewater Funds to the Roswell Air Center Fund. Page 3 2. Consideration of Resolution 22-XX approving budget adjustment for fiscal year ending June 30, 2022. – Page 6 E. Adjourn (Next Meeting: March 3, 2022) Notice of this meeting has been given to the public in compliance with Sections 10-15-1 through 10-15-4 NMSA 1978 and Resolution 21-07. NOTICE OF POTENTIAL QUORUM - A quorum of the City Council may or may not attend, but there will not be debate by the City Council. 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Get the app now and be ready when your first meeting starts: https://global.gotomeeting.com/install/822397005 Help desk - 500-0587 2  ROSWELL NEW MEXICO AGENDA ITEM ABSTRACT Special Committee Meeting Item No. Meeting Date: February 24, 2022 COMMITTEE: Finance CONTACT: Juan Fuentes CHAIR: Jason Perry ACTION REQUESTED: Consideration of Resolution 22-XX to provide for an inter-fund loan from the General Fund, Solid Waste Fund, Water and Wastewater Funds to the Roswell Air Center Fund. BACKGROUND: Initiated by: Joe Neeb/Juan Fuentes The City entered into an agreement with Ascent Aviation to plan, design and construct a large hangar at the Roswell Air Center. Partial funding for the project will be the $3 million from State Legislative Appropriation Grant awarded to Chaves County for the Roswell Air Center improvements. The estimated project cost will exceed the grant funds allocated and the proposed resolution authorizes an inter-fund loans from the General Fund, Solid Waste, Water and Wastewater funds. The loan to the Air Center will be for $11,100,000 subject to the term and conditions described in Appendix A. FINANCIAL CONSIDERATION: Proposed resolution authorize the inter-fund loan of $11,100,000 from the various funds to the Air Center Fund. LEGAL REVIEW: Proposed resolution has been submitted for legal review. BOARD AND COMMITTEE ACTION: Consideration of Resolution 22-XX to provide for an inter-fund loan from the General Fund, Solid Waste Fund, Water and Wastewater Funds to the Roswell Air Center Fund. STAFF RECOMMENDATION: Consideration of Resolution 22-XX to provide for an inter-fund loan from the General Fund, Solid Waste Fund, Water and Wastewater Funds to the Roswell Air Center Fund. ATTACHMENTS Resolution 22-XX to provide for an inter-fund loan from the General Fund, Solid Waste Fund, Water and Wastewater Funds to the Roswell Air Center Fund. 3  RESOLUTION OF INTERFUND LOAN RESOLUTION NO. 22-XX A RESOLUTION TO PROVIDE FOR AN INTER-FUND LOAN FROM THE GENERAL FUND, SOLID WASTE FUND, WATER AND WASTEWATER FUNDS TO THE ROSWELL AIR CENTER FUND. WHEREAS, the City of Roswell entered into an agreement with Ascent Aviation to plan, design and construct a large hangar at the Roswell Air Center; and WHEREAS, the City and Chaves County have agreed to use $3 million from a Legislative State Appropriation Grant for infrastructure improvements for the project; and WHEREAS, the estimated project cost will exceed the grant funds allocated; and WHEREAS, the city is permitted to make inter-fund loans; and WHEREAS, the General Fund, Solid Waste, Water and Wastewater have sufficient funds to make such a loan without detriment of any function or activity within the funds; and WHEREAS, the Roswell Air Center has a need for a temporary inter-fund loan to the Air Center Fund for the purpose of funding the up-front cost to plan, design and construct the large hangar project; NOW THEREFORE BE IT RESOLVED by the governing body, the City Council of Roswell, New Mexico: that an inter-fund loan from the various funds described in Appendix A to the Roswell Air Center in the amount of $11,100,000. The inter-fund loan authorized by this resolution shall be for the term and subject to the conditions described in Appendix A, which is attached hereto and incorporated by reference. APPROVED, ADOPTED AND SIGNED on this ____ day of _____________, 2022. CITY SEAL _____________________ Dennis Kintigh, Mayor ATTEST: ___________________________ Interim City Clerk 4  APPENDIX A Fund Fund Name Intergovernmental Loan 1101 General Fund 4,100,000 37% 5200 Solid Waste 2,000,000 18% 5300 Water 4,000,000 36% 5301 Wastewater 1,000,000 9% 11,100,000 100% Loan Amortization Schedule Enter values