City Commission - Regular Meeting

I call this meeting to order on May 4th, 2026 at 5:31 p.m. Um, will the clerk please call the role? Mayor Sharon McDonald here. Mayor Prom Josh Reen here. Commissioner Baxter Patillo here. Commissioner Steven Bernett here. Commissioner Warren Robinson here. Commissioner Al Ernnandez here. Commissioner Mark Tapley here. Madame Mayor, we have a quorum.

All right, we're going to have um Commissioner Robinson do the invocation and we're going to ask uh Commissioner Tapley to do the pledge of allegiance. Join me in prayer. Eternal heavenly father, we invoke your name and we invoke your presence. Lord, bless us to make good decisions. Some people have worked hard to put things together so that our city may run well. Bless us to understand and bless us to analyze and bless us to do the best that we can so we can keep this city going. So the citizens will be served and that our children will be proud. Lord, if you do that, you'll give us a chance to say thank you. This is what we say in Jesus's name. Amen.

Please follow me recite the pledge. I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. Do I have a motion for the approval of the agenda? So move. Second. Second.

It's been moved by Commissioner Bernett and second by Commissioner Robinson. Put it up for the vote. And it passes 70. And next we will have our work session uh presentation of the prelimin preliminary um FY 2027 uh budget. Evelyn Huff Finance Department or director.

All right. Mayor, mayor prom commissioners. So this is the fiscal year 2027 budget public hearings and I will be presenting tonight and then I also have Pedro Barahas here with me who will be taking notes and doing research or anything that we need. So um we're going to go ahead. So, our agenda for this evening, we're going to talk about the budget adoption timeline. We're going to go over the budget overview, which is all of the funds combined. And then you'll notice this year I did not provide you guys with summaries. We went ahead and provided you with the entire booklet. We're also going to go through the per fund in a different order. Before we would try and kind of group them and it was, I think, a little bit hard for everybody to follow. So, this year we're just we're going to go in exact fund order. So, um, we'll talk a little bit about that when we get to the the per fund. And then I do have kind of a quick gross receipts tax overview, so you can kind of see how our gross receipts tax is performing based on the last couple years. So, our budget adoption timeline, obviously, we are here on May the 4th and then if needed, uh, we have a meeting scheduled for tomorrow on May 5th. Let's power through and do it today. Um, I have to adopt the or I have to send the preliminary budget to the Department of Finance and Administration no later than June 1st, which means that we are slated to adopt the preliminary budget at the regular commission meeting on May 26th. At the end of the fiscal year close, we'll go ahead and make the revisions based on the actual beginning fund balances and any carryovers. and that will come to you at the regular commission meeting on July 28th unless

we have any timing issues that sometimes we have with our NMFA debt statements if we have to ask for a delay and have a special meeting a day. Um, but I'm pretty confident we should make the 28th because the final budget is due to DFA no later than July 31st. So, same timeline that we've had for for multiple years. Um and then of course we can make changes to the budget in between the preliminary budget and the final budget. One of the biggest ones um is we're still in union negotiations with the fire union. That information obviously isn't here because we don't have a finalized proposal. Um and then the same thing as we get closer to figuring out what's going to happen with the golf course, we're going to have a pretty probably significant change there as well. So I feel this year that we might actually have some changes from the preliminary budget to the final budget versus the ones we normally have which is just usually our fund balance and our carryovers. Okay. So all funds combined. So our FY26 projections our actual beginning cash balance at the beginning of FY26 was 96.4 million. Our current budget revenues are 117 million. our transfers in and out of course as they have to by statute go ahead and net and we have expenditures budgeted expenditures of 162 million. So that is our current operating budget that we're we're operating in now. So we're showing a uh net revenue of minus 44 million which gives us an ending fund balance of 51492. Notice there's a little bit of a difference in between our ending fund balance and our proposed fund balance of a million dollars. That's an adjustment that we made due to the revenue. And so we made that adjustment after I kind of

rolled the recap around. So I left it at the proposed 50 million because that does give us a little bit of cushion there. So um our proposed revenues are going to be $76 million. Our transfers are at the 27 million. Our proposed expenditures are 66.3 million. As you can see, you know, that's a huge difference, but the majority of that is going to be capital. It's going to be uh we have a bunch of big projects that are budgeted now that are not going to be completed by the end of FY26 that will roll over and um any of our other items that need to be carried over. So at this point, we're expecting an ending FUD balance of 60.3 million, which would give us an adjusted end an adjusted estimated ending fund balance of 47.6 million. So, little bit of a bump up from where we're estimated to be at the end of this fiscal year, but again, there's still a lot of capital, a lot of carryovers and stuff that come into that. Revenue assumptions, these are similar to what we've done the past several years that have worked well for us. Gross receipts tax, we're still doing a three-year average with no increase assumed. We're not trying to project some crazy growth that we just haven't seen. DFA provides us with a formula and provides us with the 97.75 collection rate from the county assessor for the property tax. So, we are bound by that. We use that formula. Franchise fees, we have not projected any growth there as well. Charges for services are all projected by the departments. And then we have our interest income which has been pretty good recently. Um interest rates right now are are a little volatile. Um but we have some longstanding

investments that give us a a fixed rate. So we're certainly not in the current volatility. We're in nice fixed no- risk investments. And then grants, you will see, especially when we get to fund 24, which is our grant agreement fund, that we don't have anything budgeted in there. That's because we do not budget the grants until if they're current year, then we carry them over. If they're grants that we feel we are going to get in FY27, we don't budget them until we have the actual signed agreement. So that means that the agreement's been signed. We've gotten an award letter. You all have voted to accept the grant. And at that point, that's when we go ahead and add the revenue and expense for that. Any questions on revenue and assumption or the assumptions for the revenue because we are going to talk a little bit about what makes up our revenue. So we have here our FY26 projected and our FY27 proposed. As you can see, we don't have huge changes in between the projected and proposed. We're keeping those relatively flat. Um, including right now, you'll notice that the taxes and the state share taxes are showing a a decrease. We always repro those in the middle of the year so that we feel like we can get a better idea of what is actually going on. So, we have done our mid-year reprojection for FY26. So that's why those are a little bit higher than what we're showing for FY27. You'll see the big one of the biggest changes is the user fees. Um so the majority of that increase is in the water rates because we are projected for an additional water rate increase on July 1st. So that is taken into account in this budget. And then you'll see the bond and loan proceeds. Obviously it's huge drop. So right now we have all of the proceeds from the utility capital

loan is budgeted in FY26. Obviously we're not going to realize all of that revenue in FY26. So we'll go ahead and carry over any of the revenue that we don't realize. And then same thing with the grants. This is you know we have a substantial amount of state funding that's out there that we're working on completing. A lot of that we are going to see realized in this fiscal year. Um but some of it will be carried over. Any questions on kind of revenues overall?

Just a quick one. U the negative 35% is that what you would call the real number or would you say it's different than that? I would say it's different from that because there is so much revenue that's currently in FY26 that'll be realized in FY27. So I think that's an inflated number um based on what 27 will actually become. What would you say it's closer to

bond and loan proceeds? I expect we'll probably see 7 million of that this year. So you carry that 20 million over, now we're getting up to 96. Um, and then the same thing with the grants. We'll probably carry over 9 million of the grant. So now you're getting closer to being just about even. Worst case, you think?

There's really not a worst case in terms of the revenue because even the revenue that is going to be carried over is already dedicated. So there's really not the only thing I would say if there was a worst case would be if we were so overbudgeted in one of these categories that we didn't realize that revenue but we do a lot of hedging to make sure that we don't get into that situation. Thank you.

So my favorite pigraphs um so here is a pigraph of the FY26 projected revenue. So, as you can see, taxes continue to be our major revenue driver, although in this case, bond and loan proceeds obviously for that loan is is a huge part of it. And then user fees are up there next. I do want to point out the state shared taxes are always important. And um at this point the legislature has not come back and made any noise lately about changing the state shared taxes, but these are always really important considering they're one tax that does make up 11% of our general fund revenue. So point that out. Then moving to FY27 without having that bond and loan proceeds on there. As you can see, taxes jump up to being 38%. The state share goes up to 17. the user fees go up to 36. So again, we are gross receipts taxdriven. It's the nature of the way that we are funded. Um and then everything else is is relatively small compared to that. All right, expenditures. So we worked very hard with the departments this year to keep expenditures um as flat as possible. So, we did ask for a flat budget. If you were going to increase one line, you were going to need to decrease another line. In the city manager director meetings, we did go through everything. And, you know, if there were increases that were warranted and and necessary due to tariffs, due to price increases, um, and sometimes scarcity of assets, then we of course don't want to leave the departments where they can't to operate. But we did ask everybody to be very very frugal and pay attention to to what they were

looking at. So as you can see the only line here that is showing an increase is salaries and benefits. And there's a couple reasons for that. One of the main reasons is we did make a change to the allocation of the insurance. So now we are offering 8020 insurance. So the city pays 80%, the employee pays 20%. Um, we did that partially to offset an increase that was coming with the insurance. We also did it to be more competitive in the job market in the area because most of the municipalities around us were at 8020. And so we definitely got a lot of feedback from applicants and from employees who were leaving that were saying, well, you know, we go get 8020 insurance here. Um, so we did make that change. So that is the reason for that increase. We have not seen a huge increase in positions. We'll kind of go through that a little bit. Um, but really we have very few new positions. It's it's all in there. The other thing that I wanted to point out is the the $3.9 million difference in other. So, you're going to see that especially when we start looking at the different lines. So this year what we did is we told departments not to budget travel, not to budget equipment because what we found for the last several years is we were giving flat allocations of money for different things to departments and that money was just sitting there and it wasn't being spent. It wasn't being used. And so what that does is that ties up available cash. So when that money is budgeted, it has to be subtracted from the cash balance. And so if we can open up the cash balance and it gives us a little bit better idea of what our actual cash balance is then that gives us and gives you all as the approving body more flexibility. So what we've told departments is for travel for

equipment for certain parts of uniforms for other certain lines that those are going to be done on a revision basis. So, we're going to be taking a budget revision to you all every commission meeting. So, if you want to travel, if you want to send, you know, employees to travel, then what you'll do is you'll submit that as a revision. And so, you'll submit it closer to the travel, you'll submit it with more accurate numbers. And then the same thing with equipment. Excuse me. You know, you're going to need four weed eaters, but you might in February think you need four weed eaters. and you get to September and it turns out you only need two. And so we we're sitting there holding money for you at that point. Whereas if we do it closer to when you actually need them, you're getting actual quotes. We're budgeting closer to actual numbers, then that gives everybody more flexibility in the cash. And so it's a little bit more dynamic budgeting and not just holding pools of money that are there. And then it also gives you all as the governing body more transparency because you're going to see those revisions. You're going to see that detail. So that's why there's such a big difference in uh other is because that's where travel equipment, printing, some of the uniforms, advertising, some of those things that we were just holding money in those accounts, that's where they were located. And then obviously capital outlay sees a huge decrease. Capital outlay sees a huge decrease because again we budget for the entire life of the project in the fiscal year and then whatever useful life of that project is necessary that gets carried over to FY27. Any question on expenditures as a whole? Obviously we're going to delve very deep into those when we get into the books and get into the individual lines.

Okay. So, as you can see, FY26 for the first time in a long time, capital outlay has outstripped salaries and benefits as the number one expense. Uh usually salary and benefits is very clearly our number one expense but because we have so much capital outlay budgeted right now and we have so many different projects going on we are seeing that it is 54% of the current budget and then salaries and benefits services um and then small other little pieces for FY27 obviously without having that capital outlay that's going and carry over. We're seeing salaries and benefits kind of going back to being the largest part of the budget at 47% services in there at 18. And then as you can see, debt service is a little bit more. Um, as we look back here, our debt service is going up a little bit. Um that's not huge number because we do actually have two loans that are coming due or will hit their maturity in FY27. So some of that is is finishing off and so it finishes off at a little bit higher. This does not include any numbers for the niatorum debt service at this point because since we don't have the final numbers, we don't have the final agreement yet. it's not included here. Once we have that, then we'll either include it in the FY27 budget. If we have it before the final, we'll put it in there. If not, then we'll bring it as part of the first revision. Okay. Any questions on proposed expenditures? Like I said, we're going

to get into those deep. Okay. Transfers in. So, every year we bring the slide up just so that you can see um which funds are requiring transfers in fund 12 and fund 32 which are the largest ones that require transfers. Fund 32's transfer is almost 100% from the general fund. There's a very small bit that's from another fund, but it's almost all general fund money. Fund 12 is broken up over the general fund and the other um enterprise funds that pay for the internal services which are build out of fund 12. And then 16, 20, 27, 32, 71,75 and 90 are all budgeted from the general fund. So this is internal services, the tourism fund, the civic center fund, municipal court, community services which includes the rec center, the zoo, um admin for parks and recck and community services, the marketing and communications department, the library are all in fund 32. Um 71 is the senior center, 75 is the senior volunteer program, and 90 is the golf course. For fund 44, it is funded by fund 42, which is a gross receipts tax for street maintenance. Fund 63, which is our community development fund, is funded with fund 61, which is also a gross receipts tax. And then 59 and 82 are both debt service funds that are funded by various different gross receipts tax or user fees. 81's transfer in is a small transfer in from 49 to um pay some debt service that's funneled through

there. And then fund 11 does have a transfer this year. Um it actually has a transfer in from fund 49 to help balance it. I don't believe that that transfer is going to need to be in the final budget, but it is it is here. And so that is the majority of our transfers in which again we will talk more in detail about as we kind of get to them. Okay. So by fund type. So we're going to go ahead Whoops. And we're going to look at you guys have a recap. It's the first two pages in your book. Um, and we're just going to go ahead and, like I said, go straight down the line and start with fund 11. So after the recap is where fund 11 starts. So the first part of your report is the transfers out. So these are the ones that we were just talking about. As you can see, we have the transfers out to fund 12, fund 15, 16, 20, 27, 32, um, and 71, 75, fun 90, which is golf course. I did want to highlight that the transfer out to fund 91, the airport at this point in time is not needing a transfer out. Their cash balance and their their revenues, their expenses look look really good. So for the first time in a couple years, they are not showing a transfer. That of course is subject to what we see the cash balance as being. And for reference, I am on the page that at the bottom says page three of 76, just in case I'm going too fast, which I do. The other thing I did want to point out,

um, when we get to the transfers in is the cannabis money, which we'll talk about that in a little while. So, as you can see, our total transfers out of the general fund this year are currently budgeted at $12,288,888. And that again is to subsidize all of those funds that you can also see on your uh recap as highlighted in yellow. So, those are all subsidized. Is there any question on the transfer outs and the subsidies? Okay. So, getting into the expenditures, the first department is the general administration. So, this really tends to be mostly the operating expenses for city hall and any other random operating expenses that we have. So, you'll notice over to the side where you can see the percentage change, you're going to see a lot of zeros because again, we tried very hard to keep everything flat. But if you go to um page five of 76, you'll notice like there is a decrease in generator maintenance. So I kind of wanted to highlight some key things about the facility maintenance lines. So we were really diligent this year in going through the facility maintenance lines. So, maintenance buildings and structures, uh, maintenance, heating and cooling, same thing. Uh, fire systems, and you'll see there's a couple more when we get into other departments like communications, everything. We really took a deep dive into those and looked a lot at the historical actuals and same kind of thought process of not just storing money to store money. And so you'll see that a lot of those in between the current year revised budget and the budget that we are asking for, you're going to see some differences.

And so one that's us coming back and saying historic numbers do not support continuing to budget at this level. The other thing that you're going to see there is facility maintenance is doing a lot more contract services, contracting plumbers, contracting um electricians or people that especially the plumbing because we don't have anybody currently on staff that can pull a plumbing permit. So, we are contracting a lot of that out. We're also contracting a lot of the things that are basically like construction. so that facility maintenance is doing more actual facility maintenance and less construction. So we did create several service lines for facility maintenance for some of those. So some of the decreases you're going to see are also realized in other places for those services. So, kind of moving forward to page six of 76, I did want to note um the utilities, water, sewer, garbage, the sewer rates apply, the water and sewer rates apply to the city as well. And so, we see the same increase that anybody else sees. So, there are some departments that did have to budget a little bit more and one of those was city hall. So, that is that is a change there. And then I did want to point out on page seven of 76 the service contracts. So you can see where with lines that have breakdown, you can see like these are the numbers that break down. So like in this case we have $425,000 in contract services. And you can see the breakdown of the janitorial, the main street, the chamber of commerce and the GIS contract work that we have. insurance. This is another opportunity to kind of give you what our overarching policy on insurance was. So, what we did

is insurance has has risen on us every year. This last year, we projected a 3% increase and we were much closer to like five to 6%. So what we did for fiscal year 2027 is we took the actuals and we projected a 7% increase. So that's why you're going to see some increases across all the insurance lines except for our fleet insurance. Our fleet insurance is holding good. So we did not project any increases for our fleet insurance at this point. That might be something that we see a difference in midyear, but at this point we're pretty happy with our fleet insurance. from your uh percentage up on page four. Your general administration your percentage is off a little bit

on page four. Yeah, it shows a negative 3 million 397. Oh yeah. So these are these come out of the this came directly out of the software. We can calculate these. There is definitely something wrong in their formulas for the totals. the totals are noticed it in some of them. There was quite a few of them that that were like that. The the totals are the percentages are just not even close. Okay. Then one other quick question. Um what is Okay, we've got 2026 actual which is the year we're in right now. Correct. And then the the current year revised budget. Is that what we're That's the 2027. That's the 2026. Okay. And then what's this projection level three? That's 2027.

