Finance Committee

Regular Meeting of the Finance Committee City Hall – Large Conference Room 425 N. Richardson Ave. Thursday, September 5, 2024, 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 24-23. ROLL CALL The meeting convened at 2:00 p.m. with Chairman Corn presiding, Councilor Cavin, Councilor Halvorson, Councilor Heldenbrand, and Councilor Johnson being present. STAFF PRESENT Della Andazola, Hess Yntema, TJ Conyers, Caroline Brooks, Mike Mathews, Elizabeth Prichard, Louis Najar, Toni Gomez, Janie Davies, Chad Cole, Timothy Vandenbout, Debbie Reyer, Amalia Martinez, Becky Hicks, Mike Taylor, Frank Rincon, Abraham Chaparro, James MacCornack, Lorenzo Sanchez, Enid Costley, Jeff Bechtel, Mike McClain, Jessica Vickers, Jim Burress, Molly Montano, Matt Mitchell, Ruben Esquivel, Shelly Bell and Lance Bateman GUESTS PRESENT Mayor Timothy Jennings, Barbara Gomez, Terri Harber, Rita Kane-Doerhoefer, Alfredo Garcia, Brandon Williams, Diedra Duvall, Mike Espiritu, Elian Mayfield, John Errard, Sara lei Fajardo, Pascual Fajardo, Amy McVey Tellez, Brian Brittan, and Sally Yntema. APPROVAL OF AGENDA For The Record: Councilor Halvorson stepped out at 2:00 PM and returned at 2:01 PM. Councilor Cavin made a motion to approve the agenda. Councilor Heldenbrand seconded the motion. The motion passed with a 5-0 voice vote. BUDGET PLANNING 1. Discussion only on FY25 and future budget plans. Initiated by Councilor Corn. Discussion of the FY25 budget and future planning for general fund and enterprise fund budgets. Councilor Heldenbrand asked when they did the budget for the new fiscal year ending in 2024, we had projected we would have a cash balance of a little over two million dollars. We start out this fiscal year with a cash balance of 23 million dollars, we subtract out the reserve because that is in the cash balance about 12 million dollars, minus the two million we said we would have. We have eight million more in cash balance. Where did the come from? We have more cash  than we projected our budget said we would have and we are over spending. How much did you say we were over spending? Councilor Corn replied, last year all expenditures are 29 million. Councilor Heldenbrand stated he is trying to find out where the disconnect is. Why do we have ten million more dollars in cash balance than we said we would have in the prior year budget? And this year we are saying we are going to end up with 2.7 million dollars in general fund. Janie responded, part of that is the difference from budget verses actual, actual numbers are where we get our beginning actual numbers. My opinion is we don’t budget well here. The five of you have been here long enough, you have seen the open POs. We in accounting don’t know if those POs are going to close or not. If they are open this year, we are assuming they are going to get spent this year. When you take all of that back out, because it didn’t finish in 2024 and it is getting carried over into 2025, then your beginning cash balance is going to be higher. My suggestion for this budget going forward and this budget is capital is sort of an unknown, carry overs are not included in this budget and that is what you are going to hear about in the budget adjustments from last year that didn’t materialize. Councilor Halvorson asked how do we fix it? We need to spend more time on it and I think the capital needs be broken out between what you are going to expend in that fiscal year 2025 and what is going to be carried over into any year past 2025, replied Davies. 2. Discuss Lodger’s Tax. Initiated by Councilor Corn. Discussion of the FY25 Lodger’s Tax budget. Janie Davies stated, this is what we look at (report in the packet) when the Occupancy board recommendation for how much money you are going to allot to each one of these boards (applications for Lodger’s Tax requests for funding). This is telling you what the budget was, what the actual of what we have already encumbered, and what’s available on the report. Beginning cash balance is $1.5 million dollars, after other revenue and expenses, the ending cash balance is $828,232.00. The cash balance is going down and when that is gone, we are going to have to fund using the general fund. When you listen to the presentations TJ is going to oversee keep that in mind because that is where you are standing at right now with Lodgers’ Tax. 3. Discussion on Water and Wastewater budget and future budget planning. Presented by Lorenzo Sanchez. Discussion on the Water and Wastewater current budget and future budget planning. Lorenzo (handed out a mock budget for the coming FY26) so you are aware of what expenditures the department is going to have. Operating expenses includes salaries, benefits, with an outbreak of what was requested for FY25, which will be close to what we will recommend next year; might be a little more but it will be close. You can see what we requested; and they went with actuals from FY23 on the water side. We requested $2.1 million dollars and we got $1.2 million for operating expenses for FY25. We requested a lot more than what we received. On the second page I put together FY26 capital project preliminary request list: 1. 36” water line replacement project on N. Montana Ave. 19th St. to Stone St. for $3.931,927.95 2. Two utility trucks with crane lifts- 2025 international 4-door, 4x4, CV515 with a 20% contingency $499,180.71. 3. John Deere GP CPLR 320P/410 Backhoe $128,270.29. 4. 