INCORPORATED COUNTY OF LOS ALAMOS, NEW MEXICO BIENNIAL BUDGET FY 2017 ADOPTED FY 2018 PROJECTED

Transcription

1 INCORPORATED COUNTY OF LOS ALAMOS, NEW MEXICO BIENNIAL BUDGET FY 2017 ADOPTED FY 2018 PROJECTED

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3 Los Alamos County, New Mexico Biennial Budget Rick Reiss Council Chair Susan O Leary Council Vice-Chair James Chrobocinski Councilor Steven Girrens Councilor Kristin Henderson Councilor David Izraelevitz Councilor Pete Sheehey Councilor

4 Los Alamos County, New Mexico Biennial Budget Proposed for fiscal year ending June 30, 2017 Projected for fiscal year ending June 30, 2018 Harry Burgess County Manager Steven Lynne Deputy County Manager Brian Bosshardt Deputy County Manager Administrative Services Department Finance Division Accounting & Budget Joseph D Anna Karen Kendall Barbara Lai Chief Financial Officer Budget & Performance Manager Senior Budget Analyst The Government Finance Officers Association of the United States and Canada (GFOA) presented an award of Distinguished Presentation to Los Alamos County for its annual budget for the fiscal year beginning July 1, In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device. The award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award.

5 TABLE OF CONTENTS INTRODUCTION This section will give the reader a brief overview of the budget process. The budget message from the County Administrator will summarize the goals of the County Council and how the budget will aid in the accomplishment of those goals. Also provided here is a brief overview of the County structure and general information about the County. Introduction Table of Contents. i Budget Message... ii Readers Guide General Budget Information... 3 Budget Calendar 7 Budget Hearing Ad 8 County Organization Chart 9 General County Information 10 STRATEGIC PLANNING This section provides an overview of the County Councils Strategic Goals and Objectives which resulted from their planning session with Senior Management. Strategic Planning Table of Contents. 15 Strategic Leadership Plan Vision Statement Strategic Focus Areas.. 18 Council Goals. 19 Department Cross Reference Table. 22 BUDGET SUMMARY This section provides a summary of the budget, a schedule of significant changes in both dollars and personnel, and the Long Range Financial Projection. A narrative along with graphs and pie charts compare the revenue and expenditures. Budget Summary Table of Contents.. 25 Combined Budget Statement County-Wide Budget Revenue and Expenditure Statement.. 28 Summary of Significant Changes Summary of Significant Changes Staffing Changes. 34 Revenue and Expenditure Comparisons Long Range Financial Projection.. 47 County Manager s Performance Dashboard.. 51 FUND STATEMENTS A brief table of contents is provided at the beginning of this section to detail the funds and their cross reference to the Department Summaries. Fund revenue and expenditures are detailed here. Fund / Department Structure. 55 General Fund Budget Summary Special Revenue Funds Combining Fund Statement Special Revenue - State Shared Revenues Special Revenue Lodger s Tax. 61 Special Revenue State Grants.. 62

6 TABLE OF CONTENTS Special Revenue Health Care Assistance Special Revenue Economic Development Special Revenue Other Special Revenue 65 Special Revenue Emergency Declarations Debt Service Fund Capital Projects Funds Combining Fund Statement Capital Improvement Projects Fund 69 Capital Projects Permanent Fund 70 Enterprise - Joint Utilities Other Enterprise Funds Combining Fund Statement 77 Enterprise Environmental Services 78 Enterprise Transit Enterprise Fire (LANL Contract) Enterprise Airport.. 81 Internal Service Funds Combining Fund Statement 82 Internal Service - Equipment Internal Service Risk Management.. 84 DEPARTMENT SUMMARIES and PERFORMANCE MEASURES Once again, a brief table of contents is provided at the beginning of this section to cross reference department information back to fund summaries. This section details all department descriptions, missions, goals, and expenditures by programs and line items. FTE numbers for each department and division are also illustrated here. Performance measure programs and FY 2016 targets are provided within each department section. Department / Fund Structure Navigating Los Alamos County Performance Measures 86 County Council 87 Municipal Court County Manager. 93 County Assessor. 107 County Attorney County Clerk 113 Probate Court County Sheriff. 119 Administrative Services Community Services Fire 149 Police 154 Community Development Public Works Utilities. 197 Non Departmental.. 214

7 TABLE OF CONTENTS CAPITAL IMPROVEMENTS This section details the County s Capital Improvement Program, definitions, and details of each project. Capital Improvement Program Project Selection Process CIP Planning in the Context of a Biennial Budgeting Approach Relationship between the CIP and the Operation Budgets How Are Operating Budgets Affected by Capital Project Construction? Assumptions Applied to Calculate the Operating Expense Impacts Projected New Revenue Assumption Fund Structure Used to Account for Capital Projects CIP Planning in the Context of Biennial Budgeting Approach Funding Sources Summary of Expenditures Group Infrastructure Capital and Maintenance. 221 Road Reconstruction. 222 Information Technology Capital Projects 224 Parks Maintenance and Small Capital 225 Other Enterprise Funds CIP Utilities CIP OTHER INFORMATION Financial Policies Schedule of Full-Time Equivalent (FTE) Positions Schedule of Interfund Transfers Equipment Replacement Schedules Schedule of Recurring Grants. 269 Debt Summary General Fund Revenue Detail Statistics Glossary Acronyms & Abbreviations Index

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9 INTRODUCTION TABLE OF CONTENTS INTRODUCTION Budget Message... ii Readers Guide General Budget Information....3 Budget Calendar 7 Budget Hearing Ad... 8 County Organization Chart 9 General County Information.. 10 i

10 BUDGET MESSAGE County Councilors and Citizens of Los Alamos I am pleased to present to you the Fiscal Year (FY) 2017 Budget. This is the first year of the FY biennial budget cycle. The budget was developed with a focus on continuing to meet our objective of providing high levels of services to the citizens of Los Alamos. In December, the County Council approved preliminary budget guidance to develop a flat General Fund expenditure budget and also to provide options of what 3% growth would look like. We have included more information in this year s budget book as part of an effort to be responsive to Council s other request to provide a more complete representation of our past and future activities. Staff has worked to provide this additional information in a number of areas including a county wide performance dashboard, additional performance measures, description of services provided by departments and expanded functional organization charts. Overall, we are able to meet Council s guidance with only a few exceptions that are offset by additional revenues or changes in transfers to/from other funds. For the first time in the past five fiscal years, revenues associated with Federal spending at the County s primary employer, Los Alamos National Laboratory, are projected to increase. We are projecting gross receipts tax (GRT) revenue in FY2016 will be approximately 4% greater than the current year s budget. The budgeted GRT for FY2017 is projected to be 7% above the current year s budget. This is significant because GRT revenue has the greatest impact on the General Fund. GRT Revenue ($millions) FY2011 Actual FY2012 Actual FY2013 Actual FY2014 Actual FY2015 Actual FY2016 Projected FY2017 Budget With expenditures totaling $188.4 million in FY2017 as compared to the FY2016 adopted budget of $193.2 million, the enclosed budget summary outlines how County operations will adjust to meet the requested flat budget, while still allowing for a continued high level of service to our citizens and progress towards the organizational goals established by the County Council. ii

11 FY2017 and How We Got There Many exciting events have happened or are happening in FY2016 that lead us into FY2017. Creation of the Manhattan Project National Historic Park was the Council s top goal in FY2015. With the signing of the Memorandum of Agreement by the National Park Service and the Department of Energy in November 2015, the Park was created in Los Alamos, Hanford and Oak Ridge. The expectation is that there will be many new and returning visitors to Los Alamos as a result of the opening of the new Park, especially in conjunction with nearby Valles Caldera National Preserve and the popular Bandelier National Monument, all operated by the National Park Service. The County continues to support a public/private partnership to develop the Pajarito Mountain Ski Area. All parties to the partnership have signed the documents necessary for the transfer of property, yet there remain some details regarding the existing mortgage that still need to be resolved prior to the land exchange taking place. Due to both better timed winter storms and to a renewed focus on operational needs at the mountain, the Ski Area was open for over 90 days this past season a recent record. The County Council has set aside funds to incentivize both the extension of a waterline to the property as well as for the development of mountain biking trails, with both projects intended to enhance the recreational and economic benefits of this favorite resource. The land parcel A-19-a (60 acres) in White Rock continued to move forward in This effort is an important part of the approved White Rock Master Plan and Economic Development Strategy. The A- 19-a site was rezoned to support mixed-use commercial and residential development, and the County is negotiating a second development agreement for the eastern portion of the parcel. To support the infrastructure build-out, the County is spending $2 million on utility installations and the construction of La Vista Blvd. The County sold its parcel at State Road 4 (SR4) and Rover to Del Norte Credit Union in December 2014, and the credit union broke ground for a new branch office on the site at the end of The parcel has the potential for additional improvements. The FY2017 Budget continues to support Council s Strategic Leadership Plan as adopted by Council last February. Economic development continues to be one our highest priorities. There are placeholders in FY2017 budget of $2 million each for middle mile fiber and the ski hill water infrastructure. iii

12 The County continues its support of public schools through the many services it provides free of charge including two School Resource Officers, the School s Prevention Specialist, use of the Aquatic Center, use of the County s warehouse function, and a majority share of Trinity Site lease revenue. Over the past four years, the County has provided over $2 million in capital to the schools, including $1.2 million in FY2016 for Duane Smith Auditorium improvements. The FY2017 Budget includes an additional $500,000 for future schools capital improvements. As a result of our current efforts to contain expenditures and a historically conservative approach to fund balance reserves, the County s Governmental Funds balances are able to remain positive. The projected fund balance growth, shown below, is primarily due to projected General Fund surpluses and CIP funds balance growth. Governmental Activities Summary (in $ millions) FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 Total beginning fund balance Revenues and other sources Expenditures and other uses (91) (115) (86) (80) (83) (82) (86) (87) (89) (91) (94) (96) (99) Total ending fund balance $120 $100 $ millions $80 $60 $40 $20 $0 Fiscal Year FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 Revenues and other sources Expenditures and other uses Total ending fund balance iv

13 Budget at a Glance- Major Changes in Fund Revenues and Expenditures General Fund In FY2017, General Fund revenues are projected to be $3.0 million higher, or 5%, than in the FY2016 Adopted Budget for a total of $61.3 million. Increases in GRT make up the majority of the budgeted revenue increase, offset by a projected decrease in user charges and investment income. At a total of $50.2 million, expenditures are $2.7 million, or 6%, higher in FY2017 than in the FY2016 Adopted Budget. In the General Fund, the increase between the FY2017 and FY2016 budget associated with labor and benefits is $1.3 million. The total increase relating to the Compensation Market Study is approximately $429,000. The balance of approximately $920,000 in labor and benefits is based on annual increases from the 3% salary adjustment pool and the addition of one FTE, the Animal Shelter Manager. The Fire Department budget was established using the authorized budget included in the Cooperative Agreement with the Department of Energy. The $565,261 or 13% increase in General Fund expense for Fire is based on the terms of this agreement. Community Services budget includes an additional $199,000 for social services and $73,000 for cultural services over the FY2016 budget. The Police budget for FY2017 includes an additional $100,000 for purchasing equipment to enable the establishment of a County Emergency Operations Center (EOC) and redundant dispatch communications. Public Works budget for FY2017 includes an additional $160,000 for Mesa Public Library air conditioning maintenance. Special Revenue Funds These funds account for expenditures restricted to specific purposes such as grants, Lodgers Tax, health care assistance, economic development, and other special programs. FY2017 projected revenues total $3.6 million and expenditures total $8.5 million. Revenues are projected at 2% higher than FY2016 and expenditures are $1.3 million, or 15%, lower than FY2016. The reduction of expenses is primarily due to a reduction in the Economic Development Fund. The middle mile fiber project is included in Economic Development Fund expenditures. Economic Development Fund transfers to other funds includes $2 million to Utilities for the water infrastructure improvements at the ski hill. Debt Service Fund There are no significant projected changes in the Debt Service Fund. Debt service payments and the related transfer from the General Fund are planned to occur as provided for in the FY2013 refinancing of the GRT revenue debt. The majority of this debt service was related to the financing of improvements at the Pajarito Cliffs Site and on Diamond Drive. Capital Projects Funds For FY2017, expenditures in the CIP Funds total $4.9 million which is $632 thousand or 14.5% more than FY2016. Included are on-going amounts for routine roads, parks and technology infrastructure projects and a new $500,000 allotment for schools capital improvements. No other new facility-type projects are included. v

14 The projected available ending fund balance in the CIP fund for future programming is $11.6 million in FY2017. On March 1, the County Council took action to narrow the list of capital improvement projects (CIP) that will proceed through the initial pre-conceptual design phase (Phase 1) and they also identified projects to begin and fund in FY2016. In conjunction with the pre-conceptual design phase, the County s Public Works department will seek one consultant to perform a Phase 1 analysis on the complete list of capital projects. After the projects are refined with scope and costs, a polling consultant will be hired to survey the public and gauge their level of support for paying different levels of general obligation bond debt. Based on those results, the polling consultant will make recommendations to the County which will be part of the Council s deliberations in December as they work toward developing a ballot question for a May 2017 election. Joint Utility System Fund Joint Utility System Fund budgeted expenditures for FY2017 are $71.4 million, or $7.7 million (10%) lower than the FY2016 Adopted Budget. This change includes decreases in capital expenditures in Water Production and decreases in the cost of gas, purchased power and San Juan fuel costs. Revenues are $9.5 million lower (12.5%) due to lower usage both with wholesale and retail customers in water and electric funds. A previously approved wastewater rate increase, an increase in water rates and a decrease in gas rates are also included in the FY2017 revenue projections. There is also a decrease in gas rates projected for FY2018. Other Enterprise Funds FY2017 revenues totaling $34.3 million in these business-type activities funds are projected to be $748 thousand, or 2%, higher than FY2016. Total expenditures of $33.5 million are $393 thousand, or less than 1%, lower than FY2016. In the Environmental Services Fund, there is a 1% increase in expenditures and a projected 5% increase in revenues. In the Transit Fund, there is a 10% decrease in expenditures primarily related to reductions in capital spending and a projected 5% decrease in revenues and 16% reduction in transfers from the General Fund. A $676 thousand 3%, increase in expenditures in the Fire Fund is due to the planned amounts within the DOE Cooperative Agreement. Revenue is projected to be $965 thousand higher, or 4% due primarily to increased revenue from the County and LANL as authorized in the Cooperative Agreement. There is a $644 thousand, or 35%, decrease in Airport Fund expenditures due to the termination of commercial air service for FY2017. Revenue decreased by $188 thousand, or 19% primarily due to decreases in state and federal grants. vi

15 Internal Service Funds These funds account for goods and services provided by one County department to another. The Equipment Fund has an increase of 10% in expenditures and a 5% decrease in revenues resulting in a $1 million decrease in working capital. The Risk Management Fund has a net increase in working capital of $879 thousand, or 13%. This increase is for projected increases in the costs of the medical insurance program. Conclusion Through collaborative efforts and employee involvement from each and every department, the County is able to present a budget that supports County Council s strategic focus areas. All County employees have done a great job of continuing to provide excellent service to our citizens. I would like to give them special thanks for their hard work and dedication to the County. Each and every one of them is important to our success. They truly are the backbone that makes this an organization of excellence. I would also like to thank our County Council for their commitment, leadership, and guidance. As a team, we will all continue to move forward on the path to accomplishing County s goals. Respectfully submitted, Harry Burgess County Manager vii

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17 READER S GUIDE Presented here is the adopted budget for FY the first year of the FY2017/2018 Biennial Budget. Also presented is the projected budget for FY2018. Because New Mexico State Statute and County Charter require an annual budget, this is the County s proposed biennial budget in which the first year is adopted (FY2017), and the second year is projected (FY2018) in concept. Expenditure budgets and performance measures are incorporated into the Department Summaries Section and are shown in conjuction with program purpose statements. This is a continuation of the County s steps in developing a meaningful performance management system. Also included are the Long Range Financial Projection, a comprehensive Capital Improvement Program section, a Strategic Goals and Objectives section and information about the County Council s Strategic Planning Sessions. Budget Sections The budget is both a policy document and a financial plan. Readers interested in learning about the County organization and its services, financial operations, and capital improvement budget should find this document very informative. Following is a brief description of the major sections of the budget: Introduction The Introduction presents the Budget Message, information about the budget and budget process, and general information about Los Alamos County. Strategic Planning County Council met in January 2016 to update the Strategic Plan and developed three Priority areas. They are included in the Strategic Planning section along with a chart that cross references Strategic Focus Group areas, Goals, and Departments. The updated plan was approved by Council in Budget Summary & Outlook The Combined Budget Statement is a summary of the County s entire budget. Revenue and expenditure comparisons are also presented in this section. As part of the Outlook, the Los Alamos County Manager s Performance Dashboard is included to report on 16 key performance indicators that measure the County s health and employee performance in the areas of General Government, Economic Development, Public Safety, Transportation, and Neighborhood and Community Enrichment. Fund Statements The following chart provides a description of the columns that appear in the Fund Statements within this document. (1) (2) (3) (4) (5) (6) FY2015 FY2016 FY2016 FY2016 FY2017 FY2018 Actual Adopted Revised Projected Adopted Projected Budget Budget Budget Budget (1) The first column presents actual audited amounts as reported in the County's Comprehensive Annual Financial Report for the year ended June 30, (2) The next column presents the FY2016 Adopted Budget. (3) The next column presents the FY2016 Revised Budget. (4) The next column presents the FY2016 Projected Results. (5) This column presents the first year of the Biennial Budget - FY2017 Adopted Budget. 1

18 READER S GUIDE (6) This column presents the second year of the Biennial Budget FY2018 Projected Budget. Department Summaries/Performance Measures Department Summaries: The following chart provides a description of the columns that appear in the Department Expenditure Summaries within this document. (1) (2) (3) (4) (5) (6) FY2015 FY2016 FY2016 FY2016 FY2017 FY2018 Actual Adopted Revised Projected Adopted Projected Budget Budget Budget Budget (1) The first column presents actual audited amounts as reported in the County's Comprehensive Annual Financial Report for the year ended June 30, (2) The next column presents the FY2016 Adopted Budget. (3) The next column presents the FY2016 Revised Budget. (4) The next column presents the FY2016 Projected Results. (5) This column presents the first year of the Biennial Budget - FY2017 Adopted Budget. (6) This column presents the second year of the Biennial Budget FY2018 Projected Budget. Performance Management and Performance Measures. In addition to the Los Alamos Dashboard, there are graphs showing the County s results comparing operating efficiencies against benchmarks for the purpose of advancing the wide-ranging Council Strategic Goal "Maintaining Quality Essential Services. The benchmarking is used to help identify best practices and to identify operations that may benefit from being managed differently for improved service delivery. With the exception of some Elected Officials, each major department has presented a performance scorecard in conjunction with a history of operational inputs, such as expenditures and full time equivalent employees, and linkages to specific Council Goals and Vision Statements. Capital Improvements Program (CIP) The County s Capital Improvements Program (CIP) presents the CIP planning process as part of biennial budget development, and the relationship between the CIP and the Long Range Financial Projection (LRFP), and the impacts upon the general fund operating budget and projected ending fund balance for governmental activities. The CIP presents project expenditure budgets and the types and sources of funding. The information is presented in both summary and detail formats 2

19 The Budget GENERAL BUDGET INFORMATION The County of Los Alamos has endeavored to produce the most comprehensive yet understandable budget document possible. Every year the budget continues to build on past successes and strives to incorporate appropriate suggestions that will improve its overall readability and usefulness. The GFOA (Government Finance Officers Association) has identified four general elements that "...constitute good budgetary practices." These four elements view the budget as a Policy Document, a Financial Plan, an Operations Guide, and a Communications Device and are detailed below. Policy Document: This is the most significant function of the budget document. In its broad context, it pertains to long-term, organization-wide policies that establish broad goals, direct how and where resources are spent, and establish a framework for providing and funding services. As a Policy Document, the budget also describes the County's short-term financial and operational policies, which influence the budget development process for the upcoming year. Finally, the policy function articulates the most significant choices and decisions regarding key issues, priorities, and ramifications and how these have changed from the prior year. Financial Plan: As a financial planning tool, the budget provides an explanation of the County's financial structure, descriptions of its funds, summaries of major revenues and expenditures, narratives for the major revenue sources, and assumptions associated with revenue estimates and trends. The budget provides a comprehensive discussion of capital projects and their impact on the operating budget, includes financial data and narrative on current debt levels and debt limits, and addresses the potential effect of existing debt levels on the future operations of the County. Operations Guide: The budget document is designed to be a readable guide to the County's varied activities and services. It is a valuable resource, which includes summary tables of personnel and positions, community statistical information, measurements of performance, and other information often referred to by department directors, managers, and the citizens. Communications Device: To be an effective communication tool, the budget must be able to clearly explain significant budgetary issues, trends, and priorities; short-term and long-term financial strategies; capital improvement plans; and significant budgetary impacts to elected officials, department heads and their staff, and to the citizens for whom they work. The Budget Process The budget process for the County of Los Alamos is an ongoing, year-round process. The formal budget process begins in October with meetings held by the County Council, the County Manager, and department directors. Following these preliminary meetings, departments begin to prepare plans for maintaining current services, reducing or deleting other services, and planning for new services. Detailed budget guidelines are distributed to the departments in December. Departmental meetings are held to discuss the guidelines and the County Manager's goals for the upcoming year. From these guidelines, the departments develop their preliminary budgets. 3

20 GENERAL BUDGET INFORMATION Responsibilities County Manager Budget Activities Discuss proposed operating and capital budget priorities, budget schedules, and guidelines with the Management Team. Brief Council on the budget process, proposed financial policies, and budget guidelines. Departments Budget and Performance Management County Council Hold budget meetings to review departments' budget requests. Review budget requests, make budget decisions, and prepare budget message. Submit the proposed budget to the Council. Submit to the County Manager the department's budget requests, goals, and objectives for the new fiscal year and accomplishments during the current fiscal year. Meet with the County Manager to review department's budget submittal, including performance targets. Participate in Council budget hearings to justify department's budget request. Implement and monitor the adopted budget for the department and funds. Review previous year's budget process, and identify improvements to both manual and automated procedures. Develop proposed budget guidelines and calendar for the new fiscal year. Participate in Management Team discussion of budget issues, concerns, and procedural changes. Review current year financial performance, and develop financial forecasts. Issue budget guidelines and interdepartmental charge (IDC) guidelines and rates approved by the County Manager to departments and outside agencies. Establish County goals for coming year, and meet with County Manager regarding proposed budget guidelines, financial policies, and budget schedule. Hold public hearings to review, amend if necessary, and adopt the budget. Budgets Annual appropriated budgets are adopted for all County funds except agency and pension trust funds. All annual operating appropriations lapse at fiscal year end unless specifically approved by the County Council to carry over to the next fiscal year. In contrast, project-length financial plans are adopted for all capital projects funds. Encumbrances Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance accounting is used by the County for budgetary control purposes. Encumbrances are re-appropriated through a revision of the subsequent year s budget. 4

21 GENERAL BUDGET INFORMATION Budget Revisions Approval requirements for budget revisions are as follows: Type of Budget Revision Change from one object code detail to another object code within a division or between divisions within the same department or fund (excluding any changes to the salaries and benefits or interdepartmental charges categories.) Changes within a division or between divisions within the same department or fund which involve salaries and benefits or interdepartmental charges. Transfers from one department to another department within the same fund. Approving Authority Department Director or Utilities Manager County Manager County Manager and Council for all funds and departments, except the Utilities Department. Utilities Manager, Utilities Board, and Council for Utilities Department sub-funds. Budget increases to departments or funds and transfers between funds; transfers of cash, both permanent and temporary between funds; and any combination of the above. County Manager, Utilities Manager (when involving Utilities sub-funds), Council, and State of New Mexico, Department of Finance and Administration. Description of County Fund Types The County uses funds to report on its financial position and operating results. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain County functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. The relationship between the County s fund structure and County Departments is described in a table that is immediately inside the Fund Statements tab. The statements within this document present the budgetary funds used by the County. Governmental Funds Governmental funds account for all or most of a government's general activities, including the collection and disbursement of earmarked moneys (special revenue funds), the acquisition or construction of general fixed assets (capital projects funds), and the servicing of general long-term debt (debt service funds). The General Fund is used to account for all activities of the general government not accounted for in some other fund. Proprietary Funds Proprietary funds account for activities similar to those found in the private sector, where net income determination is necessary for sound financial management. Goods or services from such activities can be provided either to outside parties (enterprise funds) or to other departments or agencies primarily within the government (internal service funds). 5

22 GENERAL BUDGET INFORMATION Non-Budgetary Funds Trust and Agency funds are used to account for the collection and payment of accounts for which the County acts as agent. Measurement Focus and Bases of Accounting and Budgeting Fund Type Measurement Focus Basis of Accounting Basis of Budgeting Governmental Current financial resources Modified accrual Modified accrual Proprietary Economic resources Full accrual Modified accrual / Non- GAAP Measurement Focus The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and expendable trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (revenues) and decreases (expenditures) in net current assets. All proprietary funds are accounted for on an economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the balance sheet. Operating statements of these funds present increases (revenues) and decreases (expenses) in total net assets. Bases of Accounting and Budgeting The modified accrual basis of accounting is used for governmental-type funds. It requires revenues to be recognized when they are both measurable and available. "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The full accrual basis of accounting is used for proprietary-type funds. Under this method, revenues are recorded when earned, and expenses are recorded at the time liabilities are incurred. Estimated unbilled revenues are accrued for electric, gas, and water services provided from the last cycle meter reading dates to the end of the fiscal period. The modified accrual basis is used for budgeting of governmental funds. A non-gaap basis, similar to modified accrual, is used for budgeting of proprietary funds. 6