Okay. It's just so the the column all the way far to the right right before the percentage that is the the 2027 budget that we're presenting to you. Okay. And then the CY revised is is kind of where we're at right now. That's yeah that's the budget the last approved budget numbers from the commission for FY26. Any questions on the general department in the general fund? What's the in the GIS contract work? What all does that entail? That's just a pretty big number.

Yeah. So, we for the last six years have been contracting with Better IT services to do our GIS work. Um, and it's been very successful. We've been able to go from an online platform that was just kind of hoham to now we are on the enterprise. So, we do own our own GIS servers. We do have the full enterprise suite that is now allowing us to um integrate with a lot of different platforms and provide more GIS information. So that's where we were for several years and then when uh Tony Pulli um retired still not Polei um when he retired that's a very hard position to recruit for. There's not a lot of GIS people out there. And so what we did is we moved forward with instead of trying to recruit another person to do it in-house um better IT services provides our full I or full GIS now. So employees or even you all as the commission if you had a GIS request you can send it directly to better IT services. We have three people who are dedicated all the time to doing the GIS work. um and they will respond to you. And they've also been very instrumental in updating all of our maps. And so we are moving forward now with even more GIS mapping, including getting all of our pipes situated, getting all of the meters and everything situated. So that's a continuation of that project. It's been going on for a couple years now.

What did it cost us in previous years? It was 135,000 before we moved to having them do all of the work when they were just consulting for us. So, it was 135 for consulting plus whatever the salary is of the gentleman that Cor and like I said, now we've got three people full-time on it where before we had one person and then consulting that includes software as well. Um, it does not include software because when we bought the enterprise suite, then we don't have to do the yearly upkeep like we were having to do before because now we're we're in a different bracket with it.

Thank you. And there was actually one more thing I wanted to point out on the general is um on page 8 there are that's our gross receipts tax um admin fees. So beginning July 1st that fee goes from 3% to 2%. So for fiscal year 2027 it will be 2% and when we move into fiscal year 2028 it will be 1% and then after that it will move to zero. So we have finally reached that place where it's going to start. So they're going to stop charging us to collect our tax force.

We finally got there until someone repeals it. But right now we're still there. Any other questions on the general department? If we go to page 10 of 76, that starts the legislative department. So that is you all as the commission. So as you can see, this is our first department that we've hit that has salary and benefit projections. Um for you all your salary and benefit projections are pretty straightforward. You will see though on page 11 that the health insurance is going up. Um that is the difference in between the new commissioners and then it's also the difference in between the 8020. So there is a difference there. Other than that there's really not a lot of changes in your budget. Even the changes that we've had um are relatively minimal. For example, we gave a hundred extra dollars in office supplies um for for commissioner things. Um on page 12, there are two that I did want to focus on is services printing. That's one of the ones I talked about that we're looking to move to a revision basis. So instead of holding $1,000 there, and as you can see, historically we spent, you know, less than 500. Now, as you guys need cards, as you need additional things printed, we'll be able to do that on a rolling revision basis versus doing it just holding the money. Now, I did want to point out though that you do have a travel allocation, which is not something you're going to see in every budget, and that is because a lot of your travel does tend to be very spurof the- moment and, you know, kind of flexible. So, we did want to go ahead and leave the city clerk's office with a little bit of flexibility there.

Any questions on the legislative budget? Okay, moving on. The next one is the city manager. So um salaries and benefits that is obviously the city manager the assistant city manager are budgeted here and then also the executive assistant to the city manager. So there's three positions that are paid directly out of this fund and those projections are based on our current um salary and the current uh offerings that have been made public. Really the biggest change in this um budget comes really on page 16 where again we're seeing the decrease in travel and the decrease in uh publications. Other than that, all of the changes in this budget were very minimal and so it's really the same amount of money that they were approved for last year. How come the numbers like for fiscal year 26 is only 125,000 then it jumps to 365 for

on which line? Uh it's on page no city manager. No, it's right here. City manager. page on page 12. Yeah. Like the one all the way to the right is 487 and then the next one over to the left is 365 and the next one was 125. I think that's fiscal year 2. So those are totals 26. Yeah. So those are totals. That's all the line total. Those are all the lines total together if they're in the gray bar. Uhhuh. So below that is the the salary.

But in the gray bar is a total. So, why is there such a huge increase between the two? Because um in FY26, I did not have the $185,000 budgeted for the city manager. City manager. Mhm. Okay. So, that's the the difference between the 365 and the 487. That's part of the difference. Um the other part of the difference is originally and I have not done a salary and benefit uh reprojection revision that will come on the 28th. Part of that is some of that is still projected in 105. So I need to correct that. Okay. Because that the assistant city manager salary was split.

Part of it come out of 105. Correct.

Okay. So starting on page 17 is the legal department. So for salaries and benefits on the legal department they currently have in FY27 they have four positions budgeted um the city attorney the assistant city attorney and then the two parallegals. So that is what is making up the budget in FY27 for salaries and benefits. Got one more quick question back on the other one 1301

U on the benefit the group health. Why do we have a 65? Is that just because you're shifting stuff around? I have it well and I have it budgeted at full full family. Okay. For everybody for the city manager all three people. Okay. For well no for the city manager is budget full at 100%. Okay. And also, I believe last year, Cheryl was the one that we budgeted for the admin assistant and Heather has more insurance than she does, too. done

for legal. Um his I will say Daryl was very very diligent in going through his budget um since he is not the one that prepared his FY26 budget. So, starting on page 19, you will notice there are a lot of changes um in those numbers because Daryl said was very diligent about moving things around and putting things in um their right places. And since he's not here, I can validate him since just seen it.

Did he just get here? Oh, well, okay, let's say all our nice things about Daryl before he gets back in here. Um, so he did um move money out of legal fees, advertising, contract services to get those down to what he saw as actual operating numbers. And um especially in the contract services, uh he felt strongly that 200,000 was was a more reasonable number for the contract attorneys. And then um same thing with the advertising and the legal services based on the actual workload and the actual need to to advertise things. So he was very diligent. He did increase the software support fees um to better utilize the software that they actually had um that was actually being utilized and get all of those licenses straight. So those are now all straightened out and make more sense than they did previously. So you'll see the um his budget definitely in the operation side decreased substantially.

What's the 102% increase in salaries operational and legal

on legal? Yeah. And uh B100501. Yeah. the assistant city attorney which is budgeted in fiscal year 27 was not budgeted in fiscal year 26. So we're looking at hiring an assistant. We are we have started a recruiting process for that. Okay. We're saying nice things about you trying to get rid of it. I know right.

Forgive my tardiness. Just came back from dog and dog. The other thing that I wanted to point out uh because this is the first time we're going to see it is on page 20 you'll notice there is a capital vehicle lease line. So you're going to see that in different departments that is for the enterprise leasing program that we are moving everybody to. So as you can see it's only budgeted in FY26. We did not budget in FY27. So, we don't start paying on any of the vehicles until we actually receive them. So, what we did is we started the budget in FY26. If we don't need it in FY26, then we'll carry it over to FY27 and revise it as as necessary. Um, but I didn't want to double budget it by also adding it to 27 and then not using it in 26. Any question on legal's budget? Okay. On page 21 starts the city clerk's general fund budget. So we have um she has seven positions. And so that is one of the reasons that you're seeing such a large increase is the new uh IPRA supervisor position. And then from previous years they do have the IRA specialists were added on there as well. So that's why it kind of goes up from year to year. But the biggest increase that you're seeing for FY27 is the new IRA supervisor. Other than that change in salaries and

benefits, uh Rachel's was kept relatively flat. She did have an increase in office supplies due to adding additional people to the department. Um and then those apas do take some office supplies. Other than that, she doesn't have a substantial increase in any of her other lines. and she is actually seeing a decrease in services consultants. This is the money that we have been holding for several years for the possibility of having to do a special election. We kind of looked into that some more and felt that 2700 was a more accurate number to hold there than 4500, but we haven't done a special election in many many years. Um, so at this point we don't need to hold a whole bunch of money there. And then she did have an increase in her employee appreciation line because she had an increase in employees from what she had during the FY26 budget process. Any questions for the city clerk? Okay. Starting page 27 is the finance department. So there is an increase in supervisory. That is because the grants coordinator um position was when it was rehired this last time it was put in supervisory instead of operational. I need to fix that. So that will be something that will be adjusted for the final budget. It should not be in

supervisory. That position doesn't supervise anybody. So that is that is the difference there. Um at this point I have 10 positions that are budgeted here. um including one vacant accounts payable position that uh we will most likely be advertising for soon and that will also be moved to purchasing where it should be. Other than that, we did not have any major increases. We decreased our office supplies to better align with what we were actually using. The small amount that we have in advertising is we do still have some grants some grant applications that require us to put advertisements in the newspaper. So that is there for Debbie in case she reaches that situation. I did want to point out on page 30 that we are seeing an increase in our audit fees. Um this will be the last year of that audit contract. So they do have a built-in escalator every year. And then also more and more we see um more things that have to be done as part of the audit. So that always ends up adding a little bit to it. So we do have an increase there in our audit expenses. And really that was our our biggest increase.

Who does our audit car rigs and Ingram Albuquerque? Um yes actually our senior partner who does most of our oversight is in Levik now. He started in Albuquerque, but he moved to Leach and as his client, we just moved with him. So that's a heck of an increase. Yeah, it's from I am going to have to do a revision on it for FY20,000 80,000. So it doubled 65,000 to 80,000 65 from last year. Yeah. And actually I'm going to have to increase that some too. So it's going to go even higher than the 80? No, it's going to go higher than the 65. I need to do a revision for this for this for this current year. Okay.

Do they still have that local office here? They do. And actually um we a lot of the our senior partners out of Levik, but a lot of the people that do the actual work are out of their El Paso office,

but we do get people out of their Al McGor office, too. On page 31 is one of our smaller departments. That is our bench warrant. So this is the um overtime that is associated with serving bench warrants from municipal court. So it's just a small uh $20,000 worth of overtime is what we've budgeted the last couple years. We don't usually hit $20,000, but um if chief has people who serve the bench say overtime it comes out of here.

On that one, it's your overall totals, the blue line, number 400. Um why are we got like a $6 million jump right there between Sorry, it doesn't tell me which which line it is. I got to look back. Are you on page which page are you? Page 31. So the the blue line that says public safety. Yeah. Okay. Why do we have a $6 million difference there between 26 actuals and current year revised? Because we haven't spent $6 million of what we budgeted yet because our actuals are only through when I ran this report, which would have been last week. Okay? So, we still have a whole quarter to go and it's very rare that we spend every dollar that we budget. Okay?

And then I do want to point out on those thick blue lines like that. So, see how it says 400 public safety. Mhm. So that is totaling everything that is in the 400 division. So that's going to be police, dispatch, animal control, anything that's in division 400. Okay. Is some of that increase there due to the dispatch center?

Yeah. Oh yeah, we'll talk about the dispatch here coming up. Yeah, they had a they had a lot of capital outlay this year. So again, benchmar is pretty straightforward. Moving on to page 32 gets us into animal control. So um animal control has the one position in supervisory and then it also from there he has seven other positions and so those are what are budgeted in um operational. As you can see there's not a lot of change there. They're actually fully staffed, so it's based on the same staff. Animal control again was kept relatively flat until we get to page 34, which is animal feed. Um, they have been they have been very full at the shelter. And so that obviously increases the amount of animal feed that they need. And then also they're seeing price increases just like all the rest of us are. So, um, we did give them an additional $2,500 to hopefully offset some of those increases in the animal feed. They did do some small decreases in um veterinarian supplies, took that down $1,000 um to see kind of where they've been more historically. They're a little bit higher this year than that. Um, so they've done some budget adjustments to fix that, but other than that, um, they didn't have huge changes. I do want to highlight on page 36 the phone service. We're in the process of redoing all of our phone service. So, that is an adjustment that will come in the final budget. Um, as we get that squared away and that way we know exactly what everybody's going to be paying in their phone service

and who are we going to do that with? So, the phone service that gets charged through here is with Century Link. And some of that we've been able to to cut down um because we don't need quite as many um hard lines as we used to need. So, we're we're getting some of those cut off. The other thing I wanted to highlight on animal control was on page 38. They do have other inservice training. So, this is a line that you're going to see a little bit more um because this is for online training that different departments need to take that does not have any travel associated with it. So, where we're just paying the online registration fees or taking the training, but we're not having to send people to classes. So, any questions on animal control? Okay. On page 39 is dispatch. Um, so as Commissioner or Mayor Prom Rarden talked about, um, dispatch is a little tough because we don't have a ton of information to go by. Um, we're kind of going back. We do have some of our historical stuff from when we had our dispatch center. Um, but we definitely learned a lot about dispatch and how different it is. So, at this point, he has 17 positions. So, supervisory, we have um Hilton Chapman who is the the supervisor and then he has 16 other positions at the time that I rolled payroll. So,

of course, everything is is a little bit variable. Um they did have six positions that were vacant trainees, one certified, one specialist, and two supervisors. So, um, we're working on getting those positions filled. In terms of their operational budget, you know, we're we're giving them some funding. Um, we're going to kind of have to see where it is, but one of the biggest ones that I wanted to point out was on it starts on page 41 and goes to page 42. On page 42 is a list. This is all the various different softwares or services that are needed to run um dispatch. And so what you're seeing here on this page is the cost of operating. So the the continuing subscriptions to those. But in FY26, that's when we had a big capital outlay of getting these set up. There's a lot of initial implementation costs. There's different um hardware that goes with these different setups. So, these are going to be continuing costs for the entire time that we're operating dispatch. So, this is their contract services line is always going to be one of their biggest lines paying for these reoccurring costs.

You feel comfortable in this budget that 1.6 6 million for your overall dispatch budget will be enough.

I do um we were we were very diligent. We went through it with them and um you know the salaries and the benefits are based on the people that we had in there and then of course the vacant positions are based on the the lower levels. So there could be some some adjusting there if we get more certified people to apply versus trainees. Um, but in terms of the rest of the operating costs, Hilton was was very very good. We went through it all and and he felt that it was all again the biggest one is is that contract services and making sure that they had those software and those services. What was the last year that we actually had to dispatch under ours?

Well, what year was it though? 22. And it was about $900,000 was the total budget, was it? How many positions total are there? 17. 17 total. And do we think that 1.6 figure will cover the transition?

Yes, because we've at this point, the the consoles are set up, the the room is set up, we've done all of the um adjustment. We still have some technology um that we're needing to buy. probably about 50 to $60,000 more of servers and some of the stuff to make sure that we are fully redundant on our internet connection. Um, but we we have surpassed the initial capital outlay like we've gotten through that and so now we're in the operating phase for FY27. Thank you. That's a lot of money for software.

Yeah, you're expensive. You know, he Well, and Hilton did this lovely PowerPoint for us and they it just kept coming. Does like there's another also there's a component with them is there's a lot of like federal compliance issues with them. Does some of this come out of fire's budget and his budget? Excellent. I take it all out of fire. No. Um, no. Because fire and and PD share the general fund. So, you just take it all out of PD's and it it's all out of the general fund. So, it's really we did not cut PD or fire to do dispatch. Okay. But it all is showing out of Cooney's budget rather than Jerry's.

It is. Well, actually, no, they're all under public safety. So, it's all in the public safety division. So, fire is in the public safety division as well.

Okay. Okay, starting on page 43 is the uh police department budget. So, this one is a little weird looking in terms of so the supervisory salaries are going up based on the new um union contract and the new pay plans that go with the union contract. So, those are going up. The however the operational one looks like it's going down. And the reason that the operational one looks like it's going down is because we are actually more staffed than we were when we rolled the budget last year. When we rolled the budget last year and we were doing projections based on who we thought were in there and everything, it was it wasn't as correct as this role is very correct. Um because out of his and again it's all subject change because it's when I rolled the budget but out of his 63 total positions he only had three vacancies when I rolled the budget. So um this is a much more accurate number than we we hit in FY26. And you see that really reflected though on the um group health insurance Because you can see like the group health insurance number is much higher because we are one we're budgeting the actual health insurance that these officers are taking. We're having more people take the health insurance with the 8020 split. And so even though the this does incorporate the new union contract which does give the officers an increase, it actually had a positive effect on our budget based on getting the actual numbers in there. How many line officers do we have?

How many what? How many officers do we have now? Where you at? Currently hired. Yeah. 49, sir. Okay. From top to bottom. And so, of course, when I talk about positions, I am talking about his his overall, which includes his admin staff and everything like that. The other thing that kind of adjusted this number is the MCRT. Um, so the mobile crisis response team was budgeted in here last year and it needs to be budgeted in its own division. So that pulled out five employees as well.

Do we have a line item in there for the flock safety contract? So we do not. So, our policy with the flock safety contract was we were not going to budget that until they had completed all the installation and gave us the final accounting of it and then we were going to budget it. Um, they haven't done that yet. So, they're still waiting on one camera. Correct. Yeah.

Yeah. So, we're still waiting on them to to finish one camera so then they can give us the final thing. So, at this point, we don't have a line in that. However, we do have opioid money that is allocated to paying for a portion of that. So, that transfer from the opioid fund would happen as well. Do we have an estimate on that figure? It was a how much? 250. 250. I know we were we were allocating $100,000 from the opioid fund to cover it. So, it's about 250. It'll be about 150 from the general fund or there are also other gross receipts options for that as well.

