Things are tight on the financial front

By Mary Alice Murphy

The first portion of the fiscal year 2018 budget hearing for Grant County looked at the Maintenance Department.

Jason Lockett is the new facility and grounds maintenance superintendent.

Financial Officer Linda Vasquez led the discussion and answered many of the questions.

"The maintenance department pays for all the departments' phone service and postage," Vasquez said.

Commissioner Alicia Edwards asked how the county was planning to reduce utilities costs. Vasquez said the trend over the past few years has been downward. "I think it was overbudgeted."

Lockett said new air-conditioning units and new lighting fixtures that have been installed recently are more energy efficient.

Commissioner Harry Browne asked if "we can take the expenditures through the end of April and multiply them by six fifths to get an approximate amount. I presume costs aren't linear, as air-conditioning costs are worse in the summer."

Lockett said if the summer or the winter is milder, costs could fluctuate.

The next budget item looked at the County Clerk's office and Bureau of Elections.

Clerk Marisa Castrillo asked a question on line item 401-05-5008. "In 2017, we were given $30,000 but didn't use it. I think it was to update old record books. They are in dire need of being digitized and redone. Can we put it back into the budget?"

County Manager Charlene Webb asked if it could come out of the user fees line.

"We try not to increase costs, but we had to redo maintenance contracts," Castrillo said. "And we do need to do microfiching and updates of records."

Edwards asked why the large increase in PERA. Castrillo said it didn't make sense and Vasquez said she would check it.

Castrillo said: "Rob (Zamarripa, former clerk) was very good at decreasing costs. We are trying to stay in that mode, but we need some things done."

Vasquez said she would also check the salaries line item, as Zamarripa may have been left at the full clerk salary level.

Assessor Raul Turrieta asked for the reinstatement of the $30,000 for a vacancy left by a promotion from appraiser to deputy assessor, when Turrieta named Matthew James as the deputy.

"If we stick to your request, from two years ago, your budget goes from $197,000 to about $275,000," Browne said.

"When I walked into the assessor's office when I was elected," Turrieta said, "I only had two employees."

Commission Chairman Brett Kasten noted this was just the preliminary budget that has to be sent to Santa Fe. "We have 60 days to redo it when we have a better handle on how much money is left and is expected to come in."

County Manager Charlene Webb asked Turrieta: "Is everyone in your office out doing appraiser work or are some doing clerical work?"

"Right now we are finishing the protest period and the renditions, then everyone will go into the field," Turrieta said.

Treasurer Steve Armendariz asked that the person filling the Solid Waste position, which collects payments in his office, be shifted to the treasurer's office. He said his total request was for $165,000.

He said the break down of the request for his office, with partial justification, was to move the Solid Waste position holder to his office and add a billing clerk for Solid Waste and hire a new person at a rate of $47,000.

Browne asked: "Why is Solid Waste not asking for the position? Do you want to change Ted's duties?"

"Absolutely," Armendariz replied to the latter question.

Commissioner Gabriel Ramos pointed out that if Armendariz wanted to transfer a person to his office for a new position, it would have to be advertised internally first, and there might be someone other than Ted who was more qualified. "And if it's a new position, it should be an entry-level position, not retaining the same salary level."

"It's my department, and I know what duties I want covered," Armendariz said. "The justification is here for the position in my request. The 10-year collection rate has been 96 percent. That is an outstanding collection rate and it is continuing to grow as we continue to bill more. Property owners have until July 1 to pay outstanding balances paid to us instead of them going to the state for auction."

He said the position he is requesting would work on outstanding balances. "The state raised the penalties and interest, but they get more and we don't."

"By moving Ted over, I am making the supposition that Ted is the most qualified," Armendariz said. "It would bring the replacement to his current position down to entry level."

Browne said as he understands the law, the state returns the tax payments to the county, but retains the penalties and interest. "Seems to me if you collect those in arrears, we keep the penalties and interest and get the tax sooner."

"Another problem is that those taxes not paid in 10 years, the state declares them paid," Armendariz said.

"What percentage of taxes does the state not collect?" Browne asked.

Armendariz said 8-10 percent a year.

"That still does not justify a new position," Browne said. "My feeling is that the state has a significant advantage in collections, because the state can sell the property."