23 GENERAL BUDGET INFORMATION Fiscal Year 2017/18 Budget and Performance Measure Planning Calendar Starting Date Completion Date Preliminary Budget Guidance from Council Preliminary Budget Guidance to departments Tuesday, December 15, 2015 Tuesday, December 15, 2015 Thursday, December 17, 2015 Thursday, December 17, 2015 Equipment charges data due to OMB from Fleet Division Friday, January 08, 2016 Friday, January 08, 2016 Departments receive preliminary position control reports from Budget staff Friday, January 08, 2016 Friday, January 08, 2016 OMB prepares FY2016 midyear revenue and expenditure projections Friday, January 15, 2016 Friday, January 15, 2016 Departments submit FTE Distribution Listing back to Budget staff Sunday, February 22, 2015 Sunday, February 22, 2015 Departmental FY2017 Budget Requests, FY st half Performance Measure results and year-end projections, FY2017 Performance Measure Targets are reviewed by CMO Tuesday, March 22, 2016 Tuesday, March 22, 2016 Final changes and preparation of proposed budget by CMO & B&P staff Proposed Budget submitted to County Council & Advertised Budget hearing Budget hearing Budget hearing Budget hearing Budget hearing-budget Adopted Adopted budget submitted to the New Mexico DFA (Department of Finance and Administration) Notification of New Mexico DFA (Department of Finance and Administration acceptance of adopted budget Final Budget document complete. Adopted budget available to public. Sent to GFOA (Government Finance Officers Association). Friday, March 25, 2016 Friday, March 25, 2016 Thursday, March 31, 2016 Thursday, March 31, 2016 Monday, April 18, 2016 Monday, April 18, 2016 Tuesday, April 19, 2016 Tuesday, April 19, 2016 Monday, April 25, 2016 Monday, April 25, 2016 Tuesday, April 26, 2016 Tuesday, April 26, 2016 Monday, May 02, 2016 Monday, May 02, 2016 Wednesday, June 01, 2016 Wednesday, June 01, 2016 Thursday, September 1, 2016 Thursday, September 1, 2016 Friday, September 2, 2016 Friday, September 2, 2016 HIGHLIGHTED ITEMS INVOLVE COUNCIL ACTION 7

24 PARTICIPATE IN THE FY17/18 LOS ALAMOS COUNTY BUDGET HEARINGS MON. AND TUES., APRIL MON. AND TUES., APRIL ALL MEETINGS BEGIN AT 6:00 P.M. Agenda: Introduction and Overview Long Range Financial Projection Department Budget Summaries Consideration of Budget Options Parking Lot - Outstanding / Unresolved Items Possible Adoption of the FY17/18 Budget (April 26th) Possible Extension of Budget Hearings (May 2nd & 3rd) Public Comment: Council will reserve up to the first 30 minutes of each session for public comment on any portion of the proposed budget. Once all comments have been provided, or after this time has expired, budget presentations and discussions will continue. Note: All meetings are held in Council Chambers (1000 Central Ave., Municipal Building). The meetings will be broadcast LIVE via internet streaming at Where to Read the Budget: Copies of the proposed budget and a summary in the form of a Citizen s Guide will be available for inspection by the public at both libraries and the 311 Customer Care Center on March 31st. A copy of the full budget will be available on-line at the County s website: Making Your Voice Heard: YOUR INPUT IS ENCOURAGED! lacbudget@lacnm.us OR countycouncil@lacnm.us MAIL: Los Alamos County Manager 1000 Central Ave., Suite 350, Los Alamos, NM FY18 PROJECTED FY17 PROPOSED FTE Changes FY17 Proposed: FY16 Adopted: Net Decrease: (3.17) Total Beginning Fund Bal./ Working Capital FY17 Revenues & Other Sources Transfers from Other Funds Expenditures Transfers to Other Funds Total Fund Bal./ Working Capital / Ending FY17 Revenues & Other Sources Transfers from Other Funds Expenditures Transfers to Other Funds FY 2017/18 BIENNIAL PROPOSED BUDGET - COMBINED BUDGET STATEMENT General Fund 20,786,845 61,283,967 2,634,110 48,391,763 12,070,213 24,242,946 62,270,717 2,641,294 50,074,149 11,574,163 9,229,325 3,629, ,000 6,571,487 3,174,000 3,528,238 3,533, ,000 4,186,100 1,174, ,091 7,000 6,264,647 6,264, ,091 7,000 6,268,597 6,268,597 0 Special Revenue Funds Debt Service Fund Capital Projects Funds Joint Utilities Fund Other Enterprise Funds Internal Service Funds 36,517,943 2,000,000 5,954,080 4,724,080 1,380,000 38,367,943 2,120,000 5,492,080 4,224,080 1,488,000 17,034,711 66,518,839 2,000,000 71,395, ,110 13,248,812 76,006, ,687, ,294 3,643,919 34,279,116 1,990,486 33,973,001 1,725,000 4,215,520 35,064,436 1,990,486 34,877,125 1,750,000 12,261,592 14,657, ,694, ,224,513 15,276, ,035,000 0 TOTAL 99,752, ,375,654 19,258, ,015,017 19,258,323 96,113, ,278,574 16,877, ,352,280 16,877,457 Total Fund Balance / Working Capital / Ending FY18 27,506,645 2,186, ,091 40,267,943 13,677,004 4,643,317 12,465, ,039,357 8

25 Citizens of Los Alamos Probate Judge County Assessor County Sheriff Municipal Judge County Clerk County Council County Attorney County Manager Utilities Manager Utilities Department Community Development Department Public Works Department Administrative Services Department Community Services Department Fire Department Police Department Legend: Elected Offices Appointed Positions 9

26 GENERAL COUNTY INFORMATION COUNTY SERVICES Elected Council Rick, Reiss, Council Chair Susan O Leary, Council Vice-Chair James Chrobocinski Steven Girrens Kristin Henderson David Izraelevitz Pete Sheehey Clerk Sharon Stover Assessor Ken Milder Sheriff Marco Lucero Probate Judge Bill McKerley Municipal Judge Alan Kirk Appointed County Manager Harry Burgess County Attorney Rebecca Ehler Utilities Manager Timothy Glasco 10

27 GENERAL COUNTY INFORMATION COUNTY SERVICES Fundamental Services - Services that are generally provided by local government or are legally mandated. Building Inspection Community Buildings & Services Court Services Debt Payments Elections & Voter Registration General Administrative Services Fire Protection & Emergency Services Social Services and Health Care Assistance Law Enforcement & Other Public Safety Services Licensing & Permit Issuance Roads, Streets, Traffic Control and Signals Snow Removal & Sidewalk Maintenance Solid Waste Management Tax Assessment, Billing, Collection & Distribution Water and Sewer Utilities Maintenance Services - Services that the County has historically provided or services that require large capital expenditures. Animal Control Cemetery Lot Sales & Grounds Maintenance Comprehensive Plan, Long Range Planning & Zoning Engineering Services for Public Projects Electric and Gas Utilities Governmental Facilities Maintenance Transportation Quality of Life Services - Services that enhance the desirability or the environment of the community. Community and Neighborhood Recreation Programs Community Swimming Pool, Golf Course & Rink Fair/Rodeo/Stables Library Services Vast network of Hiking, Biking and Horseback Riding Trails Cultural Services, Historical Museum, Art Center Senior Center Teen Center Transit Airport Los Alamos Tidbit At 7300 feet, Los Alamos is home to North America s highest altitude Olympicsize pool at our Larry R. Walkup Aquatic Center. The Aquatic Center has hosted many Collegiate, National, and International Teams including teams from Maryland, St. Louis, Australia, Belgium, Germany, Italy, Japan, and the Netherlands, to name just a few. 11

28 GENERAL COUNTY INFORMATION COMMUNITY PROFILE Geography Los Alamos ("The Cottonwoods") is a scenic 40-minute drive from the historic New Mexico State capital in Santa Fe, just two hours by car from Albuquerque and about two hours from Taos. At an altitude of 7,300 feet, Los Alamos' clean mountain air is pleasantly cool in summer but warm enough for full enjoyment of a variety of outdoor activities. Ancient History Roughly 1.4 million years ago, a volcanic explosion created the Valle Grande, one of the world's largest calderas (collapsed volcanic peaks), and the area's dramatic cliffs and canyons. Anasazi Indians who farmed the fertile valleys of this area from 1100 to 1550 A. D. carved their dwellings out of these volcanic cliffs and etched symbols into the canyon walls. Ruins of their villages, trails worn deep into the volcanic tuff, petroglyphs and shards of pottery are all that is left of the civilization from which modern Pueblo Indians are descended. Legendary cities of gold and rumors of fabulous riches brought Spanish Conquistadors to northern New Mexico, beginning with Coronado's expedition in In 1598, Don Juan de Oñate founded the first European settlement a few miles north of Española. By 1610 the Spaniards claimed the wild and beautiful countryside, establishing their capital at Santa Fe, 35 miles away. Recent History The community of Los Alamos was founded in absolute secrecy in 1943 as a center for defense research for the Manhattan Project, known only to the country's highest-ranking government, military, and scientific personnel. Both civilians and military personnel lived under rigid control of the military, sequestered behind high fences and guarded gates. All residents were required to show badges both entering and leaving the site, and visitors were only permitted with special advance arrangements. Public disclosure of the town's existence in 1945 made national headlines. The County officially came into existence on June 10, 1949, and it took a state constitutional amendment passed in 1965 to give the County its charter government of an incorporated county. Today Los Alamos is a relatively small county with a population of 18,058 (U.S. Census Data estimate for 2015). Los Alamos County has enjoyed the lowest unemployment rate and the highest income per capita in New Mexico for a number of years. May 2014 figures from the New Mexico Department of Workforce Solutions put the unemployment rate for Los Alamos County at 3.4% which is one of the lowest in the state, and 5.9% for the state overall. According to U. S. Department of Commerce, Bureau of Economic Analysis, the per capita income for Los Alamos County was $63,786 in 2013 compared to $36,284 for the state and $43,693 for the national average. The next highest county, Harding, had a per capita income of $63,434 in The 2010 census (U. S. Bureau of the Census) indicates that 79% of Los Alamos households have incomes of $50,000 or more per year compared to 45.4% of the households in all of New Mexico. Further, 30.4% of the County s population is 55 years of age or older compared to 13.8% ten years ago. The Los Alamos National Laboratory, one of the state's largest employers and an internationally recognized research center, directly employs nearly 10,500 men and women to conduct research in many fields including lasers, nuclear energy, superconductivity, and medicine. Another 1,000 are employed at the Lab as labor for subcontractors. For more economic and demographic information about New Mexico and Los Alamos County, visit the University of New Mexico, Bureau of Business and Economic Research web site at 12

29 GENERAL COUNTY INFORMATION COMMUNITY PROFILE Los Alamos County is located on the Pajarito Plateau in northern New Mexico, approximately 35 miles northwest of Santa Fe, the capital of New Mexico. The County covers approximately 109 square miles, of which 41.2% is owned by the National Forest Service, 35.3% by the Department of Energy, 14 % by County and private, and 9.5% by Bandelier National Monument. 13

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31 STRATEGIC PLANNING TABLE OF CONTENTS STRATEGIC PLANNING Strategic Leadership Plan Vision Statement Strategic Focus Areas Council Goals Department Cross Reference Table 22 15

32 Los Alamos County Strategic Leadership Plan 2016 Update What will the Los Alamos community look like in 20 years? Will our unique combination of science and setting continue? Will we have preserved our small town atmosphere and natural surroundings? Will there be plenty of affordable neighborhoods and an excellent educational system? In order to accomplish these priorities and more, Los Alamos will need a strong leadership vision that serves as a basis for policy formulation and goal-setting. A flexible road-map is required, which will provide direction not only to the County enterprise but the community as well. The strategic focus areas or issues that will shape the County s future must be addressed with dynamic leadership commitment. For these reasons the Los Alamos County Council developed a 20-year Strategic Leadership Plan to help guide the community into the future. The Plan includes a shared vision for what the community can become. In support of the vision, strategic focus areas were identified along with actionable goals to help measure success. The Los Alamos community has volunteered countless hours of service to assisting the Council with its visioning and goal setting. The Strategic Leadership Plan incorporates the past work of community volunteers where at all possible. The plan builds upon the foundational work developed by the Los Alamos community and adopted by the County Council. A Vision for the future 16

33 Imagine Los Alamos County in 20 years Los Alamos is a worldrenowned community where discovery and innovation are inspired by its dramatic history and magnificent mountain setting. We offer extraordinary educational, recreational, and cultural opportunities in a vibrant small town atmosphere. 17

34 Strategic Focus Areas Economic Vitality Economic Vitality Financial sustainability Quality of Life Education Quality cultural and recreational amenities Environmental stewardship Mobility Housing Quality Governance Operational excellence Communication Intergovernmental Relations These strategic focus areas are items of extreme importance that will ultimately determine the nature and quality of the future of Los Alamos they define where our resources should be spent to attain our vision 18

35 How do we get there from here? In the next five years the County will address these twenty-six major goals (focus areas with corresponding goals): Economic Vitality Priority Area Economic Vitality Maximize our opportunity with respect to the development of the Manhattan Project National Historical Park. Economic Vitality Promote a strong and diverse economic base by encouraging new business growth. Collaborate with Los Alamos National Laboratory as the area s #1 employer. Market and brand Los Alamos as a scenic destination featuring recreation, science and history. Maximize the utilization of County-owned land. Financial Sustainability Encourage the retention of existing businesses and assist in their opportunities for growth. Support spinoff business opportunities from LANL. Significantly improve the quantity and quality of retail business. Attract new tourism related business. Revitalize and eliminate blight in the downtown areas of Los Alamos and White Rock. 19

36 Quality of Life Priority Areas Housing Promote the maintenance and enhancement of housing stock quality while utilizing available infill opportunities as appropriate. Education Support Los Alamos Public Schools goal of ranking among the top public schools in the nation. Partner with Los Alamos Public Schools and support, as appropriate, the delivery of their educational services to community standards. Support the development of quality career and life-long educational institutions. Quality Cultural and Recreational Amenities Implement a comprehensive range of recreational and cultural amenities that enhance the Los Alamos community. Environmental Stewardship Enhance environmental quality and sustainability balancing costs and benefits including County services and utilities. Mobility Maintain and improve transportation and mobility. Housing Promote the creation of a variety of housing options for all segments of the Los Alamos community. Support development of affordable workforce housing. 20

37 Quality Governance Priority Areas Operational Excellence Simplify permit requirements and improve the overall process. Establish and implement a mechanism for effective Utility policy setting and review. Operational Excellence Maintain quality essential services and supporting infrastructure. Invest in staff development to create a high performing organization. Manage commercial growth well following an updated, concise, and consistent comprehensive plan. Communication Improve transparency in policy setting and implementation. Create a communication process that provides measureable improvement in citizen trust in government. Intergovernmental Relations Strengthen coordination and cooperation between County government, LANL, and regional and national partners. Actively pursue land transfer opportunities. Goal statements reflect leadership priorities and direction that will define the basis for policy formulation and revenue and resource generation and allocation. County staff continues to provide high levels of services to the community which reflects the Council goals. The performance measures report how effective and/or efficient the programs and staff have been over the past year. In addition, Performance Measures estimate outcomes for FY 2017 that are based on the FY 2017 Budget. The following chart is a depiction of the Council Strategic Focus Area, Goal and key Department(s) listing them as their responsibility. 21

38 Strategic Focus Priority Goal Area Priority Area Economic Vitality Maximize our opportunity with respect to the development of the Manhattan Project National Historical Park. Promote a strong and diverse economic base by encouraging new business growth. Department (Lead) County Manager s Office Economic Development Economic Vitality Economic Vitality Financial Sustainability Collaborate with LA National Laboratory as the area s #1 employer. Market and brand Los Alamos as a scenic destination featuring recreation, science and history. Maximize the utilization of County-owned land. Encourage the retention of existing businesses and assist in their opportunities for growth. Support the spinoff business opportunities from LANL. Significantly improve the quantity and quality of retail and tourism business. Attract new tourism-related business. County Manager s Office County Manager s Office Economic Development Economic Development Economic Development Community Development Revitalize and eliminate blight in the downtown areas of Los Alamos and White Rock. Priority Area Housing Promote maintenance and enhancement of housing stock quality while utilizing infill opportunities as appropriate. Community Development Support Los Alamos Public Schools goal of ranking among the top public schools in the nation. Quality of Life Education Quality Cultural and Recreational Amenities Environmental Stewardship Partner with Los Alamos Public Schools and support, as appropriate, the delivery of their educational services to community standards. Support the development of quality career and lifelong educational institutions. Implement a comprehensive range of recreational and cultural amenities enhance the Los Alamos community. Enhance environmental quality and sustainability balancing costs and benefits including County services and utilities. Community Services Public Works Utilities Mobility Improve transportation and mobility. Housing Promote the creation of a variety of housing options for all segments of the Los Alamos community. Support development of affordable workforce housing. Community Development 22

39 Priority Strategic Focus Area Goal Priority Areas Operational Excellence Simplify permit requirements and improve the overall process. Establish and implement a mechanism for effective Utility policy setting and review. Department (Lead) Community Development County Manager s Office Operational Excellence Maintain quality essential services and supporting infrastructure. Invest in staff development to create a high performing organization. Manage commercial growth well following an updated, concise, and consistent comprehensive plan. All Departments Economic Development Quality Governance Communication Intergovernmental Relations Improve transparency in policy setting and implementation. Create a communication process that provides measureable improvement in citizen trust in government. Strengthen coordination and cooperation between County government, LANL, and the regional and national partners. Actively pursue land transfer opportunities. County Manager s Office Economic Development 23

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41 BUDGET SUMMARY TABLE OF CONTENTS BUDGET SUMMARY Combined Budget Statement County-Wide Budget Revenue and Expenditure Statement.. 28 County-Wide Combined Budget by Expenditure Category 29 Summary of Significant Changes Summary of Significant Changes Staffing Changes. 34 Revenue and Expenditure Comparisons Long Range Financial Projection. 47 County Manager s Performance Dashboard

42 COMBINED BUDGET STATEMENT SPECIAL DEBT CAPITAL GENERAL REVENUE SERVICE PROJECTS FUND FUNDS FUND FUNDS Fiscal Year (FY) Adopted Total beginning fund balance / working capital $ 20,786,845 9,229, ,091 36,517,943 Revenues and other sources 61,283,967 3,629,400 7,000 2,000,000 Transfers from other funds 2,634,110 1,482,000 6,264,647 6,523,160 Expenditures 50,207,080 7,237,498 6,264,647 4,993,160 Transfers to other funds 13,706,293 2,580, ,380,000 Total fund balance / working capital Ending FY 2017 $ 20,791,549 4,523, ,091 38,667,943 Fiscal Year (FY) Projected Total beginning fund balance / working capital $ 20,791,549 4,523, ,091 38,667,943 Revenues and other sources 62,184,717 3,557,400 7,000 2,120,000 Transfers from other funds 2,641, ,000 6,268,597 5,561,160 Expenditures 51,945,149 4,198,100 6,268,597 4,293,160 Transfers to other funds 11,710, , ,488,000 Total fund balance / working capital Ending FY 2018 $ 21,962,168 3,854, ,091 40,567,943 Total FY 2017 sources of funding $ 63,918,077 5,111,400 6,271,647 8,523,160 Total FY 2017 uses of funding 63,913,373 9,817,498 6,264,647 6,373,160 Net increase / (decrease) in fund balance / working capital $ 4,704 (4,706,098) 7,000 2,150,000 SPECIAL DEBT CAPITAL GENERAL REVENUE SERVICE PROJECTS FUND FUNDS FUNDS FUNDS FY 2017 Adopted Budget FTEs FY 2016 Adopted Budget FTEs Net increase / (decrease) (2.26) (0.21)

43 JOINT OTHER INTERNAL FY 2017 FY 2016 UTILITY SYSTEM ENTERPRISE SERVICE ADOPTED ADOPTED FUND FUNDS FUNDS BUDGET BUDGET 17,034,711 3,643,919 12,261,592 99,752,426 98,797,141 66,518,839 34,279,116 14,657, ,375, ,922,323 2,000,000 1,396, ,300,403 24,410,480 71,395,628 33,500,723 14,799, ,398, ,799, ,110 1,725, ,300,403 24,410,480 13,248,812 4,093,798 12,119,513 93,729,933 92,919,657 13,248,812 4,093,798 12,119,513 93,729,933 76,006,715 35,061,436 15,274, ,211, ,396, ,419,537 74,687,229 34,391,125 15,035, ,818, ,294 1,750, ,419,537 13,677,004 4,410,595 12,358,819 97,123,147 68,518,839 35,675,602 14,657, ,676,057 72,304,738 35,225,723 14,799, ,698,550 (3,785,899) 449,879 (142,079) (6,022,493) JOINT OTHER INTERNAL UTILITIES ENTERPRISE SERVICE TOTAL FUND FUNDS FUNDS FTEs (2.17) 27

44 COUNTY-WIDE COMBINED BUDGET - REVENUE AND EXPENDITURE STATEMENT FY 2016 FY 2017 % FY 2018 % FY 2015 Adopted Adopted Variance Projected Variance Actual Budget Budget 17 v 16 Budget 18 v 17 Total beginning fund balance / $ 134,006,756 98,797,141 99,752,426 1% 93,729,933 (6%) working capital Revenues: Taxes 44,674,346 50,239,566 53,161,560 6% 54,109,000 2% Intergovernmental 26,933,823 26,105,825 25,960,751 (1%) 26,407,468 2% User Charges 60,858,471 79,460,677 71,765,910 (10%) 71,132,446 (1%) Interdepartmental 22,217,488 24,122,622 25,722,434 7% 26,893,237 5% Investment Income 1,665,119 5,636,106 3,987,569 (29%) 3,854,319 (3%) Debt Proceeds 13,211, N/A 10,000,000 N/A Other 6,969,152 2,357,527 1,777,430 (25%) 1,815,104 2% Revenues: 176,530, ,922, ,375,654 (3%) 194,211,574 6% Transfers from other funds 17,545,400 24,410,480 20,300,403 (17%) 16,419,537 (19%) Expenditures: County Council 343, , ,199 4% 400,000 3% Municipal Court 420, , ,024 12% 532,000 3% County Manager 13,819,557 18,993,631 17,910,848 (6%) 15,210,500 (15%) County Assessor 515, , ,693 4% 570,000 3% County Attorney 706, , ,745 (4%) 710,000 3% County Clerk 432, , ,568 17% 572,000 3% Probate 5,508 5,895 5,885 0% 6,000 2% County Sheriff 80,680 85,411 85,411 0% 88,000 3% Community Development 1,189,318 1,624,425 1,859,339 14% 1,915,000 3% Administrative Services 7,156,215 7,526,962 7,738,197 3% 7,962,080 3% Community Services 11,401,013 11,853,990 12,437,689 5% 12,807,200 3% Fire 26,298,245 28,135,352 29,376,361 4% 30,360,474 3% Police 7,519,329 7,775,178 8,338,195 7% 8,587,200 3% Public Works 31,399,777 29,896,492 30,281,718 1% 30,142,080 0% Utilities 67,976,988 79,070,472 71,395,628 (10%) 74,687,229 5% Non-Departmental 6,283,079 6,269,109 6,264,647 0% 6,268,597 0% Expenditures 175,547, ,799, ,398,147 (3%) 190,818,360 1% Transfers to other funds 17,545,400 24,410,480 20,300,403 (17%) 16,419,537 (19%) Nonbudgeted Items 2,037, N/A 0 N/A Total ending fund balance / $ 132,952,030 92,919,657 93,729,933 1% 97,123,147 4% working capital 28

45 COUNTY-WIDE COMBINED BUDGET BY EXPENDITURE CATEGORY FY 2016 FY 2017 % FY 2018 % FY 2015 Adopted Adopted Variance Projected Variance Actual Budget Budget 17 v 16 Budget 18 v 17 Category: Salaries $ 40,053,898 41,792,604 43,522,751 4% 44,614,604 3% Benefits 16,131,994 17,610,414 18,344,127 4% 18,848,567 3% Operations 83,943, ,735,869 80,547,765 (36%) 81,230,711 1% Capital Outlay 15,032,517 13,013,109 34,144,247 62% 33,594,788 (2%) Debt/Fiscal Charges 20,501,912 11,661,781 11,839,257 1% 12,529,690 6% Expenditures 175,663, ,813, ,398,147 (3%) 190,818,360 1% $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 Salaries Benefits Operations Capital Outlay Debt/Fiscal Charges FY2015 Actual FY2016 Adopted FY2017 Adopted FY2018 Projected 29

46 SUMMARY OF SIGNIFICANT CHANGES This narrative describes the significant changes between the FY2017 and FY2016 adopted budgets. Following this narrative are tables and graphs that provide additional information, including revenue and expenditure comparisons. Some of the changes are common to all departments and funds. They are described here by expenditure type so that the same comments will not be repeated throughout the fund and department statements. In some instances, the change described may not be apparent within a specific expenditure line item because offsetting changes are included in that line. Where those are significant they will be footnoted separately. COMMON CHANGES Salaries, Benefits, Staffing, and Other Changes The FY2017 budget appropriation for Salary Plan Maintenance is 3% which also applies to any collective bargaining agreements if referenced therein. This overall target was selected to provide a reasonable balance between trying to maintain pace with the market while also mitigating other inflationary pressures in the General Fund. The FY2017 budget also includes funding of approximately $500,000 for implementation of the Compensation Market Study which is conducted every four years. In addition, turnover and other personnel changes that have occurred during the year will affect personnel costs. There is also a reduction of 2.17 regular and temporary/casual FTEs countywide. Medical insurance premiums have been projected to increase 10% in calendar Changes to the plan were implemented in FY2014 in order to mitigate even higher increases. Details of other specific staffing changes are summarized in the Summary of Significant Changes Staffing Changes. General Fund OTHER SIGNIFICANT CHANGES In FY2017, General Fund revenues are projected to be $3.0 million higher, or 5%, than in the FY2016 Adopted Budget for a total of $61.3 million. Increases in GRT make up the majority of the budgeted revenue increase, offset by a projected decrease in user charges and investment income. 30

