HomeMy WebLinkAboutCity of Las Cruces - Public Financial ReportTABLE OF CONTENTS
Our City 2
Demographics 5
Recreation/Quality of Life 6
Our Progress 7-8
Revenues 9
Expenditures 10
Long-Term Debt 11
Capital Assets 12
Response to Covid-19 13
Our Finances
Las Cruces City Officials/Executive Staff 3-4
About this Report 1
1
This report is largely based on the City’s 2021 Annual Comprehensive Financial Report (ACFR).
However, only the financial data for the general government is included in this report and, there-
fore, the City’s discretely presented component unit and business type activities are excluded.
Additionally, information is presented in a summarized manner and certain financial statements
and note disclosures required by GAAP are omitted. A copy of this PAFR as well as the City’s
audited 2021 ACFR, which is prepared in accordance with GAAP, is available from the Director of
Financial Services or from the City’s website.
https://www.las-cruces.org/1271/External-Audit-Reports
The Award for Outstanding Achievement in
Popular Annual Financial Reporting was
awarded to the City of Las Cruces for its Popular
Annual Financial Report for the fiscal year ended
June 30, 2020. The Award for Outstanding
Achievement in Popular Annual Financial Re-
porting is a prestigious national award recognizing
conformance with the highest standards for prep-
aration of the state and local government popular
annual financial reports.
In order to receive an Award for Outstanding
Achievement in Popular Annual Financial Report-
ing, a government unit must publish a Popular Annual Financial Report, whose contents conform to pro-
gram standards of creativity, presentation, understandability, and reader appeal.
An Award for Outstanding Achievement in Popular Annual Financial Reporting is valid for a period of
one year only. The City of Las Cruces has received a Popular Annual Financial Reporting Award for
the last seven consecutive years. These were awarded in fiscal years ended 2013-2020. We believe
our current report continues to conform to the Popular Annual Financial Reporting requirements, and we
are submitting it to GFOA to determine its eligibility for another Award.
About This Report
Awards
Government Finance Officers Association of the United States and Canada (GFOA) has given an
Award for Outstanding Achievement in Popular Annual Financial Reporting and a Certificate of
Achievement for Excellence in Financial Reporting.
Certificate of Achievement for Excellence
in Financial Reporting was awarded to the
City of Las Cruces for its Comprehensive
Annual Financial Report for the fiscal year
ended, June 30, 2020. The Certificate of
Achievement is the highest form of recogni-
tion in governmental accounting and finan-
cial reporting.
2
Our City
Located in Southern New Mexico, the City of Las Cruces is nestled in the fertile Mesilla Valley with
the majestic Organ Mountains to the East and the historic Rio Grande to the West. The city’s name
is Spanish for “the crosses” and is believed to refer to the graves seen in the area in the early
1800s. Known as the City of Crosses, it is a crossroad of Hispanic, Native, and American cultures
and its ideal location encompasses two major interstates, I-10 and I-25, and U.S. Highway 70.
Las Cruces is quickly becoming a popular southwest destination. The city enjoys a moderate cli-
mate with an average of 350 days of clear weather annually, which provides visitors year-round
golf, unique special events, and world-class cuisine. These factors make the City of Las Cruces an
enchanting, colorful, and comfortable place. The combination of business opportunities, friendly
people, excellent quality-of-life, and beautiful weather all come together to make Las Cruces a re-
markable place to live, work, play, and retire.
The City of Las Cruces is a Home Rule Municipality and has a council-manager form of government.
The City Council consists of the Mayor, who chairs the meetings, and six City Councilors. The Mayor
is elected at-large and each of the City Councilors represents one neighborhood district within the
City; thus, each resident of Las Cruces is represented by the Mayor and by one City Councilor. The
Mayor and City Council serve staggered four-year terms.
The City Manager is appointed by the City Council based entirely on the basis of executive and ad-
ministrative qualifications. The City Manager is responsible to the Council for the administration of
all City affairs, including, but not limited to, the administration of all organizational units placed in the
City Manager’s charge by City Charter and/or by ordinance. The City Manager and Assistant City
Managers implement policies and programs that are prioritized and directed by the City Council and
governed by the City of Las Cruces Charter.
How the City Operates
3
Members
The Las Cruces City Council is comprised of seven members, people from all walks of life who de-
vote their time to public service as elected officials. City Councilors serve staggered four-year terms.
Meetings
Meetings are held the 1st and 3rd Mondays of each month.
