Finance Committee

Regular Meeting of the Finance Committee City Hall – Large Conference Room 425 N. Richardson Monday, April 11, 2022 Notice of this meeting was given to the public in compliance with Sections 10-15-1 through 10-15-4 NMSA 1978 and Resolution 22-14. ROLL CALL The meeting convened at 9:00 a.m. with Chairman Corn presiding; Councilors Heldenbrand and Perry present, and Councilor Foster being absent. Staff present: Joe Neeb, Juan Fuentes, Mike Mathews, Janie Davies, Chanel Rey, Juanita Jennings, Robert Glenn, Lorenzo Sanchez, Scott Stark, Steven Christopher Staff via GoToMeeting: Kevin Maevers, Louis Najar, Debbie Reyer, Jaclyn James, Guests present: Councilor Christine Arnold, Rita Kane-Doerhoefer, Larry Connolly, June Ogle (Roswell Daily Record) Guests via GoToMeeting: Councilor Juliana Halverson, Terry Haley, Will Cavin, Tamara Kozma, Margaret (no last name given), Laura Perez, Jane Anglin APPROVAL OF AGENDA Councilor Perry moved to approve the April 11, 2022 regular Finance Committee meeting agenda. Councilor Heldenbrand was the second. A voice vote was 3-0 and the motion passed with Councilor Foster being absent. APPROVAL OF MINUTES Councilor Perry moved to approve the February 24, 2022 Special Finance Committee meeting minutes as presented and the March 3, 2022 Regular Meeting Minutes with the following correction: Under the Public Participation item, Councilor Perry’s comments should reflect that Councilor Stubbs served on City Council, not the Finance Committee. Councilor Heldenbrand was the second. A voice vote was 3-0 and the motion passed with Councilor Foster being absent. NON-ACTION ITEMS Information Reports: Gross Receipts Report: Mr. Fuentes presented information on the GRT report for March 2022. FY2023 Operating Budget Timeline: Mr. Fuentes provided an update on the current progress and upcoming timeline in finalizing the FY23 operating budget. Outstanding Debt Schedule: Mr. Fuentes provided information on the FY22 debt schedule for the City. Lodgers’ Tax & Convention Center Bed Fee: Ms. Jennings discussed the Lodgers’ Tax and Convention Center Bed Fee Reports for February 2022. ITB 22-018 Roswell Air Center Ascent Aviation Hangar Project: Mr. Fuentes and Mr. Neeb discussed the status of the bid process and the scope of work of the project. ACTION ITEMS Consideration of Resolution 22-XX approving budget adjustments for fiscal year ending June 30, 2022: Ms. Rey presented the budget amendments to account for $6,715,077 in Revenue and $6,165,890 in Expenses for various funds as a DFA housekeeping item. Mr. Neeb and Ms. Rey answered questions from the committee. Councilor Perry moved to send to full City Council for approval Resolution 22-XX approving budget adjustments included in Exhibit A for fiscal year ending June 30, 2022. Councilor Heldenbrand was the second. A voice vote was 3-0 and the motion passed with Councilor Foster being absent. Consideration of Resolution 22-XX authorizing the Disposal of Certain Surplus Personal Property: Mr. Glenn presented the request for authorization to dispose of various old/obsolete equipment and vehicles currently owned by the City as scrap or through auction. Councilor Perry moved to send to full City Council on the consent agenda Resolution 22-XX the authorizing the Disposal of Certain Surplus Personal Property included in Exhibits A and B. Councilor Heldenbrand was the second. A voice vote was 3-0 and the motion passed with Councilor Foster being absent. Consideration to hold a public hearing and consider adoption of Ordinance 22-06 authorizing the City of Roswell (Borrower) to amend Ordinance 19-09 for the purpose of