Finance Committee

Regular Meeting of the Finance Committee City Hall – Large Conference Room 425 N. Richardson Ave. Thursday, January 2, 2025, 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 Halvorson, Councilor Heldenbrand, and Councilor Cavin were present. Councilor Johnson was present via GoToMeeting. STAFF PRESENT Della Andazola, Hess Yntema, Mike Mathews, Lee Rogers, Christopher J. Narin- Mahan, Bruce Andler, Abraham Chaparro, Debbie Reyer, Andrew Valadez, Caroline Brooks, Jessica Parham, Elizabeth Prichard, Louis Najar, Toni Gomez, Bruce Andler, Amalia Martinez, Becky Hicks, Melissa Garcia, Merissa Guilez, Enid Costley, Jim Burress, and Elizabeth Nulf. GUESTS PRESENT Rita Kane-Doerhoefer, Mayor Jennings, and Councilor Arnold via GoToMeeting. APPROVAL OF AGENDA Councilor Cavin made a motion to approve the agenda. Councilor Heldenbrand seconded the motion. The motion passed with a 5-0 voice vote, with Councilor Johnson via GoToMeeting. APPROVAL OF MINUTES 1. Consider approval of the December 5, 2024, Regular Finance Committee Meeting Minutes. Councilor Halvorson made a motion to approve the minutes and correct the spelling of Councilor Cavin’s last name from Calvin to Cavin in the regular meeting minutes from December 5, 2024 meeting. Councilor Cavin seconded the motion. The motion passed with a 5-0 voice vote, with Councilor Johnson via GoToMeeting. BUDGET PLANNING 2. Budget Planning. Report submitted by Toni Gomez. Chairman Corn stated beginning with January 2, 2025, Finance Committee Meeting, a report of expenses would be provided by Toni Gomez. Chairman Corn stated the Finance Committee needs to address and discuss the expenses on a regular basis. Councilor Heldenbrand agreed but stated the report handed out did not provide any information to measure to as it did not include the budget totals. Councilor Corn emphasized the process will be refined as this expense report was prepared on Friday, just days prior to the January 2, 2025, meeting but the expense report provided in February will include more detail in regard to the expenses. 3. Payroll Summary. Report submitted by Elizabeth Nulf. Ms. Nulf gave an overview of the report handed out. The overview included the totals for the 6 months variance between budget versus actual. The variance of the budget versus actual was favorable for the six months. Mayor Tim Jennings asked Ms. Nulf if she had visited with the County or City Attorney in regards to the raises for elected officials approved in December 2024, to become effective January 2025. Ms. Nulf stated she had not but would reach out to City Attorney. Hess Yntema, City Attorney stated a 10% raise was voted on in December for elected officials and Chaves County can provide the annual compensation for the Chaves County Commissioners to determine the updated compensation for City of Roswell elected officials. City of Roswell elected official compensation is based on percentages of the annual compensation total for the Chaves County Commissioners. Mr. Yntema stated the percentages are Mayor – 100%, Pro-tem Mayor – 50%, and Councilors – 25% Councilor Cavin requested as to why the Convention Center actual payroll exceeded the budgeted amount. Ms. Nulf replied she would need to review to provide detail and all that was included in the payroll expense for Convention Center 3. Future Budget Planning. Chairman Corn stated per Mr. Cole, City Manager, the preparation process for the 2026 Budget would begin in January 2025. Chairman Corn stated Mr. Cole, City Manager emphasized he would have review meetings and discussions in detail with the Department Heads which will begin in middle of January 2025. Chairman Corn stated he would propose to Mr. Cole, City Manager to provide  updates in regards to the 2026 Budget preparation process to the Finance Committee. 4. Review Lodger's Tax Income and Expenses. Presented by Toni Gomez. Ms. Gomez provided a handout report detailing a review of the lodger’s tax income and expenses. Ms. Gomez presented on the handout, reported beginning cash of $1,512,522.00 and ending cash of $16,585.07, at 12/31/2024. Ms. Gomez stated the report included the budget, transfers, year to date balance and any encumbrances with the totals for all on the second page of report. FLOOD DISASTER UPDATE 5. Flood Disaster Purchase Order List Presented by Toni Gomez. Ms. Gomez provided a handout with a total of $2,564,149.67 for expenses. Councilor Halvorson asked if FEMA would reimburse on some of the expenses on the Purchase Order List. Mr. Mathews, Deputy City Manager, stated DRS, the consultants retained are navigating through the reimbursement process with FEMA and with the FEMA in regard to emergency reimbursement funds. Mr. Mathews, Deputy City Manager also stated the consultants are involved in the process regarding payment from insurance proceeds as well. Chairman Corn stated to his knowledge and knowledge of the Finance Committee there has not been any reimbursements for flood disaster expenses therefore all cash out has been paid by the City of Roswell. Mr. Mathews, Deputy City Manager concurred with this information, also to his knowledge to date there has not been any reimbursement funds received to date for flood disaster. Councilor Cavin expressed concern in regards to the purchase orders totaling 1.8 million for the museum damages from the flood disaster. Mr. Mathews, Deputy City Manager stated the consultants are navigating the process to recoup from all sources made available through FEMA or the State, plus insurance proceeds for the damages from the flood disaster. Councilor Heldenbrand commented in regards to the State of New Mexico Governor announcement shortly after flood disaster stating $1 million dollars to Chaves County after the flood disaster. Elizabeth Prichard and Toni Gomez confirmed with Councilor Heldenbrand the $1 million went directly to the NM National Guard and to NM Homeland Security Department, nothing to the City of Roswell.  