Check the calendar schedule for exceptions due to holidays. All meetings are live-streamed on City
of Las Cruces Television (CLC-TV)and are archived. The Council also holds work sessions for the
purpose of studying problems and having deeper discussions about issues. Instructions may be giv-
en to the City Manager at work sessions, but no official action by Council may be taken.
The City Council holds other types of meetings throughout the year. Further, individual councilors
represent the City on local, regional, and sometimes national, boards that serve the public interest.
Agendas and Minutes
The agenda of each meeting includes time for citizen comments at the discretion of the mayor.
Agendas and minutes are available on CLC-TV.Agendas are also available online as well as in the
lobby of city hall.
City of Las Cruces
List of Principal Officials
June 30,2021
4
City Council
Mayor
Ken Miyagishima
Phone: 575-541-2067
Mayor@las-cruces.org
District 1 Councilor/
Mayor Pro Tempore
Kasandra Gandara
Phone: 575-541-2066
kgandara@las-cruces.org
District 2 Councilor
Tessa Abeyta-Stuve
Phone: 575-541-2068
tstuve@las-cruces.org
District 3 Councilor
Gabriel Vasquez
Phone: 575-541-2070
gvasquez@las-cruces.org
District 4 Councilor
Johana Bencomo
Phone: 575-541-2071
jbencomo@las-cruces.org
District 5 Councilor
Gill Sorg
Phone: 575-541-2066
gsorg@las-cruces.org
District 6 Councilor
Yvonne Flores
Phone: 575-541-2069
yflores@las-cruces.org
Executive Staff
City Manager
Ifo Pili
Phone: 575-541-2270
ipili@las-cruces.org
Assistant City Manger
Ikani Taumoepeau
Phone: 575-541-2078
itaumoepeau@las-cruces.org
Assistant City Manager
Eric Enriquez
Phone: 575-528-4065
eenriquez@las-cruces.org
Chief Administrative
Officer
Barbara DeLeon
Phone: 575-541-2642
bdeleon@las-cruces.org
5
This report and the City’s 2021-2022 Adopted Budget book can be accessed at the City’s website below:
https://www.las-cruces.org/221/Budget
Demographics
6
This report and the City’s 2021-2022 Adopted Budget book can be accessed at the City’s website below:
https://www.las-cruces.org/221/Budget
Recreation & Quality of Life
7
Our Progress
50 out of 100 in 2020 America’s Best Small
Cities (Resonance Consultancy)
Las Cruces Farmer’s Market celebrating its
50th anniversary in 2021
Las Cruces Farmer’s Market is ranked 69 in
the Nation, 8th in the Southwest, and 2nd in
New Mexico (American Farmland Trust)
2020 Fittest City in New Mexico (Insurify)
88 out of 228 Healthiest Cities in America
(niche.com)
96 out of 201 Best Performing Small Cities of
2021 (Milken Institute)
5 out of 49 Most Diverse Suburbs in New
Mexico (niche.com)
122 out of 203 Best Small Places for Busi-
ness and Careers (Forbes)
Source: Economic Development
2nd largest city in New Mexico
5th Highest Budget per Capita City in the
U.S. in 2021 (wallethub.com)
9th Best Run City in the U.S.
(wallethub.com)
65th Best City to Get Married in the U.S.
(wallethub.com)
165th Best City to Start a Career
(wallethub.com)
101th Happiest City in the U.S.
(wallethub.com)
40 out of 228 Best Cities to Retire in Ameri-
ca (niche.com)
152 out of 415 Best College Towns 2021
(wallethub.com)
Designated an Arts and Cultural District in
New Mexico
A picture of hope and home for the people experiencing chronic
homelessness in the Las Cruces area
An affordable housing partnership with the Mesilla Valley Public Housing Authority (owner/developer), the Mesilla Valley Community of Hope (Lead Supportive Service Provider), and the Cityof Las Cruces (funding partner), has resulted in the transformation of a run-down building into a
newly rehabilitated affordable housing project known as the Desert Hope apartments. This project,
providing 40 permanent supportive housing units, aims to contribute to stopping the cycle of home-lessness in the city.
“Desert Hope is a permanent supportive housing
development, which the National Alliance to EndHomelessness defines as a projectthat‘combines affordable housing assistance
with voluntary support services to address theneeds of chronically homeless people.’ Theservices are meant to ‘build independent living
and tenancy skills.’ "-Las Cruces Sun News
Desert Hope to provide affordable units to formerlyhomeless tenants (lcsun-news.com)
8
Las Cruces has a great portal to find out about the City’s capital improvement projects (CIP).