increasing the funding package of the New Mexico Environment Department (NMED) Clean Water State Revolving Fund (CWSRF) Loan Number CWSRF 097: Mr. Fuentes presented the request to hold a public hearing and consider adopting the ordinance that would increase the funding loan package by $3,915,000. The City borrowed $5.5 million to design and construct the WWTP Dewatering Facility based on the engineer’s last estimate of $6,992,000. Bids for the project were opened on February 8, 2022 and the low bid with GRT was $8,626,664. The requested amount would be sufficient to proceed with the engineer’s recommendation to award. Mr. Sanchez answered questions from the committee. Councilor Perry moved to send to full City Council the recommendation to advertise a public hearing for Ordinance 22-06 authorizing the City of Roswell (Borrower) to amend Ordinance 19-09 for the purpose of increasing the funding package of the New Mexico Environment Department (NMED) Clean Water State Revolving Fund (CWSRF) Loan Number CWSRF 097. Councilor Heldenbrand was the second. A voice vote was 3-0 and the motion passed with Councilor Foster being absent. Consider approval of Task Order G of the Professional Services Agreement with Armstrong Consultants, Inc. to update the Airport Master Plan and Airport Layout Plan: Mr. Stark presented the request for a professional services agreement to update the City Airport Masterplan which was last updated in 2012, with the FAA recommending it be updated every ten years. The cost of the project is $685,900 plus 5.125% NMGRT. 95% of the cost will be covered by a federal grant and the remainder split between the City and the State. Councilor Perry moved to send to full City Council for approval of Task Order G of the Professional Services Agreement with Armstrong Consultants, Inc. to update the Airport Master Plan and Airport Layout Plan. Councilor Heldenbrand was the second. A voice vote was 3-0 and the motion passed with Councilor Foster being absent. Consider approval of contracting the research and generation of a new Airport Security Program (ASP) approved by the Transportation Security Agency (TSA) by the Faith Group, LLC: Mr. Christopher presented the request for approval to contract with the Faith Group, LLC for a new Airport Security Plan as required by the Transportation Security Agency. The cost of $99,268.96 would be paid out of Air Center reserve funds requiring a budget adjustment. Councilor Perry moved to send to full City Council the recommendation to approve the authorization to contract the research and generation of a new Airport Security Program (ASP) approved by the Transportation Security Agency (TSA) by the Faith Group, LLC. Councilor Heldenbrand was the second. A voice vote was 3-0 and the motion passed with Councilor Foster being absent. PUBLIC PARTICIPATION Mr. Connolly and Ms. Kane-Doerhoefer discussed making the PowerPoint presentations used in the Committee meetings available to the public. Ms. Kane-Doerhoefer also spoke about the City advertising in certain publications. The Committee discussed potential future agenda items and the possible changes to the meeting schedule. ADJOURN The meeting adjourned at 10:40 a.m. Finance Committee Meeting Thursday, April 11, 2022 Agenda Information Reports Information Report – Gross Receipts Tax • March 2022 • $3,244,203 (Actual Collected) • $ 2,814,283 (Budgeted) • $429,920 (Variance) GRT Actual Three Year Trend 6,000,000 5,500,000 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY 20 FY 21 FY 22 Information Report – Gross Receipts Tax Jul - Feb Jul Aug Sep Oct Nov Dec Jan Feb Mar Comparison FY 19 3,131,599 