2020 EPIROC Hydraulic Jackhammer attachment for backhoe $15,961.76. Totaling $4,575,340.71 for capital projects plus and mind you the waterline is three quarters of a mile long. This is without any repairs or replacements to the water system. This is strictly the one 36” waterline project. Mayor Jennings discussed water rates. People have no idea how much it costs to fix the infrastructure we have. It is astronomical. The needs are there. Every City has to have water. To function you have to have water. This is the situation we are in from 1965 until today we haven’t basically done any real major repair work. It’s a long-term problem. We need to do a full court press on congress and the federal government on what happens when they close the air base here and walk out the door and say “Adios”. Costs are astronomical especially after COVID. We have a lot of issues that run deep in Roswell. How are we going to solve it? One day we are going to have major catastrophes. That is why we were so hard on our budgets on the enterprise funds. People have to open their eyes on where we are and replacing what is here. When you shut off the big valves and then open them up, how many leaks do you have? Four? Five? Ten? And the lines that come off of it. Just because you opened up the line. When you close it and open them back up that is when the lines pop. That is the place that we are. So, when everybody gets mad about the water rates, they have to understand we have a huge catastrophe right at our door. We have to try to figure out a way to get out of this. Councilor Halvorson asked can you use ICIP (Infrastructure Capital Improvement Plan) for this or capital outlay? We can use ICIP but we have to keep it under one million dollars, replied Sanchez. Najar explained with ICIP you probably won’t get it. What the State does is the Water Trust Board loan program. Most of them are low-cost loans they are not State grants. If your water rates are low then they don’t give you the 80%. They only give you 45% or 30% of what you ask for; because they say you have to raise your rates. That is exactly where we are right now said Mayor Jennings. Councilor Corn asked how many projects do you have on for next fiscal year on capital outlay? Lorenzo listed more than five projects. He stated they have a lot of projects on capital outlay. Councilor Heldenbrand asked if the FY25 projection is what is in your current budget? That is what we asked for, replied Sanchez. We were asked why we didn’t budget accurately. What we requested is not what we received. Councilor Heldenbrand asked for Sanchez to explain maintenance, repair and infrastructure budgeted numbers $187,000. What comes out of that number is all your repairs, big repair work and big breaks, concrete repair comes out of that, asphalt repairs, everything comes out of that line item. The price could be hire. We use state rates and price for supplies is much higher now. It is cheaper if we do it ourselves. What would it take to get to that level asked Councilor Heldenbrand? We need to hire more staff another crew to run maintenance so we can run a construction crew, replied Sanchez. We do have a construction crew but we are not able to use them because we have them out on maintenance. Councilor Heldenbrand asked what would the cost be by adding more personnel verses using third parties to do these repairs, what is your cost effectiveness? And what do you need equipment wise to make that happen? Sanchez said he could put those numbers together. On the wastewater side a preliminary price list for the wastewater treatment plant. 1. RIAC lift station replacement project $3,132,000.00. 2. #356 Vactor 2008 Model $548,984.64 recommend to replace every ten years and we are behind on this. 3. #351 Utility pickup 2011 model $50,000.00. 4. Replace two UTV for plant operation at $25,000 each. Total capital project request for wastewater $3,780.984.64. And that is not anything else going wrong. Right now, we are at $45,000 in equipment and maintenance that we have for this year. I will be requesting additional funding or a budget increase. We need more money for operations. We are pulling out of our electrical line item which we are going to have electrical we will have to replace. I’m shuffling money around right now until we can get a budget increase. This gives you a general idea of the operational costs. ACTION ITEMS 4. Consider recommending approval for operational costs that exceed $60,000.00 for janitorial services at the Roswell Public Library. Presented by Enid Costley. Consider recommending approval for the expense of $70,280 for Geneva’s Janitorial Services for the Roswell Public Library. Expenses include $64,698.00 to clean the building ($5,391.50 monthly with tax), annual window cleaning (estimated at $3,300), and cleaning supplies (estimated at $2,000). FOR THE RECORD: Councilor Corn recused himself from this item due to membership with the library. Councilor Heldenbrand made a motion for recommendation of approve of the MainStreet Roswell Request for Funding to the full City Council. Councilor Halvorson seconded the motion. Councilor Cavin asked is the Marquee not functioning right now? Costley replied it has not been functioning for three years now. Councilor Cavin asked what about your air conditioner? Costley replied it is getting fixed today. The motion passed with a 4-1 voice vote, with Councilor Corn recusing himself. 5. Resolution 24-XX – consider recommending adoption of Resolution 24-XX for City of Roswell Financial Commitment for Public Transportation FY26 for adoption. Presented by Becky Hicks. The State of New Mexico Department of Transportation receives federal funding from the Federal Transit Administration (FTA) under U. S. C. 5311. The NMDOT accepts applications from local public transportation services like Roswell Transit to fund public transportation services in their communities. As part of the application process for this funding, the NMDOT requires a Resolution of Financial Commitment. This funding is for the federal year ending September 30, 2026. Councilor Corn stated we get federal dollars. Hicks explained the federal funding is a pass through from the state. Councilor Halvorson made a motion to consider recommendation of adoption of Resolution 24-XX for City of Roswell financial commitment for public transportation for FY26 in the amount of $1,537,020.00 to the consent agenda. Councilor Johnson seconded the motion. The motion passed with a 5-0 voice vote. 6. Consider recommending approval of FY25 departmental city-wide fleet maintenance purchasing authorization request. Presented by Becky Hicks. This request covers proposed purchasing limits for the city-wide