These are projects that impact the quality of life in the community and focus on streets, parks, city
buildings or facilities, water quality, energy, and many other projects throughout Las Cruces.
Visit the link below to access the interface which provides several ways to access project details,
project description, costs, estimated start and finish times, and percent completion.
https://www.las-cruces.org/1552/Capital-Improvement-Projects
The following projects were completed
as of June 2021:
Branigan Cultural Center –Electrical Im-
provements
GO Bond –Hadley Complex Improvements
GO Bond –Parks & Sport Courts Improve-
ments
2019-2020 Pavement Replacement
Projects
Our Progress (continued)
This Information can be found on the City of Las Cruces website :h ps://www.las-cruces.org/1552/Capital-Improvement-Projects
The following projects are currently in
progress as of June 2021:
IGA (Investment Grade Audit) Johnson Con-
trols Project
La Clinica New Facility
A Fielder Safe Heaven Renovation
Parking Lot 7 Improvements and New Bath-
rooms
Amador Hotel Selective Demolition and West
Façade Improvements
LCPD New Evidence Building
GO Bond –Walking, Jogging, Biking Trails
New Competition Pool
City Wide Electric Vehicles Charging Sta-
tions
GO Bond –New Fire Station #3 Project
MVCOH –Amador Health Center Dental Fa-
cility
MVCOH –Solar Photovoltaic Project
GO Bond –New ASCMV Pet Adoption Cen-
ter and Dog Parks
Ameresco –Photovoltaic Project
Regional Aquatic Center –Solar Photovoltaic
Project
19-20-141 Van Patten Reconstruction Pro-
ject
Tashiro Drive Widening Project, 19-20-101
Camino Coyote EMPRC Access Road
Brown Farm Drainage Design-Phase I
9
In Thousands 2020 2019
Taxes $127,228 $121,085
Charges for Services 2,676 3,445
Fees and Fines 3,267 3,780
Investment Income 4,173 9,230
Franchise Fees 3,510 3,629
Licenses and Permits 1,787 1,474
Federal 4,855 2,870
State 6,416 5,047
Local 86 178
Other 7,629 12,264
Total Governmental Funds Revenues $161,627 $163,002
2021
$134,797
917
3,715
11,939
4,293
2,529
15,667
5,662
258
13,120
$192,897
All the funds of the City can be divided into three categories: governmental funds, proprietary
funds, and fiduciary funds. The governmental fund types are General Fund, Special Revenue
Funds, Capital Projects Funds, and Debt Service Funds . The focus of the City’s governmental
funds is to provide information on near-term inflows, outflows, and balances of spendable re-
sources.
Total fiscal year 2021 revenues for the governmental funds ($192,896,835) showed an increase
over the prior year ($161,627,149). The chart below shows the revenues in thousands for the gov-
ernmental funds in fiscal years 2019, 2020, and 2021.
Where Our Money Comes From
Our Finances
FY21 Revenues
10
In Thousands 2021 2020 2019
General Government $28,059 $20,905 $22,633
Police 23,204 25,920 26,756
Fire 17,469 18,527 17,436
Community Development 7,812 6,802 5,730
Quality of Life 7,934 7,710 7,751
Economic Development 10,033 5,877 6,928
Public Works 13,830 16,895 14,932
Parks and Recreation 9,159 10,982 11,731
Capital Outlay 39,557 28,329 37,405
Debt Service (principal, interest and other charges)20,554 22,725 16,498
Total Governmental Funds Expenditures $177,611 $164,672 $167,800
FY21 Expenditures
Our Finances
Where Our Money Goes
Expenditures -Governmental Funds
Fiscal Year 2021 expenditures in the Governmental Funds for 2021 increased by nearly $13 million
from 2020. The majority of cost categories saw only slight increases or decreases in expenditures
over those reported in 2020. Capital Outlay had the greatest increase of nearly $11.2 million.
11
Our Finances
Long-Term Debt
The City has fourteen outstanding bond issues for the bond funded facilities projects, streets im-
provements, flood control improvements, economic development, and streets in the voluntary as-
sessment district. In 2021, the City had a total of ten loans, mostly with the New Mexico Finance
Authority (NMFA). The proceeds funded heavy equipment, City Hall parking deck, improvements to
facilities, street improvements, pollution remediation, South Central Solid Waste Authority projects,
and flood improvements. Pledged revenues and property include state shared gross receipt tax,
hold harmless gross receipts tax, municipal gross receipts tax, environmental gross receipt taxes,
gasoline tax, Fire Protection Fund, and the Museum of Nature and Science property in the City.