2,939,761 2,717,100 2,851,428 2,747,878 2,708,431 2,781,667 3,114,447 2,690,121 25,682,431 FY 20 2,860,221 3,248,842 5,450,435 2,804,337 3,799,352 3,162,914 2,788,688 3,186,544 2,790,481 30,091,815 • YTD GRT FY 21 3,022,870 3,069,385 2,971,997 2,941,260 2,923,252 2,761,950 2,640,571 3,289,112 2,813,652 26,434,050 FY 22 2,861,640 3,314,305 3,221,148 3,270,819 3,445,962 3,359,906 3,377,619 3,686,180 3,244,203 29,781,781 22 over '21 -5.3% 8.0% 8.4% 11.2% 17.9% 21.6% 27.9% 12.1% 15.3% • $29,781,781 (Actual Collected) • $26,439,973 (Budgeted) • $3,341,809 (Variance) GRT Actual vs Budget $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budgeted Actual FY2023 Budget Timeline Projection 23001 “FY2023 Operating” are available to departments for review. The budget is based on FY2022 Revised Budget so we anticipate little movement and an easier review for each department. Department review and movement will need to be completed by Friday, March 4th. Department review meetings will be March 28th through April 8th. April 8th, all departments have submitted Capital Plans. Revenue projections and departmental positions will be updated April 11th through April 13th. Draft preliminary budget April 11th through April 22nd. June 1st, Preliminary Budget due to DFA. July 31st, Final Budget due to DFA. FY 22 Debt Schedule CITY OF ROSWELL OUTSTANDING DEBT AS OF 03/21/2022 COUPON / OUTSTANDING OUTSTANDING ISSUE SECURITY ORIGIONAL PAR INTEREST RATE PRINCIPAL INTEREST TOTAL PAYMENT FINAL MATURITY GO Bond Series 2008 General Obligation 4,100,000.00 3.05% - 5.30% 395,000.00 7,900.00 402,900.00 08/01/22 Banc of America - Fire Truck Fire Protection Fund 1,623,422.00 2.13% 178,128.72 3,785.24 181,913.96 09/14/22 ZOLL Medical Corp. - Defibrillators Fire Protection Fund 275,000.00 0.00% 54,937.70 - 54,937.70 09/14/22 Municipal GRT Bond Series 2018 - Police Vehicles - PPRF4807 MGRT 736,000.00 1.87% - 2.24% 324,000.00 6,783.40 330,783.40 08/01/23 GRT Bond Series 2015 SSGRT 3,570,000.00 2.22% 1,960,000.00 133,200.00 2,093,200.00 08/01/27 Convention Center Bond Series 2017 - PPRF3707 Lodgers Tax / Center Fees 7,430,000.00 0.89% - 2.11% 5,255,000.00 808,722.00 6,063,722.00 07/01/32 Recreation Bond Series 2017 SSGRT 18,355,000.00 2.00% - 4.00% 15,965,000.00 5,638,700.00 21,603,700.00 08/01/37 TOTAL GOVERNMENTAL LONG-TERM DEBT 36,089,422.00 24,132,066.42 6,599,090.64 30,731,157.06 Airport Improvement Revenue Bond Series 2017 - PPRF3755 Airport Fund 2,579,346.00 1.61% - 2.79% 1,790,000.00 176,009.25 1,966,009.25 08/01/29 Intergovernmental Loan Airport Fund 11,100,000.00 3.00% 11,100,000.00 1,912,586.21 13,012,586.21 06/01/32 TOTAL AIRPORT FUND LONG-TERM DEBT 13,679,346.00 12,890,000.00 2,088,595.46 14,978,595.46 FY 22 Debt Schedule CITY OF ROSWELL OUTSTANDING DEBT AS OF 03/21/2022 COUPON / OUTSTANDING OUTSTANDING ISSUE SECURITY ORIGIONAL PAR INTEREST RATE PRINCIPAL INTEREST TOTAL PAYMENT FINAL MATURITY Joint Water & Sewer Utility Improvement Bond Series 2014A WWTP Fund 2,500,000.00 2.00% - 5.00% 1,665,000.00 343,675.00 2,008,675.00 06/01/34 Joint Water & Sewer Utility Refunding Bond Series 2014B WWTP Fund 7,345,000.00 2.00% - 5.00% 2,985,000.00 307,375.00 3,292,375.00 06/01/25 Wastewater WWTP Dewatering Facility Loan - CWSRF097 WWTP Fund 5,500,000.00 0.50% 5,500,000.00 5,500,000.00 Wastewater WWTP Dewatering Facility Loan #2 WWTP Fund 3,915,000.00 0.50% 3,915,000.00 3,915,000.00 Joint Water & Sewer Utility Revenue Bond Series 2017 - Smart Meters Water & Sewer Fund 18,230,000.00 3.00% - 5.00% 16,035,000.00 6,187,475.00 22,222,475.00 06/01/37 Drinking Water State Revolving Loan 2014 - DW3205 Water & Sewer Fund 2,724,475.00 