fleet maintenance vendors that we are able to use via a New Mexico State Price Agreement, GSA contract Sourcewell contract or RFP. This authorization will give the City of Roswell departments the authority to spend over the $60,000 purchasing limit published on the July 112022, Memo from Joe Neeb. “(Purchases) Over $60,000 including Cooperative purchasing, price agreements, bids/RFPs and professional services contract (will go) to committee for recommendation to City Council for approval. “This purchasing request is to prevent an audit finding from multiple small purchases from various departments that might exceed the $60K and create a purchasing violation. What the request does not do is eliminate the need from single transaction over $60K to come through Committee and council for approval. Councilor Heldenbrand stated there are some contract expirations. Hicks replied, these are contracts with the state. Councilor Johnson asked if the $60,000 is that for a single purchase? Hicks replied it is for multiple purchases. Isn’t that just for one fixed asset, asked Councilor Johnson. Janie replied, explained it is a policy from the city; a memo in place from 2022 directing all departments to gain approval for blank purchase orders and the need for Hick’s request for approval. Councilor Cavin made a motion to consider recommending approval of FY25 departmental city-wide fleet maintenance purchasing authorization request to the consent agenda. Councilor Heldenbrand seconded the motion. The motion passed with a 5-0 voice vote. 7. Consider recommending approval to purchase two effluent reused lift pumps from Coats Pump & Supply Inc. in the amount of $83,010.66. This will be purchased using state price agreement #30-00000-23-00070. Presented by Lorenzo Sanchez. The two effluent reused lift pumps are used to provide effluent water to the Wastewater Treatment Plant gravity belt thickener (GBT), Wemco’s and wash water for equipment. They also provide water for the irrigation system for the WWTP. Both pumps must be replaced for continuing operations. One pump is already inoperable, and the other is severely worn and leaking. This is not on the FY25 budget and will require a budget adjustment. We cannot do with out this. It is critical to operations. Requesting an additional $200,000.00 to my equipment.  Councilor Corn said this is not a future expense it needs to happen now. Yes, we do have one ordered, replied Sanchez Councilor Heldenbrand made a motion to approved the purchase of two effluent reused lift pumps from Coats Pump & Supply Inc. in the amount $83,010.66 to the consent agenda. Councilor Johnson seconded the motion. The motion passed with a 5-0 voice vote. 8. Consider recommending approval to purchase two new street department mowers in the amount of $129,707. Presented by Louis Najar. Approval requested to purchase two new mowers for streets department. This is an approval for the FY25 budget item. Tractors will be purchased from Kubota for $92,108.48 and attachments will be purchased from Land Pride for $37,599.50. Councilor Heldenbrand asked how many mowers do we currently have. Three replied Najar. Replacing two mowers, stated Cole. Two weeks ago, we had zero mowers running, stated Rincon. Councilor Johnson made a motion to approve the purchase of two new mowers from Kubota for $92,108.48 and attachments from Land Pride for $37,599.50 on the consent agenda. Councilor Halvorson seconded the motion. The motion passed with a 5-0 voice vote. 9. Consider recommending approval of PO request for purchase of a new streets department patch truck from Bergkamp in the amount of $281,618.35. Presented by Louis Najar. PO requested for a new patch truck for the streets department. An existing patch truck caught fire last fiscal year. Insurance provided payment of $81,144.97, which was received in March 2024. The city budget has $207,263.91 budgeted for the purchase of Patch Truck. This provides a total budget of $288,408.88 for the purchase of a replacement patch truck. Councilor Corn asked how many trucks do you have. Rincon replied we don’t have a patch truck right now. Councilor Cavin made a motion to approve PO request for the purchase of a new patch truck for $288,408.88 on the consent agenda. Councilor Heldenbrand seconded the motion. The motion passed with a 5-0 voice vote. 10. Consider recommending approval to purchase a 1000 KW Cummins diesel standby generator and one Cummins Bypass Automatic Transfer Switch from Tracs Power Generation, LLC. In the amount of $471,986.97 which does include GRT. This will be purchased using state Price Agreement No. 40-00000-23- 00045. Presented by Lorenzo Sanchez. The City Wastewater Treatment Plant experienced a power outage when Xcell Energy had some power lines break during a snowstorm last winter. The current backup generator failed due to a fuse burning up and some logistical control issues. It also required the installation of a new flywheel. This resulted in the buildup of sewage at the headworks at the WWTP, and sewage coming out of a couple of manholes. This generator will serve as a contingency backup generator in case of a failure of the current generator. City Manager, Chad Cole, stated they lost use of the generator on Superbowl Sunday. The purchase of this generator will serve as the secondary generator if the main generator fails again. Councilor Corn asked about the testing. Sanchez replied, saying they have provided a load test. Councilor Johnson asked about the bonding. He stated the installation quote should be broken out to include labor and GRT with exempt status for the material you can save up to $20,000 to $30,000. Councilor Heldenbrand asked for Sanchez to come back with exact amounts so they know how much they will be spending. Councilor Johnson made a motion to table the item until the October Finance Committee meeting to review the exact quote to include labor, GRT and cost saving. Councilor Cavin seconded the motion. The motion passed with a 5-0 voice vote. 11. Consider recommending approval of PO request for purchase of a new streets department dump truck from Roberts Truck Center in the amount of $179,857.00 - Funding Source- FY25 available capital budget $179,857.00 Presented by Louis Najar. PO request for a new dump truck for the streets department. Procurement is through an approved cooperative purchasing agreement which the City of Roswell is a member of (CES 2024-24) Estimated delivery date per vendor is summer 2025. Councilor Corn asked you have one now? Najar stated, they have two small size six dump trucks and are in need of a size 10 dump truck.  