T-or-C Okays Audit, Bond & Budget

•Before delving into the morning’s agenda, commissioners further recognized members of the American Legion Post 44 Auxiliary, who will be out in the community this weekend greeting citizens with handmade red poppies, as part of the organization’s annual Memorial Day weekend remembrance and fundraising drive. Mayor Forrister also read a formal proclamation into the record, designating Friday, May 26 as Poppy Day throughout the city.

WATER BOND LOAN FINALIZED

Securing funding to address a myriad of long standing issues with the city’s water infrastructure, commissioners unanimously endorsed final approval of a combined grant and loan agreement with the US Department of Agriculture. 

Modrall Sperling attorney Chris Muirhead reviewed the measure for commissioners, first noting how the agreement pertained to a $5.457 million loan, which was previously secured for an interim period through a loan agreement with the Bank of the Southwest. 

Muirhead explained how the proposed measure would pay off the interim BOSW loan and establish a 40-year agreement with the USDA. He pointed out that a five-percent interest rate was set by BOSW for the interim loan and told commissioners this amounted to an added cost of approximately $95,000. Muirhead emphasized how the USDA loan would have a much lower 2.125-percent interest rate, which would be fixed and would remain constant for the life of the 40 year agreement.

Commissioners were also told the monthly loan payments would be set at approximately $17,000, and while not a current consideration, Muirhead said the agreement would permit the city to pay off the loan early, if such a decision was deemed to be warranted in the future.

Board members were reminded how this loan would be accompanied by $2-plus million USDA grant and how repayment on the loan would pledge only net revenue from the water department. Further detailing the latter aspect, Muirhead said the USDA pledge would not impact operational or maintenance funding, but could involve a future requirement by the USDA to modify water service rates, should the amount derived from this source fail to meet the required loan repayment installments. 

CLEAN AUDIT REPORT

Muirhead also led commissioners through the results of the city’s 2021/2022 fiscal year audit, which was prepared by Albuquerque-based Pattillo, Brown & Hill CPA firm. After detailing the auditor’s responsibilities, Muirhead confirmed the report was being delivered with Unmodified Opinion, which he recognized as a clean opinion and a result city leaders should be looking to receive. After also confirming how the auditors encountered no difficulties throughout the process and had no issues with the city’s management or the availability of records, Muirhead noted the presence of one new finding. 

Commissioners were alerted to a $192,000 discrepancy, in which revenue was paid to a vendor without a required bidding process. Muirhead said this finding actually involved multiple purchases, but also emphasized how subsequent efforts by the administration had already resolved this concern.

He also pointed out that a finding reported in the previous year’s audit pertaining to lodgers’ tax had been successfully resolved prior to this year’s examination.

In discussion, mayor pro-tem Rolf Hechler noted a number of minor findings in the most recent audit of the Truth or Consequences Housing Authority. He questioned if these findings were significant, and as the city provides oversight for the housing authority, whether or not the commission should be concerned. Muirhead acknowledged how the municipality’s audit team had completed its work on the municipality’s audit and then was required to wait for a late delivery of the housing authority’s audit to complete their submission package. He said the housing authority’s audit was prepared by another firm, but told commissioners he would examine the findings and prepare a report for the board to determine if any future changes or action might be in the city’s best interest. 

With no further questions, commission members rendered an unanimous 4-to-0 vote in support of a motion to approve Resolution No. 44 22/23, formally accepting the 2021/2022 FY audit report.

•Later in the session, commissioners also approved an extension of the city’s audit contract with Patillo, Brown and Hill CPAs for the 2023/2024 fiscal year. 

INTERIM BUDGET APPROVED

After recently conducting a series of budget workshops, commissioners indicated they were very familiar and supportive of the city’s anticipated budget for the upcoming 2023/2024 Fiscal Year. With this acknowledged Finance Director Kristie Wilson introduced the interim budget to the board and commissioners quickly joined in unanimously approving the associated resolution (No.45 22/23).

Outgoing city manager Bruce Swingle, who was noted to be attending his last regular commission meeting, praised the efforts of Wilson and her team members in the finance department. He pointed out how this was the first municipal budget prepared by Wilson. Commissioners expressed agreement with Swingle and also extended their appreciation for the finance department’s efforts. Prior to the commission’s action, Wilson reported a significant increase in gross receipt tax revenues for the month of March, which she said was not officially recorded until this month and which she indicated would now provide a significant boost to the municipality’s bottom line for the year ahead.

OTHER COMMISSION ACTION

•Commissioners conducted three public hearings pertaining to the city’s ongoing efforts to secure long term lease agreements for two of five cell towers located within the municipality. There were no citizen statements of opposition or support offered during any of the public hearings. After closing the hearings, commissioners respectively approved a repeal of Ordinance No. 748, which was noted to include confusing language, and then unanimously endorsed the final approval of Ordinance No. 750 and 751. These measures established long term (99 year) leases with American Tower for the cell tower located along north Kopra Street and with Tower Point for the Water Tank tower site located on Pershing Street. 

•After briefly reviewing options prepared by municipal swimming pool manager Ashley Galicia, commissioners unanimously approved a revised fee structure and schedule for this year’s operations. In discussion, mayor pro-tem Hechler acknowledged the pool was scheduled to open Memorial Day Monday, May 29 and noted how this date would not accommodate patrons over the proceeding holiday weekend. Commissioner Destiny Mitchell explained how the Memorial Day opening had become customary due to the need of training high school student lifeguards following the end of the school year. While recognizing this factor, Hechler nonetheless urged Galicia and city administrative staff to consider opening the pool on the Friday before Memorial Day next year. 

•City Clerk Angela Torres announced that positions two, four and five on the commission would be up for election this year, confirming information on the city’s website stating the terms of Mayor Forrister, Mayor Pro-Tem Hechler and Commissioner Shelly Harrelson would end effective January 1, 2024. With this acknowledged, board members approved Resolution No. 49 22/23 ensuring the positions would be included on Sierra County’s November 7 regular local election ballot. 

Torres also affirmed that candidate declarations would have to be made through the Sierra County Clerk’s office on Tuesday, August 29, with write-in candidate declarations to follow on Tuesday, September 5. 

•In additional action, commissioners approved a renewed agreement with Landis+Gyr to continue providing support for the electric department’s AMI metering systems, endorsed a renewal of an agreement with Sierra County’s Experimental Aircraft Association for use of an airport hangar, and also okayed a tenant lease agreement with the Matthew 25 Food Pantry. 

•The morning’s session also saw commission members endorse publication of Ordinance No. 720 pertaining to lodgers tax exemptions, approve a memorandum of agreement with Sierra County for shooting range improvements, and support Resolution No. 47 acknowledging the pending sale of surplus municipal property through an upcoming June 24 auction. 

•The commission’s regular meeting further included a number of board appointments. In consecutive actions, the commission approved the appointment of Greg D’Amour and Bruce Swingle to respective three and two year terms as city representatives to the Sierra Vista Hospital Governing Board, the reappointment of Don Armijo and Gil Avelar to the Public Utility Advisory Board and the appointment of Priscilla Spitler to fill a vacant seat on the city’s Library Advisory Board.