Mayor Jennings emphasized the importance on the information provided to the consultants. Information provided must be precise and accurate, all departments on the same page in regards to all information provided to the consultants, DRS who is dealing with FEMA, and State of NM requests for reimbursement for the damages from the flood disaster. 6. Road and Bridge Infrastructure Presented by Louis Najar. Mr. Najar gave an overview on the status of the required repairs to the bridges and roads damaged from the flood disaster. Mr. Najar stated the lanes on Bland Road and Berrendo Road are now fully open. Mr. Najar stated there are repairs still needed to drainage structures, one being Berrendo River but the City currently does not have the required funds to make the repairs. Mr. Najar stated he would address some of these issues in the 2026 Budget process. Mr. Najar stated the budget amount for overtime for streets is down to $600 available and with forecasted winter weather there will need to be a transfer from a different item line in streets budget to cover anticipated cost for employee overtime. Mr. Najar also discussed the repairs to the North and South water tanks plus the drainage of the water from the water tanks installed several years ago. Mr. Najar gave an overview regarding the problems with the valves on both the North and South water tanks. Mr. Najar also stated he was working with Andrew Valadez in repairs from flood damage to sewer lines as well as other damages. Mayor Jennings commented the prior administration should have tended to the regular maintenance, and routine repairs for the City of Roswell ongoing projects to avoid future major problems, which the current administration is faced with now. 7. Building Infrastructure and Property Presented by Lee Rogers. Mr. Rogers gave an overview on the report handed out listing the preliminary estimates from the flood disaster which totaled to estimated losses of $259,747,153 as of December 17, 2024. Mr. Rogers stated the City of Roswell property insurance coverage total is 10 million. Mr. Rogers stated regular meeting held between Chad Cole, Toni Gomez, and himself with insurance provider in regard to process in obtaining the insurance proceeds as soon as possible. Mr. Rogers also stated the preliminary report handed out had been also submitted to FEMA at meeting with FEMA on December 12, 2024. Mr. Rogers expressed the meeting with FEMA on December 12, 2024 went very well and again expressed the consultants, DRS, is navigating the process with FEMA. 8. Debris Removal Update due to Flood Disaster  Presented by Abraham Chaparro. Mr. Chaparro stated there were no changes to the overview he gave at the December 5, 2025 report on debris removal due to flood disaster. Mr. Chaparro stated there was no longer any debris removal from the State of New Mexico. Mr. Chaparro also stated he had status meetings with DRS, the consultants every week. 9. Review Water and Waste Water FY25 budget and future budget planning. Presented by Andrew Valadez. Mr. Valadez introduced himself as taking the position held by Lorenzo Sanchez whom retired in December 2024. Mr. Valadez stated he has picked up where Lorenzo Sanchez left off and was available for any questions. Action Items 10. Consider recommending authorization for ratification of award of Roswell Substantial Damage Assessments Project to Stantec in the amount of $133,154.19 which includes GRT. Presented by Luis Najar. Mr. Najar stated four bids were received but out of the four, Stantec was able to begin work on Monday, January 6, 2025. Mr. Najar stated the funding would no longer be with the American Rescue Plan Act Corona Virus Local Fiscal Recovery Fund but from regular funds. Mr. Najar then requested Toni Gomez from Finance Department to explain reason of change in funding. Councilor Heldenbrand made a motion to consider recommending authorization for ratification of award of Roswell Substantial Damage Assessments Project to Stantec in the amount of $133,154.19 which includes GRT to the consent agenda. Councilor Cavin seconded the motion. The motion passed with a 5-0 voice vote, with Councilor Johnson via GoToMeeting. 12. Consider recommending adoption of Resolution 24-XX approving budget adjustments for the fiscal year ending June 30, 2025. Presented by Toni Gomez. Ms. Gomez requested to consider recommending adoption of Resolution 24-XX approving budget adjustment in the amount of $518,100.93 for the fiscal year ending June 30, 2025. Councilor Heldenbrand made a motion to consider recommending adoption of Resolution 24-XX approving budget adjustments in the amount of $518,100.93 for the fiscal year ending June 30, 2025 to the consent agenda. Councilor Cavin seconded the motion.  The motion passed 5-0 voice vote, with Councilor Johnson via GoToMeeting. NON-ACTION ITEMS 13. Finance Departmental Reports. • Gross Receipts Tax • Cannabis Excise Tax 14. Lodger’s Tax Report • Convention Center Bed Fee Reports submitted as stands. 15. Departmental Report - Roswell Public Library Report submitted, no questions 16. Golf - Department Report. Report submitted, no questions 17. Museum Monthly Report Report submitted, Caroline gave an update of the flood damage and briefed the committee on the historic parts of the museum regarding historic preservation. 18. Public Affairs Report. Reports submitted as stands, no questions. 19. Visitor Center Report. Report submitted as stands, no questions. PUBLIC PARTICIPATION No public participation ADJOURN The meeting adjourned at 3:41 p.m.