Councilor Halvorson made a motion to approve the PO request for a new dump truck from Roberts Truck Center in the amount of $179,857.00 on the consent agenda. Councilor Cavin seconded the motion. The motion passed with a 5-0 voice vote. 12. Consider recommending approval of award for ITB-25-001, FY25 residential mill and fill project to Constructors, Inc. for an amount of up to $1,500,000.00 Including GRT. - Fund Source – FY25 available Capital Budget $1,500,000.00 Presented by Louis Najar. Bids received on August 13, 2024, for the subject project have been reviewed. A bid Tabulation is attached. Two bids were received as follows: (Amount includes tax of 7.8958%). • Constructors, Inc., Carlsbad $1,109,654.36 • J & H Services, Albuquerque, NM $1,143,037.32 Najar passed out an amended packet to Councilors with a change order PO increase of an additional $161,607.66. Councilor Johnson made a motion to accept award of ITB-25-001, FY25 residential mill and fill project to Constructors, Inc. in the amount of $1,500,000.00 and the amended item from Mr. Najar of $161,607.66 to the consent agenda. Councilor Cavin seconded the motion. The motion passed with a 5-0 voice vote. 13. Consider PO requisitions for FY25 Hot Recycle & Micro Surfacing over Hot recycle pavement maintenance operations. PO of up to $600,000 to Dustrol Inc. and PO of up to $400,000 to IPR Inc. Procurement to utilize statewide agreements. -Funding Source – FY25 Available Maintenance and Repair Operation Budget $2,567,453.97 Presented by Louis Najar. The past few years the City of Roswell has been budgeting $1,000,000 to the Hot Recycling/Micro Surfacing over hot recycling pavement maintenance operation. Per previous years the split that has worked is $600,000 for hot recycling and $400,000 for micro surfacing over the hot recycle to seal and give final rideability to the process. Councilor Corn ask what the life of the mill & fill is verses hot recycle and Micro surfacing. Najar stated mill and fill last 15 to 20 years while hot recycle and micro lasts between eight to ten years,  Councilor Johnson made a motion to accept the PO requisitions for FY25 hot recycle and micro surfacing over hot recycle pavement maintenance operations. PO of up to $600,00 to Dustrol Inc., and PO of up to $400,00 to IPR Inc. utilizing statewide agreements on the consent agenda. Councilor Halvorson seconded the motion. The motion passed with a 5-0 voice vote. 14. Consider approval of ratification of change order in the amount of $112,000 to increase PO 22401893 for City of Roswell Safe Streets 4 All Comprehensive Safety Action Plan from current amount of $537,916.50 to a new amount of $649,916.50. - Funding Source – FY25 Available Capital Budget $350,000. Presented by James MacCornack. The City of Roswell received a $650,000 award from FHWA for a comprehensive safety action plan in 2023. Grant is 80% federal funds ($520,000) and 20% City match ($130,000). Freese and Nichols was retained to prepare the plan and has been working on the plan since November 2023. In FY24 City spent $484,855.75 which leaves $53,060.75 remaining on the current PO. City currently has two outstanding reimbursement requests submitted to FHWA. Change order would provide funding for additional in -person meetings and support from Freese and Nichols through February 2025 for possible preparation of implementation grant submission to FHWAS. Freese & Nichols would also perform additional work around pedestrian and school zone safety. Attached documents provide additional information on justification for change order request. For The Record: Councilor Cavin left at 2:43PM and returned at 2:44 PM. Councilor Johnson asked what are we getting from Freese & Nichols. We already had a study that we liked. I thought we cut our losses from there and move forward. I don’t really support this. I would rather see the money go right on the road rather than these things right here. Councilor Cavin concurred with Councilor Johnson and asked if it was already reviewed in legal? Councilor Heldenbrand replied, no. They are looking for a ratification. They have already committed these funds. Councilor Corn mentioned that 80% of this project is federally funded. Najar said they are using the grant for the studies to add to our report and that it is reimbursable. Councilor corn stated that it will reduce the budget by $22,400 for the City’s 20% obligation. We did not finish the grant in one fiscal year. We even broke out our money for each fiscal year. Davies explained that Najar is not asking for a budget adjustment. He is just asking for an approval on a change order.  Najar explained that we did not adopt the plan. We are using all the funds. We have one year left. Councilor Halvorson made a motion to recommend ratification of change order in the amount of $112,000 to increase PO 22401893 for City of Roswell Safe Streets 4 All Comprehensive Safety Action Plan from current amount of $537,916.50 to a new amount of $649,916.50 to the consent agenda. Councilor Cavin seconded the motion. The motion passed with a 3-2 voice vote, with Councilors Cavin and Johnson voting no. 15. Consider PO request for FY25 Nova Chip hot mix surfacing treatment up to $800,00 to Brasier Asphalt Inc. Procurement to utilize statewide agreements. - Funding Source – FY25 available maintenance and repair operating budget $2,567,453.97. Presented by Louis Najar. The past few years the City of Roswell has been budgeting $800,000 to the Nova Chip hot plant mix surfacing treatment pavement maintenance