47 SUMMARY OF SIGNIFICANT CHANGES At a total of $50.2 million, expenditures are $2.7 million, or 6%, higher in FY2017 than in the FY2016 Adopted Budget. In the General Fund, the increase between the FY2017 and FY2016 budget associated with labor and benefits is $1.3 million. The total increase relating to the Compensation Market Study is approximately $429,000. The balance of approximately $920,000 in labor and benefits is based on annual increases from the 3% salary adjustment pool and the addition of one FTE, the Animal Shelter Manager. The Fire Department budget was established using the authorized budget included in the Cooperative Agreement with the Department of Energy. The $565,261 or 13% increase in General Fund expense for Fire is based on the terms of this agreement. Community Services budget includes an additional $199,000 for social services and $73,000 for cultural services over the FY2016 budget. The Police budget for FY2017 includes an additional $100,000 for purchasing equipment to enable the establishment of a County Emergency Operations Center (EOC) and redundant dispatch communications. Public Works budget for FY2017 includes an additional $160,000 for Mesa Public Library air conditioning maintenance. Special Revenue Funds These funds account for expenditures restricted to specific purposes such as grants, Lodgers Tax, health care assistance, economic development, and other special programs. FY2017 projected revenues total $3.6 million and expenditures total $8.5 million. Revenues are projected at 2% higher than FY2016 and expenditures are $1.3 million, or 15%, lower than FY2016. The reduction of expenses is primarily due to a reduction in the Economic Development Fund. The middle mile fiber project is included in Economic Development Fund expenditures. Economic Development Fund transfers to other funds includes $2 million to Utilities for the water infrastructure improvements at the ski hill. Debt Service Funds There are no significant projected changes in the Debt Service Fund. Debt service payments and the related transfer from the General Fund are planned to occur as provided for in the FY2013 refinancing of the GRT revenue debt. The majority of this debt service was related to the financing of improvements at the Pajarito Cliffs Site and on Diamond Drive. Capital Projects Funds For FY2017, expenditures in the CIP Funds total $4.9 million which is $632 thousand or 14.5% more than FY2016. Included are on-going amounts for routine roads, parks and technology infrastructure projects and a new $500,000 allotment for schools capital improvements. No other new facility-type projects are included. 31

48 SUMMARY OF SIGNIFICANT CHANGES The projected available ending fund balance in the CIP fund for future programming is $11.6 million in FY2017. On March 1, the County Council took action to narrow the list of capital improvement projects (CIP) that will proceed through the initial pre-conceptual design phase (Phase 1) and they also identified projects to begin and fund in FY2016. In conjunction with the pre-conceptual design phase, the County s Public Works department will seek one consultant to perform a Phase 1 analysis on the complete list of capital projects. After the projects are refined with scope and costs, a polling consultant will be hired to survey the public and gauge their level of support for paying different levels of general obligation bond debt. Based on those results, the polling consultant will make recommendations to the County which will be part of the Council s deliberations in December as they work toward developing a ballot question for a May 2017 election. Joint Utility System Fund Joint Utility System Fund budgeted expenditures for FY2017 are $71.4 million, or $7.7 million (10%) lower than the FY2016 Adopted Budget. This change includes decreases in capital expenditures in Water Production and decreases in the cost of gas, purchased power and San Juan fuel costs. Revenues are $9.5 million lower (12.5%) due to lower usage both with wholesale and retail customers in water and electric funds. A previously approved wastewater rate increase, an increase in water rates and a decrease in gas rates are also included in the FY2017 revenue projections. There is also a decrease in gas rates projected for FY2018. Other Enterprise Funds FY2017 revenues totaling $34.3 million in these business-type activities funds are projected to be $748 thousand, or 2%, higher than FY2016. Total expenditures of $33.5 million are $393 thousand, or less than 1%, lower than FY2016. In the Environmental Services Fund, there is a 1% increase in expenditures and a projected 5% increase in revenues. In the Transit Fund, there is a 10% decrease in expenditures primarily related to reductions in capital spending and a projected 5% decrease in revenues and 16% reduction in transfers from the General Fund. A $676 thousand 3%, increase in expenditures in the Fire Fund is due to the planned amounts within the DOE Cooperative Agreement. Revenue is projected to be $965 thousand higher, or 32

49 SUMMARY OF SIGNIFICANT CHANGES 4% due primarily to increased revenue from the County and LANL as authorized in the Cooperative Agreement. There is a $644 thousand, or 35%, decrease in Airport Fund expenditures due to the termination of commercial air service for FY2017. Revenue decreased by $188 thousand, or 19% primarily due to decreases in state and federal grants. Internal Service Funds These funds account for goods and services provided by one County department to another. The Equipment Fund has an increase of 10% in expenditures and a 5% decrease in revenues resulting in a $1 million decrease in working capital. The Risk Management Fund has a net increase in working capital of $879 thousand, or 13%. This increase is for projected increases in the costs of the medical insurance program. 33

50 Limited Temp./ Department Title Regular Term Casual Total Total County FY General Fund FY General Fund Positions added and deleted: SUMMARY OF SIGNIFICANT CHANGES - STAFFING CHANGES Change in FTEs County Clerk Deputy Clerk (0.50) (0.50) ASD-IT Service Desk Supervisor (1.00) (1.00) ASD-IT Records Sr. Office Specialist (0.50) (0.50) ASD-Finance Accountant (0.50) (0.50) Police Officer (2.00) (2.00) Police - Dispatch Dispatcher (1.00) (1.00) Police - Animal Control Animal Shelter Manager CSD - Library Sr. Library Technician (0.50) (0.50) CSD - Parks Parks Maintenance & Construction Spec Public Works Deputy Public Works Director Transferred Positions to/from Other Funds: From Health Care Asst Fund to General Fund Health Care Specialist From Transit to General Fund Allocation for Public Works Director From HCAP to General Fund Allocation for Social Services From General Fund to Property Valuation Assessor's Office (0.04) (0.04) Subtotal (0.57) (0.57) Other temp & casual changes County Sheriff (.04); CSD-Parks (-2.45) (1.69) (1.69) County Clerk (.72) Total FY2017 General Fund Subtotal General Fund Change (0.57) 0.00 (1.69) (2.26) Other Funds Positions added and deleted: Utilities GWS Trainee Environmental Services Allocation change for PW Director Transit Deputy Public Works Director Other Funds Transferred Positions: From Transit to General Fund Allocation for Public Works Director (0.30) (0.30) From HCAP to General Fund Allocation for Social Services (0.25) (0.25) From General Fund to Property Valuation Assessor's Office From Transit to Environmental Services (0.07) (0.07) Other temp & casual changes Utilities (0.98) (0.98) County Total FY Total Changes (0.50) 1.00 (2.67) (2.17) 34

51 REVENUE AND EXPENDITURE COMPARISONS This section will provide comparisons of revenues and expenditures between fiscal years, categories and fund types. Following this introductory narrative will be graphs for the County in total, followed by more detailed information. Total revenues in FY2017 are projected to be $182.4 million compared to $187.9 million in the FY2016 adopted budget. This $5.5 million decrease includes an increase of $3.1 million in the General Fund; a $.1 million increase in the Special Revenue Funds; a decrease of $0.1 million in the Capital Projects Funds; a decrease of $9.5 million in the Joint Utility System Fund; an increase of $0.7 million in the Other Enterprise Funds; and an increase of $0.2 million in the Internal Services Funds. FY 2017 Sources of Funds Revenues by Type ($millions) Interdepartmental 13% $23.5 Investment Income 3% $5.6 Other 1% $2.4 Taxes 27% $50.2 User Charges 42% $79.3 Intergovernmental 14% $26.3 Total Revenues $182.4 million 35

52 REVENUE AND EXPENDITURE COMPARISONS 4 Year Comparison of Revenues by Category $ millions FY 2015 Actual $174.8M FY 2016 Adopted $187.9M FY 2017 Adopted $182.4M FY 2018 Projected $194.3M NOTE: In addition to locally imposed taxes, the 'Taxes' category includes the portion of gross receipts tax imposed by the State and returned to the County for General Fund operations (also called State shared). The portion of the State shared gross receipts is as follows: FY 2015 FY 2016 FY 2017 FY 2018 $15.4 million $16.5 million $17.4 million $11.7 million Actual Adopted Adopted Projected Debt proceeds detail is as follows: FY 2015 $13.2 million - Joint Utilities Fund FY 2016 FY 2017 FY 2018 $0 $0 $10.0 million - Joint Utilities Fund 36

53 REVENUE AND EXPENDITURE COMPARISONS Total expenditures in the FY 2017 adopted budget are $188.4 million compared to $193.8 million in the FY 2016 adopted budget. This $5.4 million decrease includes an increase of $2.7 million in the General Fund; a $1.3 million decrease in the Special Revenue Funds; an increase of $0.6 million in the Capital Projects Funds; a decrease of $7.7 million in the Joint Utility System Fund; an decrease of $0.4 million in the Other Enterprise Funds; and an increase of $0.6 million in the Internal Services Funds. FY 2017 Uses of Funds Expenditures by Department Public Works 12.0% Comm & Econ Devel 6.9% Police 3.7% Fire 14.7% Community Services 6.1% Utilities 41.2% Administrative Services 3.8% County Sheriff.05% Probate Court.01% County Clerk.24% County Attorney.4% County Assessor.3% County Manager 6.9% Municipal Court.2% Non Departmental 3.3% County Council.2% Total Expenditures $188.4 million $ In millions County Council $ 0.4 Community Development 1.9 Municipal Court 0.5 Administrative Services 7.7 County Manager 17.9 Community Services 12.4 County Assessor 0.6 Fire 29.4 County Attorney 0.7 Police 8.3 County Clerk 0.6 Public Works 30.3 Probate 0.01 Utilities 71.4 County Sheriff 0.1 Non-Departmental 6.3 Total $

54 REVENUE AND EXPENDITURE COMPARISONS 4 Year Comparison of Expenditures by Fund Type $ millions FY2015 Actual $187.3M FY2016 Adopted $193.9M FY2017 Adopted $188.4M FY2018 Projected $190.8M 38

55 REVENUE AND EXPENDITURE COMPARISONS - GENERAL FUND General Fund Revenues Comparison by Category FY2017 User Charges 3.6% Interdepartmental 9.5% Investment Income 3.3% Other 2.1% Intergovernmental 1.6% Taxes 79.9% General Fund 4 Year Comparison of Revenues by Category $ millions FY2015 Actual $52.0M FY2016 Adopted $58.2M FY2017 Adopted $61.3M FY2018 Projected $62.2M 39

56 REVENUE AND EXPENDITURE COMPARISONS - GENERAL FUND General Fund Expenditures by Department FY2017 Fire 10% Police 16% Community Services 20% Public Works 23% Administrative Services 15% County Council 1% Community Development 4% Municipal Court 1% Probate Court 0% County Sheriff 0% County Clerk 1% County Attorney 1% County Manager 7% County Assessor 1% 40

57 REVENUE AND EXPENDITURE COMPARISONS FY2017 Revenues in the General Fund are projected to be $3.1million higher in FY2017 than the FY2016 adopted budget. This change consists of the following items: Gross receipts tax (GRT) - $2.5 million increase, primarily related to projected higher taxable spending at LANL. Property taxes - $0.1 million increase which is valuation growth projected. Interdepartmental charges - $.8 million increase. This revenue is the collection of general fund interdepartmental charges on enterprise funds. Enterprise funds are subject to administrative interdepartmental charges paid to the General Fund. Investment income - $0.6 million decrease, based upon projected lower fund balance. Grant and other revenues $0.2 million increase based upon trend projections. 41

58 REVENUE AND EXPENDITURE COMPARISONS The General Fund s largest source of revenue is GRT. Gross Receipts Taxes The State of New Mexico levies a Gross Receipts Tax (sales tax) on all taxable sales and services. Additionally, municipalities (cities) and counties in New Mexico have the authority to impose a portion of the GRT that is dedicated to their county or municipality. In November 2008, voters approved the implementation of a 1/8 th increment for regional transit bringing the GRT rate to % which was effective July 1, In February 2010, the State Legislature passed another 1/8 th percent increment to help alleviate the State s financial crisis. This brings the total rate to % effective July 1, Because Los Alamos is classified as a Class H incorporated county government, it is eligible to impose both city and county portions of the GRT revenues. Additionally, the State remits a portion of the State s share (1.225 percent) back to the County under its Municipal Authority. The State s share is classified as intergovernmental revenue and the county and city portions are classified under taxes. For FY2017, the General Fund s combined Gross Receipts Tax revenue, including the State Shared portion, is projected to be approximately $41.6 million or 68% percent of the General Fund s total projected revenues. Some increments of the total GRT are revenues for other funds as described in the table below. 42

59 REVENUE AND EXPENDITURE COMPARISONS Summary of Gross Receipts Tax Rates at July 1, 2014 Source / Type GRT Rate % of Total Purpose Municipal % 17.13% Municipal General Fund Operations County % 1.71% County General Operations County % 1.71% Indigent Health Care Fund Municipal % 0.85% Refuse Fund Environment Municipal Infrastructure % 1.71% Infrastructure debt service County 3rd 1/8th % 1.71% Infrastructure debt service County Correctional % 1.71% Jail / Courts County Fire Protection % 1.71% Fire Station #3 and Fire Operations Municipal / State % 16.75% Portion of State Imposed Shared GRT County Portion % 44.99% NCRTD Portion Regional Transit % 1.71% North Central Regional Transit District (NCRTD) State Portion % 53.30% State Imposed - Retained by the State. Includes the new 1/8 increment effective 7/1/2010. Total % % 43

60 REVENUE AND EXPENDITURE COMPARISONS The County has the following additional Gross Receipts taxing authority remaining: Los Alamos County Gross Receipts Taxes Remaining Authority Approximate Annual Election Type Increment Rate Revenue Required Restrictions 1 Municipal General One 1/4th cent % 3,434,000 no no 2 Municipal General Three 1/8th cents % 5,151,000 no no 3 Municipal Infrastructure Two 1/16th cents % 858,500 yes no 4 Municipal Infrastructure % 858,500 yes no 5 Municipal Capital Outlay Four 1/16th cents % 858,500 yes Infrastructure, and 6 Municipal Capital Outlay % 858,500 yes requires the two 7 Municipal Capital Outlay % 858,500 yes municipal increments 8 Municipal Capital Outlay % 858,500 yes above to be fully utilized. 9 County General The 1/16th cent % 858,500 no no 10 County General Three 1/8th cents % 5,151,000 no no 11 County Infrastructure Two 1/16th cents % 858,500 yes no 12 County Infrastructure % 858,500 yes no 13 County Capital Outlay Four 1/16th cents % 858,500 yes Infrastructure, and 14 County Capital Outlay % 858,500 yes requires the other 15 County Capital Outlay % 858,500 yes county increments 16 County Capital Outlay % 858,500 yes above to be fully utilized. subtotal % 24,896, County Health Care One 1/16th cent % 858,500 no yes 18 County Health Care One 1/12th cent % 1,144,667 no yes 19 County Environmental One 1/8th cent % 1,717,000 no yes 20 County Fire Protection One 1/8th cent % 1,717,000 yes yes 21 County Local Hospital Four 1/8th cents % 6,868,000 yes yes 22 County Emerg. Comm. Four 1/16th cents % 3,434,000 yes yes Totals % $ 40,635,667 44

61 REVENUE AND EXPENDITURE COMPARISONS If all remaining taxing authority for general operating and infrastructure purposes (unrestricted increments) were implemented, the projected increase in GRT revenues would be approximately $24.9 million. Gross receipts taxing authority can only be implemented on either January 1 or on July 1. In addition, some of these increments have sunset provisions and some require referendum. Council could implement the remaining authority in one year, over several years, or not at all. Property Taxes Property taxes are the second major source of tax revenue to the County s General Fund. In FY2017, property tax revenues are projected to be approximately $7 million, or 12% of the General Fund s total projected revenues. Property tax revenues are calculated by multiplying one-third of the assessed valuation of the property by the mill rate levy approved by the State Department of Finance and Administration. Because Los Alamos is a Class H County, it receives both Municipal and County mill rate assessments on residential and non-residential property. At the time the FY2017 budget was developed, the State had not determined new property tax mill levies. Therefore, calendar 2015 levies have been used to project fiscal year 2017 property tax revenues. Total property tax rates for calendar year 2015 were mills for residential and mills for non-residential properties. This rate includes levies for State Debt Service, Los Alamos Schools Operational, Capital Improvements and Debt Service levies, and University of New Mexico Operational and Debt Service levies. Of the total residential levy, the County received mils, or approximately 40.7 percent of the residential levy. The following tables show the breakdown of the rates and the remaining property tax levies that may be imposed by the Council for County and Municipal operations. If G.O. bonds are used to fund Capital Improvement projects, and if approved by voters, property taxes would be increased. The amount of the increase would be dependent upon the terms of the debt. 45

62 REVENUE AND EXPENDITURE COMPARISONS Property Taxes Imposed for 2015 Tax Year Max Allowed by Statute Residential and Non Residential Imposed ** Unimposed Property Taxes** County Municipal Total **Must be imposed at the same rate for both residential and non residential and cannot exceed the maximum allowed by statute. Property Tax Levies for 2015 Tax Year Residential Residential and Non Residential County Municipal Total Note the Levied Rate are the rates certified by the State after the State has applied the yield control formula to the Imposed rates above. The levied rate is the actual rate that a property owner pays. 46

63 LONG RANGE FINANCIAL PROJECTION This Long Range Financial Projection (LRFP) is prepared in accordance with Financial Policies Section IX, Long Range Financial Projection. The purpose is to provide a longer-term context for the biennial budget, to clarify and illustrate Council s long-range financial policy direction, and to integrate the estimated longterm operating impacts from capital projects into the operating budget projections. The focus of the LRFP is on the general governmental operations of the County. The Joint Utilities and other proprietary funds are excluded from this analysis. Baseline Scenario The key assumptions built into the baseline LRFP are the following: Revenue Assumptions: 1. Charges for services, franchise taxes and interfund/interdepartmental charges are estimated using a simple forecast based upon past history and the new increase. The primary assumptions for each of these lines was that the specific mix of revenues would remain stable over time and that there were no significant plans or other revenue interrelationships that would require a more refined projection model. 2. Grants The detail for FY2016 was reviewed and those items that were one time in nature or declining were reduced in future years. The base estimate for expected recurring revenues is $1,147,200 in FY2017. In subsequent years this amount is inflated annually at a rate of 3% (the assumed inflation rate.) 3. Land Sales The County has future plans that would involve sale of County land parcels. There parcels include A-19 (residential), A-19 (affordable housing), A-3/A-7, A-8 (residential), and A-8 (affordable housing). Since the timing of sales will be subject to future development plans and subject to Council approval, they have not been included in the projections. When and if these sales occur the proceeds will be available to fund future CIP and affordable housing projects. 4. GRT revenue The two primary sources of input for GRT revenue projections are the federal budget projections and input from LANL regarding projected spending. While the first input drives the other, it is the spending that actually generates GRT. The most recent information now available is based upon a projected leveling-off of spending at LANL. Because this is one of the initial sources of input used by the County to estimate GRT revenues, the current projections may have a higher degree of potential variability than in prior years. The GRT revenues are estimated to change as follows (in $millions): (in $millions) Actual Actual Actual Actual Actual Actual Projected %Change 11.8% -10.5% -15.7% -7.0% 2.5% 9.8% 2.2% 2.2% 2.1% 0.0% 2.1% 2.0% 2.0% 2.0% 1.9% 1.9% 47

64 LONG RANGE FINANCIAL PROJECTION There has been a significant amount of volatility in GRT and therefore the County is taking a conservative approach to budgeting this revenue source into the future. GRT revenues are projected to increase by 7% over projected revenues for For FY2018 and beyond, there is a 2% annual inflation factor assumed for GRT revenue growth. Beginning in FY2018, there is an annual compounding decrease of $105K also included in the projection associated with the phase out of hold harmless GRT payments from the State. 5. In FY2016, there is a property tax increase to re-implement the $1.5 million that was removed in FY2011. After 2016, average annual valuation increases are estimated to be 3%. 6. If not specifically addressed, revenues are projected to follow either historical trends or historical averages. Operating Expenditure Assumptions: 1. In FY2018 and beyond, General Fund Expenditures are estimated to inflate annually at an average of 3%. 2. Expenditures in other special revenue funds inflate at varying rate of 1% to 3% annually. 3. In FY2019 and beyond, $1 million annually is estimated for Economic Development operational expenses to be paid from the General Fund as the Economic Development fund will be out of fund balance and has no identified revenue stream. 4. In FY2020, $1.5 million in operating expenses has been added to the General Fund for potential CIP project operating costs. This is offset by a planned decrease in debt service expense for the GRT revenue bonds in the General Fund of $1.7 million. 48

65 LONG RANGE FINANCIAL PROJECTION The following table and graph illustrate the projected outcomes. Governmental Activities Summary (in $ millions) FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 Total beginning fund balance Revenues and other sources Expenditures and other uses (91) (115) (86) (80) (83) (82) (86) (87) (89) (91) (94) (96) (99) Total ending fund balance $120 $100 $ millions $80 $60 $40 $20 $0 Fiscal Year FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 Revenues and other sources Expenditures and other uses Total ending fund balance It should be noted that the majority of the positive fund balance growth projected above is in the CIP fund. Once a new CIP program is developed and approved by Council, this balance could be the source of funding and would decrease accordingly. Financial Risks and Mitigation Strategies The most significant risk inherent in this LRFP is that projected GRT tax revenue from LANL decreases substantially (either the tax status of the contractor changes and/or the nature and size of LANL operations changes, and/or State tax law changes unfavorably). There are several suggested mitigation strategies. The first is already completed and involved the structure of the GRT revenue bonds. They were structured so that a portion is callable, allowing early repayment. They were also structured so that repayment is front-loaded requiring larger principle payments earlier. One of our previous strategies was to use a portion of projected surpluses (in the earlier years of the LRFP when the risks are less) to build up a committed fund balance to possibly repay the GRT revenue debt early, when it is callable. In FY2013, the fund balance was used to refund the callable bonds early, reduce annual debt service costs, and realize an estimated current net present value savings of over $1.7 million. The second strategy has been to slow down the pace of the County s capital program to ensure that fund balance levels remain at targeted levels. The third strategy is on-going and is to find 49

66 LONG RANGE FINANCIAL PROJECTION efficiencies where possible, realign personnel with changing operations, and eliminate vacant positions when possible, thereby reducing recurring operating costs. SUMMARY The purpose of the LRFP is to illustrate the potential long-term impacts of operating and capital plans from a comprehensive perspective. The Capital Improvement Program, implemented as a whole and based upon the stated assumptions, is projected to generate positive economic benefit and to improve the quality of life for the community, although there are risks that will need to be managed carefully. It also projects that some additional capacity for other projects will be available over the long-term. 50

67 County Manager s Dashboard 51

68 Los Alamos County Manager s Dashboard The purpose of the Los Alamos County Manager s Performance Dashboard is to provide the County Council and the public with comprehensive, easy-to-understand information about how well the County is performing. The Dashboard is a way of measuring the climate of the city in a visual and easy-to-understand way. County employees are committed to work each and every day in a smarter and more efficient manner to deliver quality services to the public. The Dashboard includes 16 key performance indicators that measure the County s health and employee performance in the areas of General Government, Economic Development, Public Safety, Transportation, and Neighborhood and Community Enrichment. General Government GRT revenues decreased over the last five years from a high in FY2011. The County con nues to balance Sources (Revenues and Transfer In) and Uses (Expenditures and Transfer Out) in the General Fund. In response to the drop in revenues over the last five years, County staff has decreased by FTEs while maintaining quality service delivery. County residents give high ra ngs to the quality of life in Los Alamos. 52

69 Economic Development With the increase in tourists, the local economy is also experiencing more business. Restaurants and hotels are busy as evidenced by the increase in the Lodgers Tax Revenues. Los Alamos has seen a record number of visitors over the last 4 years. With the designa on of the Manha an Project Na onal Historic Park in FY2016, more tourists are expected. With the development of high-al tude sports and the Pajarito Ski Hill, Los Alamos will become a year-round des na on. Public Safety For the third year in a row, violent crimes in Los Alamos County have gone down. Because of the low crime rate, residents feel secure and enjoy walking in their neighborhoods at night. Transportation GF opera on costs are expected to decrease in FY2017 with the passage of FAST ACT, a Federal funding bill. Transit Sa sfac on with the Ci zens is High and Hovers in the high 90 s every survey. 53

70 Neighborhood and Community Enrichment County Inspectors are aggressively pursuing proper es with code viola ons and working with owners to gain voluntary compliance with the county ordinances. In FY2014, staff reached an all- me high of 97% voluntary compliance. Property owners are also working to improve and maintain their property as evidenced by the spike in permits in Permits con nue to be issued at a steady rate. The Library remains an important educa onal/recrea onal resource for families. The WR Library opening in FY2016 will see a significant increase in visits. The Library con nues to receive very high marks for customer service from the public. The Ice Rink, Aqua cs Center, and recrea onal programs and ac vi es offered by CSD staff con nue to be a social focal point for Los Alamos children, teens, and families. LA ci zens are recycling at increasing rates. Each year, the amount of waste diverted from the landfill increases by 2%. Recycling received a very high public sa sfac on ra ng. 54

