[Editor's Note: This is part two and the final article of the Grant County Commission special meeting on July 23, 2020 to discuss the budget.]
By Mary Alice Murphy
With only three commissioners—District 1 Commissioner and Chair Chris Ponce, District 2 Commission Javier "Harvey" Salas and District 3 Commissioner and Vice Chair Alicia Edwards—in attendance at the special meeting on July 23, 2020, to discuss the fiscal year 2021 final budget, at the beginning of the meeting, they tabled the item to approve the budget. Another Special meeting is set for Tuesday, July 28, 2020, at 9 a.m. to continue to discuss and approve the budget. District 4 Commissioner Billy Billings and District 5 Commissioner Harry Browne have indicated they plan to attend along with the other three.
To read the first article on this, please visit: http://www.grantcountybeat.com/news/news-articles/59249-grant-county-commissioners-held-special-meeting-to-address-budget-072320-part-1
The first item addressed by Financial Officer Linda Vasquez was the Commissioner's budget. "The budget has a 12 percent decrease. The majority of the decrease will be the 5 percent decrease in salaries, if you approve the resolution. We zeroed out capital outlay, because there won't be any this year. As a result of the salary decrease, the FICA and PERA will also decrease. We decreased professional services by $57,000. The High Desert Humane Society decreased by $29,000. Worker's Comp will decrease. New Mexico Counties let us know that because of the pandemic Worker's Comp will be decreased. Overall it's a 12 percent decrease."
Ponce said: "I'm looking at how was it determined how to cut the three libraries, the Silver City Library, the Bayard Library and the Gila Library, all were cut to zero, which I understand. It's hard times. But looking up here I see the agricultural agent gets $63,000 with no cut. I think we all need to contribute. I have nothing against the program, but I would like to know the procedure you used to reach that amount."
Vazquez said: "The county has to provide for the extension service. We've always provided part of their funding. They don't fall under the same category as other outside funding requests."
Ponce asked if Vasquez or the county manager could reach out to them. "I had a discussion about it, but my question is what is the bare minimum? We can review it in January."
Salas asked if it was cash or space the county contributed¬. "I had a similar feeling that they should take a cut commensurate with county employees."
Edwards asked about the resolution for the cut in commissioner salaries.
County Manager Charlene Webb said it could be added to the Tuesday special meeting agenda. "You can take action or table it."
The manager's department has an overall decrease of 9 percent, primarily in salaries and benefits. "We zeroed out capital equipment and repairs."
Edwards asked if this budget was the one with the furloughs (as mentioned in the first article, the budget includes 13 furlough days for employees, except for the Sheriff's Department and Corrections, which operate 24-hours a day).
Vasquez confirmed the cuts she was reading include the 13 days of furlough.
The Maintenance Department will have an 8.92 percent decrease in capital outlay and salaries and benefits.
Salas asked about legal services.
Vasquez said that is addressed in contractual commitments.
Webb said the extra item for legal items is to meet deductibles and to answer quick questions from Human Resources, for example.
Salas asked what this year's legal expenses have been.
Vasquez said it is in the Commissioners' budget and the total for the year has been $127,491. "That is about the same as we spent on an in-house attorney, but this one has also answered questions about the hospital from the governing board."
Salas asked if the hospital was putting a donation toward those expenses.
Webb said when she last looked, about $15,000 of the cost was related to the hospital.
Next was the Clerk's Department. Vasquez said the department would see a 20 percent decrease on salaries and benefits, including the frozen position and the furlough days.
The Bureau of Elections in the Clerk's Office will see a cut of about 2.5 percent, because it has to deal with elections every year, including special elections.
Edwards noted that was about $25,000 less. "I presume that is for mail-in ballots, which cause a decrease in printing and publishing." Clerk Marisa Castrillo confirmed it.
Ponce asked: "This is a presidential election year. Will that frozen position hurt?"
Castrillo said: "Yes, it will hurt when there are furloughs. We are OK with being short one position, but I don't have enough staff to furlough. With elections every year, I wonder when the furloughs will take place. If they are during the election, it could be a problem."
