Mayor Pro-tem Brendan Tolley and City Commissioners Amanda Forrister and Randall Aragon have all asked for more financial information since they took office at the end of April.
As newcomers, they have had little coddling. They, along with Mayor Sandra Whitehead, who has been on the board for nearly a decade, and Paul Baca, whose first four-year term will expire in 2022, were given a one-hour presentation on the preliminary budget on May 27, which did not include capital projects totaling about $15 million or 42 percent of the $35.5-million budget.
On July 22 a budget workshop was held, but most of it was taken up with whirlwind summary reports by department heads—most coming to the mic for the first time in a year—to explain what they had accomplished over the year in the minutes allotted to them.
The final budget session was July 29. The City Commission held a special meeting to approve not only the final budget for the upcoming year, but also the fourth-quarter report on the budget for the fiscal year that ended June 30.
The final budget wasn’t discussed at all, Madrid stating it was “unchanged” from the July 22 meeting. Madrid gave a brief presentation on the fourth-quarter budget report.
The state requires the City Commission to approve both the final budget and fourth-quarter budget report. Both were approved via resolution at the July 29 meeting, which are due to the state by July 31.
The public was not allowed to comment during the July 22 or July 29 budget meetings.
The state does not require the first-, second- and third-quarter budget reports be approved by the City Commission and they were never presented to the board.
The current City Commission therefore had mere days to digest last year’s spending. In that time they could attempt—on their own—to analyze how last year’s spending affected the upcoming year’s beginning balances and financial goals.
They had about 10 days to consider the final budget out-of-context from last year’s spending, with cryptic notations on capital projects and long-term debt offering little information.
Understandably, the City Commission asked no questions and made no statements on the fourth-quarter budget report or final budget.
During his presentation of the fourth-quarter report, Madrid said, “I know the City Commission wants more detail.”
City Finance Director Carol Kirkpatrick has come up with a format to make quarterly reports easier to understand, Madrid said, with more detail provided than the quarterly-report presented, which follows the state’s required format.
The implication was clear—quarterly reports will now be presented to the City Commission.
“Carol will show trends in the new format,” Madrid added.
While going over the transfer report, Madrid said money transferred out of the utilities’ funds “will be more transparent in the future.”
Although the utility funds are supposed to be run similar to businesses, according to state law, with utility fees rising no higher than what’s needed to operate those businesses and to fund related capital projects, about $2 million a year, or more, has traditionally been transferred out of utility funds and into the general fund for non-utility-related expenses. Over the last fiscal year $1.9 million was transferred out of utility funds.
Overall, the fiscal year ended well, Madrid said, primarily because of new construction and its favorable effect on gross-receipts-tax revenue.
The City collected nearly $5 million in gross receipts taxes, Madrid said, naming the “$20 million in construction at the hospital” as the primary contributor, referring to Sierra Vista Hospital’s new wing.
Even after the hospital project was done, “gross receipts stayed strong because of new construction,” Madrid said. “We’re seeing apartments and single-family dwellings going up, which will be a permanent boost to our economy.”