71 FUND / DEPARTMENT STRUCTURE Fund Type Note: Significant variances are explained in the Department Summary Section. Fund Department GOVERNMENTAL Page # General General Fund Statement Department Summary County Council Municipal Court County Manager c County Assessor County Attorney County Clerk Probate Court County Sheriff Administrative Services Community Services Fire Police Community Development Public Works GOVERNMENTAL Special Revenue State Shared Revenues Public Works Lodger s Tax Community Development State Grants Fire, Police, Community Services , 154, 129 Health Care Assistance Community Services Economic Development Community Development Other Special Revenue Municipal Court, Community Services, Clerk, Assessor 65 88, 129, 113, 107 Emergency Declarations Non Departmental GOVERNMENTAL Debt Service Debt Service Non Departmental GOVERNMENTAL Capital Projects PROPRIETARY Enterprise PROPRIETARY Internal Service What is a fund? A fund is an accounting means for recording various revenue generating activities and their related expenses. Capital Improvement Projects Public Works, Community Development, Administrative Services , 159, 120 Capital Projects Permanent Non Departmental Joint Utilities System Utilities Environmental Services Public Works Transit Public Works Fire Fire Airport Public Works Equipment Public Works Risk Management County Manager

72 GENERAL FUND BUDGET SUMMARY FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Notes Beginning fund balance: Nonspendable $ 2,370,466 2,131,799 2,086,644 2,086,644 1,656,799 (22%) 1,671,899 1% Restricted for Cash Requirements 4,360,484 4,311,425 4,420,996 4,420,996 4,294,105 0% 4,582,188 7% Other Restricted/Assigned 3,683,908 2,408,347 2,977,140 2,977,140 2,413,347 0% 2,345,550 (3%) Revenue Stabilization 7,750,230 7,734,116 5,630,041 5,630,041 0 (100%) 0 N/A Unassigned 10,946,134 10,918,569 10,400,592 10,400,592 12,422,594 14% 12,191,912 (2%) Total beginning fund balance 29,111,222 27,504,256 25,515,413 25,515,413 20,786,845 (24%) 20,791,549 0% Revenues: Gross Receipts Taxes 35,390,169 39,066,000 39,066,000 40,517,000 41,607,000 7% 42,332,000 2% Property Taxes 5,381,987 6,919,566 6,919,566 6,919,566 6,992,560 1% 7,132,000 2% Interdepartmental charges 6,587,030 6,142,492 6,142,492 6,142,492 6,893,926 12% 7,083,782 3% User Charges 2,040,153 2,153,590 2,153,590 2,061,394 2,088,851 (3%) 2,138,831 2% Investment income 581,674 1,925,000 1,925, ,000 1,270,000 (34%) 1,145,000 (10%) Grants 836, ,700 2,143,098 3,043,108 1,147,200 33% 1,106,000 (4%) Other 1,185,297 1,172,899 1,172,899 1,176,350 1,284,430 10% 1,247,104 (3%) Revenues: 52,002,962 58,243,247 59,522,645 60,364,910 61,283,967 5% 62,184,717 1% Transfers from other funds 2,372,592 2,647,661 2,647,661 2,471,407 2,634,110 (1%) 2,641,294 0% Total sources of funds $ 83,486,776 88,395,164 87,685,719 88,351,730 84,704,922 (4%) 85,617,560 1% Expenditures: County Council $ 343, , , , ,199 4% 400,000 3% Municipal Court 411, , , , ,284 13% 512,000 3% County Manager 3,496,658 3,524,553 3,946,289 3,597,200 3,609,832 2% 3,718,000 3% County Assessor 394, , , , ,723 0% 397,000 3% County Attorney 706, , , , ,745 (4%) 710,000 3% County Clerk 411, , , , ,018 18% 543,000 3% Probate Court 5,508 5,895 5,895 5,300 5,885 0% 6,000 2% County Sheriff 80,680 85,411 87,629 79,300 85,411 0% 88,000 3% Community Development 1,189,318 1,624,425 1,839,425 1,665,000 1,859,339 14% 1,915,000 3% Administrative Services 6,574,639 7,237,882 7,617,518 6,921,400 7,449,117 3% 7,673,000 3% Community Services 9,377,309 9,589,986 10,073,439 9,118,400 10,228,570 7% 10,535,000 3% Fire 3,910,167 4,263,915 4,263,915 3,859,600 4,829,176 13% 5,207,149 8% Police 7,500,091 7,735,978 8,291,994 7,505,800 8,298,995 7% 8,548,000 3% Public Works 11,417,831 11,036,253 14,123,347 12,784,300 11,352,786 3% 11,693,000 3% Expenditures 45,819,552 47,474,781 52,702,306 47,736,200 50,207,080 6% 51,945,149 3% Transfers to other funds 12,151,811 19,527,819 19,649,263 19,828,685 13,706,293 (30%) 11,710,243 (15%) [3] Ending fund balance: Nonspendable 2,086,644 2,156,799 1,656,799 1,656,799 1,671,899 (22%) 1,671,899 0% Restricted for Cash Requirements 4,420,996 4,219,613 4,706,291 4,294,105 4,582,188 9% 4,726,447 3% Other Restricted/Assigned 2,977,140 2,413,347 2,413,347 2,413,347 2,345,550 (3%) 2,345,550 0% Revenue Stabilization 5,630,041 1,081,369 (5,346,816) [2] Unassigned 10,400,592 11,521,436 11,904,529 12,422,594 12,191,912 6% 13,218,272 8% Total ending fund balance 25,515,413 21,392,564 15,334,150 20,786,845 20,791,549 (3%) 21,962,168 6% Total uses of funds $ 83,486,776 88,395,164 87,685,719 88,351,730 84,704,922 (4%) 85,617,560 1% 0 Operating Surplus / (Shortfall) (3,595,809) (6,111,692) (10,181,263) (4,728,568) 4,704 1,170,619 [1] 56

73 GENERAL FUND BUDGET SUMMARY - NOTES [1] The operating surplus/(shortfall) is the difference between revenues/transfers in (sources) and expenditures/transfers out (uses). In FY17, as proposed, sources would exceed uses resulting in a surplus. In FY16, the large increase in transfers out for Other Potential Projects (see detail below) results in an operating shortfall. [2] At the budget hearings, Council approved revised Financial Policies. The revenue stabilization was elminiated and combined with the unassigned fund balance beginning at the end of FY2016. [3] Summary of Transfers to Other Funds FY2016 FY2016 FY2017 FY2018 FY2015 Adopted Revised FY2016 Proposed Projected Actual Budget Budget Projected Budget Budget Other Special Revenue Fund $ 0 15,000 15,000 15,000 15,000 15,000 Debt Service Fund - GRT Revenue Bonds 529 6,270,396 6,269,109 6,269,109 6,269,109 6,264,647 6,268,597 Capital Improvement Projects Fund: Road Replacement - routine CIP transfers 2,492,000 3,367,080 3,367,080 3,367,080 3,367,080 3,367,080 Major Network Replacements 292, , , , , ,080 Parks Small Projects 170, , , ,000 57,000 57,000 Other Potential Projects 377, Other Potential Projects 0 7,567,800 7,567,800 7,567, ,000 0 Communications Conduit 169, Revision for Permit System , , LAPS / County Project Partnerships 500, ,000 0 CIP - ERP System 55, , Transit Fund - ongoing operations 1,200,000 1,188,000 1,188,000 1,188,000 1,000,000 1,000,000 Airport Fund- operations 235, , , , , ,650 Airport Fund - capital project matching funds 51, , , , , ,836 Emergency Declarations Fund Flood Disaster 15, Emergency Declarations Fund - Las Conchas Fire 25, Economic Development Fund 1,000,000 Health Care Assistance Fund - operations 300, , , , , ,000 Total Transfers to Other Funds $ 12,151,811 19,527,819 19,649,263 19,828,685 13,706,293 11,710,243 57

74 SPECIAL REVENUE FUNDS COMBINING FUND STATEMENT STATE HEALTH SHARED LODGERS' STATE CARE REVENUES TAX GRANTS ASSISTANCE Fiscal Year (FY) Adopted Total beginning fund balance / working capital $ 75, , ,342 Revenues and other sources 580, , ,400 1,762,000 Transfers from other funds ,000 Expenditures 0 278, ,400 2,068,919 Transfers to other funds 580, Total ending fund balance / working capital FY 2017 $ 75, , ,423 Fiscal Year (FY) Projected Total beginning fund balance / working capital $ 75, , ,423 Revenues and other sources 580, , ,400 1,792,000 Transfers from other funds ,000 Expenditures 0 224, ,400 2,132,000 Transfers to other funds 580, Total fund balance / working capital Ending FY 2018 $ 75, , ,423 Total FY 2017 sources of funding Current year $ 580, , ,400 2,079,000 Total FY 2017 uses of funding Current year 580, , ,400 2,068,919 Net increase / (decrease) in fund balance / working capital $ 0 (11,219) 0 10,081 STATE HEALTH SHARED LODGERS' STATE CARE REVENUES TAX GRANTS ASSISTANCE FY 2017 Proposed Budget FTEs FY 2016 Adopted Budget FTEs Net increase / (decrease) (0.25) Special Revenue Funds are used to account for revenues that are legally restricted to expenditures for specified purposes. 58

75 OTHER FY 2017 FY 2016 ECONOMIC SPECIAL EMERGENCY ADOPTED ADOPTED DEVELOPMENT REVENUE DECLARATIONS BUDGET BUDGET 7,807, ,270 17,927 9,229,325 9,365, , , ,629,400 3,541,276 1,150,000 15, ,482, ,000 4,040, , ,237,498 8,536,018 2,000, ,580, ,000 3,111, ,810 17,927 4,523,227 3,706,068 3,111, ,810 17,927 4,523,227 78, , ,557, ,000 15, , , , ,198, ,000 2,423, ,610 17,927 3,854,527 1,345, , ,111,400 6,040, , ,817,498 (4,695,500) (9,460) 0 (4,706,098) OTHER ECONOMIC SPECIAL EMERGENCY TOTAL DEVELOPMENT REVENUE DECLARATIONS FTEs (0.21) 59

76 STATE SHARED REVENUES FUND BUDGET SUMMARY FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Beginning fund balance: Restricted for Major Street Maintenance $ 308,615 73,615 85,553 85,553 75,553 3% 75,553 0% Revenues: Major Street Maintenance: Motor vehicle tax 228, , , , ,000 0% 240,000 0% Gasoline tax 350, , , , ,000 3% 340,000 0% Revenues 579, , , , ,000 2% 580,000 0% Total sources of funds $ 887, , , , ,553 2% 655,553 0% Expenditures $ N/A 0 N/A Transfers to other funds 802, , , , ,000 0% 580,000 0% Ending fund balance: Restricted for Major Street Maintenance 85,553 63,615 75,553 75,553 75,553 19% 75,553 0% Total uses of funds $ 887, , , , ,553 2% 655,553 0% For detailed department information, please see pages 143 (Public Works). The State Shared Revenues Fund accounts for the receipt and expenditure of certain state shared revenues. These include gasoline tax, arterial, cooperative, school bus route, and motor vehicle revenues, all of which provide funding for the general control and management of the County's roads, highways, and bridges. 60

77 LODGERS' TAX FUND BUDGET SUMMARY FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Beginning fund balance: Restricted for Lodgers' Tax $ 88, , , , ,771 29% 182,552 (6%) Revenues: Lodgers' Tax - Promotion 251, , , , ,000 20% 273,000 3% Investment income 1,318 2,000 2,000 1,000 2,000 0% 2,000 0% Penalties 2, N/A 0 N/A Revenues 255, , , , ,000 20% 275,000 3% Total sources of funds $ 343, , , , ,771 24% 457,552 (1%) Expenditures: Professional / Contractual $ 188, , , , ,000 28% 221,000 (20%) Interfund charges - Administration 5,036 3,207 3,207 3,207 3,219 0% 3,000 (7%) Expenditures 194, , , , ,219 28% 224,000 (19%) Ending fund balance: Restricted for Lodgers' Tax 149, , , , ,552 19% 233,552 28% Total uses of funds $ 343, , , , ,771 24% 457,552 (1%) For detailed department information, please see page 162 (Community & Econ Dev). The Lodgers' Tax Fund accounts for the proceeds of the lodgers' tax which is required to be used for promotional activities and for the acquisition of certain facilities as provided in the Los Alamos County Code Chapter

78 STATE GRANTS FUND BUDGET SUMMARY FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Beginning fund balance: Restricted - Law Enforcement Protection $ ,563 20,563 0 (100%) 0 N/A Restricted - Local DWI N/A 0 N/A Restricted - Forfeitures and Seizures N/A 0 N/A Restricted - Fire Marshal 271,241 2, , ,860 0 (100%) 0 N/A Restricted - Fire EMS N/A 0 N/A Total beginning fund balance 272,167 2, , ,650 0 (100%) 0 N/A Revenues: State Grant - Law Enforcement Protection 39,800 39,200 59,764 59,764 39,200 0% 39,200 0% State Grant - Local DWI 72,382 66, , ,667 77,000 16% 77,000 0% State Grant - Forfeitures and Seizures N/A 0 N/A State Grant - Fire Marshal 533, , , , ,000 0% 500,000 0% State Grant - Fire EMS 11,453 11,200 10,449 10,449 11,200 0% 11,200 0% Investment Income 5, ,000 0 N/A 0 N/A Revenues: 662, , , , ,400 2% 627,400 0% Total sources of funds $ 934, , , , ,400 1% 627,400 0% Expenditures: Law Enforcement Protection $ 19,238 39,200 59,764 80,327 39,200 0% 39,200 0% Local DWI 72,382 66, , ,667 77,000 16% 77,000 0% Forfeitures and Seizures N/A 0 N/A Fire Marshal 573, , , , ,000 0% 500,000 0% Fire EMS 12,153 11,200 10,449 10,449 11,200 0% 11,200 0% Expenditures 676, , , , ,400 2% 627,400 0% Ending fund balance: Restricted - Law Enforcement Protection 20, , (100%) 0 N/A Restricted - Local DWI N/A 0 N/A Restricted - Forfeitures and Seizures N/A 0 N/A Restricted - Fire Marshal 236,860 2,000 99, (100%) 0 N/A Restricted - Fire EMS N/A 0 N/A Total ending fund balance 257,650 2, , (100%) 0 N/A Total uses of funds $ 934, , , , ,400 1% 627,400 0% FTE Summary: Regular (full & part time) % % For detailed department information, please see pages 133 (Fire) and 138 (Police). The State Grants Fund accounts for the receipt and expenditure of certain state grants. These include Law Enforcement Protection, Local DWI, Fire Marshal, and Fire EMS grants. 62

79 HEALTH CARE ASSISTANCE FUND BUDGET SUMMARY FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Beginning fund balance: Restricted for Indigent Health Care $ 680, , , , ,342 (4%) 498,423 2% Revenues: Gross Receipts Taxes 1,460,114 1,612,000 1,612,000 1,672,000 1,717,000 7% 1,747,000 2% Rental Income 38,681 39,000 39,000 39,000 39,000 0% 39,000 0% Investment income 6,980 8,000 8,000 3,000 6,000 (25%) 6,000 0% Revenues 1,505,775 1,659,000 1,659,000 1,714,000 1,762,000 6% 1,792,000 2% Transfers from other funds 300, , , , ,000 6% 317,000 0% Total sources of funds $ 2,485,869 2,467,549 2,499,646 2,554,646 2,567,342 4% 2,607,423 2% Expenditures: Salaries and benefits $ 52,879 62,904 62,904 62,904 67,510 7% 70,000 4% Professional / Contractual services 1,891,879 1,999,000 1,999,000 1,999,000 1,985,009 (1%) 2,045,000 3% Other services 375 3,400 3,400 3,400 15, % 16,000 1% Materials and supplies 90 1,000 1,000 1, (48%) 1,000 92% Expenditures 1,945,223 2,066,304 2,066,304 2,066,304 2,068,919 0% 2,132,000 3% Ending fund balance: Restricted for Indigent Health Care 540, , , , ,423 24% 475,423 (5%) Total uses of funds $ 2,485,869 2,467,549 2,499,646 2,554,646 2,567,342 4% 2,607,423 2% FTE Summary: Regular (full & part time) % For detailed department information, please see page 114 (Community Services). The Health Care Assistance Fund accounts for revenues and expenditures associated with the administration of the Health Care Assistance Program. 63

80 ECONOMIC DEVELOPMENT FUND BUDGET SUMMARY FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Beginning fund balance: Committed for Econ. Development $ 10,584,571 7,248,944 8,371,738 8,371,738 7,210,060 (1%) 2,068,160 (71%) Nonspendable 826, , , , ,402 (19%) 1,043,802 75% Total beginning fund balance 11,411,255 7,985,099 9,118,044 9,118,044 7,807,462 (2%) 3,111,962 (60%) Revenues: Loan interest 9, N/A 0 N/A User charges 10, N/A 0 N/A Investment income 94, , ,000 91, ,000 (19%) 78,000 (60%) Loan repayment 0 35,376 39, ,949 0 (100%) 0 N/A Revenues 113, , , , ,000 (29%) 78,000 (60%) Transfers from other funds 450, ,200,000 1,150,000 N/A 220,000 (81%) Total sources of funds $ 11,975,421 8,260,475 9,431,132 10,548,993 9,152,462 11% 3,409,962 (63%) Expenditures: Economic Development Programs $ 498, , , , ,500 8% 466,500 (11%) Infrastructure and Housing 0 4,500,000 4,900, ,531 2,650,000 (41%) 200,000 (92%) Downtown Redevelopment 0 450, , , ,000 (73%) 120,000 0% Local Econ. Developm't Loans/Grants ,200, ,000 N/A 200,000 (73%) Expenditures 498,377 5,436,000 6,322,546 2,341,531 4,040,500 (26%) 986,500 (76%) Transfers to other funds 2,359, , , ,000 2,000, % 0 (100%) Ending fund balance: Committed for Econ. Development 8,371,738 1,723,696 2,001,368 7,210,060 2,068,160 20% 1,259,660 (39%) Nonspendable 746, , , ,402 1,043,802 49% 1,163,802 11% Total ending fund balance 9,118,044 2,424,475 2,708,586 7,807,462 3,111,962 28% 2,423,462 (22%) Total uses of funds $ 11,975,421 8,260,475 9,431,132 10,548,993 9,152,462 11% 3,409,962 (63%) Operating Surplus / (Shortfall) (2,293,211) (5,560,624) (6,409,458) (1,310,582) (4,695,500) (4) (688,500) The Economic Development Fund accounts for the receipt, management, investment, and expenditure of the lump sum buyout payment received from the United States Department of Energy under the Atomic Energy Communities Act. 64

81 OTHER SPECIAL REVENUES FUND BUDGET SUMMARY FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Beginning fund balance: Restricted for Property Tax Valuation $ 494, , , , ,506 8% 554,536 0% Restricted for Clerk's Recording Equipment 51,088 42,349 49,258 49,258 40,689 (4%) 32,139 (21%) Restricted for Bench Warrant Collections 8,351 2,567 1,916 1,916 1,139 (56%) 399 (65%) Restricted for Aquatic Center Operations 41,984 40,984 39,431 39,431 37,931 (7%) 36,431 (4%) Restricted for Library Operations 16,129 15,429 14,705 14,705 14,005 (9%) 13,305 (5%) Total beginning fund balance 611, , , , ,270 6% 636,810 (1%) Revenues: Property Tax Adminstration Fees 154, , , , ,000 0% 175,000 3% Clerk's Recording Fees 19,173 20,000 20,000 20,000 20,000 0% 21,000 5% Bench Warrant Fees 2,549 3,000 3,000 3,000 4,000 33% 5,000 25% Aquatic Center Gifts / Donations 41 1,000 1,000 1,000 1,000 0% 1,000 0% Library Gifts / Donations 1,559 2,000 2,000 2,000 2,000 0% 2,000 0% Investment income 522 2,000 2,000 1,000 1,000 (50%) 1,000 0% Revenues 177, , , , ,000 0% 205,000 4% Transfers from other funds 0 15,000 15,000 15,000 15,000 0% 15,000 0% Total sources of funds $ 789, , , , ,270 4% 856,810 0% Expenditures: Property Tax Valuation $ 120, , , , ,970 16% 173,000 3% Clerk's Recording Equipment 21,003 28,569 28,569 28,569 28,550 0% 29,000 2% Bench Warrant Collections 8,984 18,777 18,777 18,777 19,740 5% 20,000 1% Aquatic Center Gift 3,016 3,000 3,000 3,000 3,000 0% 3,000 0% Library Gift 3,083 3,200 3,200 3,200 3,200 0% 3,200 0% Expenditures 156, , , , ,460 12% 228,200 3% Ending fund balance: Restricted for Property Tax Valuation 527, , , , ,536 3% 556,536 0% Restricted for Clerk's Recording Equipment 49,258 33,780 40,689 40,689 32,139 (5%) 24,139 (25%) Restricted for Bench Warrant Collections 1,916 1,790 1,139 1, (78%) 399 0% Restricted for Aquatic Center Operations 39,431 40,484 38,931 37,931 36,431 (10%) 34,931 (4%) Restricted for Library Operations 14,705 14,729 14,005 14,005 13,305 (10%) 12,605 (5%) Total ending fund balance 632, , , , ,810 2% 628,610 (1%) Total uses of funds $ 789, , , , ,270 4% 856,810 0% FTE Summary: Regular (full & part time) % % For detailed department information, please see pages 84 (Municipal Court), 96 (Assessor), 100 The Other Special Revenue Fund includes the following subfunds: Property Tax Valuation, Recording Equipment, Aquatic Center Gift, Library Gift, and Bench Warrant. 65

82 EMERGENCY DECLARATIONS FUND BUDGET SUMMARY FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Beginning fund balance: Assigned for Las Conchas Fire Recovery $ (1,240,844) 69,875 94,875 94,875 17,926 (74%) 17,926 0% Assigned for September 2013 Flood Damage (1,493,026) 257, ,369 1 N/A 1 0% Total beginning fund balance (2,733,870) 69, , ,244 17,927 (74%) 17,927 0% Revenues: LC-Intergovernmental - Federal Indirect 1,310, , ,062 0 N/A 0 N/A FD-Intergovernmental - Federal Indirect 1,763, ,993,474 2,993,474 0 N/A 0 N/A Revenues 3,073, ,180,536 3,180,536 0 N/A 0 N/A Transfers from other funds 25, N/A 0 N/A Total sources of funds 364,927 69,875 3,532,780 3,532,780 17,927 (74%) 17,927 0% Expenditures: LC-Professional / Contractual , ,011 0 N/A 0 N/A FD-Professional / Contractual 12, ,250,842 3,250,842 0 N/A 0 N/A Expenditures 12, ,514,853 3,514,853 0 N/A 0 N/A Ending fund balance: Assigned for Las Conchas Fire Recovery 94,875 69,875 17,926 17,926 17,926 (74%) 17,926 0% Assigned for September 2013 Flood Damage 257, N/A 1 0% Total ending fund balance 352,244 69,875 17,927 17,927 17,927 (74%) 17,927 0% Total uses of funds $ 364,927 69,875 3,532,780 3,532,780 17,927 (74%) 17,927 0% For detailed information, please see page 200 (Non-Departmental). The Emergency Declarations Fund accounts for expenditures declared a disaster by the Federal Emergency Management Agency (FEMA). The Las Conchas Fire Sub Fund accounts for expenditures incurred by the County as a result of the Las Conchas Fire in June/July The Flood Damage Sub Fund accounts for expenditures as a result of severe flood damage caused by torrential rainfall in September These sub funds will be closed once all activity is complete. 66

83 GRT REVENUE BONDS DEBT SERVICE FUND BUDGET SUMMARY FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Beginning fund balance: Restricted for Debt Service $ 29,238 29,238 30,385 30,385 30,385 4% 30,385 0% Committed for Debt Service 242, , , , ,706 (1%) 254,706 3% Total beginning fund balance 271, , , , ,091 (1%) 285,091 3% Revenues: Investment income 3,814 8,000 8,000 3,000 7,000 (13%) 7,000 0% Transfers from other funds 6,270,396 6,269,109 6,269,109 6,269,109 6,264,647 0% 6,268,597 0% Total sources of funds $ 6,545,487 6,557,386 6,552,200 6,547,200 6,549,738 0% 6,560,688 0% Expenditures: Debt Service $ 6,270,396 6,269,109 6,269,109 6,269,109 6,264,647 0% 6,268,597 0% Ending fund balance: Restricted for Debt Service 30,385 29,238 30,385 30,385 30,385 4% 30,385 0% Committed for Debt Service 244, , , , ,706 (2%) 261,706 3% Total ending fund balance 275, , , , ,091 (1%) 292,091 2% Total uses of funds $ 6,545,487 6,557,386 6,552,200 6,547,200 6,549,738 0% 6,560,688 0% For detailed information, please see page 200 (Non-Departmental). Debt Service Funds are used to account for the accumulation of resources for and the payment of long term debt principal and interest. The GRT Revenue Bond Debt Service Fund accounts for amounts to be accumulated for payment of principal and interest on GRT revenue bonds issued for the construction of specific capital projects, including the Airport Basin, Jail and Courthouse Projects. Debt Service is financed by a portion of the gross receipts tax imposed and collected by the State and distributed to the County. Please see future debt service schedule in the Other Information section under Debt Summary. 67