And that will take effect next year if they get that camera. Oh, they could they could take their time. We're fine. Why is it so expensive? Why is it so expensive? Because it gives you another set of eyes. How many more sets of eyes? Well, we got 250,000 for how many cameras? Rather not share the amount of cameras if I don't have to, but we're probably in the 50 to There was a post on Facebook the other day that showed the location and how many of all of them. So I mean we looking at like 20 or 30 or like 20 or 30 cameras or probably between 50 and 60 total. Okay.

Combination of license plate readers and cameras. Okay. And it's 250,000 a year roughly is what it's going to be. Seems like a lot of money. Have we seen any kind of a impact since we put him in? From perspective, an officer is about a hundred and one officer is about over $100,000. Okay. But I mean, as far as like the impact is as far as solving crimes or stolen vehicles or all of the above. Last week, we put out a press release. We left the country on sexual charges on a child. They came back in the country. We ran down. Okay.

So, they absolutely have an impact. They have an impact. Okay.

Okay. Um on page 46, I did want to highlight so um supplies law enforcement. So, that is showing a substantial decrease, but really that decrease is because we split um supplies law enforcement and we gave them a new line, supplies, weapons, and ammunition, which you'll see on page 47. So, really, it's the same amount of money. It's just now divided in between two lines to be able to kind of better track uh exactly what the the funding's being used for. So, just a a little bit of an accounting funding change. Other than that, you can see for the most part the police department was was good about keeping their budget level and flat. Um we did give them some small increases in um they are one of the ones that you can see they are going to have in their maintenance lines. They have some decreases in their maintenance lines and then they do have some of the new uh service lines for for those. Um, so really not huge changes in most of their lines. I did want to point out on page 51 the um service janitorials um that is at zero because they last year were given a custodian position. So, they no longer needed janitorial services. They now have an in-house person. So, that's why you're seeing such a decrease there. Um, and then they were also very good. If you look at the page 51, it has the amount, but then page 52 has the detail of what items are covered under their contract services. So, you can see the different items that they have for contract services.

We spend a lot of money on car washes. We do spend a lot of money on car washes, but I'm told that it is very imperative because it's a appearance. It's the right appearance. How many vehicles though? We have quite a few squat cars. Yeah. How many vehicles do you have? 70. Then probably wash them once a week maybe or I hope so.

Every Saturday in a line. So, as you'll see going forward, really not not very many increases. They did we do expect to see an increase in our police liability insurance. We see a increase in our police liability insurance every year. Um, so we continue to inspect expect that to go up. Um, you'll see if you look at page 54, I did want to highlight the community relations line, you're going to see that in a couple budgets that we go over tonight. Um, as we're trying to increase our presence out in the community and have items to hand out and to um continue to increase that that community awareness. So, uh, police is the first one that we've come across that has that, but you're going to see it in fire, utilities, public works. There are several other departments that have it. Any questions on the police department? Starting on page 56 is the fire department. Um, so the fire department in its salaries and benefits has 31 positions. Um, at the time that I rolled payroll, they only had one position vacant. Um, so you can see their salaries and benefits aren't really shifting. Again, there is there is a union negotiation that's ongoing here. So obviously that will come in front of you all for ratification once once we reach approval. Um I also wanted to re point out remind everybody that the majority of the fire

budget is not in the general fund. The majority of the fire budget is in fund 33 which is their fire protection fund which comes from the state. So, while you're going to see salaries and benefits and you'll see some other things like the building and structure maintenance and um a few small supply lines, really the bulk of their stuff comes out of for their equipment and their training and everything like that comes out of 133. What's that 66% increase in the group health insurance? Is that just due to the premium increases or

in the 67 in what?

It's on page 58 on the benefit group health. Yeah, that's the difference in the allocation and the difference in how many people are taking insurance. Okay. Page 62 is the beginning of the APS resource program. So these are the school resource officers. Um, so they are budgeted to have three school resource officers this year and so this is a very small department um or a small part of this budget because this is really only their salaries and benefits. Um, so this is just covering those those resource officers that are provided to the school.

Sorry, just had a quick question from the last section. The uh 83% decrease for communications and maintenance for the fire department. So that goes back to what I was talking about where we really delved into like okay let's look at the historicals. So if you look back at the historicals you'll see it was 00 they spent 857 and then they so far this year spent 167. So a $6,000 budget is not supported by 857 and 168. So we went ahead and brought that back down to a th00and to get that more in line with what we've seen historically. the uh sorry the overtime why did we cut it so much in in fire or uh in the APS

in the APS so again that was another one the the department went back and looked at it and wasn't seeing the justification from the overtime hours that they were working to keep it up that high

what's the massive in decrease in group health for the resource officers It's a 80 88% decrease. Totally totally different officers. They switch. They ended up switching from last year to this year. I think you switched at least two. I don't know. You all of them are different. It's just different.

It's Yeah, it's a completely different group this year. Starting on page 64 is um the mobile crisis response team. So this is their own department that we created for them uh last year in the budget to um get them separated out because once the Passel del Norte grant expired, we did move several of their expenses to the general fund. They are still they still do receive grant funding from the uh county which pays for a couple of their positions. Um but the majority of their operating expenses come from the general fund. So as you can see here we have their positions. So they have five total positions um the supervisory and then four additional ones. Um, and then as you can see kind of going forward is their um their request for their operational. They did move some money around probably more than a lot of departments did but again was a very brand new budget last year and so we weren't 100% sure um what what it was going to be. So we felt like FY27 is more representative of the actual expenses that they're going to have. So, like if you look in page 66, um last year we did $900 under contract services. This year we have 3500. So, the majority of the money for FY26 was for the professional agreements for clinicians, but they don't have a copy machine. So that's where FY27 they they have their lease agreement for the copying for the images um and for the copying machine lease. So and then

as you can see like down on fees for memberships and dues last year um we gave them 12 or we gave them $1,250. They definitely didn't need as much as that and so this year we're bringing it down to the $250. So this because it was a relatively new budget, there's going to be a lot of give and take in between the numbers that we had last year versus the numbers that we have this year. But this is for Janette's group with the the MCRT.

Do they do most of their training online? Um, no, they do travel quite a bit and so, um, obviously they're going to be ones that, you know, are going to be affected by our new travel policy of of coming in when they're when they've decided on which travel they're going to and coming in and submitting the revision for that. You may have answered it, but I didn't hear you, but on their operational salaries, why are we taking such a big jump? So they have a position that is approved through the county that the county actually approves how much it gets paid and so they they change they get to approve it but we got to pay it but they do they give us the money for it. They give us Yeah. They reimburse us for it.

Okay. So so that's the the increase in that in that salary. Okay. And then also we did move two of the positions that had gotten left in PD. We moved them over here too. So the change from the grant funded position and then moving those two positions. Okay. I agree. I said the exact same thing. But but they do reimburse us for it. So for a portion of it or for the whole thing? For the whole thing? The whole thing. And I'm assuming that's why the increases and all the other stuff is because of that increase in that salary that and yes in the the other salary and benefits.

Okay. So, um, on page 67, you'll notice it has the blue bar. It says public works. So, this is kind of a leftover thing from when code enforcement was in public works. They still have the division as public works, but code enforcement now is under PD. Um, so code enforcement has six employees that are included on their salaries and benefits. Um, for the most part, they they're fully staffed now, and I'm pretty sure they were fully staffed when I rolled the budget, so there's not a lot of differences in their um salaries and benefits. We did um make some changes in their operational kind of trying to um round some things up a little bit. They kind of had some very specific numbers from last year and so we did give them a little bit more in office supplies, safety supplies. Um but really for the most part their biggest change is um going to be in on page 72 which is the contract services. So you'll see for FY26 it shows 57,395. This year it's only 4,000. That 57,000 had a carryover on it um for a contract to work on some ordinances. So that's

why it looks like there's such a huge decrease, but that is a a one-time carryover that we won't need for FY27. And then same thing with the services structure demo. We did allow them last year to carry over the balance that they had um from FY25 carried into FY26. So that's why it's up into the 600,000s where it's back down to the normal allocation that we give of 305,000 for each year. So that's been pretty standard for the last seven or eight years in that structure and demo line. But that's why it's showing it's showing a decrease not because we're decreasing the regular allocation, but we're because we're decreasing it with a carryover. So with the um on page 74, is there any questions on code enforcement? On page 74, um you'll notice that for planning and zoning, everything in the fiscal year 27 column is zeroed out. It's because we moved it out of the general fund and moved it to fund 63 as part of the creation, the recreation of the community development fund. So, we'll be talking about that when we get to fund 63. And so actually with that that concludes the expenditures for fund 11.

So that gives us 18.772 million. So it's a bargain at half the price. And the reason that total looks weird on the end of it doesn't say 18,000 or 18 million.772 is because it includes the transfers in as well. It adds them together. Okay. So starting on the new report that says page one of 13, these are the revenues for the general fund. So obviously our biggest revenue generator is going to be our gross receipts tax. And as you can see on that first page, we have our different allocations. And we're showing a slight decrease, but we talked about that earlier. That's due to the way we project with the three-year average. And we don't project any growth. So, and we'll see that when we talk about a gross receipts overview. Um, so as you can see, no huge things about the only thing that we did increase substantially was the property tax delinquent. Um, we did that based off of the DFA adjustment and so it came in higher this year than it it did last year. So really just our our usual thing with our franchise fees are staying pretty flat. We have those projected with the three-year average. Uh Southwest disposal is going to go up a little bit, but really for the most part, um we've kept everything very flat when it comes to revenues. Starting on page six is where we have our transfers in.

So, I did want to point something out here. So, there is a $350,000 transfer in that is not on this report. Um, it's from the cannabis fund because the way this report prints, it doesn't like the cannabis fund. So, we have to add it back in manually. Uh we but we are transferring 350 Oh, actually it is. It's on page seven. Well, that's special. Um so we are transferring $350,000 from the cannabis gross receipts tax fund into fund 11 to help fund the operations of dispatch. So that's something we did this fiscal year in FY26 and it's something we'll continue to do for fiscal year 27.

Does that come from the state? It's it does come from the state, but it's the gross receipts tax that they collect from the dispensaries. How do we get our portion? What's the percentage? Well, we're going to look at that. When we look at the gross receipts tax, you're going to kind of see it's all over the map. It is extremely hard to project. So, you never know when it's going to be up or down. It's just it's the trending of it is it's just all over the place. Okay. The first two years it was very level and now it's just It's crazy. How do we Well, I can ask that question when we get there, but do we have any way to track? It's just like our regular GRTs where they could be giving us,

which is why I think, like I said, once we get to that actually here, we can kind of look at it now. Okay. I had one question on page three real quick, but what is uh the the franchise fee for True Value? What would that be? I mean, it's zero, but franchise fees for what? For it says for true value. What is that? That is an old um they had garbage service for a little while. That is Yeah. Yeah. When he had the when he had Yeah. Yeah. Okay. So, I got you.

So, there's the cannabis GRT. So, it's And I think that one of the reasons So, the red line and the blue line are the last two. The blue line is last fiscal year and the red line is the current fiscal year. I think it's all over the map because I think that they're doing corrections all the time because or is it like in the past where one month they'd send us some and then they'd make up what they skipped us and then

and and so that's where I think like like you look at March of last year. I mean March of last year just goes through the roof and then it just completely drops off in April. And so I feel like TRD is doing corrections and and doing different things because if you look at regular gross receipts tax, it's pretty linear. You know, you're going to have you're going to have some months that are better than others, but it's it's relatively flat. Stable. Yeah. And then you get to the cannabis and it's just it's all over the place.

So for fiscal policy, what do you do uh with funds coming in that are all over the map? We're just that's that's one of the reasons that we use an average instead of trying to just look at the last year. We and in fact because of the cannabis gross receipts tax is relatively new. We've been using its entire life as the average because it's just too it's extreme. Sometimes it's high, sometimes it's low. But you can't you have to use those really lows to to med it out so that you're using the mean instead of using the outlier points. Wonder if it could be that that a lot of those stores are kind of dropping off. Several of them have closed over the last few months. Yeah. Wonder if that's kind of what

And I don't know too. I mean, they might go back when you close like that, they might go back and like hardcore audit you and then issue you a big bill at the end. I'm I'm not sure.

Okay. I think two or three of them are shutting have shut down the last month or two. on page eight. Um I wanted to point out so this is this is kind of a new um department for us. Um this is the family fund center revenue. So as you can see we didn't put anything in there for 27. We wanted it to go a little bit further. This is something that we will revise in the um for the final budget, but this is the revenue that we're getting from the revenue sharing agreement for the family fund center. So, you can see um they break it down for us. Sometimes they break it down, sometimes they don't. So, I you know, food and beverage is very high. Um there's probably quite a bit in food and beverage that probably should be broken out in between the other ones. Um, but we're working on that with them to to get a consistent report on that. Um, but that is that is brand new. It's not something that's been in our financials or in the budget before.

That number is what we actually received from them since they've opened. Yes. A heck of a lot better than what we used to get.

I know. I'm like, at least we're getting something. So from there after that page we start into the departmental revenues. So kind of some of our smaller ones legal has a little bit uh the bench warrant fees. Animal control has their user adoption their animal adoption fees. They have their shelter fees. Um you know PD does not have a lot of revenue that it collects really. The biggest thing that it has is the reimbursement from the public schools for the uh resource officers. Uh fire again does not have a particularly large amount of revenue here in fund 11. Their revenue comes from the state and lives in fund 33. And same thing um with code enforcement. We usually don't budget any of the revenue for code enforcement until after they have build it. Um because then we can be a little bit closer to what their actuals are versus just kind of trying to take a shot in the dark. And then planning and zoning, their revenue budgets have moved to um uh fund 63. And then we do however on page 12 get to the judicial revenues. So this is the money that is brought in from municipal court. So this has been very up and down um over the last several years. We did however in FY end of FY25 that really impacted FY26 um do the ordinance change to increase the municipal court fees. So you will see um they're budgeted for $200,000

this year in fines. They're at 150 so far. So they're closer than they have been in the past. So we did leave these pretty flat. We increased their court administration fee um based on their increased fees and and where they were collecting for that. But again, a lot of those are very dependent on on the judge and what he charges. So, so those are the revenues for the general fund. Uh, can I ask on the planning and FEMA fees? Uh, could we go over the historic and the proposed? Sure.

So, planning and zoning, um, we've we have them pretty well situated now. Some of the older historic that are all the way to the left are a little bit more difficult to look at because they were combining fees into lines that weren't necessarily going together. So like for example, if you look all the way to the left, you'll see that there's $45,000 in zoning re in zoning review and you'll notice there's on the next page there's zero in land use. So, some of that was just combining things under one charge code and and just kind of sticking them in there. So, over the last couple years, we've we've worked with Shelby and then we've also worked with our charge codes to get them to where we're getting them in the right places. We're getting them reported correctly. Um, so I feel relatively confident that in the FY26 actuals, which you're seeing there, that those are those are more actually indicative of what those processes are actually bringing in maybe than some of the other ones.

And we came up with our number for uh the revised budget based on based on um feedback from the department during the budget process. And then they do need to be revised. Like the utility permit one definitely needs to be revised because it has exceeded what we thought it was going to. Thank you. Any other questions on general fund revenues?

All right, we made it through the general fund. Only a hundred more to go. Um, okay. Okay, let's talk about internal services. So, internal services encompasses purchasing, it encompasses HR, fleet maintenance, facility maintenance. Um, so we're going to look at they don't have any transfers out. So, we're going to start right with their expenditures. Um, so that first one, the non-EP departmental, that is the fleet insurance. Um, so this we pay it out of fund 12 and then we allocate it back from the different departments. So this is that initial expense. Um, and there is, like I said, we're we're pretty confident in that. That one's looked good for us. And then after that, we jump right directly into um purchasing. And so purchasing is uh she has five positions that are paid out of here. So this is purchasing and the warehouse. Um they are fully allocated. So which means that the general fund and the other enterprise funds are what pay for the warehouse and for purchasing. So again, um, really flat budget. Something to highlight on page three of 37 is the janitorial supplies. So those did decrease substantially, but that is because we no longer have a janitorial service that does all of the buildings. We have um different custodians. We have different departments that are buying their janitorial supplies. So saw a decrease there.

We also um if you'll notice on page 437 that there is a substantial decrease in program supplies. The program supplies went down because we kind of had a couple of these catchall program supply lines. And so we broke those out into other lines so that they had more detail. So this is one of those that they don't have program supplies but they still have those costs in other lines. Why is the healthc care group health going up so much in that department of 205%.

So they were allocated to part of them was allocated to fund 81 and so this is bringing everything back under 12 and not allocating it twice to 81. And so that's why there's an increase there. And then also um they had two new employees who took different health care. So really this is a relatively small budget. There's not a ton of things paid out of here. Um, we did increase on page six of 37, we did increase their memberships and dues. Uh, to add along with the New Mexico Public Procurement Association, we also added the NIGP um, so the National Institute of Government Procurement um, to give them an additional certification to kind of help with some of the federal items. But really that was that was one of their largest increases.

What what did we use to contract out purchasing? So they had um they had a a one-time contract to look at the purchasing ordinance. So that number that 34,000 number is from that.

Okay. Okay. Starting on page 7 to 37 is human resources. They have uh five employees who are currently budgeted out of human resources. um they do have an increase in their operational and that's a difference in um the salaries in between last year they had a lot of vacant positions versus this year they're all filled when I did the they have all been filled when I did the budget roll and that's the same thing they have a huge increase in group health because they have a lot more people taking health insurance

all the all the positions field. Yeah. Other than that, um they don't have any real substantial changes um until we get into their services. Um you'll notice on page 11, we did increase uh their advertising budget. Um and that's to encourage um more advertising for our open positions in various different places rather than just on our website or in the daily news but to actually get out there on industry sites get start looking getting to indeed getting to um get just getting more exposure. So we did increase their budget there for that. Have you seen an impact yet?

