By Mary Alice Murphy

At a special meeting set up for the Grant County Commission on July 26, 2023 to amend the approved and adopted budget for the fiscal year starting on July 1, 2022 and ending on June 30, 2023; to hear the final quarter financial report for fiscal year ending June 30, 2023; and to approve the final budget for fiscal year 2024, starting July 1, 2023, the first item of public input drew more input than commissioners anticipated.

The first to speak was Rob Ramirez, a volunteer with the Cliff/Gila Volunteer Fire Department. "I was incensed when I heard that money had been taken out of our budget. We make a lot of out own tools. We were saving for a brush truck and cutting our budget down to $12,000 won't cover our fuel. We do our best and then we get raped. We are required to replace our trucks every 10 years, and we get thrown a bone. We have to save for years to buy our equipment. What you've done is morally wrong. I will fight tooth and toenail to get it back."

B.J. Agnew said he has served 36 years as a volunteer with the Cliff/Gila VFD, including years as chief. "Does the county have a plan for fire protection of the area if the volunteers quit?"

Tasha Dodson, also a Cliff/Gila VFD volunteer, said because they don't have enough garage space, they have two trucks that sit outside. "With only $12,000 a year, it will be hard to save $200,000 to buy a truck. Our commissioned truck went down It costs $200,000 to $250,000 to replace. Where is the transparency so we know what's in our budget so we can see it earlier? What is the transparency if all the volunteers quit? The Silver City Fire Department will be left to do it all. Take the Quail Ridge and Rico Fires. Without our help, how many more homes would have been lost. For new recruits, it costs $8,000 per volunteer for their bunker gear. Since July 1, the Cliff/Gila VFD has had 17 calls. Remember that elections are coming up."

Cliff/Gila VFD Chief Brad Malone said: "We were broadsided by this information this week. We are on the far side of the county. Why did this come about this way? We are all volunteers. Why did you let this happen to us without a contract? For the Quail Ridge Fire, I was on foot for 20 hours there. With the Rico Fire, we could have lost homes. With last year's floods, we were isolated. The community was dependent on us. You need to look at yourselves and determine how to fix this, instead of robbing Peter to pay Paul. You must help our volunteers. Volunteers lose a lot of time with family due to their hours of volunteering to help their community. I spend 40-60 hours a week as a volunteer to figure out how to keep this department running."

Tyler Harrison said he had been a Cliff/Gila VFD volunteer for only three months. "I was a combat veteran. I saw good men die and they did not do it for communities to act in this corrupt manner. County leadership is atrocious, backstabbing. It is as crooked as a country road. Your negligence puts lives at risk. Keep in mind, we are not fighting for more than we need, just enough to buy equipment and keep operating. A rancher could easily lose his or her property without the volunteers. This is akin to evil. I will not rest until every bit of this is released."

Robby Birch, also a volunteer with the Cliff-Gila VFD and the Gila Valley EMS (emergency medical services), said: "We don't have all the equipment we need. I have responded to several fires where I don't have the equipment that I should be wearing. What if a volunteer risks life due to not having the correct equipment?"

Terri McCauley said she has been a volunteer for three years with the Cliff/Gila Valley VFD. "We have seen so many fires for the past few weeks, so it's been hard on us. For a bit of good news, one fellow near the Duck Creek Fire thanked us for our work. Now you're going to take our money away, and we're not going to be able to fight these fires. As B.J. and Tasha said, what are you going to do if all the volunteers walk out?"

The first resolution under consideration addressed amending the fiscal year 2023 budget.

County Financial Officer Linda Vasquez went through the increases, decreases and transfers. The Whereas stated: unanticipated obligations and revenues have now been revealed requiring and justifying the budgetary increases, decreases and transfers. The grand total was an increase of revenues at $172,500 with an increase in expenditures totaling $407,886.

Commissioners approved the amended budget, after District 2 Commissioner Eloy Medina asked when the fire funds would be addressed. District 4 Commissioner Billy Billings noted it would be addressed in the third resolution addressing the FY 2024 budget.

The second resolution considered the final quarter of FY 2023 financial report. ¬¬¬The General Fund had a cash balance at the beginning of the fiscal year at $5.6 million, investments of $13.2 million, revenues during the year of $16.9 million, transfers of $5 million, expenditures of $10.6 million, leaving a balance of $20 million, reserves of $2.6 million and an adjusted balance of $17.3 million. The County Road Fund had a beginning cash balance of $468,338, revenues of $1.125 million, transfers of $790,538.52, expenditures of $1.945 million, leaving a balance of $438,067.47 and reserves of $152,128.21.

The Detention Center Fund had a cash balance of $1,056, $0 in investments, revenues of $1.194 million; transfers of $3.325 million, expenditures for $3.6 million, leaving a balance of $910,534.92 and no required reserve.

