HomeMy WebLinkAboutSan Juan County - Public Financial Report2021 in 2021 in ReviewReview
San Juan County
2021 Fiscal Year Popular Annual Financial Report
July 1, 2020 to June 30, 2021
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FOR THE FISCAL YEAR ENDED
JUNE 30, 2021
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San Juan County2
We are thrilled to present our finan-cial review of the 2021 fiscal year, from July 1, 2020 to June 30, 2021! This guide provides a look at how San Juan County balances the money collected with the cost of services provided. The information presented within this booklet comes from the audited Annual Comprehen-sive Financial Report (ACFR) issued by San Juan County. If you are inter-ested in additional detailed financial
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information in the 2021 ACFR, please visit our website to download a full copy:
SJCounty.net/ACFR
The ACFR additionally presents details on the County’s two separate legal entities, which the County acts as fiscal agent. The San Juan County Communications Authority (911 call center) and San Juan Water Com-mission are not presented within this 2021 financial review of San Juan County.
San Juan County operates under the “Commission-Manager” form of government. Policy making and legislative authority are entrusted in the elected County Commission con-sisting of the Commission Chairman and four members serving five total districts. The County Commission is responsible for, among other things, passing ordinances, adopting the annual budget, appointing commit-tees, serving as the Board of Finance and the Indigent Hospital Board, and hiring the County Manager. The County Manager is responsible for carrying out the policies and ordi-nances of the County Commission and overseeing the day-to-day op-erations of the County, coordinating with the Commission, Department Administrators as well as the other County Elected Officials (Sheriff, Clerk, Assessor, Treasurer, and Probate Judge). All County Elected Officials are elected on a staggering basis to serve four year terms. As of June 30, 2021, San Juan County had 668 employees. (This number does not reflect employees of the San Juan County Com-munications Authority or San Juan County Water Commission, which the County acts as fiscal agent).
Table of ContentsTable of Contents
Welcome!
2
Profile of San Juan County
3
Economics
4
Services
5
The County’s Assets
6
The County’s Liabilities
8
Sales Tax Highlights
10
Demographics
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Property Tax Highlights
11
How Does the Money Collected Serve the Community?
14
2021 in Review3
Profile of San Juan
County
receive the Certificate for the current fiscal year.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized annual comprehensive financial report, whose con-tents conform to program standards. Such an Annual
Comprehensive Financial Report must satisfy both generally accepted account-ing principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current Annual Compre-hensive Financial Report continues to conform to the Certificate of Achievement Program’s requirements, and we are submitting it to GFOA to determine its eligibility for another Certificate.
San Juan County, NM was incor-porated in 1887 with Aztec, NM appointed as the county seat. The County is located in the North-west corner of New Mexico in an area known as the “Four Corners” describing where the four states of New Mexico, Arizona, Colorado, and Utah meet. The County has a land area of approxi-mately 5,538 square miles. The United States Census Bureau conducted it’s decennial census in 2020 and the results of the survey reflects San Juan County’s population is now 121,661. The population de-creased by 6% from the 2010 decennial survey results that reflected the popu-lation was 130,044. The land ownership is distributed as follows: Private own-ership 7%, Federal Government 25%, Navajo and Ute Mountain Reserva-tions 65%, and State Government 3%.
San Juan County received the GFOA Award for Outstanding Achievement in Popular Annual Financial Reporting (PAFR) for the 2nd year in a row. This award rep-resents a significant achievement by San Juan County. In order to be eligible for the PAFR award, a government must also submit its annual comprehensive financial report to GFOA’s Certificate of Achievement for Excellence in Financial Reporting Program and
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San Juan County4
The County is the retail hub for the four corners
area serving an estimated consumer population
of 300,000. The area continues to draw con-
sumers from New Mexico, Utah, Colorado, and
Arizona. San Juan County, with the help of Four
Corners Economic Development, has also been
promoting the areas local attractions to boost
tourism, industry development, and relocation
for those who are looking to retire in an area that
offers a variety of outdoor activities.
San Juan County’s economy is diversified by
the numerous outdoor recreational activities
and national parks, all within a day’s drive. Four
Corners Economic Development’s data shows
that there is one world-class fly-fishing area, five
world heritage sites, seven world class ski resorts, 47 Native American pueblos and tribes, and
57 national parks, monuments, and recreation areas. Farmington also hosts the annual Connie
Mack World Series.
