FY 2012
BUDGET SUMMARY
Staff has prepared this budget to represent a very “lean” cash flow year. With this in mind we have estimated gross receipts collections to be $72,000 less than the current year’s budgeted amounts. Each department was asked to control costs with less revenue in mind. In an effort to use other sources of revenue, a few items have been budgeted using money collected from Impact Fee accounts currently held in separate bank accounts at Centinel Bank. A “Public Facilities Needs Assessment Report” was prepared in 2006 to identify projects or equipment that could be paid with resulting impact fees. Projects identified for 2012 funding include upgrades for computer software and hardware and anticipated improvements along Ernie Blake Road.
For this budget, we have combined the water, sewer and roads operating into one budget simply called Public Works. Even though combined, we have listed roads revenue and expenses in a group in order to report Roads on the DFA quarterly reports and budgets and to identify the “enterprise” funds. Staff feels by having a single public works budget it will show the cost of operations more clearly rather than having to add up multiple pages of numbers.
The budget for fiscal year 2012 includes the new utility billing system which was put in place beginning with the January 2011 billing statements. The goal of the new rates was to make the system pay for itself and provide a reserve to pay for aging infrastructure as well as expanding the system. We think that as the Village moves forward this system will allow us to better estimate our receipts and allow the consumers to understand how they can control their own budgets. Staff feels there will be a need to re-evaluate the rate proposed for solid waste revenues. Given an average of 10,000,000 gallons sold, the current rate structure will not provide enough revenue to cover solid waste expenses. The current solid waste (Environment) budget had a healthy cash balance forward to help cover costs, but this will not be true for FY12. After using the current rate structure for 12 months, we can determine whether we need to change the solid waste rate for FY2013 budget.
In the salary category, we are
again proposing a 1.5% increase in base salaries and a 2.5% additional payment
paid in quarterly installments as it is earned.
The quarterly reviews have helped employees improve their work and set
reasonable goals four times a year versus once a year. We also have to budget for buy back time,
overtime and increases in grade for getting higher water and sewer
certifications. That part of the salary
budget hasn’t changed much in the last few years. Because of the combination of the salary of
the Administrator and the Attorney, the Village saved over $30,000, however
with the loss of Bruce Kelly we are again budgeting for both attorney’s fees
and a Village Administrator. Our health
insurance rates were increased 10%-15%. The worker’s compensation insurance
increased by more than $10,000. We will
be able to lower this in one more year if we are accident-free. The Municipal League’s multiplier works
somewhat like the peaking factor worked in the water bills.
PUBLIC WORKS DEPARTMENT:
Public Works Expenses - Increase the Chemicals and Non-durables budget to $45,000 due to the need to provide a carbon source for nitrogen removal throughout the year.
Road Expenses - the biggest setback this year was the cost of repairing our John Deere backhoe ($5000) to rebuild the engine and the 2004 F550 ($12,000) for a new engine. This caused us to go over budget by $11,000. We do not anticipate a setback like that again this year. We had hoped to put money from the budget into blading, grading and compaction to continue improvements on Twining Road and Phoenix Switchback but due to the low expectations of the budget we decided to hold off on any improvements until later in the summer to see if we can afford to do anything then. We do not anticipate any extra for dust control but the Public Works Department will try to set up some type of spray application on one of our trucks to wet down the roads periodically.
Environmental Expenses - the Village has the opportunity to get a cardboard baler from Taos County to use until the County needs it. It will also do aluminum cans. We are looking into the feasibility of getting and using the baler, along with the possibility of purchasing a glass pulverizer. It is our hope that the cost to purchase the pulverizer would be offset by the savings from not hauling the glass. We would plan to use the pulverized glass for bedding material in our trenches. Aluminum could be baled and stored on site until we could haul it somewhere for resale along with the cardboard. The issue we have with doing all this is that we are limited by space and manpower. Currently we are spending more on trash and recycling than we are taking in and will have to adjust for this in the budget next year.
Summary - in an effort to minimize costs, we have decided to hold off on the hiring of an operator until later in the year.
COMMUNITY
DEVELOPMENT
Capital improvement projects:
· Core area water tank and Pressure reducing stations: This project needs to be completed this year. Before authorization of any additional work, staff recommends a cost analysis be completed for improvements to-date and existing contracts evaluated for conformance with the contract documents. McLaughlin Water Engineers is also working on completion costs based upon the original scope of work. This will be compared to the original bid contract price plus any approved change orders. It is important that the LCI-2 bonding company is in agreement to cover additional costs going forward. Funding agency approval is also required prior to continuation above and beyond the contract price.
·
The
Kachina water tank will not be constructed this year due to lack of
funding. Easements and a dedicated tank
site will be in place for this project for FY2012.
·
The
Phoenix springs chlorination and metering station is designed and will
be put out to bid for construction this year as funding is secured for this
project.
· The Kachina sewage lift station will also be bid and constructed this year. Funding is via NMFA loan for design and construction. Property owners that will be served by this project will be assessed separately for these improvements which will pay back the loan.
·
The
NMDOT road coop is approved with a total budget of $50K. Work will be concentrated along the intersection
of Phoenix Switchback and
· The USFS Town Site Act land acquisition proposal has been submitted to the Questa Ranger District with surveys for the parking lot, WWTP Special Use site, proposed town hall, and if applicable, the existing Village Phoenix Springs infiltration gallery. Funding as proposed in the 2012 budget will be used for additional surveys, appraisals, etc.
· The Kit Carson three phase conversion from overhead to underground will also proceed this year. The main focus is to remove the overhead electric (cabin phase) line between the Phoenix Switchback and the beaver pond. Funding will come from franchise fees collected by Kit Carson Electric dedicated for this use.