operation. Proposed street list is attached. Najar passed out an amended list to council requesting $480,000 for Chip Hot Mix Surfacing treatment up to $480,000. Councilor Johnson made a motion to consider approval for PO request for FY25 Nova chip hot mix surfacing treatment up to $480,000.00 to Brasier Asphalt Inc. utilizing statewide agreement to the consent agenda. Councilor Cavin seconded the motion. The motion passed with a 5-0 voice vote. 16. Consider PO requisition for FY25 micro surfacing (only) up to $500,000 to IPR inc. Procurement to utilize statewide agreements. - Funding source – FY25 available maintenance and repair operating budget $2,567,453.97. Presented by Louis Najar. The past few years, the City of Roswell has been budgeting $500,000 for the Micro Surfacing (only) pavement maintenance operation. Proposed list it attached. Councilor Johnson made a motion consider po requisition for FY25 micro surfacing (only) up to $500,000 to IPR Inc. utilizing statewide price agreements to consent agenda. Councilor Cavin seconded the motion. The motion passed with a 5-0 voice vote. 17. Approval to move monies, or a budget adjustment, from the General Fund account to the Roswell Police Department account to cover medical expenses for Eastern New Mexico Medical Center (ENMMC), which was budgeted for FY25 for the amount of $200,000.00. - Funding Source – FY25 Budget Adjustment $200,000.00 Presented by Lance Bateman. The Roswell Police Department has a quarterly account that has a quarterly account that has to be paid to Eastern New Mexico medical Center by the end of the year. The hospital provides medical care, blood draws and medical clearances for the individuals the police department has in their custody for different types of investigation. The money was budgeted for FY25, but it was deposited in the General Fund account. Our goal is to open a purchase order (PO) to pay quarterly in order to minimize a large expense at the end of the year. The police have been good stewards with our money. We have negotiated this price down we have gone to countless meetings with Mr. Yale and worked out these agreements. Our bill was well over $500,000.00 last year and we got it knocked down. Yale has been very understanding. The agreement I made was starting July 1st we were going to do an open PO where we could pay monthly. I couldn’t fulfill that obligation because it was not budgeted. We are fixing to start the real time crime center here within the next two to four weeks we have most of it set up in the building. So, pulling from our budget right now as Deputy Chief said would put us in a hole. Councilor Heldenbrand asked Chief Batman if we were to move this to $60,000 you said you were doing $60,000 per purchase order? Chief replied they would open up a po for Lovelace for $60,000 as well, even though our primary place to take people is Eastern. If we get backed up or they get backed up we can always rely on Lovelace. The excess money, I will have to look at the settlement I’m guessing will be from $30,000.00 to $50,000.00 if we finalize this by the end of August. Councilor Heldenbrand asked what will get you to that point so it doesn’t affect your current budget? We will need the money for Eastern, Lovelace and for the settlement, replied Chief Bateman. Every year it averages $500,000.00. Councilor Halvorson made a motion to consider approval of a budget adjustment, from the General Fund account to the Roswell police Department account to cover medical expenses for Eastern New Mexico Medical Center (ENMMC) and Lovelace, budgeted in FY25 for the amount of $200,000.00 to the consent agenda. Councilor Johnson seconded the motion. The motion passed with a 5-0 voice vote. 18. Approval to move monies, or a budget adjustment, from the General Fund account to the Roswell Police Department (RPD) account in reference to the School Resource Officers (SRO) for the amount of $100,000.00 from the Roswell Independent School District. - Funding Source – Fy25 Budget Adjustment $100,000 Presented by Lance Batman. The Roswell Police Department and the Roswell Independent School District (RISD) have a Memorandum of Understanding (MOU) contract (2023-2024). The MOU contract dictated that RISD was going to pay $50,000.00 per SRO and only pay for a maximum of two (2), equaling $100,000.00. Currently, we have three (3) SROs and a Sergeant on the SRO program. On May 24, 2024, RPD sent over the invoice to RISD for the amount of $100,000.00. On May 31, 2024, RISD Sent Over a check (#13922) for the amount of $100,000.00, which was then deposited to the General Fund account. For The Record: Councilor Halvorson left at 4:09 p.m. and returned at 4:11 p.m. For The Record: Councilor Cavin left at 4:12PM and returned at 4:14 PM. Councilor Heldenbrand made a motion to consider approval for a budget adjustment from the General Fund account to the Roswell Police Department (RPD) account in reference to the School Resource Officers (SRO) for the amount of $100,000.00 from the Roswell Independent School District on the consent agenda. Councilor Cavin seconded the motion. The motion passed with a 5-0 voice vote. 19. Consider recommending approval of the Sling-it-Fling it 2025 Lodgers’ Tax funding Request to City Council in the amount of $19,000 for advertising, police, fire and sanitation. - Funding Source – FY25 Lodger’s Tax Budget Presented by Tommi Jo Conyers. Per the application: SL-FI 2025 is a flag football tournament that is held in Roswell, NM. This is our 4th year of running the event with our local team. This is a 4-on-4 tournament that has brought in over 100 teams and is continuing to grow. The tournament is held on Memorial Day weekend. Their estimated attendance in 2024 was 7,500 – 10,000 with 108 teams participating, which totaled 750 players. There was a total of 135 out of town, out of state athletes and families of which those individuals had to stay in local lodging. Mr. Williams spoke stating it is getting bigger since it has become an Olympic sport.  