She gave highlights of the General Fund budget. "PILT (payment in lieu of taxes) came in at 19.12 percent above budget; GRT (gross receipts tax) came in at 27.45 percent above budget; compensating tax was 48 percent above budget; property taxes were 8 percent above budget; with total expenditures at 88 percent of budget for the fiscal year.

The Road Department expenditures came in at 94 percent of budget and Corrections expenditures were 88 percent of budget.

Commissioners approved the FY2023 final quarter report.

The final resolution addressed the final budget for fiscal year 2024.

District 1 Commissioner and Chair Chris Ponce said: "I'm not very happy up here. Every year, we know the preliminary budget must be submitted to the state by the end of June, and the final by the end of July. What bothers me is that we commissioners have a lot of questions on this fire funds thing. If we don't approve this budget, what happens? What I would like to see is to get a plan for days for discussions on the preliminary budget. We could have been having this discussion earlier so we had time to think about this."

Ponce apologized for "not being more professional."

Medina said he was pretty upset, too. "I was shocked when I heard about this. I'm upset with our fire management officer for not taking time to discuss this with the chiefs. Taking money away that they rely on is a violation. The fire administrator should have discussed it with the chiefs, without the county manager having to meet with the fire chiefs."

Billings said he was trying to put the pieces of the puzzle together. "I'm confused by not remembering when it was brought up. I apologize to county staff and the county residents. The first I heard about this was an email from the county manager last week, and the email from county residents yesterday. I feel there was a failure to communicate on many levels. Miscommunication led to false assumptions, but I don't blame them. They were working in a void. The false assumptions need to be explained. It also needs to be explained why firefighters are going out on fires without the equipment they need, if you have $200,000 in the bank. I think the fire departments need to be informed ahead of time, this is what we are planning to do. When there was a fire on our property, a bunch of folks from the Tyrone VFD came out and got it put out. Then the wind came up. If they hadn't put it out, it might have gotten us."

He continued to say he was it a "gross miscommunication that comes from us. I think the assumptions are their funds are gone is not the case, and it wasn't the plan."

Ponce noted there are always two sides to a story, but "I'm still upset."

County Manager Charlene Webb said: "When we were discussing the preliminary budget, we discussed where we could find money for the compensation plan. We discussed sweeping these fire funds and how we could compensate the 68 employees who didn't even meet the minimum on the comp plan as well as for the deputies who, month after month, are leaving for higher pay. So, we did discuss this during the preliminary budget review. I guess Linda and I were not articulate about what we were looking at."

"We were looking at a recurring revenue source for the recurring expenditures to compensate our employees," she continued. "Prior to coming to you and asking you to raise taxes, it is our responsibility to look at our budget for funding that is not being utilized. (District 5) Commissioner (Harry) Browne actually picked up on it two quarterly reports ago. 'Why do we have $2.5 million sitting in this fire excise fund?' he asked. I had already seen that and was wondering the same thing. I had a conversation with a staff member and did not get any good answers. So, when it came time to bring the comp plan to you and how to pay for it, we looked at the fire excise tax. The fire excise tax was in statute years ago, but it has been repealed for quite some time and no longer exists. Counties had a choice about what to do with it when it was earmarked. It could be used for fire purposes or for whatever the county chooses. We double-checked with the Tax and Revenue Department (TRD) to make sure what we were doing was within statute. He said it was fine.

"What we proposed during the preliminary budget process was that we would take that GRT increment to pay for all things related to the comp plan." Webb said. "I will tell all of you exactly what I told the three fire chiefs last week. I apologize profusely for the lack of communication. I rely on my staff to disseminate information to their departments. I can't be everywhere all the time. That was an epic failure on our part, and I take full responsibility. I make assumptions and this is what happens when you make assumptions. I will tell you it wasn't an easy decision. We have multiple things going on in this county outside of fire. After I spoke to the fire chiefs last week, I did a quick spreadsheet, which you have in front of you. It shows the amount left in the fire excise fund at the end of fiscal year 2023. After that, Mr. (Randy) Villa (General Services department director and fire management officer), told the departments we were looking at this money. That I do know he did. I said maybe they need to start spending that money since we are looking at it. I know that did not reach all the fire chiefs. We were looking at it seriously. So, there was $1.8 million left at the end of the fiscal year. I'm going to pick on the Cliff/Gila Fire Department because you're here. And I'm a resident out there and I rely on you if my house is on fire. It's the last thing I would do to take your funding away. They had $197,000 left at the end of the year, but if you look at how it was spent during the years, they spent $2,000 in fiscal year 2023, $5,000 in fiscal year 2022, $300 in fiscal year 2021, $41,000 in fiscal year 2020. The only significant expenditure was in 2019 for $157,000.

