Council Approves FY 2013 Year End Budget Revisions

Los Alamos Deputy County Administer Steve Lynne presents details of the FY 2013 year end budget revisions to Council this evening. PrintScreen photo

Staff Report

Los Alamos County Council voted 6-0 to approve FY 2013 year end budget revisions. Councilor Fran Berting was absent.

The approved revisions include the following:

Refunding and Bond Issuance Costs – This budget revision is for past Council action which authorized the refunding and refinancing of the Gross Receipts Tax Improvement Bonds, Series 2008. The amount will be invested in an irrevocable escrow that will be used to pay debt service on the refunded bonds until June 1, 2018 at which time they will be called and paid – $50,229,427.

Golf Course Fund – Due to declining revenue in the Golf Course Fund, this transfer is necessary to avoid negative working capital in the fund before it is closed out and transferred into the General Fund on June 30, 2013. This is a ‘not to exceed’ amount of $50,000, and only the amount required to bring the working capital balance to $0 will be used.

Smart House Loan from General Fund – Approval for the Utilities expense was done through Council action in December 2011 (FY12). At that time, Council also approved the loan concept, which is formalized through this revision. Since the dedication of the Smart House was in FY13, the loan will be recognized this fiscal year – $500,000. This revision sets up the loan between the General Fund and Utilities Fund. Loan terms are 3 percent interest to be paid annually and the principal will be repaid contingent upon the sale of the Smart House.

Composting Design – This revision transfers $37,000 in funding from the Environmental Services Fund to the Utilities Wastewater Fund to reimburse Utilities for the new composting design. This was included as part of the fiscal impact in the agenda for the February 2013 Utilities rate increase public hearing.

Low Water Crossing – This revision transfers $217,000 in funding from the General Fund to the Utilities Wastewater Fund to reimburse them for work on the low water crossing in Pueblo Canyon on the road to the Wastewater Treatment Plant. This funding will alleviate the need for higher rate increases in Wastewater. This was included as part of the fiscal impact in the agenda for the February 2013 Utilities rate increase public hearing.

Smart Meters – Funding for smart meters was originally covered by savings in cost of gas, but due to increases in the commodity, Utilities is unable to cover the smart meters cost of $503,000 with existing budget.

San Juan Fuel Costs and Purchased Power – This revision is for unbudgeted San Juan fuel costs and purchased power associated with the Kirtland and LRS contracts – $4,757,975. This is partially offset by $3.8 million in additional revenue.

Art in Public Places – This item moves funding from FY12 and FY13 approved Capital Improvement Projects to Art in Public Places as required by our Municipal Code – $272,131. The chart below details each project and amount.

Health Care Assistance Fund claims – This revision transfers funding to the Health Care Assistance Fund to cover higher than expected medical claims and decreased GRT revenues – not to exceed $150,000. Policy changes effective July 1, 2013 have been made to change income levels to limit eligibility requirements, and certain types of medical coverages have been eliminated. These changes are made in response to the projected continuation of GRT revenue decreases. This is a ‘not to exceed’ amount, and only the amount required to bring fund balance to $0 will be used.

Aquatic Center Scholarships – This fund provides scholarships to low income County residents for Aquatic Center passes. Current amount budgeted is $3,000. An additional amount of $1,267 is needed cover scholarships for FY13.

Library Services and Technology Act Grant – This grant was accepted by Council in September 2012. This is a clean-up item to recognize the revenue only in our financial system. The purpose of this $2,949 grant was to purchase eBooks and eAudiobooks for Library patrons.

Capital Improvement Projects Fund/General Fund – As part of FY 2014 budget development, departments were tasked with finding savings where possible in the General Fund and the Capital Improvement Fund to mitigate issues related to GRT projected revenue reductions. This revision recognizes project savings in the listed projects and transfers the money to the General Fund – $4,150,872.


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