The two senior commissioners, Mayor Sandra Whitehead and Paul Baca, said nothing beyond also praising Madrid for his work on the budget.
What the City Commissioners asked:
City Manager Morris Madrid said the Department of Finance and Administration requires the City’s General Fund keep a cash reserve of one month’s expenditure on hand. The preliminary budget for the General Fund is $6.08-million expenditure. One-twelfth cash is about $507,000, the stated reserve in the budget document.
City Commissioner Randall Aragon asked Madrid to point out where that figure was in the budget and Madrid directed him to the first line on the first page, which is titled the “budget recap” form.
Madrid said the City used to pool the enterprise funds’ cash in an account called the Joint Utility Fund because it made the City a better prospect as a loan recipient. The enterprise funds are the water, wastewater, solid waste and electric utilities. Pooling the money, Madrid said, was not good “financial practice,” since the City couldn’t monitor how well each utility was performing and “each enterprise fund is supposed to stand on its own.”
The City therefore did away with the Joint Utility Fund, Madrid said, keeping each utility fund separate, to better manage each utility.
City Commissioner Amanda Forrister asked where the Joint Utility Fund was in the budget. Madrid repeated that the fund no longer existed.
Mayor Pro-Tem Brendan Tolley asked Madrid if he had any idea how much the City’s Gross Receipts Taxes would be affected by the coronavirus shut down of businesses.
Madrid said, “no,” but assured Tolley that more money would be coming in from rate increases to the water, wastewater and solid waste utilities. The rate increases go into effect July 1, he said, which is the beginning of the 2020-2021 fiscal year.
The preliminary budget predicts the same amount of Gross Receipts Taxes will come to the City as last year.
Madrid ended the budget presentation by telling the City Commission he welcomed their input. If they had any they needed to get it to him before July 15, when he will present the final budget, which is due to the State by July 30.
This indicates there will be no public work sessions by the City Commission on the budget, with any input by these elected officials being made behind closed doors with Madrid.