"Every year, they receive $20,000 out of the emergency fund," she continued. "It's a line item within their budget. I was told by the fire chiefs last week that it was impossible to get that money. I didn't know that. It's for emergency purposes. Not one department spent that money in the past five years. I also pulled the state fire funds that they receive. You can see their balances. Cliff/Gila was sitting at just shy of $190,000.
"The other part of the communication issue is that it goes both ways. This is the first time I've heard of your needs. No one has brought this to my attention. The last thing we're going to do is take your money away and not have a mechanism for you to get the money when you need the help. What we talked about last week was the fire chiefs coming to me with a policy to access these funds in the future. How do we spend that? What's the criteria for carrying it over? Very similar to what they have to do with the state fire funds. About 10 years ago, the state swept millions of fire funds because they weren't being spent. The state expects us to spend their money, and I think the same goes for us. I had no idea you were saving for a truck. It hasn't been communicated to me or to Linda.

"So, we go looking for money in the budget and there's money sitting there" Webb said. "It hasn't been spent, so is it really needed? It's a difficult thing to bring to you, but raising taxes doesn't go over very well either. Linda and I proposed to take the GRT increment to pay for the compensation study. It's a recurring budget item. The $2 million that everyone thinks was swept away, it's in this budget. It is set aside. It is not actually allocated for anything.

She said what she proposed to commissioners "was that we could do the compensation step plan in pieces and look at the second piece next fiscal year. What I told the three fire chiefs: If you have these needs, let me see your three-year plan, let me see your five-year plan. That information has to be communicated to us as well. I've never, not once seen a piece of fire apparatus or equipment show up on the ICIP (infrastructure capital improvement plan). Where are the fires departments in that process? Where is Randy in that process? It wasn't an easy decision, but it was the best way we knew to be able to accomplish a whole bunch of things at once. I've heard you, commissioners, say loud and clear over the years that your priority is to take care of staff. I have to have money to do the things you want to do. This was the only place I could find the money. I apologize for not communicating it better. I thought I articulated it in the preliminary budget, but evidently, I failed. That's the best I can explain it."

She said she approves every purchase order above $1,000. "I've learned more about the county fire department over the past five days than in the past 10 years. In other counties where I have worked, they didn't have the fire excise tax. They made do with their state fire funds."

District 3 Commissioner Alicia Edwards asked what was next.

Webb said: "I need to know the fire chiefs' plans, and I need to know what money the fire chiefs need. We need documentation. There are lots of other resources, and if you can't write grants, we can help. We need to have clear documentation on how the funding will be spent. If they need this money now and will show us how they will spend it, we will put it back into their accounts. There is an approval process."

Ponce said: "I don't want you to have to do this. Can we have the fire management officer look for grants, look at what has been spent and why funding for equipment hasn't been spent? When I hear a firefighter goes out without the proper equipment, I get upset again. Can't the FMO do this?"

Webb replied: "Yes he and I will be meeting the minute he is back from vacation."

Edwards asked: "This money is sitting there, but not allocated. If we pass the budget, then we would have time to allocate it."

Webb replied: "The $2 million is sitting in a reserve fund. It has not been allocated, but we do need the GRT increment to stay in the General Fund. The reserve funding will be available for use when needed. The revenue from the increment, which by state statute no longer exists, will go into the General Fund. Ten percent of that GRT will go to the volunteer fire departments. We didn't leave them with nothing. Granted if you had $100,000 and now you have $50,000 that is concerning."

Edwards asked if the fire chiefs should do needs assessments, to which Webb replied: "It will be the FMO's priority to set a deadline for them."

"Today, we need to reassure the firefighters that the money is still there, but we need to see what they are planning on using it for," Edwards said.

Ponce said: "For the ICIP I would like to see an inventory of what the fire departments are lacking and what is needed, as well as for all departments. I think the Commission is willing to help the volunteer fire departments have what they need to operate safely. I don't blame you, but I do blame the FMO for not letting us know about this. I don't have a problem approving this budget today."

Webb said she will push the FMO to have needs assessments within 45 days "(Pinos Altos VFD) Chief (Ed) Downard gave me a list of what his department is planning. I think it's in all the chiefs' minds what they need."

Edwards suggested having a work session specifically to address these needs assessments. "Today we will approve the budget, because the money is set aside, although not allocated. We could discuss this with the fire chiefs and the public."

Billings said he appreciated the conversation. "The money is in a reserve and there is a process to get it back. The money will be available. But, if they are going without equipment, we need to understand why. I feel better about this, but there's still information we need."

Ponce said: "I've often said we need to get back to basics. Police and fire protection are basics. We are spending money where we don't need to. This money is accessible, and I appreciate the constituent who called me yesterday. I thought it was a rumor. I think the smaller departments can fund their needs with other resources, too."