Webb said the furloughs would consist of about one day a month, but it will be up to the department head or elected officials to schedule them.
Edwards said to have only a cushion of $33,000 is "scary. Is it possible to hold the furloughs until the first of the year? I would like to know if personnel would want them now or put them in the last six months of the fiscal year? I know you can't answer that now."
Ponce said everyone is making sacrifices, but the 13 furlough days are a concern. "Does it hurt for those getting ready to retire, with their pensions based on their highest-paying years of work?"
Edwards said with the breakdown in the insurance, it might be more than $1,500 lost per employee. "I have heard that people would prefer furlough days to a cut in their insurance. Say we decide on the 13 furloughs and we get to January. I'm not sure this is realistic, but what if we didn't need the six days? How could we compensate them for the days already taken?"
Vasquez said it could only be through vacation days; it could not be a cash payment.
Edwards pursued the train of thought. "It will also be a question of providing services. If we put the 13 days of furlough in the last half of the fiscal year, I think it would be a larger burden."
Vasquez said the department head or elected officials could stagger the furlough days.
Salas noted that the county has holidays with no services. "I think we are giving the department heads a way to stagger the furloughs. What is the actual hit to a check?"
Vasquez said it would be about $1,500 in total, about $115 a month for each employee. Webb noted that it is a total of 104 hours for the 13 days.
The Assessor's Department has a 6 percent increase due to the parcel mapping project with $135,000 in capital outlay.
The Treasurer's Department would see an overall 7 percent decrease, mostly from salaries and benefits, and the loss of a part-time position, at about $12,000.
Treasurer Steve Armendariz said he was surprised when he received a copy of the budget with nothing to compare it with. "Linda said we would see about a 10 percent decrease in revenues. I think maybe it's better to say projecting, rather than seeing. I understand the need to be cautious, but we have collected over the past 10 years at 95.89 percent, which is very good. We have seen an average of $126,000 increase in investments. The past six months gross receipts taxes have averaged about $103,000. The average of PILT (federal payment in lieu of taxes for federal lands, which cannot be taxed by local entities) is about $2 million a year. The five-year average of copper production is almost $2.5 million a year. I feel that these furloughs are premature. We don't know what the future has. And yes, it will have an effect on those of us retiring at the end of our terms. As it is, I was told by the payroll clerk that I would not receive a check at the end of December. My last paycheck will be Dec. 12. It seems the treasurer and the assessor offices are the only ones taking furloughs. Last year was the first time I got a temporary position. I believe we have done the best to provide services under the coronavirus restrictions. Everyone top to bottom should be proud." He explained the process of walking people into the office or asking what change they needed for a payment and meeting them at the door.
"I think by January we will know what first half taxes will be," he continues. "During the pandemic, we have had better collections than in the previous year. I was shocked when I called the retirement office and was told what I can expect. I'm quite a bit older than many retiring, and I was looking for supplemental insurance from PERA. The representative told me to go to AARP or United Health Care; they have better rates. I asked him why we were subsidizing the department, if you're not competitive. We send a lot of our retirement dollars from the county and you aren't going to provide us anything."
Ponce said he doesn't think the county has felt the impact with the miners furloughed and facing layoffs right now. "Plus, right now, everyone on unemployment is getting $600 extra per week. At the end of the month, they will go from about $1000 a week to about $300 and some a week. Right now, they are making more than they were when they were working. One of my first priorities is county employees. It hurts to furlough, but our revenues are going to be cut. The mines are waiting until August to decide what to do. When they lay off people, people will move to where there are jobs. To me we have to do what we can to stabilize the county to continue to provide services. I'm trying to see what's best for the county employees and the citizens. I understand what you're saying, but we have to be cautious."
Armendariz commented that approximately 60 percent of those who have returned to their prior jobs are receiving less than they were on unemployment with the extra $600. "You say they will pick up and go, but with layoffs and strikes, the people in Grant County are deep-rooted. The tax collections show that people here are responsible. I personally feel it is premature and I think it's not the appropriate thing to do. If we see shutdowns at the mines, we will see what the tax proceeds are. It's my employees I will leave behind that I have responsibility for."