0.25% - 2.00% 2,494,739.00 304,651.19 2,799,390.19 05/01/39 Drinking Water State Revolving Loan 2019 - DW4196 Water & Sewer Fund 4,987,784.00 0.25% - 2.00% 4,672,622.00 963,735.59 5,636,357.59 05/01/40 TOTAL WATER, SEWER & WATSEWATER LONG-TERM DEBT 45,202,259.00 37,267,361.00 8,106,911.78 45,374,272.78 Infrastructure & Equipment Loan - Landfill & Caterpillar - 2021 - PPRF5494 Landfill Fund 5,436,000.00 .15% - 1.20% 5,436,000.00 232,808.50 5,668,808.50 06/01/31 TOTAL LANDFILL LONG-TERM DEBT 5,436,000.00 5,436,000.00 232,808.50 5,668,808.50 2022 NM Legislative Capital Outlay Special Session SB 1 Capital Under SB 212 (b) $100,000 to purchase and equip RAC Improvements $ 5,000,000 vehicles for the Roswell police FD Training Facility $ 500,000 department; All-Inclusive Park $ 853,500 (c) $100,000 for street repairs in Roswell; RMAC $ 369,000 (d) $95,000 to expand educational Washington Street Imp. $ 540,000 programs, services and tours of the Roswell Street Imp. $ 360,000 animal enclosures at the Roswell zoo; and (6) $50,000 to expand programs and services at the Roswell adult center; and Lodgers’ Tax Monday, April 11, 2022 (Corn/Jennings) 10 Lodgers’ Tax Update • There are 3 hotels paying late. Fairfield Inn, Townplace Suites and La Quinta. • Fairfield and Townplace submitted 4 months of reports and funds in February, therefore that number for funds and beds looks very high. It was approx. $120,000. • The 3 hotels stated above have not remitted for January (due in Feb). That is why the number looks low in February. They are larger hotels therefore the report still does not reflect the true activity. • There is a total of $9,377.28 of late fees attributable to these late reports that they have paid (not reflected on this report) 11 Lodgers’ Tax Reports 12 Lodgers’ Tax Reports – cont. 13 Lodgers’ Tax Reports – Convention Center Bed Fee 14 Lodgers’ Tax Reports – Convention Center Bed Fee- cont. 15 Roswell Air Center Ascent Aviation Hangar Project  RESOLUTION 22-24 Budget Adjustment for April 2022 ITEM NO. 5 Resolution 22-24 Budget Adjustment for FY22 • Revenue (various funds) $6,715,077, Exhibit A • Expenses (various funds) $6,165,890, Exhibit A • Transfers (Various Funds) Budget Adjustment for FY22 Exhibit A - Revenues Revenues: General Fund (Fund 1101) 6,256,896.00Increase GRT Revenue Budget Through End of Fiscal Year 125,066.00Reimbursement for Dispatch Grant for Software JAG Fund (Fund 2514) 26,434.00Budget Authority for Additional Revenues Received Projected Budget through End of Fiscal Year under City Golf Fund (Fund 2613) 191,624.00 Management Increase Gas Tax Revenue Budget through End of Fiscal Roads Fund (Fund 2623) 54,875.00 Year Restricted Donations Fund (Fund 2690) 60,182.00Budget Authority for Departmental Donations TOTAL 6,715,077.00  Budget Adjustment for FY22 Exhibit A – Expenditures Expenditures: General Fund (Fund 1101): Executive & Legislative 13,813.00 Budget Authority for New Laptops and iPads for Council Executive & Legislative 600.00 Budget Authority for New Phone for Mayor Facilities Maintenance 41,000.00 Increase Temporary Labor for Vacant Positions and Work Order Assistance Police 45,520.00 Budget Authority for Insurance Reimbursement to Purchase New Vehicle Fleet Maintenance 25,504.00 Budget Authority for New Position in Fleet Maintenance Dispatch 125,066.00 Reimbursement for Dispatch Grant for Software  Budget Adjustment for FY22 Exhibit A – Expenditures Expenditures: JAG Fund (Fund 2514) 26802.00 Budget Authority to Purchase New Vehicle Museum Fund (Fund 2611) 53,000.00 Budget Authority for HVAC And Bench Repairs 18,000.00 For Sci-Fi Exhibition and Rocket Model