In fiscal year 2021, the City issued $17.6 million in General Obligation Bonds as approved by voters
in August 2018. The proceeds are being used to fund construction improvements to parks, sports
fields and related facilities, a new animal shelter facility, a new Fire Station 3 to include acquisition
of land, and construction and improvements of recreational walking, jogging, and biking trails to in-
clude acquisition of necessary land.
The City has nine Joint Utility (JU) Revenue bonds, one Joint Utility NMFA loan, and one Solid
Waste NMFA loan. The bond proceeds were used to expand and improve the City’s joint utility sys-
tem. The loans funded expansion and improvements to the City’s joint utility system and solid
waste vehicles. Pledged revenues for these bonds and loans include the joint utility system reve-
nues and solid waste system revenues.
Summary Rating
The City’s General Obligation bonds were assigned an Aa2 rating by Moody’s Investors Service,
reflecting the City’s large and stable tax base. The City’s state shared gross receipts bonds have an
Aa3 rating while the Joint Utilities bonds have been assigned an Aa2 rating.www.Moodys.com
Long Term Debt at June 30, 2021
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How the Money is Spent on Capital Assets
Capital Asset Highlights -Governmental Activities
Construction during the year consisted primarily
of ongoing projects, including: the Amador Hotel
restoration, Community Competition Pool, Down-
town Parking Garage, Solid Waste landfill, and
the 2018 GO Bond projects: park development, a
new animal shelter, Fire Station 3 replacement,
and trail development.
Construction in progress increased by approxi-
mately $15.6 million from the Tashiro road-
widening project, East Mesa Recreation Com-
plex Road and EV charging station installations.
Our Finances
The City’s net investment in capital assets for its governmental activities as of June 30, 2021
amounts to $262,806,066 (net of accumulated depreciation and associated debt). This represents
the value of the city’s land, buildings, parks, road networks, infrastructure, construction in
progress, and machinery and equipment.
Capital Assets, Net of Depreciation
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Response to the COVID-19 Pandemic
Subsequent Events
The American Rescue Plan Act (ARPA) was signed into law on March 11, 2021 to provide relief
for the economic crisis resulting from the global COVID-19 pandemic. ARPA provides $350 billion
dollars in emergency funding for state, local, territorial, and Tribal governments. $130 billion of this
will be direct aid to local governments. The City was allocated $25,759,826 in direct funding
through the US Treasury and accepted the funding on September 7, 2021. The first tranche of
funding was received by the City on May 21, 2021 for $12,379,313. The second tranche of fund-
ing for $12,379,313 is expected in May 2022.
The City is planning to use the funds in the following manner: public health/safety programs—$2
million, capital projects—$6.9 million, community and economic development initiatives—$10.4
million, Visit Las Cruces tourism and hospitality—$1 million, water and sewer infrastructure im-
provements—$3.5 million, premium pay for essential workers—$1 million.
In the first tranche, the public health/safety funding will have $525 thousand allocated to Mobile
Integrated Health squad vehicles, $160 thousand to police victim/community advocate vehicles,
$40 thousand for police communications, and $35 thousand for personal protective equipment for
emergency response personnel. The $6.9 million in capital projects will be allocated to: $429
thousand for the Community Competition Pool, $2.3 million for the Transit Maintenance Facility,
and $4.1 million to supplement the General Obligation Bond projects.
The community and economic development initiatives consist of $2.8 million that went out to RFP
for applications and were still being reviewed as of early December 2021. These additional re-
sources will be used by nonprofits to help the community recover from the pandemic. Visit Las
Cruces will be allocated $500 thousand from the first tranche, which includes $250 thousand for
cooperative advertising, $150 thousand for website/visual assets, $10 thousand for convention
center assets, $50 thousand for event revitalization, and $40 thousand for key programs.
Water and sewer infrastructure improvements from the first tranche consist of $425 thousand for
the Sewer Connect Program. The first tranche also consisted of $1 million for premium pay for es-
sential workers.
On September 21, 2020, City Council accepted federal funding in the amount of $7,104,802 from
the Coronavirus Aid, Relief, and Economic Security Act as a pass-through grant from the State of
New Mexico. $3.85 million went to COVID-related leave for City employees, $124 thousand to ad-
ministrative expenses, $129 thousand to economic support, $245 thousand to food programs, $1
million to housing support, $107 thousand to teleworking capacities, $1.1 million to payroll public
safety/health employees, $163 thousand to PPE, and $134 thousand to public health expenses.
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