Vasquez asked what the tax collections were compared to 2008-10 when there were massive mine layoffs.
Armendariz said 2009 was when the system with Triadic was in transition and they considered the number proprietary, so he doesn't have those numbers.
Vasquez said what she determined was that in 2008, the year of the layoff, there was an 87 percent collection rate. "And I want to clarify that no one will get a check after Dec. 12. You got two when you first came in a deputy treasurer. Everyone gets paid 26 times a year, and the next payroll after Dec. 12 will be in the new year."
Salas said that right now everything has variables. "This is the last week of the $600 stimulus, so it will get scary. To them it's politics. There are too many maybes. I think it would be prudent to prepare for the worst and hope for the best. We should have an idea in January if things are better."
He asked Armendariz about the extra $2 million in last year's budget. Armendariz said it was because of two PILT payments in the same year.
Vasquez went on to the Law Enforcement department. "They will get a .18 percent increase, due to full-time salaries, based on the increasing salary schedule adopted last year. We did take out the $88,000 of capital outlay and liability insurance has increased."
Salas asked why the Sheriff is not taking a 5 percent cut.
Vasquez said the department, just like corrections, cannot furlough because they work 24-hours a day.
Undersheriff Jesse Watkins said the department also has a chaplain that can be brought in when officers need help from traumatic events.
Ponce asked about training, and Watkins said they have five certified trainers, but each trainer needs additional training in specialized areas.
Salas asked what a CAD system is.
Vasquez said the computer-assisted dispatch system will be upgraded with capital outlay funding.
"We were fortunate we got the full amount," Webb said, "so we don't have to come up with a match of the $88,000."
Vasquez said the fleet maintenance budget would be the same as last year. IT (internet technology) will see a decrease of 7 percent, in the decrease of $15,000 for scanning documents, and decreased capital outlay by $10,000.
Salas asked what the computer support line item was.
Webb explained that it is used for external agencies that "monitor our servers and take care of security. The company has been the same over the years, but Doug has identified the provider to Western New Mexico University and Doña Ana Community College that he feels will be a better solution for the county and will provide us with on-call hours. We will put it on your agenda for August, with the contracts for software also."
Vasquez said the General Services Department budget is increased by 3 percent, mostly for telephone services, which were underfunded last year. "Before we had everything related to telephones lumped into one department. Now it's in each department, so we now know actual costs."
The Planning Department is decreased by 33 percent. "Operating expenses decreased by $10,000, but the grant money decreased by $40,000, and professional services decreased $100,000, because there likely won't be any projects this year," Vasquez said.
Edwards asked how taking out $100,000 would impact the county if a shovel-ready project was found.
Webb said the Colonias and CDBG (Community Development Block grants were already matched. "We felt if something came up, we could come back to you and do a budget adjustment."
Edwards noted that one of the first things that comes with budget cuts happens to training and professional development, which are the first things cut, then "we have staff that are not trained to full capacity. I want to show on the record that I feel training is an important part of what we do for our employees."
Webb said the county sent the GIS employee to training and brought him up to where he needs to be. "It is not necessary to put that funding in again."
Edwards said she is OK with non-recurring funding like that.
Ponce said it's "our responsibility to have our employees trained for promotion possibilities. We need to look at the development processes to grow them."
Salas asked about the three-twelfths reserve that is required and whether it could be used in hard time.
Vasquez said the reserve remains in the unaudited budget. "It carries over every year."
Salas asked what triggers its use. Vasquez said this year the Department of Finance and Administration has allowed the county to use some of it because of the pandemic, but "we have to always have the three-twelfths reserve. Otherwise, we would have to reduce other places in the budget to make it whole."
Edwards explained further that the DFA said the county could use some of the three-twelfths, but "if the revenue went down, we would have to cut the budget to retain the three-twelfths."
Vasquez said it could have been used only between March and June this year.
Edwards said the county could have used it, but it would have to be in this budget. "We might as well put the three-twelfths out of our minds."
Webb when the DFA gets a request to use the money, "they will send someone to take over for Linda and me."