84 CAPITAL PROJECTS FUNDS COMBINING FUND STATEMENT CAPITAL CAPITAL FY2017 FY2016 IMPROVEMENT PROJECTS ADOPTED ADOPTED PROJECTS PERMANENT BUDGET BUDGET Fiscal Year (FY) Adopted Total beginning fund balance / working capital $ 10,024,194 26,493,749 36,517,943 34,070,380 Revenues and other sources 150,000 1,850,000 2,000,000 2,140,000 Transfers from other funds 6,523, ,523,160 13,183,960 Expenditures 4,993, ,993,160 4,361,160 Transfers to other funds 150,000 1,230,000 1,380,000 1,255,000 Total fund balance / working capital Ending FY2017 $ 11,554,194 27,113,749 38,667,943 43,778,180 Fiscal Year (FY) Projected Total beginning fund balance / working capital $ 11,554,194 27,113,749 38,667,943 Revenues and other sources 220,000 1,900,000 2,120,000 Transfers from other funds 5,561, ,561,160 Expenditures 4,293, ,293,160 Transfers to other funds 220,000 1,268,000 1,488,000 Total fund balance / working capital Ending FY2018 $ 12,822,194 27,745,749 40,567,943 Total FY2017 sources of funding $ 6,673,160 1,850,000 8,523,160 Total FY2017 uses of funding 5,143,160 1,230,000 6,373,160 change in fund balance / working capital $ 1,530, ,000 2,150,000 CAPITAL CAPITAL IMPROVEMENT PROJECTS TOTAL PROJECTS PERMANENT FTEs FY2017 Adopted Budget FTEs FY2016 Adopted Budget FTEs Net increase / (decrease) The Capital Improvement Projects Fund accounts for financial resources used for the acquisition or construction of capital facilities. The Capital Projects Permanent Fund accounts for amounts received under a settlement of prior years' gross receipts taxes, set aside by the County Council and the County Charter for capital projects. These amounts are invested, and the real value of the fund principal is maintained using the implicit price deflator for the gross domestic product. When there is investment income in excess of the principal maintenance, it is made available for expenditure in the Capital Improvements Projects Fund. 68

85 CAPITAL IMPROVEMENT PROJECTS FUND BUDGET SUMMARY FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Beginning fund balance: Committed for Capital Improvements $ 32,868,217 5,474,335 23,195,414 23,195,414 10,024,194 83% 11,554,194 15% Revenues: Intergovernmental - Federal Grants , ,258 0 N/A 0 N/A Intergovernmental - State Grants 266, , ,183 0 N/A 0 N/A Land Sale Proceeds 450, ,000 N/A 220,000 47% Revenues 716, ,294,349 1,562, ,000 N/A 220,000 47% Transfers from other funds General Fund 4,055,095 11,348,960 11,470,404 11,649,826 4,713,160 (58%) 3,713,160 (21%) State Shared Revenue 802, , , , ,000 0% 580,000 0% Enterprise Funds ,600,000 0 N/A 0 N/A Economic Development 2,000, N/A 0 N/A Capital Project Permanent 1,198,437 1,255,000 1,255,000 1,229,000 1,230,000 (2%) 1,268,000 3% Transfers from other funds 8,055,965 13,183,960 13,305,404 15,058,826 6,523,160 (51%) 5,561,160 (15%) Total sources of funds $ 41,641,007 18,658,295 37,795,167 39,816,681 16,697,354 (11%) 17,335,354 4% Expenditures: Capital Improvements $ 11,187, ,986,535 6,550, ,000 N/A 0 (100%) Road Projects 5,871,605 3,947,080 11,011,954 10,844,201 3,947,080 0% 3,947,080 0% Parks Small Capital 0 125, , ,433 57,000 (54%) 57,000 0% Information Technology Projects 697, ,080 4,030,464 6,259, ,080 0% 289,080 0% Schools Projects (unallocated) , ,000 N/A 0 (100%) Senior Center ,398,769 0 N/A 0 N/A Senior Center Grant ,092 0 N/A 0 N/A CIP Phase 1 Concept Designs ,000,000 0 N/A 0 N/A Canyon Rim Trail - next west segment ,000,000 0 N/A 0 N/A Mountain Bike Trails ,000 0 N/A 0 N/A Expenditures 17,756,778 4,361,160 23,471,186 28,592,487 4,993,160 14% 4,293,160 (14%) Transfers to other funds 688, ,200, ,000 N/A 220,000 47% Ending fund balance: Committed for Capital Improvements 23,195,414 14,297,135 14,323,981 10,024,194 11,554,194 (19%) 12,822,194 11% Total uses of funds $ 41,641,007 18,658,295 37,795,167 39,816,681 16,697,354 (11%) 17,335,354 4% Operating Surplus / (Shortfall) (9,672,803) 8,822,800 (8,871,433) (13,171,220) 1,530,000 1,268,000 FTE Summary: Regular (full & part time) % % For information on the Capital Improvement Projects, please see detail beginning on page 202 In the Capital Improvements section. For department information, please see page 105 (Admin Services), page 114 (Community Services), page 143 (Public Works), and page 162 (Community & Econ Dev) The Capital Improvement Projects Fund accounts for the financing and construction of structures and improvements approved by County Council. 69

86 CAPITAL PROJECTS PERMANENT FUND BUDGET SUMMARY FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Beginning fund balance: Restricted for Income Stabilization $ 3,387,171 3,308,388 2,456,871 2,456,871 1,335,168 (60%) 1,514,893 13% Nonspendable for Capital Improvements 24,350,874 25,287,657 24,725,878 24,725,878 25,158,581 (1%) 25,598,856 2% Total beginning fund balance 27,738,045 28,596,045 27,182,749 27,182,749 26,493,749 (7%) 27,113,749 2% Revenues: Investment income 643,141 2,140,000 2,140, ,000 1,850,000 (14%) 1,900,000 3% Total sources of funds $ 28,381,186 30,736,045 29,322,749 27,722,749 28,343,749 (8%) 29,013,749 2% Transfers to other funds $ 1,198,437 1,255,000 1,255,000 1,229,000 1,230,000 (2%) 1,268,000 3% Ending fund balance: Restricted for Income Stabilization 2,456,871 3,750,854 2,909,168 1,335,168 1,514,893 (60%) 1,698,913 12% Nonspendable for Capital Improvements 24,725,878 25,730,191 25,158,581 25,158,581 25,598,856 (1%) 26,046,836 2% Total ending fund balance 27,182,749 29,481,045 28,067,749 26,493,749 27,113,749 (8%) 27,745,749 2% Total uses of funds $ 28,381,186 30,736,045 29,322,749 27,722,749 28,343,749 (8%) 29,013,749 2% Operating Surplus / (Shortfall) (555,296) 885, ,000 (689,000) 620, ,000 The Capital Projects Permanent Fund accounts for amounts received under a settlement of prior years' gross receipts taxes set aside by the County Council and the County Charter for capital projects. These funds are invested, and the real value of the fund principal is maintained using the implicit price deflator for the gross domestic product. Excess interest income from the fund is made available for expenditure in the Capital Improvements Projects Fund. 70

87 ENTERPRISE FUNDS Enterprise Funds account for activities financed and operated in a manner similar to private business enterprises. These activities generally provide goods or services to the general public on a continuing basis and are financed primarily through user charges. Joint Utility System Fund NOTE: The Joint Utility subfunds presented here are intended for informational purposes only. It is the Joint Utility System Fund level at which budget authority resides and at which the utilities budget is adopted. Electric Utility Subfund - accounts for the provision of electric utility services for the County. Gas Utility Subfund - accounts for the provision of natural gas utility services for the County. Water Utility Subfund - accounts for the provision of water utility services for the County. Wastewater Utility Subfund - accounts for the provision of wastewater utility services for the County. Other Enterprise Funds Environmental Services - accounts for the provision of refuse collection services for the County. Transit Fund - provides for a community wide public transit system. Fire Fund - accounts for the fire protection services. Airport Fund - accounts for the operation and maintenance of the Los Alamos Airport. 71

88 JOINT UTILITY SYSTEM FUND FUND SUMMARY FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Beginning working capital $ 14,936,430 11,184,879 28,396,700 28,396,700 17,034,711 52% 13,248,812 (22%) Revenues: Wholesale sales 29,791,535 41,980,891 41,980,891 41,154,084 32,572,327 (22%) 34,364,899 6% Retail sales 25,920,899 31,638,896 31,638,896 29,194,863 30,292,969 (4%) 29,926,612 (1%) Other revenues 1,224,547 1,549,652 1,549,652 1,549,652 3,405, % 1,495,885 (56%) Debt Proceeds 13,211, N/A 10,000,000 N/A Interest income 105, , , , ,569 (72%) 219,319 (11%) 70,254,593 76,046,545 76,046,545 72,580,705 66,518,839 (13%) 76,006,715 14% Transfers from other funds ,000, % 0 (100%) Expenses by Program: Electric 51,694,598 59,941,124 65,314,661 60,942,424 46,843,389 (22%) 47,601,314 2% Gas 4,976,199 6,254,339 6,833,303 6,833,303 5,304,078 (15%) 5,176,369 (2%) Water 6,339,169 7,906,432 12,899,830 7,906,432 13,746,935 74% 6,921,235 (50%) Wastewater 4,967,022 4,968,577 6,489,128 6,489,128 5,501,226 11% 14,988, % 67,976,988 79,070,472 91,536,922 82,171,287 71,395,628 (10%) 74,687,229 5% Nonbudgeted items: Nonbudgeted expenses 1,123, N/A 0 N/A Changes in long term assets 4,283, N/A 0 N/A Changes in long term liabilities 12,852, N/A 0 N/A Loss on disposition of capital assets (524,244) N/A 0 N/A Asset contributions 1,145, N/A 0 N/A Prior period adjustments (6,915,513) N/A 0 N/A 11,964, N/A 0 N/A Transfers to other funds: 781, , ,661 1,771, ,110 (4%) 891,294 (2%) Ending working capital $ 28,396,700 7,213,291 11,958,662 17,034,711 13,248,812 84% 13,677,004 3% FTE Summary: Regular (full & part time) % % Limited term N/A 1.00 N/A Casual, Student,& Temp (16%) % (1%) % NOTE: The Joint Utility subfunds presented are intended for informational purposes only. It is the Joint Utility Fund level at which budget authority resides and at which the utilities budget is adopted. For detailed department information, please see page 181 (Utilities). The Utilities Department's function is to provide our customers with quality electric, natural gas, water, and wastewater services to meet current and future needs and to achieve the highest level of customer satisfaction. 72

89 JOINT UTILITY SYSTEM FUND Combined Electric Utility Subfund Summary FY2016 FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised Projected Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Budget Budget FY2016 Budget FY2017 Beginning working capital $ (6,036,271) (3,263,292) 8,856,704 8,856,704 2,471,316 (176%) 1,547,818 (37%) Revenues: Wholesale sales 29,056,585 40,826,807 40,826,807 40,000,000 31,385,877 (23%) 33,154,720 6% Retail sales 12,430,553 14,815,900 14,815,900 14,815,900 15,088,911 2% 15,279,913 1% Other revenues 246, , , , ,926 (30%) 251,926 0% Debt Proceeds 13,211, N/A 0 N/A Interest income (127,818) 100, ,000 (95,000) (158,000) (258%) (158,000) 0% Gain (loss) on investments N/A 0 N/A 54,817,480 56,103,383 56,103,383 55,081,576 46,568,714 (17%) 48,528,559 4% Transfers from other funds: N/A 0 N/A Expenses: Salaries and benefits 5,482,533 5,705,038 5,705,038 5,705,038 5,882,946 3% 5,874,983 0% Operations 30,122,868 47,733,961 47,752,454 43,380,217 33,853,118 (29%) 36,448,537 8% Capital 4,276,191 2,686,085 8,041,129 8,041,129 3,313,575 23% 1,486,575 (55%) Debt Service 11,813,006 3,816,040 3,816,040 3,816,040 3,793,750 (1%) 3,791,219 0% 51,694,598 59,941,124 65,314,661 60,942,424 46,843,389 (22%) 47,601,314 2% Nonbudgeted items: Nonbudgeted expenses (844,327) N/A 0 N/A Changes in long term assets 4,764, N/A 0 N/A Changes in long term liabilities 13,306, N/A 0 N/A Asset contributions 80, N/A 0 N/A Loss on sale of capital assets (97,787) N/A 0 N/A Prior period adjustments (4,954,144) N/A 0 N/A 12,254, N/A 0 N/A Transfers to other funds: General Fund 484, , , , ,823 10% 657,036 1% Ending working capital $ 8,856,704 (7,725,052) (978,593) 2,471,316 1,547,818 (120%) 1,818,027 17% The Utilities Electric Production and Distribution Divisions manage the County's electric generation and transmission resources to meet the electric energy requirements for LAC customers and the DOE's LANL in the most cost-effective manner. The Production Division Director is chairman of the LAC/DOE Operating Committee which sets policy for the combined LAC/DOE power pool. The Distribution Division is responsible for maintenance, operation, and repair of all electric distribution lines and equipment owned by the County of Los Alamos to provide delivery of electric power to its customers. 73

90 JOINT UTILITY SYSTEM FUND Gas Utility Subfund Summary FY2016 FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised Projected Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Budget Budget FY2016 Budget FY2017 Beginning working capital $ 6,306,889 4,681,859 6,499,350 6,499,350 3,232,180 (31%) 3,348,402 4% Revenues: Retail sales 5,371,378 6,930,233 6,930,233 4,600,000 5,573,587 (20%) 5,016,228 (10%) Other revenues 11,881 13,000 13,000 13,000 25,000 92% 25,000 0% Interest income 70, , , ,000 82,000 (59%) 82,000 0% 5,453,645 7,143,233 7,143,233 4,813,000 5,680,587 (20%) 5,123,228 (10%) Transfers from other funds N/A 0 N/A Expenses: Salaries and benefits 608, , , , ,070 (1%) 484,247 3% Operations 3,650,320 5,087,180 5,111,127 5,111,127 4,023,008 (21%) 3,992,122 (1%) Capital outlay 717, ,000 1,245,017 1,245, ,000 17% 700,000 (14%) 4,976,199 6,254,339 6,833,303 6,833,303 5,304,078 (15%) 5,176,369 (2%) Nonbudgeted items: Nonbudgeted expenses 495, N/A 0 N/A Changes in long term assets 512, N/A 0 N/A Changes in long term liabilities 4, N/A 0 N/A Loss on disposition of capital assets (20,275) N/A 0 N/A Asset contributions 264, N/A 0 N/A Prior period adjustments (1,245,190) N/A 0 N/A 12, N/A 0 N/A Transfers to other funds: General Fund 297, , ,642 1,246, ,287 (20%) 234,258 (10%) Ending working capital $ 6,499,350 5,247,111 6,485,638 3,232,180 3,348,402 (36%) 3,061,003 (9%) The Utilities Gas Distribution Division is responsible for maintenance, operation, and repair of all gas distribution lines and equipment owned by LAC in order to provide gas service to its customers. In addition, the division conducts gas leak safety checks on a regular basis and responds to customer gas safety requests. 74

91 JOINT UTILITY SYSTEM FUND Combined Water Utility Subfund Summary FY2016 FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised Projected Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Budget Budget FY2016 Budget FY2017 Beginning working capital $ 14,235,542 9,554,588 12,839,557 12,839,557 12,292,291 29% 9,267,173 (25%) Revenues: Wholesale sales 734,950 1,154,084 1,154,084 1,154,084 1,186,450 3% 1,210,179 15% Retail sales 3,844,047 4,613,800 4,613,800 4,500,000 4,456,250 (3%) 4,456,250 0% Federal indirect 0 993, , , ,400 (35%) 825,000 12% State grants N/A 0 N/A Other revenues 155, , , ,576 2,134, % 224,036 (5487%) Debt Proceeds N/A 0 0% Interest income 150, , , , ,569 (44%) 272,319 14% 4,884,688 7,472,966 7,472,966 7,359,166 8,721,817 17% 6,987,784 (59%) Transfers from other funds ,000,000 N/A 0 N/A Expenses: Salaries and benefits 1,382,057 1,452,652 1,452,652 1,452,652 1,509,070 4% 1,550,573 3% Operations 3,232,322 3,063,382 3,529,661 3,063,382 3,382,136 10% 3,374,801 0% Capital outlay 765,023 3,156,765 7,683,884 3,156,765 7,810, % 1,241,565 (84%) Advances to other funds 800, N/A 0 N/A Debt service 159, , , , ,182 9% 279,496 10% 6,339,169 7,906,432 12,899,830 7,906,432 13,746,935 74% 6,921,235 (50%) Nonbudgeted items: Nonbudgeted expenses 1,202, N/A 0 N/A Changes in long term assets 6, N/A 0 N/A Changes in long term liabilities (458,717) N/A 0 N/A Asset contributions 428, N/A 0 N/A Loss on disposal of capital assets (403,957) N/A 0 N/A Prior period adjustments (716,179) N/A 0 N/A 58, N/A 0 N/A Transfers to other funds: % 0 N/A Ending working capital $ 12,839,557 9,121,122 7,412,693 12,292,291 9,267,173 1% 9,333,722 1% The Utilities Water Division is responsible for maintenance, operation, and repair of all water lines and equipment owned by the County of Los Alamos to provide safe water services to its customers. The Water Production Division ensures water quality control measures that meet or exceed state and federal regulations on safe drinking water. 75

92 JOINT UTILITY SYSTEM FUND Wastewater Utility Subfund Summary FY2016 FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised Projected Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Budget Budget FY2016 Budget FY2017 Beginning working capital $ 430, , , ,089 (961,076) (554%) (1,263,581) (143%) Revenues: State grants Retail sales 4,274,921 5,278,963 5,278,963 5,278,963 5,174,221 (2%) 5,174,221 0% Other revenues 11,120 3,000 3,000 3,000 1,500 (50%) 1,523 1% Debt Proceeds N/A 10,000,000 N/A Advances from other funds 800, N/A 0 N/A Interest income 12,739 45,000 45,000 45,000 23,000 (49%) 23,000 0% 5,098,780 5,326,963 5,326,963 5,326,963 5,198,721 (2%) 15,198, % Transfers from other funds % 0 0% Expenses: Salaries and benefits 1,356,675 1,420,951 1,420,951 1,420,951 1,371,806 (3%) 1,410,201 3% Operations 1,779,506 1,830,396 1,686,396 1,686,396 1,801,421 (2%) 1,735,731 (4%) Capital outlay 772, ,000 2,413,551 2,413,551 1,172,200 57% 10,034, % Debt service 1,057, , , ,230 1,155,799 19% 1,808,379 67% 4,967,022 4,968,577 6,489,128 6,489,128 5,501,226 11% 14,988, % Nonbudgeted items: Nonbudgeted expenses 268, N/A 0 N/A Changes in long term assets (1,000,584) N/A 0 N/A Loss on disposal of capital assets (2,225) N/A 0 N/A Asset contributions 373, N/A 0 N/A (360,939) N/A 0 N/A Transfers to other funds: N/A 0 N/A Ending working capital $ 201, ,110 (961,076) (961,076) (1,263,581) (322%) (1,053,148) 37% The Utilities Wastewater Division is responsible for maintenance, operation, and repair of all wastewater treatment buildings and equipment owned by the County of Los Alamos to provide wastewater services that meet or exceed state and federal wastewater regulations. 76

93 ENTERPRISE FUNDS OTHER THAN JOINT UTILITY SYSTEM COMBINING FUND STATEMENT FY2017 FY2016 ENVIRONMENTAL ADOPTED ADOPTED SERVICES TRANSIT FIRE AIRPORT BUDGET BUDGET Fiscal Year (FY) Adopted Total beginning fund balance / working capital $ 1,543,869 1,548,750 24, ,537 3,643,919 3,453,837 Revenues and other sources 4,053,520 3,655,311 25,752, ,300 34,279,116 33,531,040 Transfers from other funds 0 1,000, ,486 1,396,486 1,994,750 Expenses 4,042,559 4,237,393 24,035,985 1,184,786 33,500,723 33,893,905 Transfers to other funds 0 0 1,725, ,725,000 1,700,000 Total ending fund balance / working capital - FY 2017 $ 1,554,830 1,966,668 16, ,537 4,093,798 3,385,722 Fiscal Year (FY) Projected Total beginning fund balance / working capital $ 1,554,830 1,966,668 16, ,537 4,093,798 Revenues and other sources 4,164,000 3,665,311 26,389, ,000 35,061,436 Transfers from other funds 0 1,000, ,486 1,396,486 Expenses 4,164,000 4,364,000 24,642,125 1,221,000 34,391,125 Transfers to other funds 0 0 1,750, ,750,000 Total fund balance / working capital Ending FY2018 $ 1,554,830 2,267,979 13, ,023 4,410,595 Total FY2017 sources of funding Current year $ 4,053,520 4,655,311 25,752,985 1,213,786 35,675,602 Total FY2017 uses of funding Current year 4,042,559 4,237,393 25,760,985 1,184,786 35,225,723 Net increase / (decrease) in fund balance / working capital $ 10, ,918 (8,000) 29, ,879 ENVIRONMENTAL TOTAL SERVICES TRANSIT FIRE AIRPORT FTEs FY2017 Adopted Budget FTEs FY2016 Adopted Budget FTEs Net increase / (decrease)

94 ENVIRONMENTAL SERVICES FUND FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Beginning working capital $ 2,748, ,455 1,941,231 1,941,231 1,543, % 1,554,830 1% Revenues: Gross receipts tax - special purpose 730, , , , ,000 7% 878,000 2% Residential service 1,539,410 1,703,000 1,703,000 1,703,000 1,913,520 12% 1,971,000 3% Commercial service 478, , , , ,000 5% 637,000 3% Landfill service 502, , , , ,000 (24%) 515,000 3% Interfund charges for services 73, N/A 0 N/A Miscellaneous revenue 124, , , , ,000 20% 124,000 3% Interest income 28,704 18,000 18,000 19,000 39, % 39,000 0% 3,478,043 3,878,000 3,878,000 3,909,000 4,053,520 5% 4,164,000 3% Expenses: Salaries and benefits 1,096,879 1,183,076 1,183,076 1,183,076 1,181,432 0% 1,217,000 3% Operations 2,160,108 2,449,751 2,461,717 2,461,717 2,499,498 2% 2,575,000 3% Capital Outlay 136, N/A 0 N/A Debt Service 360, , , , ,629 0% 372,000 3% 3,753,928 3,994,396 4,006,362 4,006,362 4,042,559 1% 4,164,000 3% Nonbudgeted items: Nonbudgeted expenses 199, N/A 0 N/A Changes in long term assets 136, N/A 0 N/A Changes in long term liabilities (441,398) N/A 0 N/A (105,717) N/A 0 N/A Transfers to other funds: 425, ,000 0 N/A 0 N/A Ending working capital $ 1,941, ,059 1,812,869 1,543,869 1,554, % 1,554,830 0% FTE Summary: Regular (full & part time) % % For detailed department information, please see page 143 (Public Works). Note - FY 2016 includes a proposed 10% rate increase for refuse collection. The Environmental Services Fund accounts for the operation of the County landfill, commercial and residential refuse collection, curbside and drop off recycling, and composting of yard waste. 78

95 TRANSIT FUND FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Beginning working capital $ 1,555,196 1,620,983 1,689,015 1,689,015 1,548,750 (4%) 1,966,668 27% Revenues: FTA - DOT 5311 Operating/Admin 2,243,485 1,746,788 1,746,788 1,746,788 1,788,272 2% 1,788,272 0% FTA - DOT 5311 Capital 0 552, , , ,000 (46%) 300,000 0% FTA - DOT 5316 JARC , ,017 0 N/A 0 N/A NCRTD-Regional GRT 1,361,820 1,361,820 1,361,820 1,361,820 1,361,820 0% 1,361,820 0% Other revenue 150, , , , ,219 11% 166,219 0% Interest income 16,194 49,000 49,000 17,000 39,000 (20%) 49,000 26% 3,771,499 3,859,608 4,386,625 4,354,625 3,655,311 (5%) 3,665,311 0% Transfers from other funds General Fund 1,200,000 1,188,000 1,188,000 1,188,000 1,000,000 (16%) 1,000,000 0% Expenses by Object: Salaries and benefits 2,278,256 2,474,624 2,474,624 2,474,624 2,685,887 9% 2,766,000 3% Operations 1,609,580 1,458,372 1,521,834 1,521,834 1,488,786 2% 1,533,000 3% Capital 950, ,778 1,386,432 1,386,432 62,720 (92%) 65,000 4% 4,838,799 4,710,774 5,382,890 5,382,890 4,237,393 (10%) 4,364,000 3% Nonbudgeted items: Nonbudgeted expenses 1,043, N/A 0 N/A Changes in long term assets (92,298) N/A 0 N/A Changes in long term liabilities 1, N/A 0 N/A 952, N/A 0 N/A Transfers to other funds 950, ,000 0 N/A 0 N/A Ending working capital $ 1,689,015 1,957,817 1,880,750 1,548,750 1,966,668 0% 2,267,979 15% FTE Summary: Regular (full & part time) % % Limited term % % % % For detailed department information, please see page 143 (Public Works). The Transit Fund provides for a community wide public transit system which was established in FY

