Title
FY2024 Budget Hearings
Recommended Action
During the hearings, as Council completes the review of each department, a tentative approval is recommended to indicate that Council has completed its initial review of the proposed department budget. Additional changes can still be made by Council at any time during the budget hearings. Those motions are recommended to follow this format:
Tentative Approval
I move that Council tentatively approve the proposed budget for the __________________ Department in the amount of $_____________, and (if applicable) tentative approval of the addition of ____ FTE(s) for the position(s) of _________________, and (if applicable) tentative approval of budget option number(s) #_____, _____, _____.
After all Council review is complete, Council will consider adopting the budget. Council could adopt the budget on April 17, 18, 24 or 25, 2023.
Budget Adoption
I move that Council adopt the FY2024 budget in the amount of $____________ as described in Attachment B, Summary of Changes from Proposed to Adopted Budget as amended at the budget hearings.
I further move that Council direct the County Manager to return with a proposed ordinance for Council consideration to increase the County's Gross Receipts Tax rate by 0.5%.
I further move that Council approve the following items related to the adoption of the FY2024 budget:
1. Long Range Financial Projection as amended during budget hearing in Attachment C;
2. Equipment Replacement Schedule in Attachment F;
3. Recurring Grants Schedule in Attachment H;
4. Summary of Pension Fund Administrative Costs in Attachment G;
5. Schedule of Appropriations for Salary Adjustments in Attachment I;
6. FY2024 Department of Public Utilities’ Schedule of Funds in Attachment J; and
7. Continuing appropriations in the FY2024 budget from the FY2023 budget for the items listed on Attachment M.
I further move that per Code Ordinance 02-302, Section 40-63 (c)(12), Council approves redirecting the FY2022 DPU profit transfer in the amount of $898,500 from the General Fund to remain within the Department of Public Utilities for the purpose of investing in utility infrastructure to facilitate coordination with roads projects.
I further move that the profit transfer redirection option be extended, per County Code Section 40-63(d), for an additional year, to be from FY 2023 through FY 2028.
I further move that Council approve Budget Revision 2023-38 as summarized on Attachment K and that the attachment be made a part of the minutes of this meeting.
County Manager's Recommendation
The County Manager recommends that Council adopt the FY2024 budget.
Board, Commission or Committee Recommendation
The Board of Public Utilities has recommended approval of the Department of Public Utilities budget and the Lodgers' Tax Advisory Board has recommended approval of the Lodgers' Tax Fund budget.
Body
BUDGET HEARINGS (and potential budget adoption)
The FY2024 Budget Hearings are scheduled for Monday, April 17, 2023, Tuesday, April 18, 2023, Monday, April 24, 2023, and Tuesday, April 25, 2023, beginning at 6 p.m each evening. The proposed budget has been distributed separately, and reference copies are available online at the County's website and at the Customer Care Center.
Budget presentations will usually be made in the order identified on the agenda. Outstanding or unresolved items will be placed on a "parking-lot" list and will be resolved prior to the adoption of the budget.
Public Hearings: Public in-person attendance and remote attendance through Zoom is allowed. The public can also view proceedings through online live streaming, https://losalamos.legistar.com/Calendar.aspx , or locally on PAC-8. The County encourages public comment via email at lacmanager@lacnm.us <mailto:lacmanager@lacnm.us>. Citizens are asked to type PUBLIC COMMENT in the subject line of the email.
Introduction, Overview, Budget Summary, Long Range Financial Projection and Budget Options
The County Manager will present an introduction and overview. The overview will address the high-level goals of the proposed budget. Highlights from the Budget Summary section of the proposed budget (pages 33-56) will be presented by Steven Lynne, County Manager, Helen Perraglio, Chief Financial Officer and Erika Thomas, Budget and Performance Manager.
Elected Officials - County Assessor, County Clerk, Probate Judge, Municipal Court, County Sheriff
These elected officials will provide an overview of their departments.
General County Operating Budgets
Department Directors will provide an overview of individual departmental highlights.
Joint Utilities Fund Budget
The Utilities Manager will present the Utilities Department Budget, Schedule of Funds and Budget Option.
Parking Lot - Outstanding / Unresolved Items and Budget Options
Any changes made or direction received during the budget hearings will be incorporated into the proposed budget. Attachment B, Summary of Changes from Proposed to Adopted will be updated as Council makes changes.
FY2024 Long Range Financial Projection
The attached Long Range Financial Projection (Attachment C) is presented here. The County's financial policies require Council approval of the projection which indicates Council's long-range financial policy direction.
FY2024 Fleet Equipment Replacement List
Approval of this list (Attachment F) at this point in time will eliminate the need for additional formal Council action for routine replacement of vehicles at a later date.
Summary of Pension Fund Administrative Costs
Although the expenses of the Pension Plan are passed on to the plan participants, the County Council, as the Plan Sponsor, has routinely established and approved an administrative budget for the Pension Fund to provide system controls over these payments. Because this is a trust fund, the administrative costs are not a formal part of the County's budget. See Attachment G.
Recurring Grants
Each year departments are required to notify Council of their intent to apply for recurring grants. Attachment H is a list of the recurring grants and estimated amounts for FY2024. This will eliminate the need for additional formal Council action at a later date unless actual received amounts are different than originally budgeted. If that is the case, these routine adjustments will be lumped together and brought before Council during mid-year budget revisions.
Schedule of Appropriations for Salary Adjustments
The Schedule of Appropriations for Salary Adjustments provides a list of estimated salary adjustment costs included in the proposed budget by each salary group. This schedule will be updated as Council makes changes to the budget. See Attachment I.
Department of Public Utilities’ Schedule of Funds
The Department of Public Utilities’ Schedule of Funds is a new schedule as required by Los Alamos County Code Ordinance 02-302, Section 40-65. The schedule of funds, and any amendment of the schedule, as proposed by the Board of Public Utilities, shall be referred to the council for consideration for adoption.
The schedule of funds shall prescribe the necessary yearly funding of reserves for replacements, additions and improvements, and other reserves authorized by Charter, bond ordinances and bond indentures or other governing instrument and shall be consistent with the needs of the utilities systems. The replacement reserve shall cover (among other things) machinery and equipment and system replacements. The schedule of funds shall reflect separate reserve allocations for separate utility systems. See Attachment J.
Continuing Appropriations
In addition to adoption of the budget, carryover of certain current year budget items are presented at this time because of their routine nature and presented in Schedule M.
Alternatives
Council may amend the proposed budget. The State requires that the governing body adopt its budget each year with requests due by June 1. State statute does not allow for an extension to this deadline.
Fiscal and Staff Impact/Planned Item
See the FY2024 Proposed Budget and accompanying Budget Options.
Attachments
A - FY2024 Proposed Budget Link
B - Summary of Changes from Proposed to Adopted
C - FY2024 Long Range Financial Projection
D - Budget Options for FY2024
E - Overview and Department Presentation
F - Fleet Equipment Replacement List
G - Pension Administrative Costs
H - FY2024 Recurring Grants List
I - FY2024 Schedule of Appropriations for Salary
J - Department of Public Utilities Schedule of Funds
K - Budget Revision 2023-38
L - Updated Budget Book Pages for Hearing
M - Continuing Appropriations
N - General Fund 10 Year Projections
O - Summary of Significant Changes to Revenue and Expenditures
P - NEW Additional Revised Budget Book Pages