Councilor Johnson asked if he was going to increase his marketing? Yes, as far advertising, we are trying to get out into Southeastern New Mexico. A lot of teams we had come as far as Northern Colorado. Most teams that came here were excited and had a lot of friends that came and watched and participated. They talked about bringing their teams back this year. Councilor Heldenbrand asked is the full request for $19,000? Yes, replied Conyers, the policy changed and they no longer get reimbursements. Councilor Corn asked where the policy change come from. Hess stated they could not find where the funds are limited to 50% reimbursement; nor did they find a distance requirement. For us the reason this was proposed was because all of this advertising money counts against the $653,000, we have to spend every year. Our view is that it is better for community groups that provide tourism services advertising for themselves as opposed to the City Advertising for them. Councilor Heldenbrand asked if we have a maximum amount. Hess replied, yes, the maximum amount in the budget was $120,000. Councilor Johnson made a motion approve Sling- Fling-it Lodgers’ Tax Funding request to City Council in the amount of $19,000 for advertising, police, fire and sanitation to the consent agenda. Councilor Cavin seconded the motion. The motion passed with a 5-0 voice vote. 20. Consider recommending approval of the Roswell Hispano Chamber of Commerce Request for Funding to City Council in the amount of $50,000.00. - Funding Source – FY25 Budget Adjustment $50,000.00 Presented by Tommi Jo Conyers. The Hispano Chamber of Commerce works in partnership with the City of Roswell to provide services for businesses and to expand business and economic development in our area. Previous year’s Funding: - FY20 the contract amount was $23,100. - FY20 the contract amount was $30,000. - FY20 the contract amount was $30,000. - FY20 the contract amount was $50,000. - FY20 the contract amount was $37,500. The Hispano Chamber is currently requesting an increase of $12,500 for a FY25 total of $50,000. Councilor Cavin asked what the membership was? Is it up, down, or all around? Mr. Garcia replied it was steady. After much discussion.  Councilor Heldenbrand made a motion to approve the Roswell Hispano Chamber of Commerce Request for Funding to City Council in the amount of $50,000 to the consent agenda. Councilor Johnson seconded the motion. The motion passed with a 5-0 voice vote. 21. Consider Recommending approval of the Historical Society of New Mexico Conference Lodgers’ Tax Funding Request to City Council in the amount of $2,600 for advertising. - Funding Source – FY25 Lodgers’ Tax Budget Presented by Tommi Jo Conyers. Per the application: Established in 1859, the Historical Society of New Mexico convenes a conference to bring together historians, researchers, educators, and history enthusiasts to discuss, learn about, and celebrate New Mexico’s rich historical heritage. This year’s conference will be held at the Roswell Convention & Civic Center and will focus on the rich history of Southeastern New Mexico. Attendees from all over New Mexico and West Texas are expected to attend. Conference registration will begin on Thursday, April 24, 2025, at 1:00 pm with book vendors and exhibitors set up. An opening plenary session will be given that evening on the local history topic with a reception to follow. On Friday, April 25, 2025, registration will continue at 7:30 AM with a variety of conference sessions until 5:00 pm. Snacks, lunches, receptions, and dinners will be catered by local restaurants. Saturday, April 26, 2025, will be the same schedule but with tours to seven local museums offered to attendees in the afternoon. We plan to attract attendees with our 24- page conference program mailed to our 400+ members, ads on Facebook and the HSNM Website, emails to University History Departments in New Mexico and Texas, and various Country Historical Societies throughout New Mexico. The Historical Society of New Mexico Conference is a new Lodgers’ Tax event. Councilor Cavin asked if the Hispano Chamber was going to help put this conference on. Mayfield replied that it is put on by the State. Councilor Halvorson made a motion to consider approval of the Historical Society of New Mexico Conference Lodgers’ Tax funding request to City Council in the amount of $2,600 for advertising on the consent agenda, Councilor Cavin seconded the motion. The motion passed with a 5-0 voice vote. 22. Consider recommending approval of the Roswell+Chaves County MatanzaFest Lodgers’ Tax Funding request to City Council in the amount of $20,000 for advertising, police, fire and sanitation and negotiations with the City of Roswell for Sponsorship. - Funding Source – FY25 Lodgers’ Tax Budget  Presented by Tommi Jo Conyers. Per the application: A matanza is a well-known Hispanic traditional event that dates back more than 400 years to the very earliest Spanish settlements in New Mexico. There is no other event like it held in Southeastern New Mexico and West Texas. During the Spanish colonial period, matanzas often involved a community-wide celebration, and many of New Mexico's traditional foods, such as carne adovada, chicharrónes and carnitas, evolved from those early feasts. The Roswell+Chaves County MatanzaFest is also poised to be a significant economic driver for the community. 1) Estimated Out-of-Town Visitors: Total Estimated Attendance - 10,000 attendees with Out-of-Town Visitors estimated at 20-40%, resulting in approximately 2,000 to 4,000 out-of-town visitors. 2) Estimated Hotel Room Nights: Hotel Rooms Booked - Between 400 and 1,200 hotel rooms; average stay of 2 nights per room; that's 800 to 2,400 room nights (400 rooms x 2 nights = 800; 1,200 rooms x 2 nights = 2,400) 3) Lodgers Tax Revenue: Average Hotel Room Rate - $100 per night, Tax Rate: 5% Tax Generated: Low Estimate: 800 room nights x $100 per night x 5% = $4,000; High Estimate: 2,400 room nights x $100 per night x 5% = $12,000. 