Salas asked how much of investment interest goes into the operating fund or does it just go back into the investments.
Vasquez said it depends on the maturity dates, which are staggered.
Salas asked what would trigger use of the investment fund.
Vasquez said the investment fund at present is at $8.8 million. "I don't know what percentage is in the General Fund."
Edwards noted that if they "put to bed the three-twelfths, if a percentage of the investment fund goes into the General Fund, it's already more of a cushion than the three-twelfths."
Next was the Road Department, which will have a 13.67 percent decrease in fuel costs and salaries. "We may need to readjust this," Vasquez said. "They have three positions frozen – two laborers and a mechanic."
Road Superintendent Earl Moore said: "We'll live with what we get. We got through the chip-sealing projects this year. I don't like furloughs. It will affect the retirement of some of our employees. But we gotta do what we gotta do. This is the second time, since I've been here. We'll deal with it."
Edwards said for next Tuesday's special meeting, she would like to know how many county employees are eligible for retirement and "if there is something the county could look at, so it doesn't reduce their retirement. We're asking them to make a sacrifice this year, but close to their retirement, it will affect them for the rest of their lives."
Moore said it would affect the department heads and elected officials more than the employees. To a question about the weather possibly causing problems for the roads. "We are not behind because of the weather."
The Airport Fund will decrease by 8 percent, mostly from decreased grant match money. "We have $25,000 left, because it's not wise not to have match money if we should get a $1 million grant," Vasquez said.
Webb said mandatory training is in the budget for fuel farm employees and fire protection employees.
Ponce asked about a uniform line item. Chief Procurement Officer Randy Hernandez said it is a clothing allowance, which is mandated in the union contract.
The Detention Center will have an increase of 39 percent because of a transfer into corrections, due to gross receipts taxes decreasing and state funding decreased, "so we have to supplement," Vasquez said. "The budget has a 9 percent increase in care of prisoners, mainly for indigent claims, so there is a $1.17 million increase in Corrections."
Edwards asked if the decrease in the General Fund revenue loss is in order to subsidize Detention Center services. "The reason I'm articulating it is that I want the record to show that we have to subsidize because we are not getting enough from other sources, including the state, to provide services."
Vasquez addressed special funds, including for equipment for the Clerk's office which is paid for with recording fees, which the county holds for that purpose. The reappraisal Fund is another special fund. Treasurer's fees are in a special revenue fund for the treasurer's office to use for what the Treasurer requests. "Other special revenue funds, we have to re-budget the balances from the previous year."
Edwards requested a dollar amount from the Treasurer's office on the amount of collections received in that department that went into county revenue, without the bonds, capital outlay and other entities' tax revenues.
Webb said the treasurer collects for all sources. "We can ask him for that number."
"The amount could be miniscule for the county, compared to the overall collections," Edwards said.
She was also the first to give a commissioner's report. "I want to acknowledge all elected officials and employees for their incredibly conscientious work to make this budget look as good as it does. I thank Manager Webb, Linda and Randy for anticipating to freeze positions back in March and spending less to make sure we have a cash balance. I consider it not a bad-looking budget for the concerning time we're in. I appreciate conservative budgeting. I want to take care of county staff. The more conservative we can be now, the better we can support our staff for the future. The future of the county, as a county itself and this county, is in the hands of Congress. The unemployment situation and what could happen at the mines does not bode well. We are facing a potential wage cliff."
Salas also thanked "Linda, Charlene and the rest of the staff for looking ahead and the austere ways we've taken. I want our employees to know we are doing our best to lessen the impact to make the best of a bad situation. The variables are in Santa Fe and Washington D.C. I'm hoping some sort of benefit comes from Washington and I'm hoping the mines situation improves. I know some have already left for jobs in Arizona."
Ponce echoed thanking "Charlene, Linda and Randy for your work on the budget. The budget is the biggest responsibility we have. We make employees the priority. Training and development is the best asset. That has been proven. What I would like to see is to have a retreat or a work session to go through everything in the budget, taking a day and all of us sitting and looking at ways we can help you."
Edwards moved to adjourn the special meeting.c