Loan summary Loan amount $ 11,100,000.00 Scheduled payment $1,301,258.62 Annual interest rate 3.00 % Scheduled number of payments 10 Loan period in years 10 Actual number of payments 10 Number of payments per year 1 Total early payments $ - Start date of loan 6/1/2022 Total interest $1,912,586.23 Optional extra payments $ - Lender name: Pmt Payment Beginning Scheduled Extra Ending Cumulative No. Date Balance Payment Payment Total Payment Principal Interest Balance Interest 1 6/1/2023 $ 11,100,000.00 $ 1,301,258.62 $ - $ 1,301,258.62 $ 968,258.62 $ 333,000.00 $10,131,741.38 $ 333,000.00 2 6/1/2024 10,131,741.38 1,301,258.62 - 1,301,258.62 997,306.38 303,952.24 9,134,434.99 636,952.24 3 6/1/2025 9,134,434.99 1,301,258.62 - 1,301,258.62 1,027,225.57 274,033.05 8,107,209.42 910,985.29 4 6/1/2026 8,107,209.42 1,301,258.62 - 1,301,258.62 1,058,042.34 243,216.28 7,049,167.08 1,154,201.57 5 6/1/2027 7,049,167.08 1,301,258.62 - 1,301,258.62 1,089,783.61 211,475.01 5,959,383.47 1,365,676.59 6 6/1/2028 5,959,383.47 1,301,258.62 - 1,301,258.62 1,122,477.12 178,781.50 4,836,906.35 1,544,458.09 7 6/1/2029 4,836,906.35 1,301,258.62 - 1,301,258.62 1,156,151.43 145,107.19 3,680,754.92 1,689,565.28 8 6/1/2030 3,680,754.92 1,301,258.62 - 1,301,258.62 1,190,835.98 110,422.65 2,489,918.94 1,799,987.93 9 6/1/2031 2,489,918.94 1,301,258.62 - 1,301,258.62 1,226,561.06 74,697.57 1,263,357.89 1,874,685.50 10 6/1/2032 1,263,357.89 1,301,258.62 - 1,263,357.89 1,225,457.15 37,900.74 0.00 1,912,586.23 5  ROSWELL NEW MEXICO AGENDA ITEM ABSTRACT Special Committee Meeting Item No. Meeting Date: 02/24/2021 COMMITTEE: Finance Committee CONTACT: Juan Fuentes CHAIR: Jason Perry ACTION REQUESTED: Resolution 22-XX - Consider approval of Resolution 22-XX approving budget adjustments for fiscal year ending June 30, 2022. BACKGROUND: Initiated by: Chanel Rey This is a housekeeping item. DFA’s reporting system (LGBMS), requires approval of a budget amendment when increasing a revenue and/or expense in the approved budget. FINANCIAL CONSIDERATION: Transfers between various funds $11,100,000. • Fund 1101 (General Fund): Transfers out $4,100,000 • Fund 5200 (Solid Waste Fund) Transfers out $2,000,000 • Fund 5300 (Water Fund): Transfers out $4,000,000 • Fund 5301 (Wastewater Fund): Transfers out $1,000,000 • Fund 5100 (Aircenter Fund): Transfers in $11,100,000 LEGAL REVIEW: No legal review is required at this time. BOARD AND COMMITTEE ACTION: Consider approval of Resolution 22-XX approving budget adjustments for fiscal year ending June 30, 2022. STAFF RECOMMENDATION: Consider approval of Resolution 22-XX approving budget adjustments for fiscal year ending June 30, 2022. ATTACHMENTS Resolution 22-XX approving budget adjustments for FY22. Appendix A – Summary of FY22 Budget Adjustments. 6  RESOLUTION 22-XX A RESOLUTION OF THE CITY OF ROSWELL, NEW MEXICO AMENDING THE BUDGET FOR THE FISCAL YEAR ENDING JUNE 30, 2022, BY INCREASING TRANSFERS BETWEEN VARIOUS FUNDS. WHEREAS, the governing body of the City of Roswell, State of New Mexico, has previously approved a budget for the fiscal year 2021-2022, ending June 30, 2022; and WHEREAS, the City desires to amend said budget in the amount of $11,100,000 in transfers between various funds detailed in Appendix A and summarized below: • Fund 1101 (General Fund) transfers out $4,100,000 • Fund 5200 (Solid Waste Fund) transfers out $2,000,000 • Fund 5300 (Water Fund) transfers out $4,000,000 • Fund 5301 (Wastewater Fund) transfers out $1,000,000 • Fund 5100 (Aircenter Fund) transfers in $11,100,000 WHEREAS, it is the majority opinion of the Governing Body that the proposed amended budget continues to meet fiscal requirements as currently determined for the fiscal year 2021-2022. NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL AS THE GOVERNING BODY OF THE CITY OF ROSWELL, NEW MEXICO, hereby adopts the budget adjustment hereinabove described and respectfully request approval for same from the Local Government Division of the Department of Finance and Administration, State of New Mexico. PASSED, ADOPTED, SIGNED, and APPROVED the 24th day of February 2022. CITY SEAL _____________________________ Dennis Kintigh, Mayor ATTEST: ______________________ Interim City Clerk 7