Golf Fund (Fund 2613) 409,080.00 Projected Budget through End of Fiscal Year under City Management Roads Fund (Fund 2623) 1,784,675.00 Budget Authority for Road Repairs Approved at March Council Meeting Restricted Donations Fund (Fund 2690) 60,182.00 Budget Authority for Departmental Donations 2008 GO Bonds DS (Fund 4106) 65.00 Budget Authority for Wire Transfer Fees for Debt Service Payments Budget Authority for Purchase of Torro and Dump Plow Approved at August Council Air Center Fund (Fund 5100) 304,226.00 Meeting Water Fund (Fund 5300) 1,508,049.00 Roswell Air Center Water Line, Approved at March Council Meeting For ITB-22-007 Water Trust Board Project 5434-WPF, Approved at March Council 693,220.00 Meeting 1,057,088.00 14” Water Line Alignment for Ascent Hangar, Approved at March Council Meeting  Budget Adjustment for FY22 Exhibit A – Transfers Transfers: General Fund Transfer out for GRT 1,948,492.00 Budget Authority for GRT Related Transfers Various Funds Transfers In for GRT 1,948,492.00 Budget Authority for GRT Related Transfers General Fund Transfers Out to Museum 271,000.00 Budget Authority for Additional Transfers to Museum Fund Museum Fund Transfers In 271,000.00 Budget Authority for Additional Transfers to Museum Fund General Fund Transfers out to Golf 217,456.00 Projected Budget through end of Fiscal Year under City Management Golf Fund Transfers In 217,456.00 Projected Budget through end of Fiscal Year under City Management General Fund Transfers Out to Streets 1,784,675.00 Budget Authority for Transfers from GRT Settlement Road Fund Transfers In 1,784,675.00 Budget Authority for Transfers from GRT Settlement Road Fund Transfers out to Transit 292,512.00 Budget Authority for Transfers for Gas Tax Related Transfers Transit Fund Transfers In 292,512.00 Budget Authority for Transfers for Gas Tax Related Transfers Water Fund Transfers out to Air Center 5,580.00 Budget Authority for Transfers for Lease at Air Center through End of Fiscal Year Air Center Transfers In 5,580.00 Budget Authority for Transfers for Lease at Air Center through End of Fiscal Year  RESOLUTION 22-23 AUTHORIZING THE DISPOSAL OF CERTAIN PERSONAL PROPERTY ITEM NO. 6 Resolution 22-23 Authorizing the Disposal of Certain Personal Property • Resolution to dispose of surplus property of the City. • Property will be disposed of in accordance with City Policy • Includes vehicles, equipment and other items from various City department. • Longer list due to end of year inventory cleanup. • Includes Exhibit A for items under $2500 and Exhibit B for items over $2501. • Finance Committee recommended approval (XX/XX).  CONSIDERATION TO HOLD A PUBLIC HEARING AND CONSIDER ADOPTION OF ORDINANCE 22- 06 TO AMEND ORDINANCE 19-09 ITEM NO. 7 ORDINANCE 22-06 TO AMEND ORDINANCE 19-09 • The City borrowed $5.5 million dollars at 0.5% interest rate to design and construct WWTP Dewatering Facility. • Bids were opened on February 8, 2022 and bids were higher than engineer’s last estimate of $6,992,000. • The low bid with GRT is $8,626,664.00. • The proposed ordinance authorizes the acceptance of increasing the funding package by $3,915,000. • NMED will provide additional loan subsidy grant of $285,000. • The City Council authorized publication of proposed ordinance for a public hearing and consideration of adoption during their Regular Meeting on March 10, 2022. Additional funding WWTP Dewatering Facility Project  TASK ORDER G OF THE PROFESSIONAL SERVICES AGREEMENT WITH ARMSTRONG CONSULTANTS ITEM NO. 8 CONSIDERATION OF AWARD OF THE AIRPORT SECURITY PROGRAM (ASP) PLAN TO FAITH GROUP, LLC. ITEM NO. 9 H. Public Participation I. Adjourn