In partnership with the New Mexico Depart-
ment of Transportation and the Bureau of
Land Management Farmington Field Office,
San Juan County was awarded a $1,200,000
grant from the Recreational Trails Program for
projects north of the City of Farmington in the
Glade Run Recreational Area. Some of the
specific projects that were recently completed
include trailhead maps and trail signs, a new
parking area for 60 vehicles off Calle Norte Trail to provide access to
the Glade Run East trail system, new motorized and non-motorized
trail connections to Farmington Lake from the Glade Run Recreation-
al Area, approximately 4 miles of new single-track mountain bike
trails within the Anasazi trail system located off Hood Mesa Trail, a
new single track mountain bike trail between the Glade Run East and
Glade Run West trail systems along NM 574 at the north end of the
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Glade Run Recreation Area; and approximately 5 miles of trail and rehabilitation. Overall a total of 30 miles of
mountain bike and off-highway vehicle (OHV) trails have been added to the area.
Since San Juan County received news that Public Service Company of New Mexico (PNM) has plans to close
San Juan Generating Station, an 847 megawatt coal-fired power plant, by the year 2022, the County has been
working to find ways to replace the recurring revenue of property taxes that will be lost. San Juan County
Commission has adopted ordinances to issue Industrial Revenue Bonds to Photosol and 8 Minute Solar for re-
placement power projects relative to San Juan Generating Station. Photosol US, a subsidiary of one of France’s
leading solar providers, has been working to develop its Four Corners Solar Center, which consists of three
distinct projects, one of which is the San Juan Solar project. The CEO of Photosol, John Case, has indicated
that this project will be the first one operational with at least a portion of it being completed by June 2023.
San Juan County applied for and was subsequently awarded $2 million of federal funding to study a freight line
extension from the I-40 rail corridor to San Juan County. The economic development represented by a freight
system means numerous jobs for San Juan County and Navajo Nation residents as well as a secure future of
economic diversity.
San Juan County offers a full range of services, including fire protection through 27 volunteer fire sta-
tions, 207 volunteer firefighters, protection of its citizens through the Sheriff’s Office, road maintenance
and construction, waste transfer stations, parks and facilities, adult and juvenile correction facilities,
DWI/Axis facility, building permits, addressing, subdivisions, and an affordable housing program.
2021 in Review5
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What the County has available to provide services
Assets are items that the County has acquired that can be used to provide services
to the citizens of the County. Some assets are available for immediate use, while
others are used in the long-term. Those long-term assets are generally in the form of
roads, bridges, buildings and other physical equipment owned by the County and are
referred to as capital. In preparation of the Annual Comprehensive Financial Report,
the County’s assets were valued at $303.4 million as of June 30, 2021.
64% of assets were in the form of capital including: $93.1 million in buildings &
improvements, $64.6 million in roads, bridges and other infrastructure, $19.5 million in
equipment and $16.5 million of other assets.
21.5% were related to the County’s
cash and investments on hand.
These assets are kept for bud-
geted services and for other
specially identified projects
which cannot immedi-
ately be used. $6.6
million of that balance
is held in reserve as
required by the State
of New Mexico.
The $12.7 million in
money owed to the
County is primarily
related to property and
sales tax owed to the
County.
San Juan County6
How have the County’s assets trended in three years?
Capital continued to be the largest asset held by the County in the last three years.
The noticeable reduction each year is due to the County depreciating (accounting
term for recognizing use of the asset in dollars) the assets over time. Cash and invest-
ments increased by $12.2 million over 2020’s cash and investments. This is primarily
due to a slight uptick in gross receipts tax revenue and oil and gas revenue and there
was also a slow down in spending due to COVID and supply chain issues. San Juan
County also received $12 million in American Rescue Plan Act (ARPA) money. The
County Commission will be presented, for their consideration and approval, an interim
spending plan in the fall of 2021 in accordance with federal guidance and regulations.