"It boggles my mind that VFDs have to save up for years and years and years to get a new truck, and they are doing it at the expense of having protective equipment for their firefighting volunteers," Edwards said. "We need to look at these other resources, such as all the grants available. The firefighters are all volunteers. Is our support by paid staff enough for them? Can we improve it? We are asking these folks to work voluntarily to protect us."

Webb said: "My door is always open. I can't fix something that's broken if I don't know about it. I encourage you to contact me if you feel like your concerns are falling on deaf ears. I'll tell you if it's not reaching me."

Ponce spoke to the firefighters who had presented public input. "You have difficulty accessing this information, but you have your fire chiefs who have access to the FMO. If it's not working, talk to the county manager. I don't remember hearing about any of this before. I had a discussion with the manager and with your FMO, and the FMO needs to let us commissioners know what the departments need. We are here to help you. I believe the community will support a tax increase if it is needed. I encourage you to open those lines of communication."

Medina said he thought it was time to have one county fire chief. "That fire chief would have a focus rather than five other concerns. In my 30 years as an emergency tech, I would arrive at a fire and wonder if anyone was inside. There are a lot of decisions that have to be made really quickly. I would never want a volunteer firefighter to go into an emergency without the proper equipment, or with wildfire gloves to go into a structure fire to save a dollar. They need this money. We need to address the issues, such as not having the right helmet. That's the fault of the fire chief and the FMO. When they have the money, spend it. Please, Manager Webb, let them have this money."

Webb said: "That's why the $2 million is sitting in the reserve. The recurring GRT will be in the General Fund, but 10 percent of it will go directly to the VFDs. We will look at a process to allocate the funding. Remember that on good years you will get more money. We're not going to let you go without. If you have an emergency, contact us and we will find the money."

Billings said he has a lot of questions about firefighting processes, but he would defer them to outside the meeting.

Vasquez said she did some modifications from the preliminary budget. "I added the increase in property tax based on 2022 valuations. We started the fiscal year with $7 million beginning balance. Out of that amount, I reserved $1.1 million for the compression piece of the compensation study in a reserve. A $500,000 transfer went into the vehicle replacement program, as we've being trying to start that program. Also in this budget is a contingency 5 percent for an increase for all employees. The other piece is the $2 million transfer that we put in the reserve that we've been discussing. For other departments there were minor changes, such as $5,000 for the manager's office equipment needs and repairs. In all departments, there was an increase in benefits due to bringing everyone up to the minimum rate. Other than that, not a whole lot of changes, other than an increase for fleet maintenance and repairs, as well as an increase of $34,000 for workman's comp. The budgeted revenues are $16 million, budgeted transfers of minus $4.6 million, with budgeted expenditures of $13.4 million, a reserve of $1.1 million for unbudgeted expenses and a required reserve of $3.3 million with an estimated ending cash balance of $823,776.06 in the general fund."

She also went over the details of the Road Department and Detention Center funds.

Ponce asked about funding in-house maintenance projects rather than contracting.

Webb said there is $72,000 for construction and rehabilitation projects for staff to do in house.

Medina asked if the gross receipts tax issue with zip code had been resolved, so that funding is going into the right areas.

Webb said she was not sure. "We are reliant on the state of New Mexico to figure out the errors in the legislation passed several years ago. It involves gross receipts taxes and compensating tax."

Ponce said he believes they need to work with the state. "For instance, if I'm out of town, I have things delivered to Eagle Mail, which is in the 88061 zip code and those gross receipts go to the town of Silver City, instead of the county. I will bring it up at New Mexico Counties to get that as a priority."

Commissioners approved the final budget for fiscal year 2024.

Medina had no county report.

Edwards said she just wanted to say thank you to the firefighters sharing "your thoughts, even the ones you were totally incensed by. You have the right to be incensed, and this is the forum to express that."

Billings is also grateful about what has been brought forward. "I need to learn more about our fire departments and look forward to getting to know the chiefs better to find out how the process works. I look forward to hearing from our FMO on how he can better assist the departments in getting their needs met."

Ponce apologized again for his anger. "We appreciate hearing your perspective. At the end of the day, it is appreciated what is brought before us."

Billings also thanked the manager and budget director for their work. "There was a lot of talk that was negative, but all of the positive efforts of moving money here and saving it there was probably lost because we were talking about the fire funds. It was important, but I didn't want what was a big negative to overcome what was positive. I want to thank the rest of the staff who worked with Charlene and Linda to create this budget. I'm still grateful every day to have Charlene back as our manager. You look at other counties and other managers, and we're thankful to have someone who can manage money."

The meeting adjourned.