96 FIRE FUND FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Beginning working capital $ 838, , , ,118 24,763 (97%) 16,763 (32%) Revenues: LANL Fire Cooperative Agmt 17,288,589 18,511,967 18,511,967 18,511,967 18,806,809 2% 19,034,976 1% Ambulance revenues 486, , , , ,000 0% 400,000 0% Interdepartmental revenues 3,910,167 4,263,915 4,263,915 3,859,600 4,829,176 13% 5,207,149 8% Misc. revenue 3, N/A 0 N/A Fire Protection Excise Tax 1,460,114 1,612,000 1,612,000 1,672,000 1,717,000 7% 1,747,000 2% 23,148,193 24,787,882 24,787,882 24,443,567 25,752,985 4% 26,389,125 2% Expenses by Object: Salaries and benefits 16,531,509 17,469,878 17,469,878 16,916,640 17,990,212 3% 18,452,820 3% Operations 5,271,413 5,890,359 6,236,790 6,039,282 6,045,773 3% 6,189,305 2% 21,802,922 23,360,237 23,706,668 22,955,922 24,035,985 3% 24,642,125 3% Nonbudgeted items: Nonbudgeted expenses (10,982) N/A 0 N/A Changes in long term assets (498,377) N/A 0 N/A (509,359) N/A 0 N/A Transfers to other funds 1,437,404 1,700,000 1,700,000 1,700,000 1,725,000 1% 1,750,000 1% Ending working capital $ 237, ,046 (381,668) 24,763 16,763 (97%) 13,763 (18%) FTE Summary: Regular (full & part time) % % For detailed department information, please see page 133 (Fire). The Fire Fund supports the development and delivery of fire protection of life and property to Los Alamos County and Los Alamos National Laboratory (LANL). The department responds to fire and rescue calls; maintains capabilities for fire suppression, crash fire rescue service, and hazardous material and other incident responses; and provides state of the art training to ensure the highest level of personnel safety and effectiveness. The department also ensures compliance with the fire services cooperative agreement with DOE. 80

97 AIRPORT FUND FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Beginning working capital $ 365, , , , ,537 42% 555,537 6% Revenues: Intergovernmental revenues 580, , , , ,000 (20%) 640,000 3% State Grant 46, , , ,539 84,250 (27%) 87,000 3% Tie downs 34,415 35,000 35,000 35,000 36,500 4% 38,000 4% Commissions 54,224 70,300 70,300 70,300 62,550 (11%) 64,000 2% Interest income 6,324 11,000 11,000 6,000 13,000 18% 14,000 8% 722,003 1,005,550 1,036,073 1,031, ,300 (19%) 843,000 3% Transfers from other funds: General Fund 286, , , , ,486 (3%) 396,486 0% Economic Development 359, , , ,000 0 (100%) 0 N/A Transfers from other funds: 645, , , , ,486 (51%) 396,486 0% Expenses: Salaries and benefits 151, , , , ,262 (11%) 138,000 3% Operations 975,476 1,656,949 1,746,148 1,746,148 1,020,524 (38%) 1,052,000 3% Capital Outlay 0 20,000 20,000 20,000 30,000 50% 31,000 3% Check summary N/A 0 N/A Personal services 114, , , , ,097 (4%) 108,000 3% Employee benefit costs 37,344 42,609 42,609 42,609 29,165 (32%) 30,000 3% Professional / Contractual services 806,704 1,396,300 1,480,012 1,480, ,400 (44%) 800,000 3% Other services 36, , , ,900 58,450 (46%) 60,000 3% Materials and supplies 8,267 22,810 28,297 28,297 21,050 (8%) 22,000 5% Intra / Interfund charges - flexible 11,789 8,800 8,800 8,800 10,000 14% 10,000 0% Intra / Interfund charges - fixed 112, , , , ,124 29% 159,000 3% Capital outlay 0 20,000 20,000 20,000 30,000 50% 31,000 3% Fiscal Charges % 1, % 1,127,240 1,828,498 1,917,697 1,917,697 1,184,786 (35%) 1,221,000 3% Nonbudgeted items: Nonbudgeted expenses 762, N/A 0 N/A Changes in long term assets (761,532) N/A 0 N/A 1, N/A 0 N/A Transfers to other funds General Fund N/A 0 N/A Ending working capital $ 606, , , , ,537 56% 574,023 3% FTE Summary: Regular (full & part time) % % For detailed department information, please see page 143 (Public Works). The Airport Fund accounts for the County operation and maintenance of the Los Alamos Airport. This program includes the development and management of the Airport Operations contract; maintenance, repair, and renovation/alteration of airport facilities; establishment and maintenance of contracts with airport vendors (airline, bank, rental car company, aviation gas cooperative, aircraft maintenance, and other businesses); development and revision of airport ordinances, sub leases, operating plans, and procedures; establishment of sub leases for aircraft tie down spaces and airport facility use; establishment of commercial development and revenue enhancement master plans; and annual review and presentation of proposed airport fees. 81

98 INTERNAL SERVICE FUNDS COMBINING FUND STATEMENT RISK FY2017 FY2016 EQUIPMENT MANAGEMENT ADOPTED ADOPTED FUND FUND BUDGET BUDGET Fiscal Year (FY) Adopted Total beginning fund balance / working capital $ 5,733,605 6,527,987 12,261,592 12,937,702 Revenues and other sources 3,795,733 10,861,599 14,657,332 14,412,215 Transfers from other funds Expenses 4,817,114 9,982,297 14,799,411 14,194,362 Transfers to other funds Total ending fund balance / working capital - FY 2017 $ 4,712,224 7,407,289 12,119,513 13,155,555 Fiscal Year (FY) Projected Total beginning fund balance / working capital $ 4,712,224 7,407,289 12,119,513 Revenues and other sources 4,069,306 11,205,000 15,274,306 Transfers from other funds Expenses 4,753,000 10,282,000 15,035,000 Transfers to other funds Total fund balance / working capital Ending FY2018 $ 4,028,530 8,330,289 12,358,819 Total FY2017 sources of funding Current year $ 3,795,733 10,861,599 14,657,332 Total FY2017 uses of funding Current year 4,817,114 9,982,297 14,799,411 Net increase / (decrease) in fund balance / working capital $ (1,021,381) 879,302 (142,079) RISK EQUIPMENT MANAGEMENT TOTAL FUND FUND FTEs FY2017 Adopted Budget FTEs FY2016 Adopted Budget FTEs Net increase / (decrease) Internal Service Funds account for the financing of goods or services provided by one department or agency to other departments or agencies of a government on a cost reimbursement basis. 82

99 Fund Summary EQUIPMENT FUND FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Beginning working capital $ 6,967,505 6,749,655 6,778,637 6,778,637 5,733,605 (15%) 4,712,224 (18%) Revenues: Internal charges - County 2,308,788 2,236,500 2,236,500 2,236,500 2,133,310 (5%) 2,329,099 9% Internal charges - Environ Ser 599, , , , ,746 1% 575,058 0% Internal charges - Utilities 918, , , , ,677 (5%) 679,149 14% Equipment proceeds 107, , , , ,000 0% 103,000 3% Miscellaneous revenue 172, , , , ,000 0% 242,000 1% Interest income 77, , ,000 71, ,000 (28%) 141,000 (9%) 4,184,648 3,985,616 3,985,616 3,840,616 3,795,733 (5%) 4,069,306 7% Transfers from other funds: N/A 0 N/A Expenses by program: Equipment maintenance 2,760,238 2,792,431 2,801,035 2,801,035 2,869,114 3% 2,956,000 3% Equipment replacement 1,630,236 1,587,060 2,084,613 2,084,613 1,948,000 23% 1,797,000 (8%) 4,390,474 4,379,491 4,885,648 4,885,648 4,817,114 10% 4,753,000 (1%) Nonbudgeted items: Nonbudgeted expenses 16, N/A 0 N/A Transfers to other funds: N/A 0 N/A Ending working capital $ 6,778,637 6,355,780 5,878,605 5,733,605 4,712,224 (26%) 4,028,530 (15%) FTE Summary: Regular (full & part time) % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenses by object: Salaries and benefits $ 791, , , , ,809 6% 919,000 3% Operations 1,972,931 1,952,335 1,960,939 1,960,939 1,977,305 1% 2,037,000 3% Capital 1,626,137 1,587,060 2,084,613 2,084,613 1,948,000 23% 1,797,000 (8%) $ 4,390,474 4,379,491 4,885,648 4,885,648 4,817,114 10% 4,753,000 (1%) For detailed department information, please see page 143 (Public Works). The Equipment Fund accounts for the maintenance, repair, and replacement of all County vehicles and heavy, light, and specmalized equipment; maintenance of specmal police systems and mobile radios; and distribution of fuels for County vehicles and equipment. 83

100 RISK MANAGEMENT FUND FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Beginning working capital $ 5,968,319 6,188,047 5,997,259 5,997,259 6,527,987 5% 7,407,289 13% Revenues: Contributions-County 7,819,425 8,529,384 8,529,384 8,529,384 8,877,199 4% 9,143,000 3% Contributions-Employees 1,537,374 1,757,215 1,757,215 1,757,215 1,821,400 4% 1,876,000 3% Miscellaneous 11, N/A 0 N/A Interest income 93, , ,000 59, ,000 16% 186,000 14% 9,461,707 10,426,599 10,426,599 10,345,599 10,861,599 4% 11,205,000 3% Transfers from other funds: N/A 0 N/A Expenses by program: Group health 6,996,541 7,563,467 7,563,467 7,563,467 7,779,953 3% 8,018,000 3% Long Term Disability 150, , , , ,000 0% 150,000 0% Unemployment compensation 8,104 70,000 70,000 70,000 70,000 0% 72,000 3% Workers' compensation 714, , , , ,000 0% 721,000 3% Other risk management 1,761,251 1,331,404 1,331,404 1,331,404 1,282,344 (4%) 1,321,000 3% 9,630,514 9,814,871 9,814,871 9,814,871 9,982,297 2% 10,282,000 3% Nonbudgeted items: Claims IBNR adjustment 197, N/A 0 N/A Transfers to other funds N/A 0 N/A Ending working capital $ 5,997,259 6,799,775 6,608,987 6,527,987 7,407,289 9% 8,330,289 12% FTE Summary: Regular (full & part time) % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenses by object: Salaries and benefits $ 265, , , , ,445 3% 291,000 3% Operations 9,365,400 9,541,755 9,541,755 9,541,755 9,699,852 2% 9,991,000 3% $ 9,630,514 9,814,871 9,814,871 9,814,871 9,982,297 2% 10,282,000 3% For detailed department information, please see page 85 (County Manager). The Risk Management Fund accounts for the County's risk management activities which include Employee Group Insurances, Retiree Health Care, Unemployment Compensation Insurance, Workers' Compensation Insurance, and the County's liability insurances. The purpose is to minimize the probability of loss to LAC including personnel, property, and financial losses. This includes identifying and analyzing loss exposures, examining alternative risk management techniques, and selecting the most appropriate techniques for dealing with any given loss exposure. 84

101 DEPARTMENT / FUND STRUCTURE Department Summary Fund Statement Department Fund Page # Navigating Los Alamos County Performance Measures 86 County Council General Municipal Court General Municipal Court Other Special Revenue County Manager General County Manager Risk Management County Assessor General County Assessor Other Special Revenue County Attorney General County Clerk General County Clerk Other Special Revenue Probate Court General County Sheriff General Administrative Services General Administrative Services Capital Projects Community Services General Community Services State Grants Community Services Health Care Assistance Community Services Other Special Revenue Fire General Fire State Grants Fire Fire - Enterprise Police General Police State Grants Community Development General Community Development Lodgers Tax Community Development Capital Improvement Projects Public Works General Public Works Capital Improvement Projects Public Works Environmental Services Public Works Transit Public Works Airport Public Works Equipment Utilities Joint Utilities System Non Departmental Emergency Declarations, Debt Service , 67 85

102 Navigating the Los Alamos County Performance Measures & Targets: Los Alamos County is progressing towards meeting its objective of benchmarking government efficiencies to evaluate programs and prioritize funding levels with the continuation of its performance management system, LA Scores! In the FY2017 Adopted Budget, The County migrated to an easy-to-read format for its performance measures. Program measures have separated into quality measures and output/result/efficiency-type measures. The Performance Measures Narrative and Analysis section explains variances in measures. The following table displays the column headers used. Numbered, corresponding descriptions about what these headers set forth in the report immediately follow. (1) (2) (3) (4) FY2014 FY2015 FY2016 FY2017 Actual Actual Estimate Target 1. FY2014 Actual Actual performance for the entire fiscal year ended June 30, FY2015 Actual Actual performance for the entire fiscal year ended June 30, FY2016 Estimate Actual performance for the entire fiscal year ended June 30, FY2017 Target Projection of the performance for FY2017 based on budgeted staffing, funding and operating requirements. 86

103 COUNTY COUNCIL Description The County Council is the legislative and policy making body of the County and is directly responsible to the general public. The Council is vested with all powers and authority granted to counties and municipalities and their governing bodies by the constitution and statutes of the State of New Mexico, except as otherwise provided for in the charter, and is charged with all duties and obligations imposed on counties and municipalities and their governing bodies by the constitution and statutes of the State of New Mexico. Goals See the Strategic Planning section for details of Council's goals and objectives. Budget Expenditures as % of General Fund General Fund 99% County Council 1% Expenditures by Program: % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Proposed FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Council General $ 343, , , , ,199 7% 400,000 3% Council Contingency 0 10,000 10, (100%) 0 N/A $ 343, , , , ,199 4% 400,000 3% Expenditures by Type: Salaries $ 73,088 76,708 76,708 76,708 75,538 (2%) 78,000 3% Benefits 14,127 14,169 14,169 14,169 15,059 6% 16,000 6% Contractual services 118, , , , ,000 0% 140,000 3% Other services 121, , , , ,000 10% 150,000 3% Materials / supplies 14,813 14,000 14,000 14,000 14,000 0% 14,000 0% Interfund charges 1,692 1,401 1,401 1,401 1,602 14% 2,000 25% $ 343, , , , ,199 4% 400,000 3% FTE Summary: Regular (full & part time) % % 87

104 MUNICIPAL COURT Presiding Judge 1 FTE Court Administrator 1 FTE Teen Court Coordination Community Service Coordination Teen Court Repeat Offender Program Serious Offender Program Chief Court Clerk 1 FTE Court Clerk 1 FTE Probation Officer 1 FTE Pro-Se Trial Scheduling Bench Warrants Overdue Court Room Processing Court Room Processing Public Interaction Citation Bureau Website Updates Court Records Entry Citation Entry Public Interaction Docket Preparation Docket Scheduling Citation Bureau Court Room Processing Electronic Monitoring SoberLink Testing Drug Testing Conditions of Release Pre-Prosecution Probation 88

105 Description MUNICIPAL COURT The Municipal Court handles traffic, DWI, animal control and other violations of the Municipal Code. Municipal Court is established by the County Charter, as authorized and required by state law. The Court has jurisdiction over petty misdemeanors created by the County Council in the form of ordinances collected in the County Code and violated within the boundaries of Los Alamos County. The Municipal Court is capable of handling citations/criminal complaints from the Police Department, Animal Control, Code Enforcement, Building Inspector, and the Fire Marshal. The Los Alamos Municipal Court offers programs available to serve defendants from Municipal, Magistrate, District and Teen Courts. The current programs are: Probation Program o Electronic Monitoring o Alcohol Monitoring o Drug Testing Community Service Teen Court o First Offender Program o Second Offender Program Department Mission Los Alamos Municipal Court will uphold the integrity of the Judiciary by providing quality service. Budget Expenditures as % of General Fund General Fund 99% Municipal Court 1% 89

106 MUNICIPAL COURT Budget Summary Expenditures by Fund: % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 General Fund $ 411, , , , ,284 13% 512,000 3% Bench Warrant Sub-Fund 8,984 18,777 18,777 18,777 19,740 5% 20,000 1% $ 420, , , , ,024 12% 532,000 3% Expenditures by Type: Salaries 224, , , , ,515 7% 255,000 3% Benefits 104, , , , ,097 18% 139,000 3% Contractual services 55,554 81, ,000 48,830 94,968 17% 97,000 2% Other services 15,933 17,584 23,184 17,584 17,500 0% 18,000 3% Materials / supplies 11,987 9,177 13,677 9,177 15,727 71% 16,000 2% Interfund charges 6,744 5,356 5,356 5,356 6,217 16% 6,000 (3%) Capital outlay N/A 0 N/A Debt / Fiscal Charges 981 1,000 1,000 1,000 1,000 0% 1,000 0% $ 420, , , , ,024 12% 532,000 3% FTE Summary: Regular (full & part time) % % Budget Overview The Municipal Court goals and budget for FY2017 will continue to offer the community optimal customer service with fair, efficient and impartial resolution of all matters brought before the Municipal Court. In addition, the Court will continue to support the community with Probation Office programs which assist the Municipal, Magistrate and District Courts with reducing jail expenses by offering Electronic Monitoring, Alcohol Monitoring and Drug Testing. Staff will continue with the review and update of Court Policies and Procedures. Also, staff will begin the implementation of a paperless court process and enhance Court security. 90

107 MUNICIPAL COURT Significant Accomplishments for FY2015 Teen Court collaborated with the Los Alamos Police Department (LAPD) and Children, Youth and Family Juvenile Probation and Parole Office (JPPO) to initiate the Direct Referral Program for Juveniles to Teen Court. The ability to provide teens an early diversion program for non-violent misdemeanor offenders allows for quick intervention and completion of sanctions more efficiently. Teen Court was awarded $25,000 from Department of Finance and Administration s Juvenile Adjudication Fund to initiate a new program. Los Alamos Teen Court began a therapeutic case management program for repeat offenders and Teen Court participants with serious issues. The Los Alamos Municipal Probation Program acquired SoberLInk alcohol monitoring systems to support the recovery of defendants and to allow for defendants to remain outside of the jail with constant monitoring. The program is utilized for defendants of the Los Alamos Municipal, Magistrate and District Courts. The addition of the SoberLink monitoring system to the probation programs of Electronic Monitoring and Random Drug Testing allows for an all-inclusive rehabilitative program that offers monitoring and a reduction of recidivism. The Community Service Program Coordinator created a new system to assist defendants to complete their sanctions. The one-on-one planning has allowed for defendants from Municipal, Magistrate, District and Teen Courts to complete their requirement on time. During August of 2015, Municipal Court collaborated with the Los Alamos Police Department (LAPD) to initiate the Citation Bureau. All citations issued by the Police Department are delivered to the Municipal Court. The Court staff input all citations into the Police Records Management System (RMS) and distribute all citations to MVD, Magistrate Court, and Municipal Court and return Police Department agency copies. The shift of citation entry duties from the Police Records staff to the Court Clerks has added approximately 15 hours per week of work to the Court. The benefits of implementing the new program is an average 1.9 days from date of issue to delivery to proper agency for processing; a completed entry of information into RMS for assisting the public, LAPD and agencies; and agencies may serve defendants promptly with the receipt of the citations in a timely manner. $20,000 Municipal Court Program - Fees Collected $15,000 $10,000 $5,000 $0 FY2013 FY2014 FY2015 FY2016 Feb Community Service Teen Court Probation Drug Testing Electronic Monitor Soberlink EM 91

108 MUNICIPAL COURT $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 Probation Programs Revenue Less Expenses FY13 FY14 FY15 FY16 to Feb Drug Testing Electronic Monitoring Probation Fees 92

109 COUNTY MANAGER'S OFFICE County Manager 1 FTE Human Resources 10 FTE Economic Development 2 FTE County Administration 5 FTE Communications & Public Relations 3 FTE Risk Management 2 FTE County HR Policies Recruitment Career Development Organizational Excellence Employee Training Employee Relations Risk Assessments Safety Training Claims Management Worker's Compensation Benefits Admin Labor Relations Compensation Business Growth Capital Investment Film Office Community Marketing Tourism Administer EVSP Council Support Operational Oversight Community Relations Intergovernmental Relations Public Information Public Education Transparency Marketing Airline County Webpage 93

110 Description COUNTY MANAGER The County Manager's Office provides the overall administrative leadership necessary for the implementation of County Council policies, Council's Strategic Leadership Plan, administration of the organization and delivery of services to the citizens. The Office promotes interaction with other jurisdictions and levels of government in the region to serve the best interests of Los Alamos residents. The Economic Development Division promotes business growth, capital investment, business and economic growth, affordable housing programs, and revitalization of housing. The Communication and Public Relations Division informs, educates and involves citizens and employees about County projects, policies, and goals while enhancing the image of County government. The Human Resources Division administers personnel management and human resources development to provide the County with a highly-qualified and motivated work force. It also supports County departments by providing services such as recruitment, selection, classification, work force management, compensation, salary administration, benefits, records, performance appraisal administration, compliance, staff training and development, employee and labor relations, and safety and risk management functions. Department Summary Expenditures by Progam County Manager 6% Progress Through Partnering 4% Economic Development 24% Lodgers' Tax 1% Risk Management 56% Human Resources 7% Comm & Public Relations 2% Expenditures as % of General Fund General Fund 93% County Manager 7% 94

111 COUNTY MANAGER Budget Summary % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Program: County Manager $ 1,161, , , ,200 1,011,697 4% 1,076,000 6% Progress Through Partnering 683, , , , ,000 0% 646,000 (3%) Economic Development 737,287 5,677,402 6,563,948 2,579,531 4,285,315 (25%) 1,238,500 0% Lodgers' Tax 194, , , , ,219 28% 224,000 0% Comm & Public Relations 307, , , , ,443 (2%) 391,000 3% Human Resources 1,105,560 1,259,051 1,637,585 1,486,000 1,308,877 4% 1,353,000 3% Risk Management 9,630,514 9,814,871 9,814,871 9,814,871 9,982,297 2% 10,282,000 3% $ 13,819,557 18,993,631 20,301,913 15,971,809 17,910,848 (6%) 15,210,500 (15%) Expenditures by Fund: General $ 3,496,658 3,524,553 3,946,289 3,597,200 3,609,832 2% 3,718,000 3% Lodgers' Tax 194, , , , ,219 28% 224,000 0% Economic Development 498,377 5,436,000 6,322,546 2,341,531 4,040,500 (26%) 986,500 0% Risk Management 9,630,514 9,814,871 9,814,871 9,814,871 9,982,297 2% 10,282,000 3% $ 13,819,557 18,993,631 20,301,913 15,971,809 17,910,848 (6%) 15,210,500 (15%) FTE Summary: Regular (full & part time) % % FTEs By Program: County Manager % % Economic Development % % Comm & Public Relations % % Human Resources % % Risk Management % % % % 95

112 COUNTY MANAGER'S OFFICE County Manager's Mission The County Manager's Office provides the overall administrative leadership necessary for the implementation of County Council policies, Council's Strategic Leadership Plan, administration of the organization and delivery of services to the citizens. The Office promotes interaction with other jurisdictions and levels of government in the region to serve the best interests of Los Alamos residents. This office is also responsible for oversight of the budget and performance management function. Program Budget % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Program: County Management $ 1,161, , , ,200 1,011,697 4% 1,076,000 6% Progress Through Partnering 683, , , , ,000 0% 646,000 (3%) $ 1,845,163 1,637,020 1,661,222 1,503,200 1,676,697 2% 1,722,000 3% Expenditures by Type: Salaries $ 774, , , , ,977 8% 711,000 3% Benefits 285, , , , ,516 9% 279,000 3% Contractual services 718, , , , ,000 (1%) 677,000 2% Other services 50,905 38,650 38,650 35,000 39,150 1% 40,000 2% Materials / supplies 6,309 6,000 6,000 5,000 4,300 (28%) 4,000 (7%) Interfund charges 10,219 8,637 8,637 8,000 10,754 25% 11,000 2% Capital outlay 0 30,000 30,000 27,000 0 (100%) 0 N/A $ 1,845,163 1,637,020 1,661,222 1,503,200 1,676,697 2% 1,722,000 3% FTE Summary: Regular (full & part time) % % 96

113 COUNTY MANAGER - ECONOMIC DEVELOPMENT Mission The mission of the Economic Development Division is to promote the County of Los Alamos as a globally competitive community in which to foster new high-quality business growth and capital investment, develop the capacity to attract and expand current business operations, develop affordable housing, and encourage and facilitate the revitalization of housing thereby enhancing the livability of all neighborhoods while enforcing safety standards and developing long-range planning. General Fund Budget % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Type: Salaries $ 169, , , , ,165 1% 181,000 3% Benefits 65,936 67,792 67,792 67,000 68,650 1% 71,000 3% Other services 3, N/A 0 N/A $ 238, , , , ,815 1% 252,000 3% FTE Summary: Regular (full & part time) % % Economic Development Fund Budget % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Type: Salaries $ 3, N/A 0 N/A Benefits 2, N/A 0 N/A Contractual services 473,459 5,369,000 5,854,315 2,176,531 2,747,000 (49%) 537,000 (80%) Other services 14,861 62,000 62,000 60,000 44,500 (28%) 44,500 0% Materials / supplies 4,824 5,000 6,231 5,000 5,000 0% 5,000 0% Fiscal - Rehab & LEDA loans , ,000 1,244,000 N/A 400,000 (68%) $ 498,377 5,436,000 6,322,546 2,341,531 4,040,500 (26%) 986,500 (76%) Lodgers' Tax Fund Budget % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Type: Contractual services $ 188, , , , ,000 28% 221,000 (20%) Interfund charges 5,036 3,207 3,207 3,207 3,219 0% 3,000 (7%) $ 194, , , , ,219 28% 224,000 (19%) 97

114 Program Purpose COUNTY MANAGER - ECONOMIC DEVELOPMENT DIVISION The purpose of the Economic Development Division is to administer the Los Alamos County Council-approved policies of the Economic Vitality Strategic Plan (EVSP) through the implementation of professionally sound economic development strategies. The four major policies of the EVSP include: 1. Support the economic health of Los Alamos National Laboratory; 2. Support economic diversification of Los Alamos County; 3. Enhance quality of life in the community; and, 4. Diverse housing options in the County. Specific strategies to support the EVSP policies are provided in the 2010 plan. The plan is designed to be updated periodically based on changing economic conditions. Residents and Tourists Enjoy Sciencefest at Ashley Pond Significant Accomplishments - FY2015 Leased the former NEDO Smart House to high tech firm Descartes Labs, attracting $1.2 million in new wages and 11 employees while repurposing surplus County property. Managed visitor service contracts and marketing efforts resulting in a 19% increase in visitors over the prior year. In addition, visitor traffic to the Nature Center increased by 65,000 visitors. Managed a year over year Lodgers' Tax increase of 16% despite a decrease of 140 hotel beds over the supply available five years ago. Worked with CenturyLink and Public Works to assemble a 4 acre County-owned high technology park in downtown Los Alamos. Developed concept plans and gained Council approval for $4 million to fund utilities and infrastructure to support 160,000 square feet of new development and 200+ residences in downtown Los Alamos. Led regional marketing efforts for Los Alamos with the State Department of Tourism resulting in significant regional and national tourism exposure. Led efforts to promote Sciencefest 2015, increasing event attendance by 54% year over year. 98

