VILLAGE COUNCIL MEETING

BUDGET WORKSHOP MINUTES

SNAKEDANCE CONDOMINIUMS

TAOS SKI VALLEY, NEW MEXICO

 TUESDAY, APRIL 1, 2008, 9:00 A.M.

I.         CALL TO ORDER & NOTICE OF MEETING

Mayor King called the meeting to order at 9:35 a.m. The meeting notice was properly posted.

II.       ROLL CALL

Mayor King, Councilors Stagg, Wiard and Wittman were present. Councilor Bennett was present via teleconference from her home while recovering from hip replacement surgery. Staff members present were Susan Steele, Bruce Kelly, Raymond Keen, Vanessa Chisholm and Dave Wallace. Gene Mortimer attended representing the Fire Department, while Mary Mortimer was representing the EMS Department. Roger Mariani arrived later in the meeting to represent the Lodgers’ Tax Advisory Board.

III.      APPROVAL OF THE AGENDA

The Agenda was approved as submitted.

MOTION: To approve the Agenda as submitted.

            MOTION:     Councilor Wittman     Seconded: Councilor Wiard             Passed: 4-0

IV.      BUDGET WORKSHOP

Village Administrator Susan Steele stated that the FY2009 budget had been prepared to utilize, to the extent possible, the elements of governmental fund accounting principles. These principles entail associating the actual specific expenses, i.e., salaries, benefits, repairs, etc., to each fund based on the percentage of overall actual time or revenue it took to produce, maintain or improve the specific Village service.

Steele continued with the budget starting with salaries and benefits. Cost of Living Allowance for 2007 is 2.3% as reported by the U.S. Department of Labor Statistics. In addition Steele is recommending a 1% merit increase for a total of a 3.3% across the board raise. Council asked Steele to consider other options for future salary and benefit increases.

Staff reviewed each department with the Council starting with the General/Administrative fund. Steele used actual revenues and expenditures from FY2007 whenever possible for the budget numbers. In previous years the General/Administrative fund included transfers from water and sewer operating. However, FY2009 budget does not included these transfers because each fund will include salaries, benefits, insurance, etc. as actual fund specific expenses. Transfers will still be made to law enforcement, roads, judicial, EMS and fire operating. Revenues will include gross receipts tax, property tax, licenses and permits and legislative appropriations, etc.. Expenditures include such items as engineering for platting and zoning map updates; outside contractors for central dispatch, computer network assistance and planning review services; small equipment purchases such as computer, server, software, modular walls for Public Works Director, digital camera for Community Development Director and color copier for the office. Capital expenditures include the design and construction of the Public Safety Building with $527,000 in legislative appropriations and $10,000 for administrative building repairs.

Ray Keen presented his recommendations for the water, sewer, roads, and environment funds budget. Starting with the water fund, revenue is collected from water sales with no increase in water rates. Expenditures will now include salaries, benefits, insurance and legal fees that were previously paid by the General Fund. The Village plans to spend $2,500 in engineering costs to update the water system maps in PDF format. An additional $3,200 has been added to small equipment and tool purchases to replace parts ruined when the head works building collapsed. Water and sewer connection fees will be collected for the new casitas at the Bavarian. Water Depreciation’s budget includes expenditures associated with the design of water system improvements for the Village core and the Kachina subdivision as well as PRV’s and fire hydrants.

Sewer operating revenue is funded through sewer sales with no increase in sewer rates. Similar to water the expenditures will now include salaries, benefits, insurance and legal fees that were previously paid by the General Fund. $2,500 in engineering expenses is for updating the Village’s sewer system mapping in PDF format. Materials and supplies has been increased to purchase manholes and to replace parts lost when the head works building collapsed. Capital expenditures of $110,000 will be for the replacement of the head works building. A manhole replacement or repair at Sierra del Sol is expected to cost about $10,000 in capital expenditures.

Keen stated that the Roads fund would continue to use NM State Highway and Transportation COOP funds to improve the steep areas along Twining Road. Plans include installing catch basins, drainage pipes and improve grading. Village staff is recommending design and planning for Kachina Road improvements between Hiker Parking and the Bavarian. This would result in an assessment to be paid by developers and landowners in the area. Also, the TSV, Inc. shared paving project was mentioned and was to be included in the revised budget.

Budgeting for the Environment fund is similar to last year’s budget with revenues collected from gross receipts tax and solid waste fees and the main expenditure is for Waste Management disposal service.

Dave Wallace reported on the Law Enforcement, Fire and EMS budgets. Law Enforcement is funded entirely through transfers from the General fund. Expenditures remain similar to last year’s budget with increases in fuel expenses, travel and training. Staff anticipates $14,700 to remain in reserves to be used the following year for vehicle replacements.

Fire Chief Gene Mortimer assisted Wallace with the Fire Department budget. Revenue is received from the State Fire Marshall’s fund as well as insurance proceeds on a claim for damage above the stairway at the Firehouse caused by snow this winter. Expenditures are similar to last year’s budget with the exception of $25,522.26 to be used for a new roof at the firehouse and stairway repair as previously mentioned. $5,500 has been budgeted to replace the carpet in the Village office at the firehouse.

Steele stated that Wallace will be spending more time on the day-to-day needs of the EMS and Fire Departments therefore line items for salaries and benefits have been adjusted accordingly. Outside contractors line item for Quigley Peterson’s medical director contract has been increased by $1,000. EMS volunteers have requested the Village hire an on call person during peak ski days. This expenditure has been included in outside contractors.

Roger Mariani presented the Lodgers’ Tax budget. Revenues are expected to come in at $263,650.45. A reserve of $100,000 is budgeted as the beginning cash balance for July 1, 2008. The Chamber of Commerce will again be the biggest expenditure with a grant request of $259,900.45. An additional $15,000 has been allocated to the Town of Taos ski shuttle to provide more evening runs. Total expenses are budgeted at $363,650.45

Steele reminded the Council that this is the introduction for the FY2009 budget and that a public hearing will be held at the May 6, 2008 Council meeting after which the Council may approve the budget.

V.        Adjournment

MOTION: To adjourn the budget workshop

MOTION: Councilor Stagg    Seconded: Councilor Wittman    Passed: 4-0

__________________________________                                             ____________________________________

Neal King, Mayor                                                    Vanessa Chisholm, Village Clerk