Finance Committee

Regular Meeting of the Finance Committee City Hall – Large Conference Room 425 N. Richardson Thursday, December 7, 2023, at 2:00 PM Notice of this meeting was given to the public in compliance with Sections 10-15-1 through 10-15-4 NMSA 1978 and Resolution 23-40. ROLL CALL The meeting convened at 2:00 p.m. with Chairman Corn presiding, Councilor Heldenbrand present, with Councilor Foster being absent. Staff present Bruce, Andler (via GoToMeeting), Jim Burress, Abraham Chaparro, Chad Cole, Janie Davies, Robert Glenn, Juanita Jennings (via GoToMeeting), Mike Mathews, Louis Najar, Rene Otero (via GoToMeeting), Debbie Reyer, Naomi Steward, Tammi Smith, Andrew Valadez, Todd Wildermuth (via GoToMeeting), and Hess Yntema. Guests present Vicki Burress (via GoToMeeting), Will Cavin, Rita Kane Doerhoefer, Terri Harber, Juliana Halvorson (via GoToMeeting), Mayor Tim Jennings, and Carlos Marrujo. APPROVAL OF AGENDA Councilor Heldenbrand moved to approve the agenda. Chairman Corn seconded the motion. The motion passed with a 2-0 voice vote, with Councilor Foster being absent. APPROVAL OF MINUTES 1. Minutes for November 02, 2023 Regular Meeting Councilor Heldenbrand moved to approve the November 2nd regular meeting minutes. Chairman Corn seconded the motion. The motion passed with a 2-0 voice vote, with Councilor Foster being absent. NON-ACTION ITEMS 2. Information Departmental Reports – Finance Presented by Janie Davies  GRT – The City of Roswell received $3,821,397 in November and currently 14.25% over budget for the fiscal year. Chairman Corn and Councilor  Heldenbrand noted their concern with GRT being down in November compared to October.  Cannabis Excise Tax – We received $32,293 for the month of November. With nothing being budgeted in July we have an 80.49% variance in budgeted vs. actual. Councilor Heldenbrand asked if this was catch up on the states part or the city is generated that much more income from the sale of cannabis. Public Affairs – Presented by Juanita Jennings  Lodgers Tax Report – brief report by Juanita. Occupancy rate was 71.6% with $164,942 received in Lodgers Tax. The numbers are elevated due to Baymont, Holiday Inn Express and Home2Suites August numbers being added to this month’s collections and them bringing their accounts current.  Roswell Visitor Center – brief report by Juanita.  Convention Center Bed Fee – brief report by Juanita. There was $79,130 received in October. Information Technology: - provided in the packet. 3. Roswell Hispano Chamber of Commerce Quarterly Report Marcos Nava responded to questions from the prior Finance Committee Meeting. He stated, “the monies received from membership fees, support from City of Roswell, and profit from chamber’s tax events, help us pay for the operation of the chamber.” Current enrolment in the Roswell Chamber of Commerce is 101 members. The Chamber is having their annual planning meeting in January 27, 2024. There focus will be to put a plan of action to grow membership, augment income/profit for the Cinco de Mayo and Pinata festival. They are looking at two additional fundraisers to create additional income in 2024. 4a. Discussion and review of Ordinance 23-XX an ordinance repealing and replacing Chapter 26, Water Wastewater Utilities including Appendix A. Presented by Robert Glenn. Robert wanted to go over Article 5 and get the Finance Committees opinion. Chairman Corn asked when does the meter get pulled in the process of turning a customers water off and putting a lien on the property. Robert stated we do pull the meter after so many days after turning off the water and then a lien is placed on the property. Will Cavin asked what it takes to pull a meter. Robert said it takes about 15 mins to pull and replace the meter. We charge the customers a $44 to pull the meter and $44 to reinstall it. Robert went over Article 5 in detail. In Sec. 26-148 – Delinquency Procedures under Foreclosure the language will changed to “Liens for delinquent services may be foreclosed not more than eighteen (18) months following the date on which the lien is filed.” In Sec 26-162 – Notifications under “j” the 48 hours will be changed to 72 hours. There was discussion of Sec 26-165 –  Termination under Seriously Ill Customers on who we will accept a letter from within the medical community. The City of Roswell’s Legal Department will help change the wording in this section. An administrative fee of 8% of gross revenue will be added to the language and the last section, Section 26-187 – Expenditure of Restricted Fund for any Purpose not Specifically Listed, will be removed. Another workshop will be setup after the 1st of January, it will also be presented at legal, finance, and infrastructure committees, and then presented at City Council, and then would be implemented into July. A mockup of the proposed rates was presented and reviewed. 4b. Discussion and review Solid Waste Rate Study. Presented by Abraham Chaparro. Abraham went over a draft of the Solid Waste Rate Study. 5. Discussion and review of award of VFD (Variable Frequency Drive) installation, well motor, casing, new building and upgrades at RW4, to Alpha Southwe3st in the amount of $592,255.42. Procurement shall be through utilizing City of Las Vegas, NM maintenance contract which was issued under an RFP process. Presented by Lorenzo Sanchez. The installation of VFD’s is the continuing work to upgrade all 20 City wells. VFD’s slowly start up and slowly shut down will motors to reduce pressure gradients, that increases the probability of main brakes and damage to the water infrastructure. Additionally, VFD’s reduce electrical consumption at the wells, and increase the life cycle of the wells, motors & appurtenances. 6. Discussion and review of adoption of Ordinance 24-XX in support of funding the Country Club Reservoirs Rehabilitation Project through New Mexico Finance Authority Water Project through New Mexico Finance Authority Water Project Funding Project 5980-WPF with a total monetary agreement amount of $8,000,000.00. Presented by Louis Najar. The City of Roswell submitted an application requesting funding assistance for the Country Club Reservoirs Rehabilitation Project. The Water Trust Board as awarded Project 5980-WPF for such project. Water Project Funding is in the amount of $8,000,000. Structured with a 55% loan in the amount of $4,400,000 which includes additional loan in lieu of match; and an 45% grant in the amount of $3,600,000. The loan component is a 20- year term at a net effective interest rate of 0.25% (0% interest rate with an administrative fee component of ¼ of 1%). Debt will be paid back through the Water Enterprise Fund. A new cost estimate will be requested for this project per Chairman Corn’s request. 7. Discussion and review of adoption of Ordinance 24-XX in support of funding the Hobson Road Flood Prevention Project through New Mexico Finance agreement amount of $9,602,273. Presented by Louis Najar. The City of Roswell submitted an application requesting funding assistance for the Hobson Road Flood Prevention Project. The Water Trust Board has awarded Project 597-WPF for such project. Water Project Funding is in the amount of $9,602,273. Structured with a 13% loan in the amount of $1,248,295 which includes additional loan in lieu of match; and an 87% grant in the amount of $8,353,977. The loan component is a 20-year term at a  net effective interest rate of 0.25% (0% interest rate with an administrative fee component of ¼ of 1%). Debt will be paid back though the Road Fund. Loan payment will be approximately $64,000 per year. 8. ARPA funding discussion of qualified projects. Presented by Janie Davies. The City of Roswell took $10M in lost revenues, and have used $3.1M and have $6.5M sitting in the ARPA fund. $1.7M in ARPA funding is to be used for qualified categories the city has used $1.07M with $622,692.45 left. The City of Roswell has to have this obligated by December 2024, and expended by December 2025. The city manager will look at the qualified categories and city departments to formulate a plan to use the reminder of the $622,692.45. PUBLIC PARTICIPATION None ADJOURN The meeting adjourned at 4:56 p.m.