$-
$25,000,000
$50,000,000
$75,000,000
$100,000,000
$125,000,000
$150,000,000
$175,000,000
$200,000,000
2019 2020 2021
Capital Receivable Other Cash & Investments
2021 in Review7
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The obligations the County has accumulated to provide services
Liabilities are commitments the County has made to be paid within the next month to several
years. It can range from the monies owed to vendors for providing goods and services to
the County, payroll and other payroll related benefits to be paid to County employees, loans
and bonds, and County retirement/healthcare obligations. At June 30, 2021, the County had
a total of $180.30 million in liabilities outstanding.
San Juan County8
How have the County’s liabilities trended in three years?
In the past three years, the County has paid down a total of $7.9 million of loans and bonds payable. The
County will continue to see the balance decline as there are no immediate plans for additional debt funding.
Amounts owed to employees remains relatively the same each year and is the result of employees saving
and using, on average, their sick and vacation hours consistently year over year. The retirement and health-
care obligations have increased by $11.6 million between 2020 and 2021. These liabilities represent the
County’s share of the obligation to cover retirement costs of its employees through the Public Employees
Retirement Association (PERA) as well as healthcare costs of its retiree’s through the New Mexico Retiree
Healthcare Association (NMRHCA). While the County is obligated to show these liabilities for reporting pur-
poses it only has a legal obligation to pay the employer contribution per pay period under the rates set by
New Mexico state law.
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
2019 2020 2021
Loans & Bonds Employees Vendors Retirement & Healthcare Other
2021 in Review9
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The Farmington Metropolitan Statistical Areas (MSA) (San Juan County) total nonfarm employment was up 3,200 jobs or 8%. The private sector was up 2,000 jobs, or 6.4%. In the public sector, all gains occurred in local government which was up 1,200 jobs, or 18.2%. San Juan County had an unemployment rate of 9.9% in June 2021 which is an increase from the 8.5% rate reported in May 2021. New Mexico’s seasonally adjusted un-employment rate was 7.9% in June 2021 which was unchanged from May 2021. The national unemployment rate in June was 5.9% which is a slight increase from 5.8% reported in May.
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San Juan County is unique in that our retail trade area is supported by a con-
sumer population from surrounding areas that is estimated to be 300,000. This
increase in consumer population helps increase our sales tax collection in
various trade industries. Those individuals who visit our area for recreation or
shopping are helping to support the services we provide to the residents of San
Juan County and helps mitigate the need to increase property taxes to support
those services. The table below helps reflect how the various industries are per-
forming in the County. The mining industry has been on a decline over the last
several years which is related to the closure of the San Juan Generating Station;
however, the retail/trade industry has seen an increase in revenue. Part of the
reason for the increase in sales tax is due to the CARES Act money that was
distributed to individuals to help jump start the economy.
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$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
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Taxable Sales Revenue by Industry
2019 2020 2021The County collected a total of $38.9 million in sales tax from $3.04 billion of sales within
the County in 2021 which equates to 51.8% of the total tax collected within the county.
San Juan County Quick Facts
Age (2019) Households Under 5 years 6.3% Persons per household (2015-2019) 2.88
5yrs – 18yrs 26.0% Median household income (2015-2019) $ 50,518
19yrs – 64yrs 52.1% Per capita personal income (2019) $ 23,235
65 & older 15.6% Person below poverty level (2015-2019) 19.9%
Median age (2017) 37.9
Housing Housing units (2019) 51,480 Homeownership rate (2015-2019) 71.0% Median value of owner occupied (2015-2019) $151,200
Source: US Census Bureau, State of New Mexico Department of Labor, San Juan Economic Development Service, National Center for Education Statistics
San Juan County10
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Your prop-
erty tax bill
includes a
combination
of the State,
cities, school
districts,
college and
County tax
rates which
collectively
make one
annual tax bill.
The County
charges the
collective
amount, col-
lects and remits those taxes to the related entities. The County received a total of $26.8 million for its
share of property tax revenue in 2021.
1,192.45
2,074.60
1,562.90
-
500.00
1,000.00
1,500.00
2,000.00
2,500.00
2021
Property Taxes
Farmington IN - SJC Albuquerque IN - Bernallio Las Cruces IN - Dona Anna
The chart above represents the amount of property tax an individual would pay on a home that is valued at
$150,000 in Farmington, Albuquerque, and Las Cruces. It is easy to see that San Juan County’s property tax
rates are relatively low as compared to a larger city and a city that is equivalent to the size of Farmington.