This hasn't taken effect yet. Okay. This is budgeted for next year. This is budgeted for next year. Yep. And then um so we went ahead and took the money out of investigative services because um it's kind of a weird line and so we felt like it was better to treat that as one of the ones that would be revised. So, as investigative services are needed, if they come out of HR lately, most of the investigative services that we've been doing have been coming through the legal department. And so, that's where those services are paid for versus them coming out of HR. So, that's why you're seeing such a decrease in that line.

What all was investigative services? What did that entail? Huh? What What did investigative services? What did that entail? You know, that would have been like In the past, we've had some discrimination claims. I was going to say the the big one is like employee grievances. If they file a grievance against um a supervisor or anything or another employee, then we usually will reach out to one of those as well.

And possibly like arbitration for um a lot of times we'll see it in unions, but also in in grievance, the grievance procedure through um any type of someone who raises discipline up. Also on page 12 kind of continuing talking about the services we did decrease the amount that was under uh services EAP medi and mediation. Again the actuals from 24 and 25 and 26 just didn't support continuing to have such a high number there. Um and then the same thing um the services employee support some of that it was very high in FY 26 um because we had some other items there. There was also possibly doing another wage study that was sitting there. So that's why you're seeing such a big decrease. It's not necessarily decreasing the amount of services to the employees, but it was just some one-time items that were on there. And so then the other decreases that are in HR, the standard ones that we've already talked about about like the training or not the training but the travel. Okay. Any questions on HR? Okay. So, on page 14 starts facility maintenance. Um, so facility maintenance currently has 10 approved positions, two of which are vacant. And so, um, the salary and benefit role was pretty standard.

We did um as you're going to see in the facility maintenance budget, what we've been talking about with the changes from some of the items from maintenance into services, you're going to be seeing that more extensively here because they do have their allocation of funds for that. So like on page 17, maintenance, heating, and cooling, you're seeing a a substantial decrease there, but that is because it's also being moved over to services. And then also, again, we just really took a deep dive into how much has actually been spent and does that support continuing at that high of level.

That's a pretty large increase. group health again sorry it's 84% but the salaries didn't change that much so so they were again they were really really vacant last year

but they're there is something about their codes in the thing it did not roll all of their health insurance into the uh projection last year they have two employees that for some reason won't roll into the salary and benefit and I didn't catch that this year and I caught it or I didn't catch that last year I caught it this here. Okay. Where are we under the chemical line? What is that? What do we actually buy with that? That is the uh pool chemicals.

Oh, the pools. Okay. Yep.

I guess it says it right there. Sorry. So again, you're just seeing those decreases throughout the maintenance lines, but then when you get to page uh 21, you're seeing the new service lines and the increases in those. So increases in contract services, increases in buildings and structures, communications. So that's where moving some of that maintenance money into the actual service lines for when they're when they're using service agreements. I also wanted to point out on page 22 and then it goes into page 23. We did give them a software support fees line this year. Um it increases it increased substantially. This is to cover a software subscription for the school zone software that they use for the flashing lights that run the school zones. So facility maintenance handles all of those and uh they needed to renew that subscription. Why why do we handle those for the schools? Is it just because it's on our right ofway and our road or

That's a good question. Yeah, I would think because we do handle the majority of the street lights as well um in kind of different areas. So, does the school system reimburse us for any of that? No, of course not. Interesting. So, we got to spend all that money, but they they call us when something's wrong. I was going to say we got to spend all that money to service the stuff for them. Yeah.

Um on page 23 there is a change. Um we adjusted all of the tool budgets kind of in the same line that we were talking about with equipment and travel. We've just been holding a substantial amount of money in those allocations. So we did leave money in those lines, but we decreased it with the knowledge that if you get up to that threshold and you need to request additional tools that that can be done on a revision basis. We supply that for our employees. Huh? We supply those tools for our employees. I'm sorry, I still didn't catch that. We supply those tools for our employees? Yes. They don't supply their own?

No. Okay. And page 24 ends facility maintenance with um and then it also starts our information technologies. So as you all know we are fully outsourced on our information technologies. We're outsourced to better IT services. So, we don't have any salary and benefits there. We did um do some decreases this year in our computer supplies. Um we've been replacing enough stuff over the last several years that we felt comfortable not having to have as much money in there for just peripheries and, you know, things like keyboards and monitors and everything. Um the phone service, we do pay the phone service for the main trunk that comes into city hall that runs the majority of the phones. So that comes out of IT services. And then obviously our big line is on page 26. That is our contract services line. So this is where we pay the contract services for better IT for our Microsoft licensing um and then for our network update. So this fiscal year in FY26, we did move to 24/7 IT support. So there is a person there is um a bits person available 247. So if you know for our police officers that are on nights, for our water operators that are out, you know, trying to make the ska system work, everything, they do have 247 support and that is for everybody as well. I mean, you know, if you guys are on your computer at 3:00 in the morning and you can't get logged into your email, you can call Bits and there will there will be someone there

to help you. So, what do we do with outdated equipment that we replace? Um, it goes up for public surplus auction where um on publics surplus.com. It's online.

It's online. Yes, we do all of our auctions online. And usually with our IT stuff, we sell it in pallet form. Um, we don't sell it Yeah. We put it all on a pallet, wrap it with saran wrap, and sell it for $15. And then starting on page 26 and then going on to page 27 is a list of all of our softwares and all of the different um costs of renewing and updating those softwares. So these are the majority of the software that is used by the city. Um it does not include some of the more specific ones um such as some of the ones that are in water, some of the ones that are in the landfill, but for the most part this is most of the city software.

Uh central square is for central square. Right now the only thing that we are using it for is utility billing and we use the land management module some in planning and zoning. We are working on phasing that out. Um but right now our meters are tied to central square and so as we start doing our meter replacement and we can get that changed out then we can start tying it to the new software. That's like the square processing service. No, no, that's it's a a ERP. It's a accounting system. Okay. Yeah, we do not Yeah, we don't use Square. Gotcha.

Is that a yearly fee that we pay or is that a That's a year a yearly fee. Yeah. And like I said, we're in the process. I think this year I'll be able to cut it down more at this point. I just need utility billing to function on it for about another year. what has us being less uh for next year with it or why why do you think it is coming back down?

Um so I did some trimming on it. Um I took out some things that we had in contract services, some some projects that we kind of just had in there that we didn't really need to continue that we had completed. Um, and so that was really the biggest decrease that I had. And then I did have a contingency in there for kind of like unforeseen software. Um, and so I took that out as well to just try and get it a little bit more balanced. Any questions on it? Okay. Starting on page 29 is our fleet services. So fleet services, he currently has seven employees. He is um at this time he was fully staffed, but I don't think he's fully staffed now. I think he did lose one of these employees. So um that's why the the role is pretty close, but I I know it's going to change here. Robert is always very good and very diligent about trying to keep his budget within certain limits. So, he did um decrease his office supplies. We did give him an increase on his janitorial and his safety supplies. Um and then we did have to increase his his fleet maintenance supplies. I am hoping um well I know that when we start getting in the new fleet of leased vehicles that we're going to be able to cut back on some of the maintenance supply increases that we've had to give. We do have 74 new vehicles coming in. That's going to be a huge change from the older vehicles that we have now. But since we don't have a for sure date on when those are

going to be delivered, we did go ahead and give the increase for FY27. Did they give us a ballpark when we might receive them? They're ordered. Um, but that's that's about it. Huh? Supply chain. Supply chain. Yeah. I mean, they've actually been pretty good. They're they're pretty positive. It's not like poor Jerry's fire truck that's never going to come. Right.

Right. It's been drawn. So really other than that, um, Robert didn't have a ton of changes. We did, um, increase his equipment maintenance. He's done a lot of maintenance this year that won't need to be repeated. Kind of some one-off things. And then, um, of course, as we get to page 35, in his contract services, he did have the same decrease of the janitorial services. And then he also felt like he didn't need as much in his contract services. So we went ahead and and decreased that down as well.

Is that if he has to send something out to a dealership or something? The contract services. Yeah.

Something that's not completely covered under warranty too. Okay, so that is it for fleet and that also is it for expenses for fund 12. So the internal service fund. So if there's any additional questions, we'll talk briefly about the revenues in fund 12. Um they don't have very many. Uh they are funded very extremely by transfers in which you can see starting on um page 106. It talks about it breaks it down for each fund and how much is is transferred in there. So uh they receive a transfer in from the general fund from fund 44 from which is the street maintenance fund from fund 63 which is community development from fund 81 which is water and sewer from fund 86 which is the convenience center and then they receive revenue because they can't show up as a transfer because it's a component unit. They receive revenue from fund 94 which is the landfill. Got a quick question in fleet maintenance under his software stuff. How come we budget 20,000 but it only shows he spends about 7800 of it.

So he has additional software that he is going to need um to talk to the EVs that we have the electric vehicles that we have. Oh, okay. Do we get to turn those in when the batteries go out in them or pay to that, you know, while we're doing the lease, like they're not on the top of a lease, but they are um they will be part of the turnover lease. And right now, we don't have anything in there that's an EV. Um we don't have a full we have hybrids. We don't have any that are full. Okay. Um and we are very diligent about driving them to make sure the batteries stay charged because that is a that is a problem. That's a huge expense, you know.

Yeah. That's like Pedro gets to drive the city manager truck every morning to the bank to keep the battery going. Thank you. Sorry.

So, any additional questions on fund 12 um including expenses or how they're funded with revenue and transfers in Okay. All right. So, on to fund 15, which is our corrections fund. Very straightforward, one page, uh, two pages. So, this is where we pay um the lab service fees, the prisoner support fees, um, for the prisoners who go to the Otto County Detention Center, and then any of the blood draws we have for the DWI cases. Got a quick question on 112. Sorry. Sure. Yeah.

It's on page three. What's that 116% increase of transfers in from 81? So I increase their IT allocation um because of the larger percentage of software and IT services that they're using.

Okay, cool. Thank you. So fund 15 um is very straightforward. It is funded by a transfer in from the general fund and it is also funded by corrections fees. So a portion of the corrections fees go for next year. We're projecting $56,000 in correction fee revenue. And so that leaves us $10,600 to make up with with the transfer in from the general fund because we are projecting $66,898 worth of expenses. Um the jail expenses are kind of hard. It depends on how many people go to jail and for how long. So that's one that as you can see has kind of gone all over the place historically. It's been high, it's been low. um this year it's kind of been in the middle. So, we felt pretty confident about bringing it down to the the 65,000 number and then obviously we can see where we're at during the year. There's no questions on fund 15. We'll go on to fund 16. Um fund 16 is our tourism fund. So currently we are not funding any salary and benefits out of that. So that's why there's nothing on page one of four. Moving forward um page two of four. We do have um office supplies. So we decreased their office supplies. We left their promotional

similar. We left pretty much everything similar. We did decrease the um advertising so that we could put as much of it as we could into contract services because the contract services is where we pay our portion of the New Mexico True Grant that we um participate in every year. So that brings in a lot of the state tourism. You guys, I'm sure you've seen our new XO True ads and different magazines and and billboards and everything like that. So really the two big lines in this fund is the service advertising and then is the contract services. Really everything other than that is is relatively small and we left pretty much exactly the same. And this is funded by the general fund. So, this receives a $254,000 transfer in from the general fund to cover the $254,550 in expenses.

It would seem that the lodgers tax almost

that. Yeah. So, this was a former lodgers tax fund. So, when we had the lodgers tax, it was this was the portion that was dedicated to that had to be dedicated to tourism. So that is what this fund historically was. Any questions on fund 16? Fund 17 does not have a page in the book. That is because it is the police court bond that we are required to hold. Um, we're actually researching that to see how much longer I need to hold it. I'm hoping that maybe this is something that next fiscal year we can we can take off. Um, so then the our next fund is fund 19. So this one you'll notice has a lot of history to it but doesn't have anything in the current year. So um prior to two fiscal years ago uh the court automation fund was a very strong fund for us. It was money that was paid through municipal courts to the state court automation fund and then the state court automation fund would send it back to the local municipal courts. um when they changed the law, this it it did away with the court the state court automation fund. And so it really did away with any of the money that the the state had to provide to courts. So where this fund used to be able to fund all of their technology needs, it used to be able to fund their MIS allocation, everything like that, now it is it is completely non-existent. So, it is projected to have a cash balance of $39,730 at the beginning of the fiscal year. And

we are going to transfer all of that out into fund 27, which is the municipal court operations. So, to to fund some of the municipal court operations because this is no longer no longer has any revenue to it. So, it's no longer a viable fund. Okay. So, moving forward to fund 20. Um, this is another legacy lodgers tax fund. So, this was the portion of the lodgers tax that was discretionary to the um city to use for different things. So, this fund is the operational um expenses for the civic center. Um, and then it also has uh the special events expense in it as well, which we'll talk about here more when we get to it. So, um, currently at this point, uh, this fund has three employees. It has one full-time employee and two part-time employees. Um, and so that is that is where the salary and benefit role comes into play. Um, these positions were staffed by different people when we rolled it last year. So, there's there's differences in what the current employees salary and benefit options were. Um, we were pretty diligent. We were very diligent in the expenses for this fund trying to leave them as flat as possible. And um because again this fund is supported with a transfer in from the general fund. So as you can see there's not a ton of big changes. We did make a change to pest control and we did make a decrease to the generator maintenance. Again

trying to line those up with what we see in our actuals. Um really the biggest the biggest changes to highlight is going all the way to page six of 10 and talking about advertising. Last year we gave a substantial bump in the budget um to increase advertising. It really hasn't been used. Um, so we went ahead and and bumped that back down to $300 for fiscal year 2027. Um, same thing in contract services. Um, as you can see, we're at 15,000 this year. We bumped that down to seven for next year. Um the insurance like we had talked about has the increases on it and then again the travel and equipment that we had talked about but the biggest change is going to be on page nine of 10 which is the special events. So, as you can see, uh, we removed all of the special event money, not because we're not going to fund special events, but again, we want to treat it the same way that we are treating travel and equipment and some of these other allocations. We want it to come in a revision form with a plan with a budget that is close to the event so that it can run through you guys as the governing body and it can be a little bit more transparent, a little bit more obvious rather than just giving a flat allocation of money and then there being you know kind of plans throughout the year. So that's the reason that we took that down to zero. And you guys will see that now on the revisions when it comes through. You'll see the revision for Zuboo or the

revision for Easter in the park or the revision for whatever event is being requested. And then the other change is uh the 4th of July. Um, it looks like a substantial change, but remember last year we had all sorts of things with having to pay for fireworks and having to pay for the drone show and having to pay. So, it ended up on on FY26, we ended up with two payments on FY26. So, it looks like a substantial amount, but it's really the two years. And so, then this year, it makes it look like a decrease. It's kind of a dumb question, but uh on the page eight, it says we have mandatory flood insurance for the civic center. Why do we have to have that over there? Do we owe money on the building or

So that comes from the self-insured fund. Okay. So they they come down and tell us which it's not a lot of money. I was just Yeah. The self-insured fund is the one that comes down and says, "Hey, these are the ones that got to have it to be able to do our property insurance." Why does that building matter, but like this one doesn't? It didn't. I don't know if this one has it or not, but we're much higher here than they are there. I mean, this building was built up a lot more, too. That one is flat.

Somebody told me it used to be an old armory. Long time ago.

I didn't realize that. I thought it'd always been a civic center. Any questions on the civic center? And then on page one of two, it has this the civic center revenues. Um, obviously the their revenue at this point in time mostly comes from user fees. Um, and then the user fees that they receive for special events and then uh the transfer in from the general fund to to make up the difference. So, they're projected to make $28,000 in revenue and receive a transfer in of 314,000 to cover their budgeted expenditures of $343,027. Okay, if there's no questions on fund 20, we'll go ahead and move on to fund 21, which is our DARE donation fund. Um, this one's going to look a little sparse at this point, but that is because they are budgeted to zero for FY26, which means that there's no cash balance to pay for any expenses for FY27. Um, so we went ahead and took the expenses out, but that does not mean that they're not going to spend money on DARE. What that means is any of the budget that is left over from FY26, especially the other community relations, which is budgeted at $51,000,

um will move over to FY uh 27. And then also we'll see what their cash balance is at the end of FY26. And that'll give us the opportunity to add back in their salaries and benefits. And then um well, just their overtime. They don't have any other salaries, just overtime. Um, and then the same thing for the travel, special events, any of that money that's left, we'll go ahead and and move it back over. So, no, DARE is not going away. No, we're not funding DARE. We're just it's going to carry over because it's budgeted to zero for FY26. And they are projecting to receive um a little money in um donations. um they're budgeted to receive $1,000. As you can see, this year they've had a really good year. Um they've received 5600. So that thousand is being conservative um to hope that they make that and then we'll see there. And then they're for FY26, they're receiving the $50,000 in opioid money um to help fund that. So any questions on DARE? A fund 24 looks very blank and that's because it is very blank. Um that is the capital improvement fund. So this is a fund that we do not budget until we receive the signed executed grant agreements. So obviously at this point in time we can't receive any signed grant agreements for FY27 because FY27 hasn't started yet. So obviously any of the money that we have budgeted in FY26 for the grants that are not completed or are eligible for carryover will carry over into FY27. Especially if you look at page two of three, you'll see we have quite a bit of money in building improvements,

equipment, and infrastructure. These are the state capital outlay grants that we currently have going. So, these are things like the bear enclosure and the um purchase of police vehicles, the purchase of police equipment. Anything that we currently have going on with the state, if it's not done by June and it's eligible for carryover, we'll do that. And then as soon as we get the agreements and everything for the money that was assigned at this last legislative session, then we will revise that into the budget once those are approved. So the other grants that live in fund 24 other than the state grants um the state capital outlay grants are the step and the DWI prevention and same thing as soon as we get the awards letter for them in their individual years then we go ahead and do the revision for that. Any questions on 24 and kind of how the money flows through there?