115 Performance Measures Results COUNTY MANAGER - ECONOMIC DEVELOPMENT DIVISION Priority Strategic Focus Area Goal Performance Measure FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Economic Vitality Economic Vitality Promote a Strong and Diverse Economic Base Market and Brand Los Alamos as a Scenic Destination Featuring Recreation, Science, History. Gross Receipts Tax $39,171,184 $ 39,040,000 $ 44,700,000 $ 45,594,000 LA County Population Lodgers' Tax Revenues Visitors to all LA Area Attractions 18,194 18,058 18,058 18,419 $212,762 $251,872 $261,000 $273, , , ,121* 421,177 * The FY2016 visitor count includes the newly opened Nature Center. Lodgers' Tax Revenues are Projected to Increase Each Year $280,000 $270,000 $260,000 $251,872 $261,000 $273,000 $250,000 $240,000 $230,000 $220,000 $210,000 $212,762 $200,000 FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target The Number of Visitors to Los Alamos Attractions Increases Every Year 450, , , , , , , , , ,000 FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Performance Measures Narrative and Analysis This period, Economic Development gained a strategic win by retaining a high-tech business (Descartes Labs) in the face of location competition, and double digit visitor growth and growth in LTAB funds. GRT revenues increased 10%, largely due to Smith's Marketplace. The population of Los Alamos remained flat, but some job growth and turnover is evident in the marketplace based on LANL hiring. The housing supply for sale is at a historic low of 45 units on the market, and rental vacancy rates are very low, indicating a severe shortage of housing in all categories. This also indicates a continued need for housing, lodging, dining and entertainment attractions to capture inbound residential and tourist investment. 99

116 Mission COUNTY MANAGER - COMMUNICATIONS & PUBLIC RELATIONS The Communication and Public Relations Division informs, educates and involves citizens and employees about County projects, policies, and goals while enhancing the image of County government. Communications and Public Relations Budget % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Type: Salaries $ 155, , , , ,375 4% 217,000 3% Benefits 47,996 70,512 70,512 64,000 83,374 18% 86,000 3% Contractual services 52,465 50,735 66,735 61,000 54,334 7% 56,000 3% Other services 25,832 49,600 49,600 45,000 25,225 (49%) 26,000 3% Materials / supplies 20,177 14,180 17,180 16,000 6,135 (57%) 6,000 (2%) Capital Outlay 5, N/A 0 N/A $ 307, , , , ,443 (2%) 391,000 3% FTE Summary: Regular (full & part time) % % Budget Overview The Communications and Public Relations budget supports staff time, advertising, promotion or outreach activities for events and meetings that are related to the community goals, general promotion of County services, fostering better partnerships with other organizations or working relationships within intergovernmental relations and outreach for various special projects, as tasked by the County Council or County Manager. Of interest in FY2017: significant time will be spent by the PIO supporting the new public website project and roll-out/launch of the new webpage in January 2017, along with support from the PIO and Communications Specialists for branding implementation and launch/roll out, support for the new Manhattan Project National Historical Park and related projects or opportunities, marketing of the airlines, and general graphic design, photography, video, editing and consulting services or tasks for several County divisions. 100

117 COUNTY MANAGER - COMMUNICATIONS AND PUBLIC RELATIONS Program Purpose The purpose of the Communications and Public Relations program is to provide timely and accurate information to appropriately educate, inform and involve the citizens of Los Alamos County in County decisions. Significant Accomplishments - FY2015 Worked with Economic Development staff and Atlas Advertising on Branding and Logo development, Branding guidelines and Branding implementation plan Prepared new webpages to promote and educate citizens on community goals adopted by Council. Worked with IT project manager and team to develop process and RFQ for new County webpage set to go live January 2017 Made process changes to internal work order system for Graphic Design and Photo/Video tasks for better tracking and scheduling. Developed training for Supervisor s Academy on Communication. Supported public outreach for Manhattan Project National Historical Park meetings, events, site visits by NPS, DOE, Energy Community Alliance, and general public outreach. Supported outreach, ads and collateral developed for the new Home Renewal Program for Community Development Department. Continued marketing for the new commercial airline service with Boutique Air that launched November Supported public outreach efforts in various divisions on topics of public interest, such as Rules for Dogs in Parks, or assisting with open forum survey development/promotion. Coordinated with County Manager s Office on outreach for Capital Project public meetings December - March. Performance Measures Priority Strategic Focus Area Goal Performance Measures FY2009 FY2011 FY2013 FY2015 Quality Governance Operational Excellence and Communication Create a communication process that provides measureable improvements in citizen trust in government. % of Residents Reporting They Feel They Have the Information needed to Participate in County Decisions as "Good" or "Excellent". % of Residents Rating Timeliness of Information Provided by the County as "Good" or "Excellent". % of Residents Rating Trustworthiness of LA County Government as "Very Trustworthy or "Trustworty". 53% 55% 53.2% 51% 63% 68.0% 66.1% 65.0% Not tracked. 70.1% 56.5% 101

118 COUNTY MANAGER - COMMUNICATIONS AND PUBLIC RELATIONS % of Residents Satisfied with Information Provided by the County % of Residents Satisfied with Timeliness of Information Provided by the County 65% 75% 60% 70% 68% 55% 53% 55% 53% 65% 63% 66% 65% 50% 51% 60% 45% 55% 40% FY2009 FY2011 FY2013 FY % FY2009 FY2011 FY2013 FY2015 Percent of Residents Rating the Quality of Life in LA County as Good or Excellent 100% 95% 90% 91% 88% 90% 93% 85% 80% 75% FY2009 FY2011 FY2013 FY

119 Mission COUNTY MANAGER - HUMAN RESOURCES The mission of the Human Resources Division is to support County employees with innovative and timely human resource policies, quality programs and services. The Division partners with management and staff to foster excellence, productivity and fairness as well as to strengthen the County s ability to attract, develop and retain an excellent workforce. The Division also strives to maintain a workplace culture in which all employees feel valued and able to contribute their personal best to the achievement of County goals. The Risk Management Division is responsible for the safety and risk management functions of the County. This includes protecting the personnel and assets of the County from exposures to loss through hazard identification, loss prevention, loss reduction and exposure avoidance methods. Additionally, they provide safety training, compliance and workers compensation services to employees. Human Resources Program Budget % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Program: Human Resources $ 1,105,560 1,259,051 1,637,585 1,486,000 1,308,877 4% 1,353,000 3% Risk Management 9,630,514 9,814,871 9,814,871 9,814,871 9,982,297 2% 10,282,000 3% $ 10,736,074 11,073,922 11,452,456 11,300,871 11,291,174 2% 11,635,000 3% 9,982,297 10,282,000 Expenditures by Fund: General $ 1,105,560 1,259,051 1,637,585 1,486,000 1,308,877 4% 1,353,000 3% Risk Management 9,630,514 9,814,871 9,814,871 9,814,871 9,982,297 2% 10,282,000 3% $ 10,736,074 11,073,922 11,452,456 11,300,871 11,291,174 2% 11,635,000 3% Expenditures by Type: Salaries $ 839, , , , ,797 7% 1,005,000 3% Benefits 310, , , , ,409 12% 394,000 4% Contractual services 1,442,196 2,386,028 2,764,562 2,521,000 1,727,200 (28%) 1,779,000 3% Other services 8,082,388 7,384,789 7,384,789 7,597,871 8,168,278 11% 8,413,000 3% Materials / supplies 48,507 48,795 48,795 45,000 31,799 (35%) 33,000 4% Interfund charges 13,609 11,846 11,846 11,000 11,691 (1%) 12,000 3% $ 10,736,074 11,073,922 11,452,456 11,300,871 11,291,174 2% 11,636,000 3% FTE Summary: Regular (full & part time) % % FTEs By Program: Human Resources % % Risk Management % % % % Budget Overview The Human Resource Program will be able to accomplish the basic deliverables for recruitments, employee benefits, employee developement and mandated trainings, tuition assistance, employee recognition, workers compensation, risk compliance and safety trainings. If the County experiences more than the anticipated turnover rate, the advertising budget would need some additional funding in order to attract candidates. Further, in order for staff to maintain professional certifications, the staff training budget would need to be increased no later than FY2018. If there is an increase higher than anticipated in the amount of workers comp claims, there may be the need for a budget adjustment. Finally, if there were opertional needs requiring market analysis for more than, three new or revised positions, the current funding level is inadequate. 103

120 Program Purpose COUNTY MANAGER - HUMAN RESOURCES PROGRAM The purpose of the Human Resources Program is to provide recruitment/retention, total rewards and career development services to the organization (management, current employees and potential employees) so the County can attract, retain and motivate people to accomplish the County and department goals. Significant Accomplishments - FY2015 Completed revisions to the FMLA, ADA, Donated Leave and Return to Work policies. Worked with the Personnel Board and the Attorney's Office regarding changes to the Personnel Ordinance and the Code of Ethics. Worked with each department to conduct reviews and subsequent edits of the 239 job descriptions in accordance with the Personnel Rules. Due to legislative updates of OFCCP requirements regarding veterans and disables individuals, staff ensured all necessary changes were implemented. Successful negotiations of Plumbers and Pipefitters collective bargaining agreement renewal. Completed the 4.11 upgrade to the Human Resource Information System. Performance Measures Priority Strategic Focus Area Goal Performance Measures FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Quality Governance Operational Excellence Maintain Quality Essential Services Number of External Recruitments Completed (including full-time, parttime, casuals). Number of Working Days from Position Requisition to Certified List. Turnover Rate (excluding retirements, deaths, probationary and part timers) For All Positions % 6.0% 4.6% 5.5% Cycle Time For Completing External Recruitments Number of External Recruitments Completed Number of Days from Position Requisition to Certified List FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target 104

121 COUNTY MANAGER - HUMAN RESOURCES PROGRAM Performance Measures Narrative and Analysis - Recruitmen During this time period, there was turnover in the recruitment area and subsequently two new individuals were trained in the recruitment function. The impact caused situations were the staff needed additional time to process the recruitments. In addition, there were an additional 11 more recruitments requested than in the prior year. As staff has been trained and more comfortable in the recruitment qualification process, staff anticipates a reduction in the number of days from receipt of the requisition to the time when applications will be qualified. Los Alamos Turnover Rate 7.0% 6.0% 5.0% 6.0% 6.0% 4.6% 5.5% 4.0% 3.0% 2.0% 1.0% FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Performance Measures Narrative and Analysis - Turnover Rate There was a slight decrease in County employee turnover this period. There were 35 individuals who left the County during the year which reflect as follows: (12) for other opportunities; (7) moved, (6) stated personal reasons, (6) were not happy in their positions, (1) was involuntary, and (3) did not disclose the reason. 105

122 Program Purpose COUNTY MANAGER - RISK MANAGEMENT PROGRAM The purpose of the Risk Management Program is to conduct risk assessments, provide safety training and claims management services to the County, County employees and the public so the County can minimize losses, employees can return to work and the public can recover their loss. Significant Accomplishments - FY2015 Through education and communication, decreased the number and severity of worker's comp claims which resulted in the decrease of the experience modifier from a 1.07 to.94 resulting in a premium savings of $187,000. Decreased worker's compensation claims by 40% compared to previous year. Performance Measures Priority Strategic Focus Area Goal Performance Measures FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Quality Governance Operational Excellence Maintain Quality Essential Services Average Number of Work Days Lost per Workers' Compensation Claim Performance Measures Narrative and Analysis In FY2015, there were 34 worker's comp claims filed, resulting in a total of 134 Lost Work Days. The average days lost for FY2015 was 4 days per incident. Based on current claims filed, we anticipate an increase of average lost days for FY

123 COUNTY ASSESSOR County Assessor 1 FTE Chief Deputy Assessor 1 FTE Appraiser 3 FTE Assessment 2 FTE Data Collection Residential Appraisal Commercial Appraisal Building Permits Stables & Hangers GIS/IT Valuation Modeling Field Inspections Sales Verification Tax Roll Creation Property Tax Appeals Administration Data Collection Public Records Request Estimated Tax Request Deed Transfers Address Changes Exemption Requests Mobile Homes Valuation Livestock Valuation Business Personal Property 107

124 COUNTY ASSESSOR Description The County Assessor's Office is responsible for the implementation of the New Mexico Property Tax Code with regard to the determination of value and classification of all real property and certain personal property located within the County. The Office maintains property records, reviews the various property tax exemptions, determines property values, changes ownership records as a result of a sale or transfer, processes sales questionnaires and business and personal property tax returns, prepares the tax roll and notice of value forms, and conducts valuation protest hearings. Mission The mission of the Assessor's Office is to locate, identify and value all property; maintain current information on the exemptions, limitation of value, ownership and characteristics of all properties; prepare and certify an accurate, annual assessment roll; make all non-confidential databases readily accessible in accordance with New Mexico law, Division of Property Tax regulations and guidelines, the tenets of the International Association of Assessing Officers, and the Uniform Standards of Professional Appraisal Practice. Goals To provide a well managed office by effectively and efficiently performing required reappraisals and maintenance of values including physical inspections, using computer assisted mass appraisal techniques incorporating a geographic information system in accordance with the New Mexico Property Tax Code, and to serve the public with qualified, expert staff. Budget Expenditures by Fund General Fund 70% Property Valuation Fund 30% Expenditures as % of General Fund General Fund 99% Assessor 1% 108

125 COUNTY ASSESSOR Expenditures by Fund: % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 General Fund $ 394, , , , ,723 0% 397,000 3% Property Valuation Fund 120, , , , ,970 16% 173,000 3% $ 515, , , , ,693 4% 570,000 3% Expenditures by Type: Salaries $ 318, , , , ,721 2% 344,000 3% Benefits 122, , , , ,735 4% 134,000 3% Contractual services 11, ,000 N/A 10,000 0% Other services 43,617 47,550 47,550 44,261 47,750 0% 49,000 3% Materials / supplies 9,539 23,400 23,400 22,000 25,100 7% 25,000 0% Interfund charges 8,955 6,917 6,917 6,000 7,387 7% 8,000 8% $ 515, , , , ,693 4% 570,000 3% FTE Summary: Regular (full & part time) % % Budget Overview The FY2017 Proposed Budget will assure the functions and the responsibilities of the County Assessor are met in accordance with the Property Tax Code. This budget will provide the resources needed to complete the objectives stated in the Property Valuation and Maintenance plan. Field inspections will be conducted. All new construction shall be inspected and valued accordingly. Deed transfers and survey plats will be recorded accordingly. Employees will receive their continuing education requirements for their NM Certified Appraiser Certificate. All sales will be verified and a sales ratio study will be performed to assure assessments are within statistical standards. Properties will be valued in a uniform manner, providing fair and equitable assessments. The County Assessor is responsible for assuring that all statutory requirements of the New Mexico Property Tax Code (PTC) regarding property valuation are met. The PTC requires that counties fund the County Assessor s Office from the General Fund except for certain expenditures that are permitted from the Property Valuation Fund (PVF). Expenditures from the Property Valuation Fund are for the sole purpose of conducting a reappraisal program. Under that program, one-fifth (1/5) of real property within the county is reappraised each year on a rotating basis. For the remaining four-fifths (4/5) of real property, valuation maintenance models are used to estimate current value and the associated costs for this process are allocated from the General Fund. Costs to appraise new or renovated construction as well as costs associated with appraisal training and certification may also be allocated from the PVF. Revenue for the PVF comes from 1% admin fee assessed on all property tax revenue collected by the County on behalf of all taxing entities. In Los Alamos County, those entities include the Los Alamos Public Schools, UNM-LA, the State of New Mexico, and the County (and municipality) of Los Alamos. Every year the County Assessor s Office is audited by the New Mexico Property Tax Division. Los Alamos County has consistently been commended for its operations, efficiency, and compliance with the NM Property Tax Code. FY2015 was no exception. Only one finding, that an annual Notice of Valuation (NOV) must also be mailed to all tax exempt property owners, and one suggestion, to review all non-governmental tax exempt entities for continued eligibility, were entered into the audit report. The costs associated with preparing, printing, and mailing the additional 610 NOVs to exempt property owners is borne by the General Fund. (Only 7 of the exempt properties are non-governmental.) 109

126 Program Purpose COUNTY ASSESSOR The County Assessor is responsible for determining values of property for property taxation purposes in accordance with the Property Tax Code [Articles 35 to 38 of Chapter 7 NMSA 1978] and specifically (A), and the regulations, orders, rulings and instructions of the department. The County Assessor shall implement a program for updating property values so values are maintained and have sole responsibility and authority at the county level for property valuation maintenance, subject only to the general supervisory powers of the director. Significant Accomplishments for FY2015 County Assessor and Staff Met or exceeded the national standards for the sales ratio studies. Physically inspected 1,879 parcels as part of our 5 year inspection plan, which accounted for $619,750 of omitted value. Inspected 498 building permit improvements totaling $5,013,200 of new value. Transferred 743 ownership changes resulting from recorded documents. Updated and maintained assessor's website information and forms. Contracted with Pictometry to acquire new oblique imagery for our GIS. Expanded public outreach through presentations to organizations, radio interviews, and advertising. 110

127 Performance Measures Priority Strategic Focus Area Goal Performance Measures FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Quality Governance Operational Excellence Mean 99.03% 99.03% 90% - 110% 90% - 110% Median 93.98% 97.26% 90% - 110% 90% - 110% Weighted Mean 95.48% 97.89% 90% - 110% 90% - 110% Maintain Quality Essential Services Standard Deviation 8.23% 8.63% < 15% < 15% Coefficient of Dispersion 6.84% 6.89% < 15% < 15% Coefficient of Variace 8.58% 8.71% < 15% < 15% Price Related Diferential % % 98% - 103% 98% - 103% Performance Measures Narrative and Analysis The Property Tax Division evaluates the Los Alamos County Assessor's Office to assure the County Assessor is running a property assessment program that provides fair and equitable assessments, as per statute NMSA The Los Alamos County Assessor's office had been performing exceptionally and adhering to the Property Tax Code, its regulations, orders and instructions from the department. The level of assessment has been consistently around 98%, which means the majority of property assessments are at 98% of market value. The Coefficient of Dispersion, Price Related Differential, and Standard Deviation are all statistical measurements of uniformity. It is important that all property classes are assessed uniformly and at the same level of assessment. Low numbers for the COD, STDEV and COV signifies uniformity between classes and types of property. Standards below 15% are considered good. The Price Related Differential measures regressivity and progressivity. Standards of 98% to 103% are considered good and represent uniformity between high valued and low values properties. The Assessor's staff continuously analyzes the markets and maintains the valuation models to provide the tax payers of Los Alamos County with the most fair and equitable assessments possible. 111

128 COUNTY ATTORNEY Mission The County Attorney's Office aims to deliver the highest quality legal services to its clients in an efficient and economical manner in order to facilitate the achievement of the goals of County government to provide excellent service to the residents of Los Alamos County. The Office achieves this mission by assessing exposure and liability of the County in proposed actions and assisting in the development of preventive programs that reduce the risks inherent in governmental business. The staff of the County Attorney's Office is dedicated to providing superior public service while observing the highest standards of ethics and confidentiality. Budget Expenditures as % of General Fund General Fund 98% Attorney 2% % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Type: Salaries $ 473, , , , ,851 3% 473,647 3% Benefits 159, , , , ,807 (15%) 148,121 3% Contractual services 49,147 69, ,800 37,518 52,903 (24%) 54,215 2% Other services 5,602 14,823 10,823 14,823 11,800 (20%) 11,992 2% Materials / supplies 12,518 18,544 18,544 18,544 15,636 (16%) 16,105 3% Interfund charges 5,337 3,692 3,692 3,692 5,748 56% 5,920 3% $ 706, , , , ,745 (4%) 710,000 3% FTE Summary: Regular (full & part time) % % 112

129 COUNTY CLERK County Clerk 1 FTE Records - Elections 5.16 FTE Records & Data Management Customer Service County Council Support Probate Court Services Election Administration Voter Registration Management Petition Processing 113

130 Description COUNTY CLERK The County Clerk records and maintains a database for permanent records retrieval and storage, including a public website for online access to all government documents and the index for all other recorded documents. The office assists the public and other researchers in locating permanent records, including deeds, mortgages, liens, power of attorney and other documents written and acknowledged for entry into the public record. In addition, the office maintains all government documents such as code ordinances, ordinances, resolutions, and minutes. The County Clerk's Office works closely with the Secretary of State's Office and operates under Federal and New Mexico State laws, and the Los Alamos County Charter to conduct all elections. The Clerk s Office issues, records and maintains Marriage Licenses and acts as the Clerk to the Probate Court and is the custodian of all Probate Court records. The County Clerk's Office offers an online tool that allows citizens to be notified via if any documents may have been recorded against their name or property. Mission To preserve, maintain and secure, in perpetuity, all public records entrusted to the Clerk's Office. To maintain voter registration files and conduct fair and secure elections. To provide prompt and courteous service, processing each transaction in an accurate, thorough, timely, cost-effective and professional manner. Budget Expenditures as % of General Fund General Fund, 99% Clerk, 1% 114

131 COUNTY CLERK % % FY2016 FY2016 FY2017 Variance FY 2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY 2016 Budget FY2017 Expenditures by Fund: General Fund $ 411, , , , ,018 18% 543,000 3% Recording Equip. Fund 21,003 28,569 28,569 28,569 28,550 0% 29,000 2% $ 432, , , , ,568 17% 572,000 3% Expenditures by Type: Salaries $ 259, , , , ,940 28% 359,000 3% Benefits 87, , , ,105 89,054 (15%) 92,000 3% Contractual services 20,311 22,252 22,252 22,252 34,400 55% 35,000 2% Other services 35,179 30,650 33,242 30,650 32,650 7% 34,000 4% Materials / supplies 24,161 23,500 29,010 23,500 28,900 23% 30,000 4% Interfund charges 6,119 5,367 5,367 5,367 4,124 (23%) 4,000 (3%) Capital outlay 0 15,240 15,240 15,240 16,700 10% 17,000 2% Fiscal charges % 1,000 25% $ 432, , , , ,568 17% 572,000 3% FTE Summary: Regular (full & part time) (9%) % Casual, Student,& Temp % % % % Budget Overview In FY2017, the County Clerk's Office will continue the many services offered to the public for recording and filing, data management and record retrieval, council support, issuing of marriage licenses, clerk to the probate court, and preparation and administration of the general election in November

132 Program Purpose COUNTY CLERK The County Clerk is responsible for recording and filing, data management and record retrieval, marriage licenses, administration of elections, Council support and clerk to the Probate Court. County Clerk Demonstrates New Voting Machine at the County Fair Poll Workers Receive Training on New Voting Machines Significant Accomplishments for FY2015 Completely revised poll worker training manual and training process. Increased community outreach at the Naturalization Ceremony, Gordon's Concert, and the County Fair. Over 500 Probate Case files scanned into records database for record retention and retrieval. Created user-friendly instructions for Government Documents Records Tool to assist public search for records. Performance Measures Priority Strategic Focus Area Goal Performance Measures FY2011 Actual FY2012 Actual FY2013 Actual FY2014 Actual FY2015 Actual Quality Governance Operational Excellence Maintain Quality Essential Services Recordings 3,835 4,224 4,342 2,966 3,033 Marriages Probate Cases Council Meetings Elections Held

133 COUNTY CLERK Marriages and Recordings with County Clerk Probate Cases, Council Meetings and Elections 5,000 4,000 3,000 2,000 1,000 3,835 4,224 4,342 2,966 3, FY2011 Actual FY2012 Actual FY2013 Actual FY2014 Actual FY2015 Actual FY2011 Actual FY2012 Actual FY2013 Actual FY2014 Actual 23 FY2015 Actual Recordings Marriages Probate Cases Council Meetings Elections Held Performance Measures Narrative and Analysis Over 69,000 documents have been recorded since 2001, which was the start of the electronic database. Over 8,000 marriage licenses have been issued since Probate cases have been filed since Since 1959, there have been 116 elections held. Currently, there are 13,135 registered voters in Los Alamos County. In January 2015, the Clerk's Office initiated tracking of voter registrations. From January through June of 2015, there were 424 registrations. 117

134 Description PROBATE COURT The Probate Judge examines all applications for probate of estate, appointment of a personal representative, examines all wills and documents filed in the case, signs orders for appointment of personal representatives and signs certificates closing estates. Supplies sample forms and copies of applicable law to the public, answers questions regarding probate procedures, and performs weddings. Budget Expenditures as % of General Fund General Fund 99.99% Probate Court 0.01% % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Type: Salaries $ 4,052 4,031 4,031 3,436 4,031 0% 4,031 0% Benefits (1%) 834 3% Other services % 966 7% Materials / supplies % % $ 5,508 5,895 5,895 5,300 5,885 0% 6,000 2% FTE Summary: Regular (full & part time) % % 118

135 COUNTY SHERIFF Description The Sheriff enforces those Federal, State, and County laws not under the jurisdiction of the Los Alamos Police Department. This enforcement includes service of legal process from various courts and provision of bailiff services as requested by the court. Budget Expenditures as % of General Fund General Fund 99% Sheriff 1% % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Type: Salaries $ 47,198 47,827 47,827 46,827 49,121 3% 50,388 3% Benefits 21,077 21,861 21,861 16,750 21,545 (1%) 22,191 3% Contractual services 1, % 639 3% Other services 9,608 8,000 8,000 8,000 8,000 0% 8,240 3% Materials / supplies 1,261 6,650 8,868 6,650 5,580 (16%) 5,980 7% Interfund charges % 561 3% $ 80,680 85,411 87,629 79,300 85,411 0% 88,000 3% FTE Summary: Regular (full & part time) % % Casual, Student,& Temp % % % % 119