2021 in Review11
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Unemployment Rate
National New Mexico San Juan County
How do we get money to provide services to you?
The County collects money through
taxation, charging for services provided,
and through receipt of Federal and State
grants. The money collected serves the
Citizens of the County through public
safety, road and bridge work, operation
of a golf course and County fairgrounds,
County trash convenience centers,
housing and healthcare assistance for
low income families, cash support to
local government and not-for-profit organizations, and more! Other money is collected to
support the administrative cost of operating those services provided to the County.
A closer look at the money
collected in the 2021 fiscal year
The fiscal year ran from July 1,
2020 through June 30, 2021 and
collected a total of $109,114,773.
Money from taxation, which in-
cluded property, sales, oil & gas,
franchise, gas/MVD and other tax-
ation, was responsible for bringing
in 68.84% of the money collected to
fund County operations in 2021.
San Juan County12
Historical look at the money collected
The three-year comparison, above, shows the County
collected $7.7 million more than 2019. This is a result
of increased grant revenues received which are con-
sidered one-time revenue streams. Overall, the money
collected in 2021 was still very positive and utilized to
continue to provide services to you.
The County has continued to focus on its Citizens
and the services that are provided, to ensure there is
no lapse in service. Each budget cycle, the County
places high importance on ensuring we achieve a
balanced budget.
A closer look at the cost of services provided in the 2021 fiscal year
The graph below shows a three-year comparison of
San Juan County’s expenditures, by function. San
$101,449,704 $103,047,006
$109,114,773
TOTAL
2019 2020 2021
Total Revenue Collected
2021 in Review13
Juan County’s expenditures have been relatively
consistent; however, due to COVID and staffing
shortages, San Juan County saw a decrease of
$10.8 million in expenses from fiscal year 2020 to
2021. There was a slight increase in Health and
Welfare of $460,300 primarily due to the County
opening a new Mental Welfare clinic and an in-
crease in health claims. Culture and Recreation
saw an increase of $111,137 primarily due to
the addition of Blanco and Lower Valley Senior
Centers.
Of the $103.98 million spent in the 2021 fiscal
year, 48% of that total provided public safety
services including $20,831,308 to operate the
adult, juvenile and DWI facilities, and $14,072,754
to operate the San Juan County Sheriff’s Office
and County Fire Department. Of the 19% spent
on health and welfare, $9,526,671 covered the
cost of the County’s internally funded employee
insurance plan, $5,940,754 covered the cost of
providing healthcare assistance and $1,380,891 in
housing assistance payments to low-income fam-
ilies. The total cost of $18,147,345 in general gov-
ernment covers a large span of costs to operate
the County through a total of 18 support depart-
ments. Additionally, $1,696,588 of that amount
covers the interest incurred on the $34,676,381
in debt outstanding at the end of the 2021 fiscal
year.
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
GeneralGovernment Public Safety Public Works Health and Welfare Culture andRecreation Environmental
2019 2020 2021
San Juan County14
How Does the Money How Does the Money
Collected Serve the Collected Serve the
Community?Community?
2021 in Review15
The money collected for the period July 1, 2020
through June 30, 2021 was used for a broad array of
services benefiting the Citizens of the County. In total,
the County collected $109.1 million this year to spend
on these services, which can be classified into seven
total categories:
General Government
• Operations support
Public Safety
• Law enforcement (Sheriff),
fire prevention, EMS
• Criminal Justice
• Adult & juvenile corrections
and alternative sentencing
• Building inspection/
community development
• Emergency management
and Safety
Public Works
• Road maintenance
• Bridge maintenance
• Seasonal road safety and
clean up
Health and Welfare
• Housing assistance to low
income families
• Local support to govern-
ment and not-for-profit
organizations
• Operation of County health
plan
Culture and Recreation
• Parks and facilities
maintenance
• Riverview Golf Course
• McGee Park Fairgrounds
Environmental
• Operation of trash
convenience centers
Building A Stronger Community
100 S. Oliver Drive
Aztec, NM 87410
www.SJCounty.net