Why have we had such a climb? Why have we had what? Why have we had such a climb yearover-year?

Um we've we've been very much more successful with state capital outlay. Um when I first came to finance, you would get one state capital outlay grant maybe. Um, and then gas and oil revenues went up. The states started having more money to put into capital outlay and we started getting four to five. Um, because there were some years, like I said, when I first started in finance, we got zero or you would get one for 250,000 or something. And now you we're seeing four to five, sometimes we get three to four. Um, and pretty close to what we're asking for. They did come back a little bit this year. Um this year they definitely tightened the strings a little bit. Um we only saw three get approved this year. Um and they were not one of them was not even for the full amount. So I think maybe the state is we're going to see that a little bit more from the state is them tightening up on their capital outlay. But that's why it looks as hefty as it does right now. Okay. No more questions on 24. We will move on to 27. So fund 27 is our municipal court operations. So um municipal court is a little different. They their revenue goes into fund 11, but their operations are run out of fund 27. So they do receive a transfer in from the general fund, but part of that is offset by the revenue um that they generate. Not all of it. um they they definitely are subsidized. They don't generate enough to cover all of their expenses, but they do they do cover some of it. Um so they have um five positions um and that includes the judge. there is

an increase in the supervisory salaries because also um in there um is their court leaison and then her assistant um and then the temporary part-time. They do have a temporary part-time baiff and then they also have um substitute judges. So we do budget a little bit for the substitute judges. We did do some increases. Um they requested some increases in computer supplies, program supplies, and we did do those. Um we offset that a little bit um by decreasing um some of their contract services. Um that was partially because they were paying a substitute judge out of contract services instead of paying the substitute judge out of salaries and benefits. So we made that adjustment. Um other than that they didn't have a ton of increases. Um the biggest thing that they are facing that is constantly going up on them is their indigent attorney expense. Um so they are required to um fund indigent uh attorneys for people who claim that they're indigent. So as you can see on page four, we did bump that up to 65,000. Um they're at 50,000 this year. The other thing that caused that increase is the attorneys who are handling that, we were paying them substantially less than they were being paid anywhere else in the state. And so they lobbyed for them to have an

increase um and and get up into what they were being paid um through the rest of the state. So that one that one's just been growing. They're just having more and more people claim that status. So really that was their biggest increase um that was requested. Everything else was relatively minor. And then as you can see on their revenue sheet, we are subsidizing them from the general fund at 518,750. They do have a little bit of that um which is being offset by fund 19 that we talked about earlier. And then um their bench warrant fees do come in here um instead of going into fund 11. So, they do receive about $8,000 in binch warrant fees is what they're question on municipal court. Daryl can answer them all. Okay. fund 28. This is one of our our holding funds. This is our um police contingency. We budget out of here um some cell phone service and for some of our undercovers. And then we also um always have in here every year buy money um in case it's needed for undercover operations. Um we haven't used it in several years, but we include it just in

case. So, as you can see, uh, fund 28 is pretty well funded. It's, um, makes a little bit of revenue, um, from investments that it holds. So, with the small amount of expenditures, it's projected to, um, it's projected to end the fiscal year at 59,621. So pretty basic, pretty small. Same thing with our cemetery perpetual care. This is the money that we hold um in care of when we need to develop a new cemetery. So a portion of the land sales um go into this fund and then it also is invested. So it receives investment income. We have the last couple of years done some transfers to fund 32 to fund some improvements to the current cemetery. Uh we don't have any of those planned at this point in time. So for fund 31, all we have budgeted this year is the revenue which will bring us up to a projection of $893,575 for the end of year.

Who do we have our investments with? Um, so the bulk of our investments are with Morton Securities and they're in low yield, uh, lowrisk bonds. Um, we do a lot of bonds. And where are they?

What do you mean, Morton? They're based out of Utah. Okay. Fun 32 is our community services fund. So we're going to talk about um expenditures first. So our first one is our general administration. So this is referring to community services general administration. Um so this covers two employees, the director and her assistant. Um as you guys know, Ronnie retired in between last fiscal year and this fiscal year. So there's obviously some changes in the um salary projections because it is two different people than it was last fiscal year. Um another small administrative budget really the biggest change is um to program supplies. We we decreased program supplies and then we also um in 2026 we had a one-time expense in um the contract services. So you can see on page 455 that that is going back to the 383. If that contract is not completed by the end of FY26, we'll carry it over. But really um just small expenditures, a little bit of fuel for the vehicle, and then a little bit of employee appreciation. So relatively small budget just for two people in administration. And then kind of carrying on that same theme, starting on page five of 55 is the administration for parks and recreation. So again, two people, the director and her assistant. um they are pretty much the same people that were in

those positions last year. So that's good. So the role is is relatively the same. And then we didn't make huge changes um other than making some changes to fleet maintenance parts, a little bit of change to do and memberships and really that was it. So two relatively small budgets. So if you have any questions on community services administration or parks and recck administration so on page 9 and 55 we have our um we start with the cemetery. So the cemetery currently has four employees. Um there has been quite a bit of turnover at the cemetery. Um so the salary and benefit role kind of has some changes to it, but for the most part they stuck pretty close to what we had already had um in the operational because we with that changeover, we don't end up having long-term employees. So again, kept everything pretty pretty flat. As you can see, for some of these smaller budgets, like on the bottom of page 11, we made a $2,000 change in maintenance equipment. That ends up being 57% because it's not a very big budget. So percentage- wise, it looks much larger. But in terms of actual dollars, it's it's really not that much. Um, part of that was we just didn't feel on that equipment maintenance that they needed the entire 3500 kind of where they were sitting. So, we went ahead and

and brought that down. Um, we did need to repro utilities. Their utilities did not get projected correctly in the FY26 budget. So, that's showing a large increase. Um we did increase their advertising to um give them a little bit more advertising money. Um and then we did of course they saw the same insurance increase that other department saw. And so really those are those are really their largest increases. not a lot of change in the the cemetery budget.

Advertising do we have to do for the cemetery? So part of that is they're working on um mapping everything out and getting everything and so there was some concern that there might need to be some advertisements put out to deal with some of that. So I got you like legal legal advertising. Yeah. Okay. I thought you meant like advertising. Yeah. Well, people are just dying to get in. So yeah, bad joke, right? Vindy makes it all the time. Just a real quick question on the cemetery. As far as capacity, where are we at on that? Do you know? Oh, that's a good question. Um, do you know where you're at with capacity for the

time

left in this one? 20 20 more years. Yeah, we we have that much room. The colarium's helped a lot. Mostly cremation. Yes. Okay. What about in the cre the cremation area? We How much room we got left in the noncremation area? In the in the cremation area. In the cremation. That's the That's where most of it is. Yeah. Is in the 20 It'll give us 20 more years

in the cremation. Okay. Page 15 of 55 starts the rec center. Uh so the rec center is uh they have six full-time employees right now. The majority of their staff is part-time and I think that there is an error on the part-time salaries. So Pedro make a note of that. I need to look at the rec center part-time salaries because they should not have gone up 196%. I'm sure Heather would appreciate that greatly. But

yeah,

I will repro that and then when I bring that back we will discuss that because as you can see pretty much in their other lines they don't have a substantial amount of changes in their salary and benefit lines. Um we did give them a substantial increase in the first aid supplies that is very important in the youth program. We wanted to make sure everybody got their their first aid that they needed. Um, we also did an increase in pool supplies. Um, we have a lot of items that are aging that needed to be replaced. So, we went ahead and bumped that up. Also, based on their past historicals, they were right at that 5,000. Went ahead and moved it up there. Um, we also need to check check for me Pedro. We need to check their copy or maintenance as well. That doesn't we did give them an increase um a pretty substantial increase in maintenance for the wreck structures. Um there was additional items that need to be fixed. The building is now 30 years old, 31 years old. Um, and so there's going to be some additional improvements and ongoing repairs that are are going to become more important, including um, one that's probably not going to be able to be covered under this that is going to end up being a capital expenditure, which is the the wall um, the west facing wall that is part of the original old rec center structure that was built around that is going to need to be rehabbed. So, like I said, I don't think they're going to be able to cover this, but there are other additional repairs that that need to be made. So, we did

give them additional maintenance money and wreck structures. Uh, we did decrease their contract services um kind of down again to a number that was a little bit more in line with their actuals. And then I did also want to point out their consultants. Um Heather does a very good job of revising this number as the year goes. As she makes more revenue on those programs that have instructors, then she goes ahead and revises the instructor expense. So that goes directly in parallel with each other. I do want to point out on page 24 of 555, I did remove the contingency that was um in this line that was in this fund um to help balance the fund as a whole. um once I review what's going on with the salaries and benefits, if that's something that I can put back in there, I will. Um but we did go ahead and take that out. It's a contingency that we had had in there for possibly emergency large repairs um to of course be able to keep the pool open and be able to keep the rec center operating. Are there any questions on the rec center budget? Okay, starting on page 25 of 55 is the parks budget. Um, so the parks have currently have 19 um approved positions.

They have, as of the time I rolled the budget, they have three vacant positions. So for the most part their salary and benefit role was pretty close. They are one of the departments that had a significant increase in the amount of people taking insurance. Their their insurance um the people who opt into their insurance increased substantially. Other than that um we did increase their fertilizer and herbicide. Um, as you can see the notes there from Eric about um when the applications are going to be and um how much he has planned for both of those. Um, I think that this number could possibly climb. Um, fertilizer right now is climbing like crazy um due to the the war overseas. So, um hopefully hopefully that gets resolved and we can get that number back down, but that number could really grow on him. We did decrease the amount of uh money that we allocated to equipment maintenance and we also gave him a small decrease in uh parks maintenance. That's really just due to a carryover from FY25 to FY26. 120,000 is is more indicative than the 122. And as you can see, Eric has really good notes there that are detailing what he's doing. Pretty much everywhere else he had relatively small changes. Um, again on page 31 to 55, we're talking about the tools. We did the same thing here where we did leave them an allocation for tools. Um but we did decrease it into a smaller amount with the understanding that you know if it comes to it we can look at that for a revision.

Any questions on parks? Okay. So, on page 32 of 55, we've got the zoo. Um, the zoo currently has 10 full-time employees. And so, the kind of big change that happened in the zoo in between FY26 FY27 is it moved from being a department under the community services director to being a department under the parks and recck director. So, just kind of a change in organization, but not necessarily a huge change in the budget. Um, as you can see, the staff uh had their we have their um rollover was pretty close. We did increase their gift shop um supply budget. Uh they are having good luck in the gift shop and and making some good revenue. So, we went ahead and increased that to allow them to have not only more stock, but have higher quality stock. So, um, if you haven't been to the zoo gift shop lately, it's pretty cool. They have some really nice stuff. So, definitely take a look. And so, that was their big increase there. You'll see on page 35 and 55 they're showing a substantial decrease in program supplies. But that goes back to what we had talked about earlier that we are taking that instead of having this big catchall program supplies line. We took that out and broke it out and did things like you know we wanted to make sure that they were showing maintenance supplies and that you know things were broken out a little bit more. So Kate is very very good about putting notes in her budget. So you can see like what we left under program supplies for their animals. Um what is under that but then

if you look on starting on page 35 going on to page 36 it has the breakdown of what makes up those maintenance supplies. So previous those had all been under program supplies but this gives us a better idea to like how much does it take to maintain the zoo, how much does it take to maintain the exhibits, everything like that. We did not give them an increase in animal feed. Um that is one that they're managing pretty well, but it is something that might we might have to look at midy year to see depending on how prices are going um with hay and some of the other products that they buy. So the um you'll notice on page 37 the maintenance building and structure how it does not have a budget for FY27. So this was a new line for them in FY26 that was added after the budget process. So that's why it's showing 100%. It wasn't a line that we cut. It was something that got added later. It could be something that as they need it throughout the year, it would be done under revisions. Um, big change at the zoo. The zoo got a copying machine. I felt very bad because I did not know that the zoo did not have a copying machine or we would have gotten a copying machine earlier. Um, but they did get a copying machine in FY26. So, that expense will be there in FY27. And you can see we did decrease their contract services a little bit. Um some of that money in FY26 was a carryover, but you can see the breakdown of what they're going to use their contract services money for.

Other than that, not a ton of changes um going through the rest of the lines for um the zoo. I did want to highlight on page 42 that we did leave um 15,000 in the new animal expense. so that as um Vinnie and Kate and her staff identify additional animals that they want to bring to the zoo, they do have some money that's already in there um for them to be able to negotiate. What building do we rent from Union Pacific? Huh? What building do we rent from Union Pacific? We don't rent a building. We rent the alley.

Oh, they use their we pay since we're so close to the railroad tracks. Okay. Any additional questions on the zoo? Okay. On page 43 to 55, that is our community affairs. So that has four um positions in it. when this budget was rolled, two of those positions were vacant. Um, so there is a little bit of difference from the vacancies, but not too much. Um, as you can see, we made some changes in this budget. Again, we made that program supply change um and moved some of that money around. Um we um again this is one of the ones that we took the printing out. So as you can see for FY26 we had $12,000 allocated to printing. None of that had been spent. Not going to keep allocating funds that aren't being spent. So we went ahead and brought that one down to zero. Um and that can be done on a revision basis as they need it. um and that is the majority of their lines are are relatively small and are going to be really done um on revision basises. So, we really didn't allocate any new money there. Um didn't make a ton of changes. I know that Eileen is as the new community services director is reviewing that department and seeing what um organizational changes and operational changes she wants to make. And so I think you'll be seeing those in the near future.

Okay. On page 46 of 55, we start the library budget. So the library um currently has 11 positions and two of those are vacant. So we went ahead and did the salary and benefit role. um theirs pretty much stayed the same as close as it could obviously with the group health insurance change. Um we did not make significant changes to the library other than giving um additional money and program supplies a little bit. We did cut money out of books and periodicals which is on page 49. um part of that. So that money is there's a couple different funding sources in there. There's local funds, there's money that they receive from the state go bond. Um and then this is also where the county money goes. So at this point in the budget process, the only money that we budget in that line is the local money. Um because at this point, the uh county hasn't had their meetings yet to decide how much they're going to allocate. and then we don't put the state geo bond in there until it's finally approved and then um we roll that money over as well. So it looks like a substantial decrease because it's going down to 60,000, but really at this point it's just showing the one funding source, but we did decrease it. We were doing a local match of 70,000 um instead of 60,000, but we weren't really getting close to spending all of that. So, we went ahead and brought it down to 60,000 to kind of see where that puts us at. Their designated materials is tied directly to their donations. So, as they get more donations, we do revisions to increase their uh designated materials

and then we reconcile that at the end of the fiscal year. One of the other large changes is on page 52 of 55 and that is the change in contract services. Um so we did decrease uh contract services by $5,000. Um, as you can see, kind of there's the detail of what they'll be doing with those contract services. Uh, this is another one that depending on how the fiscal year goes and what type of events that they're wanting to have, they can request to do a revision to increase this. But for right now, this is this is what we were we were happy with. We were able to also on page 54 do a decrease of their postage. Um, same sort of thing. They just have less inner library stuff to to mail. And then they had the same decreases on page 55 that the other departments did. Travel equipment. Again, not taking it away, just changing the process for going and requesting those funds.

Yes. So they had a a state capital outlay grant. Um and so that's to do the north patio area. So that is progressing quite nicely. Yeah. The inside too for ventilation. Yes. Uh and they had some local money for fire systems. Um and then they of course were part of the energy efficiency contract that we did. Okay. So that's page 5555. So that is the expenses for fund 32. Does anybody have any questions about any of the expenses for fund 32? Why the 30% decrease for the library?

Um mostly because of the the change in the books and periodicals was a big that was a big decrease on a relatively smaller budget. More and more things going online. more and more things are going online and um the state actually funds the library pretty well. That state geo bond is is really good. Um and so you know we want to maximize that. Of course we can maximize state money and we can maximize county money than you know like local money always we kind of want to use last. Got to ask the question but how long do we want to stay tonight? We still got quite a bit. We are getting into some of the really quicker ones though,

faster ones. Yeah, because like all of these 37, 38, 39, we're getting into a lot of the ones that'll go pretty quick. We're through some of the bigger ones. Okay. What time is it? Uh 8 8:15. Oh, that's nothing. We got three more hours. No, good. You don't start at 4:00. Yeah. Actually, I did. Nothing against you. It's just I know this stuff's a little boring. So, I know. Well, I'll go faster. Okay. We're get, like I said, we're getting into some of the the quicker stuff, the ones that we can kind of go through. We want to maybe go till 9 all hour with that or

10 10:30. Got a lot of day. I got tomorrow. You only need six hours of sleep. No, function good on six hours. Do we want to get more than halfway? Uh what do we have tomorrow? I think if we can I mean truly I and I'm not joking like yeah a lot of these

37 38 39 42 48 49 50 53 54 56 59 all of those I mean we can almost just not even go through the sheets. We can literally just talk about them from the recap. So the big ones that we still have left would be 33 is pretty quick would be uh 44 which is streets, 81 which is water, 63 in community development. So we probably have seven big funds left. But like after all of those after the after 94 like again those are ones we can talk about pretty quickly. So let's keep going. We'll keep going.