4) Additional Economic Impact: Visitor Spending: average of $150 per visitor per day. Total Visitor Spending: Low estimate: 2,000 visitors x $150/day x 2 days = $600,000. High Estimate: 4,000 visitors x $150/day x 2 days = $1,200,000 Return on Investment: 1) Lodgers Tax Contribution: Directly generated $4,000 to $12,000 in Lodgers Tax. 2) Total Economic Impact: Including visitor spending, the event could contribute between $604,000 and $1,212,000 to the local economy. The Roswell+Chaves County MatanzaFest is a new event for Lodgers' Tax. Councilor Cavin made a motion to consider approval of the Roswell+Chaves County MatanzaFest Lodgers’ Tax Funding request to City Council in the amount of $20,000 for advertising, police, fire and sanitation and negations with the City of Roswell for Sponsorship on the consent agenda. Councilor Heldenbrand seconded the motion. The motion passed with a 5-0 voice vote. 23. Consider the recommendation of the Rio Pecos Kennel Club Dog Show Lodgers' Tax Funding Request to City Council in the amount of $4,578 for advertising, Police, Fire and Sanitation. - Funding Source – FY25 Lodgers’ Tax Budget Presented by Tommi Jo Conyers. Per the application: This will be the 71st annual AKC All-Breed dog show held in Roswell with over 350 entries from all  over New Mexico and the United States. Generally, only about 50 entries reside in the Roswell area. We have held the dog show at RIAC Park for about 25 years. Most equipment, generators and tents used are owned by club members and participants. About 30 RVs attend the show and park on the grounds, but all are self-contained since there are no amenities there. We hire 24-hour private security and custodial services including porta-potties which we include in the request for Lodgers' Tax Funding. We have applied for and received Lodgers Tax Funding for many years but have not applied since 2020 due to pandemic problems. Councilor Johnson made a motion to consider approval of the Rio Pecos Kennel Club Dog Show Lodgers' Tax Funding Request in the amount of $4,578 for advertising, police, fire and sanitation on the consent agenda. Councilor Halvorson seconded the motion. The motion passed with a 5-0 voice vote. 24. Consider recommending approval of the Roswell Symphony Orchestra 2024- 2025 Season Lodgers' Tax Funding Request to City Council in the amount of $20,000 for advertising. Funding Source – FY25 Lodgers’ Tax Budget Presented by Tommi Jo Conyers. Per the application: The Roswell Symphony Orchestra 2024--2025 concerts will take place October 21, 2024; December 22, 2024; March 1, 2025; and May 3, 2025. These concerts will all be held at the New Mexico Military Institute's Pearson Auditorium. All seating, restrooms, security, etc. will be provided on-site by NMMI. Approximately 90% of the Roswell Symphony Orchestra (RSO) musicians travel from surrounding areas such as Portales, Lubbock, Amarillo, Santa Fe, Albuquerque, Las Cruces, and El Paso. These musicians stay at local hotels for a minimum of 3 nights and eat meals at local restaurants for the majority of their stay. Last season, the RSO purchased 361 room nights for musicians alone. In addition, between 5 and 10 percent of our attendees travel from outside of Roswell, and most of these choose to stay overnight due to the concerts being evening events. Our local patrons often frequent dining establishments before and after our concerts, as well. The RSO strives to invest in the Roswell community both monetarily and by providing musical and cultural enrichment. All RSO concert programs advertise and support local businesses, and our website includes links to those businesses as well. Our marketing campaigns are also sourced locally. For each season, the RSO places ads in local newspapers, radio stations across the state, and electronic billboards in Roswell, Artesia, Hobbs, Ruidoso, and Carlsbad. These advertisements help to draw patrons from around the region.  RSO was awarded Lodgers' Tax Funding in FY24 for the Fall and Spring Seasons. Fall award $4,750- reimbursed $4,016.49. Spring award $2,250- reimbursed $0 as they did not submit for reimbursement. Councilor Heldenbrand made a motion to consider approval of the Roswell Symphony Orchestra 2024-2025 Season Lodgers' Tax Funding Request to City Council in the amount of $20,000 for advertising on the consent agenda. Councilor Johnson seconded the motion. The motion passed with a 5-0 voice vote. 25. Consider the recommendation of the Galacticon and Roswell Daily Record Lodgers' Tax Funding Request to City Council in the amount of $20,000 for advertising, Police, Fire, and sanitation. Funding Source – FY25 Lodgers’ Tax Budget Presented by Tommi Jo Conyers. Per the application: The Roswell Galacticon and the Roswell Daily Record have shared the Roswell Convention Center for three years. (The city also used the RCC until last year.) We are requesting this Lodger's Tax Grant to provide marketing and advertising of the many events at the RCC as well as the security and sanitation funding. In 2024, these funds were included in the entire UFO Festival budget, which worked very well and produced excellent results. We anticipate paying our portion of marketing and advertising funds for large media expenditures. This is the biggest tourism event of the year for Roswell, and we are a large part of it. We have participated in the planning and the execution of the event as an equal partner to the city, MainStreet, and the UFO Museum. We are asking for assistance to market our events and the free sponsored events to encourage tourism and make the visitors happy with alternative activities, fun and free events. The UFO Festival attendance is estimated at 20,000 by MainStreet over the three days, including the direct counts of attendance of the UFO Museum at 9,123 and Galacticon had 2,974. MainStreet reports the following Information provided by Main Street America, via PacerAI: Last year from June 30--July 2, 2023, visitors over, these 3 days were about 45,000 with a total of 56,400 visits, meaning one out of four visitors came to district 2 out of the 3 days of the festival (in PacerAl data, each "visitor" can only "visit" once per day, so