Wednesday, May 24, 2006

County carries over cash

Begins fiscal year with $3.6 million carryover, plenty of projects

Jane Moorman News-Bulletin Staff Writer; jmoorman@news-bulletin.com

Frugal money management is apparently paying off for Valencia County. The county is expecting to enter the 2006-07 fiscal year with a $3.6 million carryover.

"This is the first year since 1999 that the county has not had to go into its 3/12 cash reserves," said County Manager Mike Trujillo. "Each year the county has received letters from the Department of Finance and Administration and state auditor warning about using the 3/12 cash reserve."

Trujillo added that he expects the county to remain technically in the black during the 06-07 fiscal year by not having to rely on the 3/12 cash reserve.

He added that in government finances it is important to have carryover funds to begin each year.

"No county can live on the revenue it generates during the year," Trujillo said. "So you try to be conservative on revenue projects so you end up with more for the next year."

The county began the 2005-06 fiscal year with $2.96 million. The 2006-07 budget presented to the commission on Friday indicates the administration expects to begin the new fiscal year with $3.68 million.

The county commissioners received this news during the Friday business meeting at which they approved a $11.6 million budget for the upcoming fiscal year.

While planning how the budget would be allocated, Commissioner Ron Gentry wanted to be sure that people didn't get the wrong impression about $2.2 million that has not been itemized.

"We have about $2 million debt liability that is not figured into this budget, which we need to plan for," Gentry said.

Trujillo agreed, saying that the county is still not out of danger because of past budget issues.

The county will need a total of $1.82 million for such projects as completing the old landfill closure and Conejo Transfer Station cleanup, $250,000; New Mexico Environment Department penalties regarding the landfill and transfer station, $927,700; paying PERA employee payroll deductions that were not paid in the past, $168,942; and operation of the new judicial complex and community centers, $373,892.

"And the biggest liability is to have cash left over at the end of 2006-07 for the next fiscal year," Trujillo said.

The 2006-07 budget reflects 12 new employee positions, an increase in fuel costs of $82,438 and the replacement of several vehicles in the county's fleet.

The commissioners decided during a public hearing Wednesday that they would not address pay raises until after the administration completes a new job classification and pay plan.

Once the administration establishes the beginning salary, pay ranges and steps for each job classification, the commission will then have the information it needs regarding salary costs.

"I suggest we don't act on salaries at this time, but rather wait for the salary grade system which will be more equitable than if we just give all employees a 40-cent per hour raise," Gentry said.

The commissioners agreed they want to have equitable salary increases for the employees, which they expect the new system to produce.

"When the pay plan is established we'll find some employees with the same job classification not having the some salaries," Commissioner Mary Andersen said. "We'll have to correct those salaries and we don't know what impact that will have on our budget."

The county manager said after the meeting that such adjustments are frequently phased in over several years because it's too much of a hit to do it at once.

While developing the budget, Trujillo told the commission he has established a new department for fleet maintenance.

"The mechanics in the highway department have been doing repairs for all of the county vehicles with the costs coming from the road department's budget," Trujillo said. "Now each department will be charged for such repairs."

He added that two service technician positions are being added to help with the workload.

"All work on vehicles will be done in-house except for specialized jobs that we don't have equipment to accomplish," he said.

The budget also includes an emergency medical service (EMS) coordinator, three animal control officers and a zoning officer.

Other new positions include clerk positions in the county clerk's office and animal control, a clerk position in the bureau of elections, administrative assistant and a part-time data entry person in the IT/GIS division, a laborer in the solid waste department and a building maintenance supervisor.

During the public hearing, two organizations that the county contributes to asked for increased funding.

Juli Hutchins of the Valencia County Cooperative Extension Service asked for $5,000 to fund a youth at-risk agent.

"The federal grant for this position will not be renewed," Hutchins said. "Our state office has found $25,000 for the position and we are proposing that the municipalities, school districts, Valencia Boys and Girls Club, CASA and Children Youth and Family Department share the cost of the remaining $35,000. We are asking for $5,000 from each entity."

The county's 2006-07 budget includes its share of that cost — $5,000.

Marcel Reynolds of the Valencia Soil and Water Conservation District (VSWCD) asked the commission to return the county's funding to its former $20,000, which was cut out of the budget in 2000.

"We did not receive any funding from the county for two years, then we received $10,000, which has remanded the same," Reynolds said. "These funds are used to pay our office assistant. We are doing a number of projects, which the county receives benefits from, that are requiring more hours from our assistant than our funding can afford to pay. We would like county to increase the funding an additional $17,500."

The commission did not increase the $10,000 it budgeted for the agency.

After the meeting, Trujillo said the county is not required by state statute to provide funds to the conservation district.

"By state statute, they are able to fund their operation through a mil levy property tax," Trujillo said of the funding source that VSWCD has tried three times to acquire.

The county's 2006-07 budget will not be sent to the New Mexico Department of Finance and Administration for review. It will go into effect on July 1.

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