All right. What page we on? Uh we are on page 109 for 32 revenues.

So um again 32 very heavily funded by the general fund. 5.9 million is a transfer in but then you can see the breakdown past that. The cemetery generates money from opening and closing fees. um parks, you know, doesn't generate a whole lot of revenue. The rec center does. Um the rec center is doing very well with its revenues. Um so they're all broken down. Um and like I said, Heather's very diligent about keeping those up during the year and then revising them in the budget. There's not very much parts. Um same thing, the zoo's revenues look really good. Um so we were able to project those. is we left them relatively flat because we projected them up pretty substantially um last fiscal year. So um we were happy with keeping those flat, but they are meeting their their revenue goals. Um and then the library does generate some revenue off of printing and copying their fees and their fines. Um and so fund 32 is slated to generate $59,145 in revenue. The majority of that comes from the rec center and the zoo. And then they need the transfer in of $5.9 million to to balance it and cover the $6,472,000 in expenses. Any questions on the revenue for the community services? Okay. So, that takes us to the fire protection fund. So, the fire protection

fund is um funded by the state. So, the state does the revenue based off of the um gross receipts tax for the area. And so, our projection this year for the revenue from the state will be $93,78. It will most likely be higher than that. um last year we were at 1.1 million. So we're being kind of conservative trying to keep that um number there. And then the additional revenue that they're going to receive is from investment income. So kind of going back then to the expenditures. So fire protection, the amount that we claim for revenue, which is the $93,78 has to equal the expenditures. So you'll see our expenditures are $93,78. So that those two match. Um we can go through these in detail. We don't have to we have to spend $93,00078 out of this fund. We really don't have any choice um because it does have to match per the state. So, um, if you want, we can go detail through them or if you're fine with the way that the fire department allocated them. There's there's nothing we can take out because we do have to budget to that expense number. Um, kind of big highlights for them. Obviously, um, they spend a significant amount on equipment. They did increase their clothing substantially um to refresh their clothing supply and then they are one of the funds we did leave um travel in this fund um because it is regulated by the state

they pay a substantial portion of their travel out of it. So that's on page 506. So you can see kind of the two large lines there is the travel and then the equipment at 19173. And then if you look on page 60 of six, you will see for this year there's a very large capital equipment budget that's for the new fire truck that is currently in design. Um and so that of course will carry over to next fiscal year. um when because it won't arrive yet and so we'll keep carrying it until it actually arrives.

What's your what's your expected date for your fire truck now? It's actually going to be fiscal year 28. Jerry says we're going to have a joint commissioning and his retirement party. He's going to

drive the new fire truck out. This will actually increase and expedite this process. It's not just the city. This is across the entire nation and these fire manufacturers keeping and saying it's got set back from years ago. It's just the last purchased that was actually all a year on that one. This one March 23. They just keep saying we haven't gone yet. So usually for prey any questions on fund 33. Okay. Fund 35 is our highintensity drug task force fund. So this is one that we do not budget. um until we receive the grant agreement. So um as you can see, there's no budget there for FY27 because we won't receive that grant agreement until substantially after FY27 starts. Fund 36. This is the law enforcement protection fund. So this comes directly from DFA. This is another one that the estimated revenues have to equal the budgeted expenditures. Um, so DFA has been nice enough to come and tell us that we're going to receive $170,000 this year. So, as you can see, we have $170,000 worth of expenditures budgeted. Um, it is in other um inservice training and it's in equipment. So, two lines, revenues equal expenditures.

And that is um for the police department specifically fund 37. This is the state highway fund but what it is used for now um pretty much exclusively is the keep Alagorto beautiful project. Um and currently that's a pretty small program at this point. So pages one through three um detail out the program supplies that are $7,920. And so that is the only expense that is budgeted in that fund. Currently uh we are budgeted to receive um so these fees come from the solid waste contractors. So we have budgeted uh an expected revenue of 31,200 from that. So, this fund kind of continues to grow. Um, and then hopefully we get it to a certain point that we'll be able to do like a large project with it. Fund 38 is our traffic safety fund. So, this is funded by fines um for traffic safety that come um from municipal court. So this year we have uh an estimated uh budget of $15,000 for those fines and then we have a little bit of interest that's there as well. Uh this fund we actually as you can see in FY26 we had a large expenditure of 80,249 that was to purchase a police vehicle. So this fund is is a little bit down right now. Um, we're only projected to end the year with 38,000. So, we don't really have any large expenditures in here, just kind of some supplies and equipment. Um, because this

fund will kind of have to grow back up before it can do anything particularly large. Fund 39 is a straight pass through. These are the old judicial funds that um were paid to municipal court under the old state law. If you still have an outstanding ticket from that time, then they still have to pay those fun those fees. So, we're we have to keep it going until we have all those tickets taken care of. So, straight up pass through $8,500 in expected revenue, $8,500 in expected expenditures. Fund 42 is a gross receipts fund, gross receipts tax fund. The m majority of the money from this fund goes to fund 44 which is the street maintenance fund. So as you can see um first with expenditures really the biggest one is that transfer out to fund 44 at 2.7 million. Um but it does have some debt service attached to it. So that's the 260,000 of debt service. Those are the only two expenditures out of fund 42. And then on page 10 of one, you can see the revenue. We're projecting $2.4 million. Um, it does have some investment income in it. Um, and so total expected revenue for that fund will be $2.5 million. With everything said and done, that should leave us a value a balance in there of 1.3 at the end of the fiscal year, which gives us the opportunity to fund additional um projects in fund 44 as the year goes on. All right, fund 44. So, this is um street maintenance and the majority of

public works. So on page one of 21, we have the public works um we have the transfer out to fund 12, but we also have the public works general administration. So that is a portion of the public works director salary. Not all of his salary is in there, but a portion of it. And then um the salary for the administrative assistant. So, um, same few people that were in those positions last year, in those positions this year. So, the salary benefit role is pretty straightforward. We didn't make any huge changes to them. Um, again, another small budget, so making a change of $160 seems like a whole lot, but it's it's really not. Um, we did increase their safety supplies, decrease their program supplies, um, and made some some other small changes. This is also the um, part of this fund that deals with the maintenance of the public works building over there at the shop. So, that's why you see maintenance lines, building maintenance lines, um, in there. And then obviously the big thing to point out here is on page six of 21 this is the contract services. So you can see um there's two big numbers in the contract services. One that is the zia therapy um for ztrans. So that's actually going to go out to RFP here shortly. Um we need to RFP it. So we are expecting an increase. So that's why we have a budget at 250. And then we also have on call support, engineering support fees um to deal with some of the requests that come into public works that need to be handled by the engineers.

So that is the largest part of the administration budget is that contract services line. And then as you can see as you get towards the end of it, same thing. We remove the travel and equipment. And then once you get to page 10 of 21, this starts the street maintenance. Um, so the street maintenance at the time of the budget roll, we rolled 13 positions. of those 13 positions, five of them were vacant. So that is that is the role. They also had some longtime employees retire. So that's one of the reasons that you see the decrease in the operational is those larger longtime salaries rolled off. We did, if you look on page 12 of 21, you'll see there is a substantial change in supplies u markings and signs, we did increase that up to $225,000. Um on the next page, you can see the breakdown of what that goes into. Um improving marking signs, um improving the crosswalks, and improving some of the digital radar signs. We um left most of the other lines, the maintenance lines and the supply lines we kept relatively flat. We did decrease a little bit on page 14 of the um equipment maintenance and of the traffic controller maintenance more down to what

we thought was was more approachable. We also left street maintenance alone. um because we felt like that was an adequate number. And then another change is on page 15 of 21. So we decreased the amount that was in contract services um because we moved some of the money that was there. we moved to these um marking and signs and then we also some of the things that were originally put there are actually capital expenditures and need to be put in capital. Um same thing we decreased the equipment rental um because we really had not used a substantial amount of the equipment rental in FY26. So we went ahead and decreased that down to FY27. So that's the highlights of the street maintenance budget. You have any questions on street maintenance? Our next the next part of that is the weeds and drainage. So the part that is applicable here is going to be page 19. So that talks about the contract services. So uh we have a budget revision coming in front of you guys um on the 28th. Um that will increase that number even higher for FY26. Um because of the amount of work that K&G has been able to put out and get through. Um, we went ahead and gave them permission to to go ahead and enter into more task orders and push that through. And then we have 460,000 planned for next fiscal year, which will um continue the ditch maintenance and

getting the pre-emergent spray, getting the weeds um abatement handled and getting that program going. So, that is where that is funded. the ditch that's running on the south side of the golf course on number 11. Are we doing that? I'm sorry. Say that again. The ditch on sorry the the ditch on at the golf course on the south side of number 11. Are we clearing that ditch out? Do you know? I believe so. I believe that's one of Yeah, that's one of the K&G task orders.

Yeah, part of that program. Any questions on street maintenance or on weeds and drainage fund 44 does have some revenue sources of its own. It has a small gross receipts tax. It also receives a state shared gasoline tax and then uh part of the auto license. So we are projecting that those revenue sources will bring in 1.22 million that along with the transfer in from fund 44 of 2.7 covers the projected expenditures of 3.4 and then like I said there is additional money left in 42 to do additional projects or do additional weeds and drainage work. Okay, next fund is fund 48. That is the New Mexico CDBG. We do not have currently have a CDBG grant, so we do not need to talk about it. Um, after that is fund 49. That's our 1996 gross receipts tax. So, um, that has some expenditures tied to it. It has the legal contract for the, uh, water right attorneys is paid for out of there. Um, and then we also have our well improvement line that we fund uh with $200,000 every year. So that is also funded out of fund 49. It does have some debt service that is attached to it. Um, so the debt service transfer is there as well. That is um 371,000 this year. And then it is paying some money to both the general fund and then a little bit of money to fund 81 to offset some debt from there.

But that is the majority of what we use fund 49 for. Fund 50 is our property acquisition fund. We use that um in case we have it basically in reserve in case that we need to acquire any property that is outside of our normal scope or cannot be paid for with another gross receipts tax. Fund 53 is our general obligation bond fund. So this is paying um for our 2014 A, 2014 B and 2017 GEO bonds. Um so you can see the breakdown of the principal and interest that's paid there. And of course that's funded with the property tax. Fund 54 is a reverse osmosis project. So this was for the del facility. We're still holding some cash there. Um there's some work that's going to probably there's definitely some work that's going to need to be done on the parking lot. Um $20,000 isn't going to be enough, but we are still kind of holding that money there. 56 is our flood control fund that we are going to be able to close out. Uh we are not holding any money in there right now. Fund 59 is a debt fund. So, this is where we pay our nonwater and sewer debt service. So, as you can see, we have a breakdown. We're paying fund uh loan 19, 21, 20, refunding of loan 15, refunding of loan 16, and then we're also paying the new energy efficiency loan out of there. Um, and so this is where the debt service is. This is funded by couple different transfers. uh transfer in from 42, from 69

um and from 109 because this is also where our street debt is. So just straightforward debt service. We do have some loans that are going to be coming off here pretty soon. So we're excited about that. Fund 61 is a gross receipts tax fund. Its main purpose is to fund fund 63, which is formerly the engineering fund, but is now the community development fund. So, as you can see, it's funding that with a 1 uh $285 million transfer out. That is really all that fund does at this point. Um, it does receive money from gross receipts tax. So, we're assuming about $622,000 for next fiscal year, which leads us into fund 63, which is now um the community development fund. So, as you can see on page one of 16, their general administration right now is very small. Um it just has the salary and benefits for the community development director. Um, this is something that when we bring the final budget to you will be fleshed out a lot more with actual operating expenses so she can operate her department. But then getting on to page three of 16, this is where now we have planning and zoning. So, uh, this is what was moved over from the general fund was now moved over here. So, at this point in time, planning and zoning has um two employees. It has the assistant city planner and the administrative assistant um which is going to be reclassified to an executive administrative assistant moved around a little bit. So, this is one of those funds that's going to kind of shift around a little bit.

Evelyn, I have a question on the uh FEMA and zoning review fees. We're showing nothing for 23 to now, right? Because it was in the general fund. Okay. And it wasn't was it showing there?

Yes, because those are the ones that we looked at and we I was talking about how it took us a while to get them lined out and that were some were in the wrong lines. But yeah. Um Okay. So, planning and zoning, I don't think we really made any changes to their budget. It was very straightforward. Um about the only thing that um I wanted to highlight there was on page five of 16 the contract services. So this number is very high right now for the FEMA flood plane determinations for paying the engineer to do those. Um obviously this is something that we want to bring back in house and so as we get that developed and we get that those certifications this number will be able to come back down. But that's why it's at $100,000 for FY27. And then on page six of 16, we kind of get back into uh what has been historically in fund 63. So this is engineering. So engineering currently has eight employees um which at the time I rolled this uh three of them were vacant. We did make some changes um on the engineering budget. As you can see, the majority, if not all of those changes were to decrease the budget um as we're kind of growing engineering and figuring it out. We gave them some money last year and then we were able to come back this year and and get that kind of reconciled. So, as you can see, we everything on page eight was a decrease. Everything on page nine was a decrease. And almost everything on page 10 was a

decrease except for the insurance um and for the postage um because we definitely need to increase the amount of mailers and notifications and things that we get out. But then going back to page 11, um, again, we we did a substantial amount of decreasing in this fund to kind of get it to where we thought historical level showed us. Page 12 of 16 is the um safety department. So, this currently has three positions, two of which are vacant. And so, mostly salaries and benefits for them, but they do, starting on page uh 14, they do have some um operating expenses. Um we got the cell phones situated. Um and then also gave them some money for marketing so that they could start um doing some outreach with the contractors and doing some outreach with the city employees.

We really pay the supervisor in that department 116,000 for the salary and benefits on it's on page 12. No. So that has two positions rolled up into it. It has the uh safety coordinator and the safety specialist and the safety specialist should not be in that. So I need to move that. They should be behind the in the other the operational side. Yeah, because you see how operational zero. So those three employees are all rolled up. So I need to roll them down. All in the supervisory side.

Yeah, they're not all supervisor. Any questions on engineering or safety or planning and zoning? Can I ask you a quick question? Sure. How are we doing for safety? Do we have a large number of accidents to be reported? Say we have a large number of accidents. Says yes. And safety should be proactive to reduce that.

Absolutely. And that's something that I know Dave is working very hard on. And then obviously, you know, Shelley will be working hard on as well. We're working on launching a new software called KPA, um, which does better tracking of our employee safety training and more accountability of safety features. Um, so yes, it's definitely forefront on everybody's mind. When you have better safety, you have better uh efficiency in your city. Absolutely.

Okay. Any additional questions on anything in fun 63? What are we buying stickers and poker chips for? Outreach for the employees and like stickers for the hard hats and you know you're being safe on the job. You get you know token poker chip. Yeah. goes a long way towards um increasing morale. Yeah. You know, like on when they put the stickers on football helmets. Same thing.

Okay. Um 63 revenues. So, um, normally the revenues for 63 have just been the transfer in from fund 61, but um, as you can see, moving the planning and zoning budget over there, we do have the now the budget for the different permits and the different, um, zoning review and then the FEMA determination Fund 69 is a gross receipts tax fund. Um this is that strange one that can be used for fire stations, police substations, and the library um and drainage improvements. So um this is one that we do use it uh it is attached to um some debt service and we do use it to make improvements. We can also use it for the airport. So we do use it for um transfers out for some of those improvements. But this one has been growing pretty substantially. It's slated to bring in 2.692 um revenue and then it's um only slated to spend 43,000 and then some transfer out. So this fund will grow again um in FY27. Fund 7 is the senior center. Um, so this is the strangest budget out of all of our budgets. Um, because this is the one that is broken up into congregate meals, home delivered, transportation, fitness, um, and then it's also funded substantially by the state and the federal government. So at this point, the only local money that the city is putting in is we put in the money for the salaries and benefits and we put in the money for the building maintenance

because those are the items that cannot be paid for under the state grants. Um and actually we do usually end up towards the end of the year paying some of the salaries and benefits out of the state grant because for especially for transportation it's very hard for us to spend all of the state money and not use it for some of the salary and benefits. So we do right now the detail that you see in there is um focused on the food and focused on kitchen supplies and everything that is all the state and federal money. And then um getting kind of further in where it talks about building the utilities, those costs are the ones that are paid for with the local funds. So, we estimate that we'll receive $731,000 in revenue. Um, and then a transfer in from the city is $876,500. And like I said, that the almost all of that is salaries and benefits and some building expenses.

It's a pretty efficient center. Is a pretty efficient center. Is it a marketing tool for this? if we've gotten some awards and we thought up well around the state. Um, that's a good question. Um, at this point we don't market it as much as we probably should. Um, and we probably could market it more. Um, it definitely helps us because the more units we have participate because all every time somebody goes in there and every time somebody participates in one of those programs, it's logged and we report all of that to the state. And so the state looks at that and the more participation units you have, the better chance you're going to get your funding and keep your funding.

It's one of the better ones in the state though.

I would No, I don't travel around to a lot of senior citizens. I'm according to according to yes we are kind of like the poster child for the senior center especially including the amount of volunteers that we have that give we have over 100 volunteers and that's per the state that's kind of unheard of. Why why are the salaries increasing so substantially on page uh 10 of 14 a 75% increase? That's a good question. That one probably needs to be looked at. Something's going on with my part-time. Write the senior center down on there, too,

cuz I agree that does not look correct. Okay. It's probably the same thing with the with the rec center. Something's going on with part time. The group health is going up 81%, but it's probably because of that. That one I would say actually has to do with staff turnover and they're having new staff that probably took more, but I'll double check that one too. Okay.