"We also don't have the personnel to address those bills that are returned from the post office with incorrect addresses," Armendariz said. "One year, we worked hard to correct the addresses. The Assessor's Office wouldn't accept the changes when we uploaded them. So the next year, we got the same bills returned. We have to get the correct information so we get more collections."

Browne said: "The hard-nosed fact is it brings in less than an employee costs. I appreciate all the details, but we don't have the right to confiscate and sell like the state does. That's a big incentive."

Webb asked Armendariz to explain the discrepancy between his often-repeated 96 percent collection rate and the state audited collection rate over 10 years of 92 percent. Armendariz did not reply.

Edwards asked the dollar amount, but said she could figure it out, as the county bills about $12 million.

Sheriff Raul Villanueva said he had some line items where the department saved, and he has asked to transfer them to other line items. He said the only adjustment he was requesting was an increase in the Sheriff's expenses line, which is a catch-all for necessary expenses not budgeted elsewhere.

"The main increase I asked for is to replace vehicles," Villanueva said. "We have several with more than 150,000 miles being used. The deputies are in their vehicles 8-10 hours a day, and in some areas they really get wear and tear. I requested four units through capital outlay, but didn't get it, of course. We can't keep using Stonegarden vehicles, because the federal government is stringent on how equipment purchased with the grant money is spent and used. The safety of my officers is big for me."

He said his other request was to give his staff an increase. "I offered not to fill a position and use that money toward an increase. Three of my officers are going through the final stages of the State Police applications. I'm losing good quality people because of the low salary."

Browne asked about the liability insurance line item. Webb explained that it went up this year, but is being paid out of the General Fund. Browne noted it is not easy to just go get new vehicles.

Kasten requested that the Sheriff's expenses line be returned to $5,000.

Browne asked if the vacancy were held, it would go through the county manager to change the salaries. Webb said it would.

Commissioner Billy Billings asked if the $150,000, which had been the capital outlay request, could purchase four vehicles. Villanueva said, using the state contract rates, they could get four Ford Explorers for that price.

Road Superintendent Earl Moore said his budget would stay flat. The Probate Judge budget would also stay flat.

Planning and Community Development Director Michael "Mischa" Larisch said his budget was pretty much flat except for a plotter that the department has always had, but was not accounted for. "We have also agreed to major cuts."

Browne commended Larisch for making do with less.

Moore said he will freeze an empty position for now, and "I think we can get by this year. I would like to move $20,000 out of fuel into salaries. From trucks to blades everyone is pretty much cross-trained."

Browne said he presumed the road department would spend less on fuel.

"Gas prices fluctuate," Moore said. "My concern is in the rural addressing signs, in which our expenses may be a little over budget."

Billings asked for clarification on the difference between rural addressing signs and road signs.

"We hand out addresses and give them numbers," Larisch said.

Moore said his expenses were for road signs.

Kasten suggested that Larisch charge a small fee for giving out addresses and numbers.

Browne asked about the Forest Reserve items. Webb said Congress has introduced a bill to restore the Rural Roads funding for two years.

General Services Director Randy Villa introduced the new Airport Manager Rebecca Wenger.

"I'm happy to be here," Wenger said. "In my first two weeks, I've been reading and making contacts. I'm looking at how to increase funds. We've lost a position and are looking at getting more people certified for fueling."

Villa said he is aware that overtime is an issue. "It comes with Boutique Air and its delays. We will charge an overtime service fee."

He said fuel is available right now for the Chinook helicopter, the two spotter helicopters and two spotter planes for fire season. "Things will change now that we have a body at the airport with Rebecca. We're ready for fire season and my budget is pretty flat."

Browne said the margin on fuel sales "is fantastic." Villa explained that one never knew what the costs would be. "Boutique pays the regular fee. Then we get military helicopters and we need a bigger refueling truck. Prices of fuel fluctuate. But eyes on the ground will help see that tie-down fees are collected, so it will help with revenues."

Browne asked about transfers in and out of the budgets. Vasquez said the county is still doing transfers, mostly in June. "We were two months behind on revenue."

Villa also noted that with someone on the ground, communications would be quicker. "Boutique is looking at expanding here with another flight to Phoenix."

Browne asked if the essential air service funding was in danger. Webb said she saw the complete cut of ESA in the preliminary federal budget. "That would eliminate Boutique."