averaging 1.25 visits in a three-day period can only mean that some people were repeating visitors two or three, out of the three days.) 33 hotel nights were utilized by UFO/AlienFest entertainment. Hotels reported an occupancy rate of 45% to 100% during the weekend. Galacticon and Roswell Daily Record were awarded $10,000 each in Lodgers' Tax Sponsorships in FY2024. This is their first-time requesting funding for  advertising, police, fire and sanitation. In FY2024, this was covered under the UFO Festival advertising budget as a whole. Councilor Halvorson made a motion to approve funding of Galacticon and Roswell Daily Record Lodgers' Tax Funding Request to City Council in the amount of $20,000 for advertising, police, fire, and sanitation to the consent agenda. Councilor Cavin seconded the motion. The motion passed with a 5-0 voice vote. 26. Consider recommending approval of the AlienFest Lodgers' Tax Funding Request to City Council in the amount of $20,000 for advertising, police, fire, sanitation and negotiate with the City of Roswell for sponsorship. - Funding source – FY25 Lodger’s Tax Budget Presented by Tommi Jo Conyers. Per the application: Information provided by Main Street America, via PacerAI: Last year from June 30- July 2, 2023 visitors over these 3 days were about 45,000 with a total of 56,400 visits meaning one out of four visitors came to the district 2 out of the 3 days of the festival (in Pacer data, each "visitor" can only "visit" once per day, so averaging 1.25 visits in a three-day period can only mean that some people were repeating visitors two or three, out of the three days.) No Main Street America PacerAI available for 2024 as of this report. International UFO Museum reported a total of 9,123 for the 3-day weekend. Day 1--2,829, Day 2-3,570, Day 3-2,724. Survey Monkey surveys were utilized in the MSR district. 629 visitors took the survey; 614 email addresses were provided, 39.33% had 1-2 people in their group, 35.3% had 3-4 in their group, 12.26% had 5-6 in their group, 13.38 had 7+ people in their group. Lodging included: 41.08% Hotel/Motel, 4.14% Air B&B, 4.94% RV Park, 13.22% Family/Friends, 36.62% other lodging. Average spent on food & beverage; 57.62% spent $100-$200, 21.03% spent $201-$300, 8.35% spent $301-$400, 13.00% spent $401+. 57.07% traveled over 200 miles, 24.76% traveled 10-20 miles, 14.95% traveled 61-100 miles. Blip Analytics: Gender 49.65% male, 50.60% female. In FY2024, AlienFest was awarded $60,000 sponsorship via Lodgers' Tax funding. MainStreet Roswell organized UFO Festival 2024 and was also given $100,000 in advertising as well as $30,000 for security and sanitation. They used $88,741.01 in advertising and $24,168.11 in security and sanitation for a total of $172,909.12 in Lodgers' Tax funding. Gomez stated that she believes she will need more funding. But since $20,000 is the limit, she is asking for $20,000 and will come back to ask for a sponsorship from the City of Roswell.  Councilor Halvorson made a motion recommending approval of the AlienFest Lodgers' Tax Funding Request to City Council in the amount of $20,000 for advertising, police, fire, sanitation and negotiate with the City of Roswell for sponsorship to the consent agenda. Councilor Johnson seconded the motion. The motion passed with a 5-0 voice vote. 27. Resolution 24-XX – Consider approval of Resolution 24-XX approving budget adjustment for the fiscal year 2025. Presented by Toni Gomez. The New Mexico Department of Finance Administration (DFA), requires approval of a budget adjustment when increasing a revenue and/or expense in the approved budget. The finance department is requesting a budget adjustment for line items in Exhibit “A”. These adjustments are for various grants and other departments. For The Record: Councilor Halvorson stepped out at 5:35 PM and returned at 5:38 PM. Judge Seskey explained his budget concerns requesting more operational monies. Sanchez asked for an additional $200,000 to be added to his enterprise fund for maintenance, repair and equipment instead of coming out of the cash reserves of the wastewater. Finance committee went through the adjustments line-by-line. No amendments were made. Councilor Heldenbrand stated I get these items were not put on the budget, but I can’t support it. Because I think the whole budget needs to be relooked at and adjusted ASAP. Davies said that even if it goes on the consent agenda. Finance will give a clean sheet to Amalia for City Council to include all of the items. Transfers were discussed Councilor Heldenbrand made a motion to consider approval of Resolution 24-XX approving budget adjustment for the fiscal year 2025 on full city council. Councilor Halvorson seconded the motion. The motion passed with a 5-0 voice vote. APPROVAL OF MINUTES 28. Consider approval of the August 1, 2024, Regular Finance Committee Meeting Minutes.  Councilor Cavin made a motion to approve the regular meeting minutes from August 1, 2024 as handed out. Councilor Heldenbrand seconded the motion. The motion passed with a 5-0 voice vote. NON-ACTION ITEMS 29. Finance Departmental Reports. Presented by Janie Davies. • Gross Receipts Tax • Cannabis Excise Tax • Lodgers Tax Report • Convention Center Bed Fee Reports submitted, no question. 30. Departmental Report - Roswell Public Library – no report submitted, no questions 31. Golf - Department Report. – no report submitted, no questions. 32. Museum Monthly Report - report submitted, Councilor Heldenbrand commented the admissions on low but the expenses are still high. What is the cause of this? Brooks replied the admissions are low due to construction. Councilor Heldenbrand asked why would the expenses not follow the loss in revenue from admissions. He questions then why expenses are still so high. For The Record: Councilor Cavin left at 6:15 PM and Councilor Halvorson left at 6:20 PM. 33. Public Affairs Report. – report submitted, no questions. 34. Visitor Center Report. – report submitted, no questions. PUBLIC PARTICIPATION No public participation ADJOURN The meeting adjourned at 6:25 p.m.