So, as you can see, Magdalina puts a lot of details in there. Um, so there's a lot of information in there about what each of the lines are paying for. Um, and like I said though, we really make sure that all of the federal and state money go to, um, food, uh, kitchen supplies, everything like that, that it's it's really focused on that. And then we focus the local money on the building maintenance and on the salaries and benefits. On page three, you have your $10,000 line and a $35,000 line, and they have the same description of what you're purchasing.

Yes. So, that's going to be broken up in between one is the federal line and one is the state line. Okay. Because each of these lines represent a different project. Okay. So, we spend a total of 45,000, but 10 comes from one. Correct. 35 from the other. Correct. And so that's like the same thing if you look at page four under commodities. So one of those is the home deliver federal and one of those is the uh congregate meals federal.

Okay. And so like as you can see on page seven, the decrease to fire systems is not the fact that we're not checking the fire systems. It's that we're moving that money from maintenance fire systems to services fire systems. And then on page nine of 14, the difference in the contract services. So they currently have been hiring uh contract services. They lost their longtime janitorial person. And so they've been doing contract services to kind of fill in that space um from when Jamie left to when they're able to to hire a replacement. We don't feel like that that's going to be necessary in FY27. So that's why you're seeing the decrease there. Any additional questions on the senior center? Okay. So, um, page 105 goes back to kind

of what we're talking about about the revenues for the senior center. So, as you can see, um they have some local revenue that they receive kind of small amounts on that first page, but then um as we get into page uh three, you can start seeing the NSIP money um at the bottom of page three and then kind of how that breaks out. And then at the bottom of page four, you start seeing the federal money. Um, so they're slated to receive 145,000 in federal money, how that breaks out over the different programs and then the big pool of money, which is the 402,000 that they receive from the state and how that's broken out over the four programs as well. So, they're actually slated to receive 547,563 from the state in grant money. Fund 74 which is on the next page is the senior center gift fund. So the senior center gift fund is um where any um any items that are gifted to the senior center monetary are recorded here along with donations and then those items are used mostly to put on special events at the senior center. um for example, New Year's, um Mother's Day, Valentine's Day, and other other dances and things that they have. So, really the only expenses there are those um those small ones. And then we do estimate their donations. So, next year we have estimated $8,000 in donations and then 3,329

in income. So that fund kind of usually foots pretty close to zero. And then a lot of times they'll use the fund balance to do projects or to do other other items. Fund 75 is the retired senior volunteer program. So this is where the uh senior companions, foster grandparents um and companion programs live. So this one is very similar to fund 71. The majority of it is funded by the state. The city, our local amount um pays for salaries and benefits and really even the state grant pays for some of the salaries and benefits. So for the most part, this whole program is funded by the state.

Your health, your group health, is that a typo or we can double check that. We do have we do have a new employee in that position. 3200%. So, we'll look at that one, too.

Okay. So, and some of the increases actually that you're seeing is um they did receive a pretty significant budget cut this year. So, like if you look at office supplies, it's at $54 and next year we have it at 300. They did receive it was originally at 300 and they received a large budget cut just about a month or two ago. Um, so it's possible that they could not be funded at this level that they are, but AAA in the past has usually funded at the same level and then they cut later in the year. So that's what we're kind of assuming that they continue that same pattern. And so that's the same thing like with program supplies. It wasn't that we gave them $1,900. That was what they were originally at before the cut. So, that is something that we will double check with too um as we come for the final budget to see if we can get a read from the state to see if that's something that they're going to do again.

Okay. Yeah, it just goes from 9600. Yeah. To 687 to to 23,000. So, just looks like a typo.

And that's Yeah, that one I think definitely. But like the ones that are further in like services contract, that's that's a decrease. I mean, we we did cut their budget substantially. Any questions on the senior volunteer program? Okay, next up is fund 81. This is the water sewer fund. Um, so we'll start the transfers out. Um, they transfer money out to internal services and they transfer money out to the water sewer debt service uh because they do have debt service tied to the rates. On page two of 52 is the Bonito water supply. So this is the operations just for the Bonito water supply, not for the Bonito campground. That's in a different fund. So um pretty small operating budget, electricity, phone service for the watch and warning system. And um on the next page, as you can see, we still have the capital line for Bonita Lake Restoration. We have some money in there um in FY26 for the upgrade to the watch and warrant system. Um and so that that is where that is ongoing. And so if that project's not completed, it will go ahead and carry over purchasing. You can see um we did move all of the salaries and benefits out of purchasing in 81 and moved it to fund 12 because by having it in 81 and in 12, we were double allocating. So, we did go

ahead and make that move. We do have a few supplies uh lines that are left in there. These are relating to the warehouse. Um so, this is specifically for the warehouse staff. So, safety supplies, some cleaning supplies, um and some fleet commercial parts, pest control, but this is just specifically for the warehouse employees. And we did not really make any large changes in there. Either increases or decreases. Evelyn, just a question on the

Sure. Uh decrease on Bonita water supply and the utilities department as a whole. Um, just from this year to actual, it's like pretty big decreases. On which page? And I'm sorry, I'm back on two of 52. Two of 52. I figured I'd ask before you kept going. Sure. Um, so you're talking about uh with the utilities department. Um, oh, I see what you're saying. like in the in the blue bar and the Bonita water supply.

Sure. So, a lot of that that's going to be tied to capital. So, um there is at least $28 million in capital budgeted when you see when we get further down the budget. So, um obviously that's budget 26, but it's not going to be budgeted in 27. It'll carry over. And then kind of indicative of that in um Bonito water supply if you look on page three of 52 the Bonito Lake restoration. So that's 479,151 that's budget in FY26 that's not in FY27. So that's going to that's going to show that big decrease and you'll see that especially in the capital accounts as we get further to those. Any questions on the warehouse in fund 81? Okay, so page seven and 52 starts utility billing. Um so in utility billing I have 14 positions. Um of those 14 positions, seven of them are vacant. Um and that is all in the building clerk staff. Um, so right now utility building is operating with a utility billing manager and a utility billing supervisor. Uh, we have tried and we continue to try to interview and hire um, building clerks. So, we're going to keep on keeping on.

It's a difficult thing to do. Have you looked at contracts outside?

I have looked at contractors. Um it it's hard because it's not a skill that's readily available. Um so we would still have to train. Um and so training temporary is it might be where we have to go really at this point. We have interviewed 17 people. Um we have managed to hire one. The rest have either not passed the background check or have declined the job. So it's not that we're not interviewing. It's not that we're not trying. We just can't either seem to get people to pass the credit check or pass the drug test or actually start.

And the rate increase took place in what year? Uh the rate increase took place in fiscal year 24, right? No, 25 because we're Yeah, because we're on the third year. This will be the third increase. Would it be unfair to say we haven't captured a lot of that revenue because of the utility billing issue? Oh, no. No. We're still I mean, we're still billing. We're still collecting. We're still cutting people off. Like, we still And we're still collecting it. Uh, do the numbers say that?

Yes, the numbers are actually when we get to the revenue. So, the numbers are right on the numbers that based on what we've projected and what we're hitting are right on. Uh so on page 7 of 52 this gray bar for utility billing what all does that include? That is only expenditures and the revenue will be further down. Correct. Thank you.

Okay. So going through salaries and benefits for utility billing um and then getting into um their budget. We did increase um their office supplies um to hopefully that were fully staffed. Um and we're going through toner cartridges like crazy. So we increased it for toner cartridges. Um we also increased um or actually we decreased our safety supplies. We did increase our meter supplies um to get a little bit closer. We're we're seeing a lot of additional freight charges. Um and then we did almost immediately on our meters see a tariff charge um as soon as they were in place. So we are hedging against that. We don't think that either of those fees are going to go down. Um we also increased our fleet maintenance part um to we go through tires a lot. um the utility billing staff drive constantly. So, we want to make sure that we can replace those. Um other big changes is um the utility billing does pay a portion of the electricity for city hall. So, we did project that up some. Um, we also we need to look um the mobile internet because I do think I need to continue paying that one more year for the devices that they use to program the meters. We did um just like we did in all the other departments, we did go ahead and take out their printing line um and that will be done on a revision basis. They do pay a portion of the general liability for city hall as well.

We um have more people paying online. So, we did um increase our credit card fees uh to take it to take into account that we do have more online payments coming through. And we did um on page 14 of 52, we did adjust our uniform budget um to be more in line with what we are actually spending. Um we did at one point think that we were going to go to private uniforms, but we we changed our mind on that. So that's where that change came from. And then on page 15 and 52, we do have our annual allocation of $300,000 which we allocate to the meter replacement project. Um, so we will carry over the balance of that in FY26 over to FY27 because in FY27 and actually towards the end of FY26, we are in the beginning stages of our next meter replacement project. Um, which is being funded through infrastructure as a service. Um, and so for Commissioner Hernandez and Commissioner Patiel, I will send you guys some information on that. um since you all weren't here for for those presentations and stuff. Um so that you can start reading that and if you have any questions, any questions on utility billing? Okay. On page 15, um we have the utilities fund general administration. Um and so this includes a portion of the utilities director salary and uh his admin assistant. Um, and so this encompasses the majority of the expenses for operating uh the utilities office out at Loo.

So on um page 17 starts those um operating expenses. Again, relatively small. Um we actually allocated the uh facility maintenance building and structures and communications differently. um to get those more in line with water production. Um the uh utilities does pay a portion of the annual audit. So that is under audit services on um page 18. The services administrative is the allocation that fund 81 pays to the general fund um as an enterprise fund for the administrative services. They kept that flat now um but there will be a reconciliation for that before the final budget. You will see on page 20 um a substantial increase in other community relations This was part of a discussion during the city manager director meetings about doing more outreach um for the utilities department. So um they were funded $20,000 to um purchase items to do that community outreach like we had discussed earlier um in the evening. So for purchasing items um and going to different events Okay. Are there any questions on utilities general administration?

Ever consider doing a video? Sure. We um actually uh utilities has talked quite a bit about doing marketing videos um and doing some some additional information to get it out there and talk about you know this is it's what the rates are paying for. This is our system. Um as you guys have seen like it's a very vast system. There's a lot of stuff out there.

Okay. Um, moving on, the bottom of page 21 is the start of utility maintenance. So, utility maintenance currently has 20 approved positions and when I rolled the budget, they had four vacancies. They are another one of those departments along the streets that had a significant amount of people change their insurance. Um, and then a lot of the new hires that they've had this year have taken insurance as well. Their biggest change comes on, one of their biggest changes comes on page 24 um in um maintenance supplies. We did decrease that um because it wasn't really getting utilized as much. Um and then also is supplies construction. While it looks like a less percentage, we did increase that up to 320,000 um because that just covers the base course, the pravel, the sand, the wash rock, all the all the different items that they use to um complete um the filling and the construction after they repair leaks and do their uh routine maintenance. So, while that's a smaller percentage, it's a bigger increase.

Portland, it's supposed to be Portland. We have some spelling challenges.

You have to sound it out. I also wanted to point out on page 25 uh the change in maintenance water sewer. So that's going from 572,000 to 700,000. Um and so that's you know again it looks percentage-wise like a smaller increase but it is a substantial increase. And so that's just taking care of the pipes, the service lines, the valves, the hydrants, everything like that that they install. So, um, the other line that we were talking about going up, if that goes up, this one also has to go up because it's the amount of work that's being done. And as you can see, so far this year, they've spent 536,000. So, as we know, the prices of all of those items are also going up.

Inflation. A lot of it's inflation and a lot of it is work. The UTM crew is is working very hard and putting out a great amount of work product. So you put out a lot of work product and your supplies go up, your price is going to go up. I do not want to discount the amount of work that they're doing. It's not all inflation. Other change is um as you can see on page 27 under uh equipment rental, they had uh a one-time need to rent some equipment this year. It's not a continuing expense. And so that's why it looks like it was 100% decrease, but it was a one-time expenditure in this fiscal year. Any questions on utility maintenance? Okay. On page 30 starts the water reclamation plant which is the wastewater plant. Uh at the time I wrote the budget he had 10 positions. Actually he had 13 positions of which uh six were vacant. So on page 33 to 52, I wanted to point out um maintenance supplies. Um, again, this is percentage- wise not a big increase, but it is um right around, you know, a little bit over a $30,000 increase. Um, this is again for their pump repairs, all their different items

that they have out there um at the plant that they want to keep going. So, we did give them some additional money to keep that moving forward. Also, further down, uh, water treatment supplies. This is something that um is probably going to have to be increased midy year. We left it at $200,000, but as you can see, so far this year they spent 191. So they're going to have to do a revision for fiscal year 26. So most likely we're going to have to see an increase on that for FY27. And then on page 36 to 52 um it services contract. As you can see that number is very large for um FY26. There is um several different plans that are on that particular line. If those aren't completed by the end of the fiscal year, they'll carry over that. But that's why that line has such a big difference. Lab services is something that you're going to see changes coming forward to you uh throughout the fiscal year as we transition from using a lab service to using um an internal lab. And so you'll be seeing uh different budget proposals and different budget revisions for that not only in FY26 but also in FY27. Any

questions on uh the water recognition plan? Okay, let's see. On page 40, we start the water production plant. My page too. The water production plant at the time has uh 14 approved positions and has seven vacancies. We did increase their janitorial supplies um because they are one of the departments that no longer has a janitorial contract. So, they're doing their janitorial work um internally. I did want to point out they are in kind of the same boat on chemicals. Um, on page 43 to 52, we did increase their chemicals up to 140,000. So far this year, they spent 122. So, this might be something that you'll see um an increase in midyear. Same thing um with maintenance supplies. Um we did drop that one to 169. Um, but that one depending on what we're seeing in terms of freight and uh tariffs and everything like that, we might see something there. I did want to point out on page 47 to 52 services IT. Um so you see that there is a decrease

here. So utilities does have their own task order with better IT services for uh SCADA um uh on call services. So this is where that task order is paid out of um so that they have SCADA services when they need it. Same thing on page 47 about the lab that we talked about at Wastewater. As the lab comes internal versus being a contract service, you're going to see changes there. and Commissioner Patio, if you look on uh the bottom of page 51, that's a lot where we're talking about the capital. And so those are numbers that are in, you know, fiscal year 26 that'll either carry over or they'll be completed in fiscal year 26. And then kind of along that same vein on page 52, if you'll see under water sewer improvements, you can see especially down here at um the last line the capital water line improvement, that's 16.8 million. You know, that's that's a large number. Um, and so obviously it makes a big difference when it's on one year and not on the other. Any questions about uh the water treatment plant or utility maintenance or water reclamation? Okay. So on page 107, this gets into the

revenues for fund 81. So these are the the rates. Um so as you can see um starting with we have you know some of the smaller fees but really what it gets into is the user fees the water base rates. So we are projected at uh 4.5 million for FY26. At the time that I ran these we were at 3.7. So that's putting us right there at the um 75% mark, which is where we want to be at the end of quarter three. And so that's what we're looking for on all of those revenue numbers. And then the revenue numbers that are on uh projection level three are directly out of the rate study. Um and so these are exactly the same ones that we provided to the commission when when the rates were approved. So there hasn't been any adjustment to it. Um because looking at where we're sitting, um we're we're really happy with where we're sitting. We're sitting at that 75 to 80% level.

So how much of an issue has the utility billing been to that effect, would you say?

So you know, it the I think the biggest issue obviously is is not being able to have the windows open more. Um it's at that point all the billing all the billing goes out on time. All of the cycles um you know are running and everything like that. It's it's being able to provide that higher customer service of being able to be open all the time. Um, but unfortunately it does get to a point where to be able to get the bills out, which we have to do per ordinance that we have to have something get somewhere.

So, does it seem impactful? Does it seem not that big a deal in ter um the utility billing hours? I would say in terms of revenue collection, not in terms of revenue collection. Um, because we're still

seem that way. No, we're still collecting the revenue. We're still um people are utilizing the online system. People are utilizing the Dropbox. Um and actually we have the majority of our bill payers do use either the Dropbox or the mail or the online. Who it impacts as the people signing up for new service and the people who who feel more comfortable coming in and paying face to face. And that number was projected to be what the rate increase the number of

uh did we have projections of what we thought the uh billing revenues would be with the increase? Yes. So that's what um we have been working off of every fiscal year since it was it was put into place. And so what is in FY26, what's in FY25, or what was in FY25, what's in FY26, and what's in FY27 are all directly from the rate study. Okay. Thank you. And that goes that goes forward through all of the user fees throughout all of 81 um are all directly from from the rate study. What was the percentage for the third year?

20. Was it 20%? Okay.

Yeah, it goes 20 20 then seven and then CPI and then of course um utilities does have uh miscellaneous revenue from um different investments. um different bonds that it holds. Um and so that of course is in there as well. Um and then as you can see in on page five of seven, the loan proceeds are budgeted all in FY26 and then so whatever is realized in FY26 then um will be left there then whatever is not will be carried over. And so then pages six and seven have um kind of small little amounts that are attributed to each department. Um and so these are really just sale of scrap um or reimbursements. And those are again revenues that we don't budget until we actually receive them so that we're budgeting for the actuals. Any questions on fund 81 revenues or fund 81 in general? So, the decrease in revenues from the 2.3 to the two we attribute to what? Um, I'm on the page three of three on the revenues.

