Village of Taos Ski Valley

Budget Summary 2007-08

The following narrative outlines the final 2007-08 budget adopted by the Village Council on May 2, 2007. Because of the complexities of the budget with its 21 different funds, a budget summary has been developed to assist residents in understanding the fiscal state of the Village and what projects will be completed in the coming year.

As in past years, our goal for the 2007-08 budget is to present Council and the public with a balanced budget, one that closely matches proposed expenditures with expected revenues while creating reserve balances recommended by the New Mexico Department of Finance and Administration (DFA). We must keep in mind that there are many variables that enter into a financial forecast such as obtaining grant funding or legislative appropriations for projects. Staff will continue to pursue this type of funding whenever possible but cannot guarantee that it will be received.

The Village was fortunate to have an average snow fall year which will certainly increase gross receipts taxes in comparison to the previous year. Year-to-date figures project Gross Receipts Taxes (GRT) to be on track with anticipated amounts. We have developed the 2007-08 budget based upon a similar ski season and have been conservative in our revenue forecasting. If large projects such as the Sangre de Cristo project or Thunderbird Lodge redevelopment get underway there could be a substantial increase in GRT. At this point we have not included these projects in budget forecasting.

The Village’s continues to reap the benefits of a robust construction climate increasing GRT through the collection of taxes on construction materials. Staff has forecasted approximately 55% of GRT will be generated from construction activities. This one-time revenue stream should be carefully allocated as it might not always be a consistent revenue stream. For this very reason, Village Officials have been cautious in how to utilize these additional one-time funds.

Construction activity will continue to be strong with completion of the Inn at Taos Valley, commencement of the Bavarian Expansion along with an estimated 4 single family homes. We have also developed the 03-Administration and General Fund in the hopes of achieving a $400,000 balance by the end of 2007-08. This is the target that the New Mexico Department of Finance and Administration would like us to achieve.

The Village Council chose to not raise water and sewer rates in FY 2007-08. Spirited discussions from Council and Staff discussed how to fund water and sewer repair and replacement costs that are currently not being addressed. In the end, Council directed Staff to look at alternative funding sources in lieu of raising monthly rates.

The final budget also shows $33,237 in water revenues and $79,993 in sewer revenues to be transferred to the General Fund to pay for administrative costs that are not included as expenses in the water/sewer enterprise funds. These expenses include the administrative costs for Bruce, Don, Vanessa, Ann Marie, Renee and Rob. Additionally, these transfers cover insurance for health, liability, property and vehicles as well as workmen’s comp and contributions to the Money Purchase Pension Plan (MPPP).

The Village received a legislative appropriation of $400,000 for design and construction of a Public Safety Building on Forest Service land located at the Wastewater Treatment Plant site. This appropriation will be combined with an additional $195,000 in past legislative appropriations along with the Village’s contribution from gross receipts taxes. The project will be bid in Spring of 2007. Substantial project savings will be realized by using Forest Service land, negating any need to acquire additional land for the building. The 6,500 s.f. building will provide much needed office space for law enforcement officers, fire and emergency medical staff, a meeting/training room and vehicle storage bays. The Village’s present facilities are crowded, not ADA accessible and lack adequate parking. We sincerely thank the efforts of Representative Bobby Gonzales and Mayor Pro-Tem Barb Wiard for their tireless efforts in obtaining State legislative funds.

The Village will continue its aggressive efforts investing in the Village’s municipal infrastructure. First and foremost, the Village will continue to extend 8" sewer collection lines throughout the community. The Village will utilize $128,000 in remaining funds from a 2006 legislative appropriation along with a Village contribution of $100,000 to complete Phase I and II of the Village’s Sewer Line Extension Master Plan. Completion of Phase I and II will be a strong step to the discontinuance of septic systems within the Village enhancing water quality. Additionally, extending sewer lines throughout the community will increase our utility customer base creating better economies of scale.

The Village has also been awarded $59,482 in State Transportation COOP grant funds. These funds will be used to complete Phase II of improvements to steep areas along Twining Road and Phoenix Switchback. Plans are to install catch basins, drainage pipes, improve grading and realign Phoenix Switchback intersection.

Staff will purchase a jet-rodder for $35,000 to clean sewer and drainage pipes. The Village is also budgeting $50,000 per year for five years to be earmarked for reserve in the 32 O-M Reserve Fund. These funds are needed for future purchases of large, expensive equipment such as loaders, skidsters and a dump truck. With commitments from current and future elected officials we hope to have a healthy reserve budget of $200,000-$250,000 in five years.

The 2007-08 Budget is available at the Village Offices. Please do not hesitate to contact us if there are any questions.