Webb gave the Detention Center budget report. "The state continues to decrease its funding for its inmates that we hold. We budgeted this year for $65,000 and got $38,000. Mike Carillo requested a capital budget. We found a local vendor to fix and replace equipment, so the Corrections budget is fairly flat. Overtime is out of control. I have directed the jail, starting June 1, to do 12-hour shifts to see if that helps. We are seeing abuse, with someone calling in sick on the Friday before a three-day weekend to make it four days off. The Detention Center asked for capital outlay for DVRs and cameras. The local vendor can repair them. We will not spend $36,000 on such equipment. Plus we have a spare DVR they can use."

In the Commissioners budget, Webb said operating expenses were not being used effectively. "Some grants will not come back. I proposed cuts to professional services and to eliminate the commissioners' discretionary funds."

Kasten said the commissioners would no longer have discretionary funds for infrastructure, which is where it was usually used. "That money went to insurance costs."

"And what is left is already encumbered," Webb explained. "We have in the past funded some non-profits. We are cutting all of those. Contractual services funding is not being used. For JPPO, we will only fund what they use. If it's not being used, I cut it."

Kasten said there is not a county, municipality or any governmental entity that is not tight. "We will come out better because we saw it coming."

Webb also noted there is no reason for overtime in the manager's office. She said a lot of items come out of the Commissioners' budget, which had a little bit of fluff so "we felt we could use it for needed contingencies. I did not increase mileage or per diem."

Browne said he would support cutting expenses for the commissioners when other are being cut.

Edwards asked if the contingency could cover an emergency in any department, to which Webb said yes. "Some things I can see recurring. The money can be utilized anywhere."

Browne concurred on the need for an emergency fund.

"The cut to professional services and to the non-profits, I have notified them that we would not fund them anymore," Webb said. "I cut the overtime budget in the Managers Fund. We had $12,000 for capital outlay. I have let other departments use it. I am proposing cutting the non-capital outlay from $12,000 to $2,000. I am proposing a decrease in the mileage and per diem from $9,000 to $6,000."

Billings asked who pays for travel to the New Mexico Association of Counties. "They do," Webb replied.

"In the General Fund, I took all requests," Webb said. "When we added them together we came out with a negative $15 million. Linda and I made significant cuts. With a $600,000 revenue decrease and an increase in insurance and with two new commissioners, we needed $765,000 more. We took out any line items not being fully used in capital expenditures, mileage and per diem, for instance.

"We came up with options," Webb said. "Option A was a freeze on new hires and layoffs, seven eliminated positions and a six-day furlough of non-safety, non-public positions. I made some calls to consider getting back into the state insurance pool, which would save us $200,000, so we wouldn't have to have furloughs and would eliminate only five positions."

She said she would be meeting with the county's local insurer, Robert Rydeski, to see if he could meet the state rates. That would reduce the need for furloughs.

Five positions are slated for elimination, one in planning, one in the Clerk's Office, one in Turrieta's office, an airport tech and a labor position. "We are proposing one layoff. Some positions are currently vacant and we would freeze them, not eliminate the positions because they could be filled later, when we have more funding, but we would freeze them."

Edwards asked if the status could be changed to a hiring freeze rather than an elimination of positions.

Castrillo said she would be happy with the freeze. "We had interviewed someone, but we opted to freeze the position. I would like the language changed to freeze rather than eliminate."

Webb said, by the end of the fiscal year, "we will know what our beginning cash balance will be. We want to eliminate all unnecessary expenses. If you don't need to travel, don't. If you don't need to buy something, don't. We will know by the end of June the copper prices and whether Rural Schools will be funded."

Browne said it is wise to budget conservatively. "I view the assessor position as necessary, because it will add net new value."

Ramos pointed out that when new value is added, it brings down the overall tax rate.

Browne said an accurate reappraisal would take care of that. "I think we know the revenue from copper."

Edwards asked Browne, if in his conversations with the assessor, he had received the net new revenue numbers. "I think it would be appropriate to ask for them. What can we gain in net new as compared to a new position? I thank all of the departments that have made hard choices."

Kasten said because of the drop in copper prices, the county could anticipate copper revenues going down for the next two years, at least.

Billings said he, too, appreciated the conservative budget.

Edwards said: "Who knows what cuts can come out of the Congressional and state budgets."

Kasten said the Congressional budget is an East-West question. "There's a guy in Boston saying why are we giving New Mexico money, when they are not giving us any."

"And I ask why are we paying for the coasts' flood insurance," Browne said.

The hearing was adjourned.

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