Page three on the revenues. Page three of seven on the revenues. Uh, I think I'm looking at the right one. Page three of three for the revenues for utility with the summary of the user fees.

I'm not sure where you are. Oh, you know, are you are you on fund 82? Should get one fun pass me. What's the first line, Commissioner? Um, like 082000 ending 55 56504. The little blue with the line underneath it. Oh, I apologize. I Okay. 082.

Sorry, I was looking at the wrong line. Thank you. Okay.

Okay. So um next fund is fund 82 which is the water sewer debt fund. Uh so this is where we pay the debt service for one two three four five six seven eight nine different uh loans. um stretching all the way from loan number three, which is almost about to be paid off, down to um our DW6510, which is the most recent water sewer upgrade loan. So, um these are paid for out of two different places. Some of them are paid for out of fund 81 and some of them are paid for out of fund 49. So, um it's either attached to gross receipts tax or it's attached to uh net system revenues. So, those are pretty straightforward. Can't do anything about them. We sign the contract. Next fund is find 86, which is uh the solid waste collection. So, this is the convenience center on Label Road. Um, so he has six positions and at the time I rolled this uh they had two vacancies. So um they do pay or they do do a transfer out to fund 12 um to pay for the internal service allocations. And then obviously we have the salary and benefit role which yes I know there is an error um on page two. For some reason the retirement and the retirey health did not roll. So I need to do some corrections on fund 86

and the salaries and benefits. Um we did see some increases here. Um as you can see in janitorial supplies we gave them a substantial increase. um for like we had talked about before they're doing their own internal um cleaning. We did however do some other decreases in their maintenance lines um including their heating and cooling and their buildings and structures and their communications on their service contract. So K59, so this is where the um cost of Southwest Disposal comes from. So the garbage charges are on the bills and that revenue is recorded in fund 86. And so then the expense of that contract is then paid for out of fund 86. So this I know this looks like a huge amount, but when we get to the revenue, we'll see where the revenue comes in for those. What's the rather large increase in the group health? You got a 7% increase in salaries, but you get a 330%.

The So the the salary and benefit role is not correct on 86. I need to correct because if you'll see under retirement and retirey health and FICA, there's nothing. Uhhuh. They do have to pay federal income tax. Okay. Yeah. So I need to correct the 86 salary and benefit role.

Okay. on page 79 um is the landfill tipping fees. Um these are the fees that we pay to the landfill to be able to go out there and um tip the garbage that is left at the convenience center. So, we are expecting an increase in these because as you'll see when we get to 594, um there is a increase in the fees for the landfill approved by the landfill board. Are there any questions on the expenses for the convenience center? On page one of two, we get to the revenues um for the convenience center. So um as you can see there on user fees refugees removal, this is where we get the revenue for um the convenience center charge that is on the utility bills. And so that also goes with the um Southwest Disposal cost as well. Any questions on the convenience center?

Okay. Lights went out. The lights just go out. Yeah. How long do you think this will take us? See? So, um, Bonito Campground will be quick, 89 will be quick. I suggest we not spend a lot of time discussing the golf course. The golf course budget is going to completely change. Really truly at this point, it's a placeholder. Um, the airport will be quick and 94 will be quick and then really that's it. The rest of them are um just placeholders at this point. So, we only really have two two larger funds to talk about at this point.

You don't want to finish tonight or you want to do it tomorrow. Other than finishing the list, what do we have tomorrow? Just you would just have your special meeting. I don't need you tomorrow for anything other than getting through. We finish it tonight then we don't have the we just have the one meeting. How's everybody feel? Everybody want to finish? I'm good. Okay. Go for it. Go for it.

All right. All right. We'll power through. All right. Fund 88 is the Bonito Campground. Um, this is relatively small. Um, it's not generating any revenue at this point in time. So, what it does have is starting on page one of two contract services. Um those are for the dumpster rentals uh the porta potty rentals um for the day fishers and the people that are up there using it recreationally. Um and then we are requesting some professional services um to do uh preservation studies to do certain designs um and to kind of move forward with seeing what we can do um with the Bonito Lake Campground. The challenge of this fund is that it's starting this uh fiscal year projected with 231,216. Um and then we're requesting $160,000 in expenditures. So with it not having a revenue source, it's very hard to fund items for Bonita Lake in the campground without some sort of revenue source attached to it. It did. Um, Bonita Lake did receive Ne Lake Campground did receive um a capital state outlay grant um to improve some of the access for the day fishing. So once that gets approved, we'll be able to move forward to that. Any questions on the campground? Okay. Fund 89 is the uh environmental gross receipts tax. And so there are a couple items um paid out of this. We do keep a sewer line replacement fund for

$250,000 in here. Um and then of course it pays its its admin. It also pays the postclosure cost for the um landfill out in Dog Canyon that we pay a portion of. So that whatever is not spent out of that 129,000 will roll over to fiscal year 27. We are projecting a um to receive about $622,000 in revenue this year and we are using it to fund some of the wastewater improvements and wastewater plans. So that transfer out will carry over as that project proceeds. Okay, as I said, I suggest we don't have a long discussion about the golf course. This budget is really a placeholder at this point um as we move forward with the RFP and the transformation from there. So, we'll go ahead and move on to fund 91. Fun 91 is the airport. Uh so the airport has two employees and no vacancies at the moment. So uh we went ahead and did the salary and benefit role on that. Everything looks pretty good there. He did have a decrease. Um, while it's not a large monetary decrease, it is a large percentage decrease in his safety supplies. Um, as you can see on page four of 11, Troy broke down what he has making up his airport supplies, um, including the $10,000 that he

receives from the state as part of the state airport grant and the $1,111 that we're required to provide to match that. So that's both budgeted in that line. We did correct on page six of 11, we did correct his cell phone expense and get that to where it's more in line um with the actuals from what it was last year. And then you'll see on page seven um on contract services, it shows a substantial decrease in contract services. There is a uh budget in there for certain consulting fees. Um that is on FY26. If those aren't completed, then they'll move to FY27, but that is mostly funded with a state grant as well. So, um, as you can see by what he's got broken down here, those are his local airport contract services. And then that same thing under services consultant, there is a contract there um for the airport master plan. And so obviously that will carry over um as the master plan proceeds. And then on page 10 of 11, we did um Troy made a request to increase his special events line um to be able to provide uh more opportunity for the air show open house that they had last year. We thought it was really successful, so

we wanted to provide some more funding for that. And then we also provided him with $2,600 to increase his marketing for the airport. Those are the big items for the airport. You'll see on their revenues um for the most part we kept most of their revenue projections pretty flat in terms of their gasoline fees for the users, their base operating fees. Um their lease of land is based on the uh fees that are laid out in the leases. And then of course, like we talked about, the state grant that they're providing us, um, the $11,111. Any questions on the airport? Okay, our next one is fun 94, which this is the landfill. Um, and so he had eight approved positions and two of them are vacant. I will also check his group group health because this rolled in the same role that the convenience center did. Okay.

So I need to double check that entry. Okay. It's actually dropping. Oh, that's the retirees. I'm sorry. Yeah, the retiree dropped 80%. Yeah. So, want to check at what I did in that roll. Okay. What's the retirement benefits? It dropped 74% too. So, the retirement benefits that is your parah. That's the parah. And then the um retirey health is the the parah cobra. So, I think that there's something missing there. Sometimes it won't save all of the people. We have to go back in and look at that.

The workers comp. It's kind of odd, too. On page uh three of 13.

Yeah, I agree. So, um, for the landfill, he did, um, we did a couple decreases. We decreased their office fee or their office supplies. We decreased their janitorial supplies. Um, we decreased a lot of their facility maintenance allocations that were there because the historical just didn't back it up. Um we did however leave their equipment maintenance high. Um they are always in need of maintenance on their equipment. It the landfill is very very very hard on equipment. I did want to point out um a small change in on page seven of 13 in their contract services. Um so while it's not a huge change, we did leave the um contract services up pretty high uh mostly to cover solder miller for the lie and to cover the air monitoring both of which are required by the state.

How much uh stuff are they still dumping from Rio out there? That's a good question. Cut them completely off now. Are they? Yeah, we cut it completely off because we're running out of room. So we need to maintain and they are in the process of constructing the new cell, but it's just not it's not there yet. Are they taking it to Roswell or Most of it? They're just piling up there. was getting down where we only load a day. Okay. Prior to that, we did about 28 months of work,

which is another reason why we always have to fix the machinery because they work really hard. I just haven't seen them running through town. So,

yeah. The other big change is on page eight of 13. Um we adjusted the amount that was budgeted for the well monitoring testing. Um we had a couple things that were combined in that line and so we got that separated so that we have everything in its own line. Why are some of the departments general liability going up considerably and then others aren't?

Because some of it um last year was just budgeted too low. And so some of them are seeing that's why it makes it look like such a big increase where it's really it was just way too low last year. And so it's a 7% on the actual versus not on that original budget. Okay.

Um as you can see in the bottom of page 11, we did leave the contingency um in the landfill. Um, this is something that they use. We usually use it a lot to move towards equipment rental or items that keep their equipment going. So, this is one of the few funds that still has the contingency in it. Um, and partially that's also because it's approved by the board. So, as long as the board is okay with it, we move forward with it. And then at the bottom of page 12, um you can see where we have the capital um budgeted this year for the um cell development um which is ongoing. So hopefully that's done before the end of June, but if not, we will transfer some of that over. And the same thing with the money that's in the site improvement.

When do you think they'll have that done by now? Two months. When was their original?

Okay. So, um going into the revenues for Fund 94, um as you can see, there's a substantial increase. Um, so that was approved by the landfill board at their annual meeting um to go ahead and pass that increase to be able to continue to fund the landfill. So when we got the bids in for the cell development, it took every dollar of cash that the landfill had available to cover that. They were very very close because um as as you may be aware the landfill has to carry a significant amount of reserves. So they're required to carry a cell closure reserve. They're required to carry a uh equipment replacement reserve, an operating reserve, and a cell development reserve. So for FY27, for example, they're required to carry $3,23,988 in reserves. So when it came down to time to build that cell, we spent everything that was outside of the reserves. So it became very clear um that a rate stud need to to happen. Uh Joe Luendowski of operational consultants did the rate study um and did a great job. And then when we got it back, we were significantly cheaper than every other landfill that had been studied. So um he brought a proposal in front of the green tree board and the Otter County solid waste board and requested a rate increase and so that was approved. So it will go into effect on July 1st and so the reprojections that are in this budget are reflective of that rate increase. So that's why you know the member disposal fee is going up substantially. Um, and really truly the only way that the landfill had been able

to operate in the way that it was was because of the asbestous. Um and so over the last several years um as you can see on the top of page two the asbestous goes up and down you know we were at 477,000 614,000 and then dropping all the way down to 160 then 186 because it just it depends on what construction projects are being done. So that was the onus for that rate increase was to um get it to where the landfill was was functional and sal or not salvageable but fiscally responsible with the rates and not relying on asbesus. Okay. Any questions on fund 94 in the landfill? Okay, our next fund is fund 96. This is our self-insured fund that we use when the police department wrecks their vehicles, not just the police department. He knows it's a police department. So, um, so this is our our self-insured fund for our vehicles. Um, so this is where we pay our self-paid claims. Um, Pedro, will you note that we need to update self-paid claims in fund 86. Um, so this does need to have a number in it. Um, we missed that this year, but we will it will probably be similar to the 127, probably closer to 125. Um, and fund 96 is funded with the collision fees that we receive from the other

department. So, it self-funds itself. As we make the repairs, we selfund ourselves. Fund 98 is the payroll clearing account, so we do not budget that one. Fund 104 is the utility deposit account, so we do not budget that one. Fund 105 is the old economic development fund. Um, so it is slated to start the year with a cash balance of 934,847. We did leave a budget of $75,000 in here. Um, for possible marketing services and also for software expense. Um if that money is reallocated before FY27 then we'll move those expenses actually the marketing one we wouldn't move we wouldn't do and then we would just move the software one to it uh fund 107 is the self-insured liability fund. So this is where we take our self-paid claims. We have $350,000 budgeted for next year. Um and then we also have um h 100,000 budgeted or actually we have 40,000 budgeted for the unemployment insurance. We have 400,000 budgeted for next year. This fund is going to take a hit here um in the next couple weeks. So, this will most likely be a fund that changes in between the preliminary budget and the final budget when we have the actual when we have a better cash number coming out of this uh fiscal year. Fund 109 is our street capital fund. So right now we have very little

budgeted in it in terms of expenditures, but this is where all of the WSRP projects are funded for the streets portion. It's where fairgrounds is funded. It's where all of our major street capital projects are funded out of. So there will be a significant amount of carryover. Um, as you can see, uh, there is some debt service tied to it, but if you look on page two of two, you can see in the capital engineering and in the cap street capital lines, those are pretty large numbers. um those projects that are not completed obviously will carry over and then we'll be able to see um at the beginning of FY27 how much cash we have available in 109 and then we'll be able to fund additional street projects. Um but for like right now phase two and phase three of Oregon Avenue are budgeted out of here. Um and so there's several different items budgeted here. 114 is going to be closed and going away. 119 is closed and going away. 121 is closed and going away. 142. So really the next one we need to talk about is fund 124 which is the American Rescue Plan Act. Um, so this is the ARPA money. So this money all has to be spent by December 31st of 2026. So we're coming up on um having seven months left. Um really the only project that we have left to complete with this money is the SCADA upgrades that we're doing throughout the water system. Um and so that money, whatever's left in that project will carry over. We won't be receiving any

additional revenue um out of this project because um it was a one-time payment and that onetime payment is done. At the end of the project, we will look and see how much interest that we have acred and what we have available and then we'll be able to decide what we want to do with that based on the guidance we received back from Treasury. 125 is the cannabis GRT uh which we've already talked about that we are transferring the majority of that money out to the general fund to fund dispatch. 126 is the opioid funds. Um we need to come up with some good ideas on how to spend the opioid funds because we have a million dollars of that fund right now and we need to get it spent.

What uh are we limited on how it can be used? What are the limitations on? So, it's like it has to be something that decreases the amount of opioid users. It has to be something that helps rehabilitate opioid users, deters opioid users. Um, what else? Counseling, I think, is one of those. So, it's pretty limited.

It is pretty limited. Yeah, it it's not it's not broad. we were able to justify some of that funding for the flop cameras. Um that was part of the money that we were going to try and do an RFP for um potential housing for um homelessness or Yeah, it was homelessness. Um could some be used to donate like or not donate but like to fund cope or some type of an organization such as that? We use part of it for DARE. I don't think it can be used for cope. That's domestic violence.

Unless Yeah. Unless they showed that they were doing like a drug remediation, it has a a large guidance document that's attached to it that has a lot of stipulations. And then fund 127 is the new fund where the gross receipts tax is allocated for the debt service for the nuditorium. And this is also where the um cash is for that we moved from 105 over for the niatorum. So all of the niatorum um engineering, construction expenses, everything that has to do with the niatorum will come out of fund 127. And then just really quick where we are with our gross receipts tax. We're at 8.1875%. Here is our five-year comparison. Pretty good. FY26 has kind of started a little low, kind of going up and down now. Like we talked about earlier, cannabis is all over the place. Um, internet gross receipts tax started really high and it's kind of come back down a little bit. And compensating gross receipts tax is also all over the place. Like it's nearly impossible to predict. So,

thank you. All right. That's the FY27 preliminary budget. We will make our corrections, bring it back to you um on the 28th. If you in between now and the 28th have any questions, comments, concerns, anything, please um let myself or Pedro know and you know, we will get those addressed and then when we bring the budget back on the 28th, we'll go through anything that's been adjusted um and changed so that we can get it approved and sent it to DFA. And then of course we also in between the 28th for preliminary budget and July 31st for final budget we also have time to make corrections there. And yeah have

um can you just explain for the public there's been some comments about using money to fix potholes or roads. Um how those funds work? I mean

yes. So, um, fund 109 is our major capital improvement fund. So, the, um, funds that are out of fund 109 have to stay in fund 109. They have to be used for street capital. And so, there are no transfers out of fund 109 for operations or the only thing that comes out of there is debt service and then capital. for fund 44, which is a street operations fund. Um, it's funded by uh 42, which is a gross receipts tax, which is also the same. It's designated specifically for street maintenance and doing street maintenance repairs. Um, and so that is how that fund, the only thing that's transferred out of fund 44 is going to internal services.

Okay. Yeah. because there's there's some miscommunication, misunderstanding, misinformation going out about how funds are used and why can't they just do this and so I think it's important that you know

yeah it's it's very rare for us to have any sort of funds that don't have some sort of strings attached to them. Um and all of those gross receipts tax have some sort of requirements attached to them. Um, like I said earlier, I would love to use fund 69 to do all sorts of different things, but it says it has to be used for fire stations, police substations, the library, and drainage. Um, same thing with fund 89, the environmental grocery receipts tax. Yeah, we would love to do lots of different things, but per our ordinance, it says that we have to use it for environmental, so solid waste, uh, the landfill or waste water.

All right. Thank you. You're welcome. All right. Thank you. Anything else? That's all I got. Motion for adjourn. Motion to adjourn. Second. It's been um motioned by um Mayor Pro Tim. Give Rachel a minute. I'm sorry. She said give her a minute.

You guys made it. So the clerk did not. Somebody got two minutes to spare. And who second it you? Good job. I made the motion. Steve seconded. I was waiting for her to go back online.

The books here, huh? They're yours. Commissioner Nandez, Commissioner Nandez, I don't have your vote. I And the vote passes 7 nothing. Zero.