136 ADMINISTRATIVE SERVICES DEPARTMENT Finance Chief Financial Officer 1 FTE Information Management Chief Information Officer 1 FTE Finance 11.5 FTE Procurement & Materials Management 11 FTE Information Technology FTE Records 2 FTE Financial Management Financial Reporting Accounts Payable Accounts Receivable Payroll Budget Management Performance Measures Internal Controls Grants Management Investments Competitive Bids Contracts Centralized Purchasing Inventory Control Logistics Receiving of Goods Distribution of Goods Asset Disposition Information Systems Telecommunications IT Infrastructure GIS Systems Applications Internet Audio-visual Support Integrated County Network Computer Maintenance Help Desk Services Print Shop Mail Services Records Retention IPRA Requests Internal Records 120

137 Department Mission ADMINISTRATIVE SERVICES DEPARTMENT Together we provide quality services to our customers. Description The Administrative Services Department is responsible for overseeing and coordinating functions that provide internal services. All divisions provide support for efficient and effective operations. Administrative Services is comprised of the Finance Division and Information Management. The Finance Division provides financial management support necessary for prudent decision making and sound municipal stewardship. Finance functions include directing and monitoring the accounting, budgeting, auditing, grant management and collection of funds. The Division has responsibility for preparing financial statements and budgets, investing public funds, and monitoring expenditures. Within Finance is Procurement and Materials Management which provides responsible supply management. Procurement assures effective contracting, and the timely acquisition of goods, services and construction through competitive bidding and other sourcing mechanisms. Its materials management function provides receiving, inventory control, logistics, distribution and transportation services for the County and Los Alamos Public Schools. Procurement is also responsible for asset disposition. Los Alamos County continues to move toward a centralized Procurement model. The Information Management Division provides support and governance of County Technology and Records within two areas: Information Technology (IT) and Records Information Management (RIM). IT supports the information systems, audio-visual support, and IT telecommunications infrastructure used to provide services to citizens. Functions include project management, planning, implementation, security, upgrade, support and maintenance for physical plant, network, servicers, computers, geographical information services (GIS), applications, and internet. RIM provides the structure to meet legal and regulatory requirements for protection, accountability, transparency, integrity, compliance, availability, retention and disposition of County physical records in accordance with industry best practices. RIM trains employees and elected officials to manage active records and manages inactive physical archives. RIM plans to use the same best practices with electronic information and has future goals of classifying and managing e-records. Department Summary Expenditures by Program CIP IT Projects 4% Finance 35% Information Management 61% Expenditures as a % of General Fund ASD 15% General Fund 85% 121

138 ADMINISTRATIVE SERVICES DEPARTMENT Budget Summary Expenditures by Program: % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Finance $ 2,347,650 2,636,317 2,712,228 2,464,000 2,691,330 2% 2,772,000 3% Information Management 4,226,989 4,601,565 4,905,290 4,457,400 4,757,787 3% 4,901,000 3% CIP-IT Projects 697, ,080 4,030,464 6,259, ,080 0% 289,080 0% $ 7,271,961 7,526,962 11,647,982 13,181,286 7,738,197 3% 7,962,080 3% Expenditures by Fund: General $ 6,574,639 7,237,882 7,617,518 6,921,400 7,449,117 3% 7,673,000 3% Capital Improvements Projects 697, ,080 4,030,464 6,259, ,080 0% 289,080 0% $ 7,271,961 7,526,962 11,647,982 13,181,286 7,738,197 3% 7,962,080 3% FTE Summary: Regular (full & part time) (4%) % Casual, Student,& Temp % % (4%) % FTEs By Program: Finance (2%) % Information Management (6%) % (4%) % 122

139 ASD - FINANCE Finance The mission of the Finance Division is to preserve the County's strong financial position by creating a responsible financial strategy, facilitating effective management of County resources, and providing analysis and recommendations that optimize economic outcomes. Program Budget % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Program: Accounting and Budget $ 1,298,201 1,579,872 1,579,872 1,435,000 1,611,754 2% 1,660,000 3% Procurement and Materials Mgt. 1,049,449 1,056,445 1,132,356 1,029,000 1,079,576 2% 1,112,000 3% $ 2,347,650 2,636,317 2,712,228 2,464,000 2,691,330 2% 2,772,000 3% Expenditures by Type: Salaries $ 1,377,857 1,670,740 1,670,740 1,518,000 1,726,940 3% 1,779,000 3% Benefits 506, , , , ,878 (1%) 652,000 3% Contractual services 149,037 90, , , ,700 32% 123,000 3% Other services 82,071 52,640 52,640 48,000 51,740 (2%) 53,000 2% Materials / supplies 88, , , , ,200 1% 123,000 3% Interfund charges 81,504 63,815 63,815 58,000 40,872 (36%) 42,000 3% Capital outlay 37, N/A 0 N/A Fiscal charges 24, N/A 0 N/A $ 2,347,650 2,636,317 2,712,228 2,464,000 2,691,330 2% 2,772,000 3% FTE Summary: Regular (full & part time) (2%) % (2%) % FTEs By Program: Accounting and Budget (4%) % Procurement and Materials Mgt % % (2%) % Budget Overview The Finance Division of ASD will continue to provide excellent centralized accounting, budget, and procurement services to our internal and external customers. Without the investment advisor contract, Finance may not invest in government securities which could result in lower overall investment income and would certainly increase the concentration risk in the overall portfolio. 123

140 Program Purpose Significant Accomplishments - FY2015 ASD - FINANCE (Accounting and Budget Function) The Accounting and Budget function handles County-wide financial operations including accounting, budgeting, payment of invoices, billing, payroll, investments, grant oversight, and the recording of the County's assets and liabilities. The accounts of the County are maintained in accordance with generally accepted principles of governmental accounting. In addition to preparing the annual Comprehensive Annual Financial Report, the office provides financial information to internal and external users and carries out financial policies and ensures strong internal controls are maintained throughout the County. Received the Certificate of Achievement for Excellence in Financial Reporting for the FY2014 Comprehensive Annual Financial Report (CAFR) from the Government Finance Officers Association of the United States and Canada. The award for the FY2014 CAFR marks the 24th consecutive year the County has received this award. Received the Distinguished Budget Presentation Award for the FY2015 Budget from the Government Finance Officers Association of the United States and Canada. The award for the FY2015 Budget marks the 24th consecutive year the County has received this award. Received an unmodified opinion on the annual financial and compliance audit, with no audit comments. Completed contract negotiations and planning for Purchasing Card (P-Card) program to be implemented County-wide in FY2016. Performance Measures Priority Strategic Focus Area Goal Performance Measure Rating Agency FY2011 Actual FY2012 Actual FY2013 Actual FY2014 Actual FY2015 Actual Quality Governance Operational Excellence Maintain Quality Essential Services County's Bond Rating on New Mexico Gross Receipts Tax Improvement Revenue Bonds Series 2008/Refunding Series Moody's A1 A1 A1 A1 A1 Standard & Poor's AA++ AA++ AA+ AA+ AA+ Performance Measures - Accounts Payable (AP) Priority Strategic Focus Area Goal Performance Measures FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Quality Governance Operational Excellence Maintain Quality Essential Services Number of invoices paid in AP per year. Average number of days to invoice received, validated and processed to check mailed. 20,005 19,567 18,000 17, Number of checks processed. 11,640 11,442 10,200 9,700 Performance Measures Narrative and Analysis The County has continued to receive high bond ratings, as the result of its solid financial position. The volume of AP invoices and checks remained fairly constant, and AP staff continue to turn around invoices on average within 2 days of receipt. The roll out of the Purchasing Card program in FY2016 should shift a large volume of small dollar purchases to P- Cards, away from the more cumbersome invoice/check issuance process. 124

141 ASD - FINANCE (Procurement and Materials Management Function) Program Purpose The Procurement and Materials Management function provides responsible supply management throughout the County. This includes competitive sourcing, purchasing, contracting, inventory control, delivery and distribution, material management and supplier relationship management. In addition, the Division provides material management, distribution and inventory management for the Los Alamos Public Schools. Los Alamos County continues to move toward a centralized Procurement model. Procurement follows the principles of the National Institute of Governmental Purchasing and the Institute for Supply Management. Significant Accomplishments - FY2015 Successfully managed a 56% increase in Utilities purchases. Designed and implemented user-friendly EMS inventory storage and retrieval. Successfully managed an 8% increase in formal solicitations and contracts. Performance Measures Priority Strategic Focus Area Goal Performance Metric FY2015 Actual FY2016 Estimate FY2017 Target Quality Governance Operational Excellence Maintain Quality Essential Services Cycle time for RFP evaluation. (In days.) Performance Measures Narrative and Analysis Cycle time estimated from closing date of RFP to contract effective date. Time is impacted by evaluation committee review, procurement staff contract draft preparation, legal review, and number of days from legal approval to approval by appropriate authority (County Council and/or Utilities Board; County Manager or Utilities Manager). 125

142 ASD - INFORMATION MANAGEMENT Information Management Mission The Information Management (IM) Division improves County staff effectiveness and citizen services by supporting and upgrading County IT assets, supporting audio-visual services, and managing the County's records. Assets include the integrated County network (ICN), the central server facility (CSF), desktop computing resources, and all software applications used by County organizations. Information Management Budget % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Program: Information Technology $ 3,938,895 4,327,439 4,622,935 4,200,400 4,515,422 4% 4,651,000 3% Records Management 288, , , , ,365 (12%) 250,000 3% $ 4,226,989 4,601,565 4,905,290 4,457,400 4,757,787 3% 4,901,000 3% Expenditures by Type: Salaries $ 1,708,703 1,761,642 1,761,642 1,601,400 1,775,649 1% 1,830,000 3% Benefits 609, , , , ,686 (13%) 639,000 3% Contractual services 1,257,794 1,387,634 1,528,814 1,389,000 1,683,540 21% 1,734,000 3% Other services 454, , , , ,592 (11%) 427,000 3% Materials / supplies 130, , , , ,586 (5%) 228,000 3% Interfund charges 50,983 41,184 41,184 37,000 41,734 1% 43,000 3% Capital outlay 15, ,590 2,000 0 N/A 0 N/A $ 4,226,989 4,601,565 4,905,290 4,457,400 4,757,787 3% 4,901,000 3% FTE Summary: Regular (full & part time) (6%) % Casual, Student,& Temp % % (6%) % FTEs By Program: Information Technology (5%) % Records Management (20%) % (6%) % Budget Overview IM will continue to fulfill it's role of supporting all County Information Technology (IT) and records management needs. Beyond these fundamental necessesities, recent investments have opened new avenues for IM to drive innovation in IT services. While much of the investment is contained in back-office workspaces, the expanded computing and data processing foundation, as well as the move towards online computing, has already begun to allow IM to push operations-enhancing functionality into the hands of County users including community-facing personnel. IM intends to continue this promising trend: to leverage the power of scale online technology provides combined with the solid County-based platform investments made, making us a trend-setter in the delivery of electronic information and services to our partners and our citizens. 126

143 ASD - INFORMATION MANAGEMENT Program Purpose Information Management provides support and governance of County Information Technology (IT) and Records Management (RIM). This includes support of the information systems, telecommunication infrastructure and records required to provide services to citizens as well as meeting legal and regulatory requirements for protection, confidentiality and security of County records. IM utilizes industry standards, best practices and Project Management Institute methodology and Generally Accepted Recordkeeping Principles (GARP). Audio visual support, print management and the mail function were incorporated in the division in FY2014. Significant Accomplishments - FY2015 Created Geographic Information Systems database for the purpose of making data available to the Energov permitting software. Completed the ESO Billing Project a hosted ambulance billing platform that replaced Zoll Systems software for billing purposes. The project implementation was completed with successfully with in project parameters. Completed the centralization of technology procurement in the Information Management Division. Procurement items include hardware, software, computer peripherals, printing and related telephone services. Completed the upgrade of transition of Active Directory database of the primary network (root). The upgrade at this base foundation level will allow implementation downward throughout the County's operational network base. The replacement of wireless radio system between the Mesa Public Library and Fire Station 1. The project involved upgrading an aging technology to a radio that uses fiber backhaul for performance and encryption that meets current security requirements. Performance Measures Priority Strategic Focus Area Goal Performance Measures FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Quality Governance Operational Excellence Maintain Quality Essential Services Number of Service Desk Calls (Help Desk). Number of Service Desk Calls Resolved at Time of Call. Number of Internal Records Requests. Average Time to Fill Internal Records Requests (In Minutes). 2,010 3,609 4,469 5, ,005 1,206 1, IM Service Desk Performance Number of Service Desk Calls (Help Desk). 6,000 5,000 4,000 3,000 2,000 1,000 0 Number of Service Desk Calls Resolved at Time of Call. 5,363 4,469 3,609 2,010 1,005 1, FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target 127

144 ASD - INFORMATION MANAGEMENT Average Time To Fill a Request for Records 1,500 1,250 1, Number of Internal Records Requests. Average Time to Fill Internal Records Requests (In Minutes). 1, FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Performance Measures Narrative and Analysis In FY2015, IM fully implemented processes related to ITIL Standards and centralized procurement. The implementation of ITIL standards has had a noticeable effect on the application of customer service. The total number of recorded service desk calls rose to 3,609 requests indicating a gain of approximately 80%. Likewise the total recorded number of calls resolved at time of call initiation went from 355 to 482 showing an increase of 36%. Efficiencies at the service desk is demonstrated when compared to FY21014 while considering the full realization of centralized procurement, audio-visual services support and media services support coupled with an increase in service levels. 128

145 COMMUNITY SERVICES DEPARTMENT Community Services Director 1 FTE Administration DWI 1 FTE Library FTE Cultural Services 1 FTE Social Services 2.75 FTE Mesa Public Library White Rock Branch Library Information Services Educational Services Research Services Materials Acquisition Circulation Electronic Format Items Internet Resources Youth Programs Adult Programs Art Gallery and Exhibits Cultural and Educational Contracts History Museum & Education Special Cultural Events Visual & Performing Arts Nature Center Cooperative Extension Services Art Center Social Services & Educational Programs Health Care Assistance Program LA Community Health Council Coord. Juvenile Justice Services & Programs Teen Center Senior Centers Youth Activity Centers Educational Programs School Prevention Services Case Management Services-All Ages Parks, Recreation and Open Space Parks FTE Recreation 36.5 FTE PARKS, OPEN SPACE Maintenance of Parks and Open Space Design & Development Parks & Open Space Perpetual Care of Guaje Pines Cemetery Horse Stables Public Garden Plots Care of Public Landscaped Areas Trail Signage Outdoor Recreational Facilities Horticulture Arboriculture Snow and Ice Removal RECREATION Golf Course and Golf Lessons Aquatic Center and Swim Lessons Ice Rink and Skating Lessons Indoor and Outdoor Recreational Programs Reservations for County Lands Summer Concert Series Summer Fireworks Event 129

146 COMMUNITY SERVICES DEPARTMENT The Community Services Department (CSD) includes Library; Parks, Recreation and Open Space; and Social Services Divisions, and certain cultural services contracts with outside agencies such as the Arts Center, the Arts Council, and the Historical Society. The Library Division manages the Mesa Public Library and the White Rock Branch Library, providing information, educational, recreational and research services, including acquisition and circulation of library materials, both print and electronic; answering reference questions; offering public Internet access; and presenting youth and adult programs and art exhibits. The Parks, Recreation and Open Space Division is the steward of all County parks, trails, open space public landscapes, Guaje Pines Cemetery, public grounds and athletic facilities. PROS provides recreation programs, sponsors activities, initiates and plans projects and provides reservations for County facilities; sponsors activities such as the Fair and Rodeo; and develops, coordinates, and implements special events. Facilities include an Aquatic Center, a golf course and an outdoor rink used for ice skating in the winter and day camp programs in the summer. Duties also include turf maintenance, design and development of new facilities and renovation of old facilities, horse stables, general horticulture, arboriculture and response to snow and ice removal. The Social Services Division provides programs in parent education; family development; after school activities and prevention programs for children and teens; school prevention activities; DWI grant planning, and treatment and prevention; home-based care for frail and older adults; which are delivered to the community through contractual relationships with non-profit organizations. This division also administers and manages the Healthcare Assistance Program. Department Mission The Community Services Department is committed to enhancing the quality of life in the community through cultural and social services, recreational and informational opportunities, and park lands and open spaces. Department Summary Expenditures by Program Social Services, 38% Cultural Services, 5% Administration 4% Library, 22% Parks, 22% Recreation, 31% Cemetery, 1% Expenditures as % of General Fund CSD, 20% General Fund, 80% 130

147 COMMUNITY SERVICES DEPARTMENT % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Program: Administration $ 378, , , , ,653 4% 407,400 3% Library 2,202,815 2,198,837 2,390,138 2,161,200 2,273,697 3% 2,341,000 3% Parks 1,966,035 2,147,434 2,859,643 2,659,413 2,214,244 3% 2,283,000 3% Cemetery 61,807 35,000 35,020 35,020 35,000 0% 35,000 0% Recreation 2,969,189 3,098,756 3,149,016 2,851,000 3,128,692 1% 3,224,000 3% Social Services 3,533,921 3,563,361 3,735,464 3,587,971 3,901,653 9% 4,013,800 3% Cultural Services 288, , , , ,750 13% 503,000 3% $ 11,401,013 11,853,990 13,030,043 12,075,004 12,437,689 5% 12,807,200 3% Expenditures by Fund: General $ 9,377,309 9,589,986 10,073,439 9,118,400 10,228,570 7% 10,535,000 3% Health Care Assistance 1,945,223 2,066,304 2,066,304 2,066,304 2,068,919 0% 2,132,000 3% State Grants-DWI Fund 72,382 66, , ,667 77,000 16% 77,000 0% Capital Improvement Fund 0 125, , ,433 57,000 (54%) 57,000 0% Aquatic Center Gift Sub-Fund 3,016 3,000 3,000 3,000 3,000 0% 3,000 0% Library Gift Sub-Fund 3,083 3,200 3,200 3,200 3,200 0% 3,200 0% $ 11,401,013 11,853,990 13,030,043 12,075,004 12,437,689 5% 12,807,200 3% FTE Summary: Regular (full & part time) % % Casual, Student,& Temp (12%) % % % FTEs by Division Library (1%) % Parks % % Recreation % % Social Services % % Administration % % % % Budget Overview A bottom line 2% increase ($152k) in the General Fund over the FY2016 approved budget figure comprises just two items: an $84K increase to the JJAB CYFD grant, and a transfer of $68K from Parks Small Projects Capital Fund (with $50,000 of that going towards Parks Maintenance Projects). All salary increases, health insurance increases, utility increases, and interdepartmental charges (insurance and fleet) have been absorbed into the bottom line, which remains flat except as noted above. There will be only slight service reductions affecting the public in any of the CSD divisions, including 500 fewer items purchased for the libraries; reduction of student labor in the library impacting timely re-shelving of materials and possibly slightly longer lines at the service desks. There are slight reductions of landscape maintenance and renovation materials and supplies in parks; this will impact the Parks Program s ability to address ongoing maintenance needs and limit the use of contractual services, which will affect the ability to efficiently respond to unanticipated project needs when additional expertise is needed. Absorption of increased costs was aided by reduction in utilities costs due to water conservation and the elimination of Bear Camp as expenditures by Council during the last budget cycle. Also featured in the budget proposal is the conversion of some of the temporary employee money in Parks to 3 new FTEs, as attraction and retention is proving increasingly challenging now that the time for temporary employees continuous employment has been reduced to six months due to Affordable Care Act considerations. All contracts for services have been level-funded to FY2016 amounts in this budget request (unless a continuing contract specified a reduction); however, proposals received for the new services contracts included increases, many of which were inflationary due to not having had increases for the last 3-6 years of the contracts. Some of the proposals were for expansion of services under the contracts. If the inflationary increases are not funded, there will likely be reductions in services; however, these specifics are not yet known, as discussions continue as part of the procurement process, pursuant to issuing the new contracts. Negotiations cannot be finalized until budget figures are known. 131

148 COMMUNITY SERVICES DEPARTMENT - ADMINISTRATION Administration Division Mission To ensure that the community has a balanced program of cultural, informational, recreational, and social services. Administration Division Budget % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Type: Salaries $ 272, , , , ,344 5% 300,000 3% Benefits 96,420 92,887 92,887 84,000 95,467 3% 98,000 3% Other services 3,572 4,224 4,224 4,000 3,867 (8%) 4,000 3% Materials / supplies 1,229 1,000 1,000 1, (60%) 400 0% Interfund charges 4,429 4,477 4,477 4,000 4,575 2% 5,000 9% Fiscal Charges N/A 0 N/A Total to be allocated $ 378, , , , ,653 4% 407,400 3% FTE Summary: Regular (full & part time) % % San Ildefonso Pots Being Prepared for Placement 132

149 Library Division Mission The Library offers opportunities for our diverse, regional community to learn, know, gather and grow by providing open and equal access to a variety of ideas and information through evolving technology and services. Library Program Budget COMMUNITY SERVICES DEPARTMENT - LIBRARY % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Fund: General $ 2,199,732 2,195,637 2,386,938 2,158,000 2,270,497 3% 2,337,800 3% Library Gift Fund 3,083 3,200 3,200 3,200 3,200 0% 3,200 0% $ 2,202,815 2,198,837 2,390,138 2,161,200 2,273,697 3% 2,341,000 3% Expenditures by Type: Salaries $ 1,354,525 1,386,840 1,386,840 1,254,000 1,405,251 1% 1,447,000 3% Benefits 399, , , , ,978 8% 463,000 3% Contractual services 80,123 94,539 94,539 85,000 85,474 (10%) 88,000 3% Other services 16,700 22,359 22,359 20,000 22,359 0% 23,000 3% Materials / supplies 323, , , , ,390 13% 290,000 3% Interfund charges 28,950 27,528 27,528 25,000 29,245 6% 30,000 3% $ 2,202,815 2,198,837 2,390,138 2,161,200 2,273,697 3% 2,341,000 3% FTE Summary: Regular (full & part time) (1%) % Casual & Temp % % (1%) % Budget Overview The Library budget provides for public service at rates that far exceed national per-capita averages. In FY2016, the Library is projected to check out more than 380,000 items, have around 340,000 visitors, support about 27,000 in-house computer uses, answer more than 25,000 reference questions, and have more than 21,000 citizens attend library programs and events. The collection budget allows staff to purchase between 12,000 to 14,000 items to add to the collection. This funding allows for an increasingly vibrant collection of downloadable materials, including ebooks, eaudiobooks, downloadable periodicals, and streaming video. Over the past year, usage of these types of materials has increased by 60% indicating a very high level of community demand. In FY2017, staff will continue to prioritize services to youth and families through collections and programming. For example, this year around 17,000 children will attend programming at the library and more than 2,000 visitors are projected to attend the Los Alamos Schools art show in the gallery. In addition, it is not uncommon for more than 100 children and teens to visit the library each day after school. The White Rock Branch Library opened to an overwhelming flood of visitors. In the past year, attendance at the branch library has grown by more than 50% while floor space has increased by a factor of 2.5, all of which has been accommodated with existing staff. This budget allows staff to continue to develop services and processes at the new Branch Library to meet community needs. Also funded are a series of physical upgrades to the Mesa Public Library. Candidates for improvement include the lobby area, computer area, periodicals reading area, and picture book area. In FY2017, staff will continue to improve services by completing the strategic planning process, which will guide library services over the next five years. Already, staff is seeking the greatest amount of community involvement possible throughout the process through surveys, focus groups, and robust communication of the final product. The FY2017 budget development process aligns with the results of the strategic planning results. This includes developing service goals that reflect community needs, connecting appropriate levels of funding to these goals, and identifying and implementing efficiencies that enable the library to accomplish as many community wants and needs as possible at current budget levels. 133

150 Program Purpose CSD - LIBRARY PROGRAM The purpose of the Library Division is to provide informational, recreational, educational and research services, helping community members connect to each other and to the greater world of ideas. Library Staff is Busy Providing Children's Programs. Significant Accomplishments - FY2015 Library staff completed the move into the new White Rock Branch Library. The new building nearly triples the amount of floor space available to the public. This was the culmination of a multi-year process that included working with the design team and public on the project, coordinating the move and opening celebration, and updating processes and staffing patterns to meet operational needs in the new facility. Procured and implemented a new online catalog, which allowed for enhanced staff efficiency and upgraded services to the public. Began incorporating the space formerly occupied by the Information Management division into the library s operations. This area serves as a combination programming room, early literacy center, and after-school homework center and gathering space. Continued upgrading and expanding the library s digital collections of ebooks, eperiodicals, and eaudiobooks. Also, downloadable film was added to the collection. Usage and demand for these collections continued to grow with a circulation increase of more than 50% over the previous year. Began the process of developing the next Library Strategic Plan, which will guide all aspects of service to the public over the next five years. The planning process will include a public survey as well as a series of focus groups intended to obtain public feedback regarding library services. 134

151 Performance Measures CSD - LIBRARY PROGRAM Priority Strategic Focus Area Goal Performance Measures FY2009 FY2011 FY2013 FY2015 Quality Governance Operational Excellence Maintain Quality Essential Services % of Residents Rating Library Services as "Good" or "Excellent". 92% 98% 99% 97% Los Alamos County Residents Rate Library Services 100% 98% 99% 97% 95% 92% 90% 85% Performance Measures Priority Strategic Focus Area Goal Performance Measures FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Quality Governance Operational Excellence Maintain Quality Essential Services Number of Library Visits. Circulation Rate per Registered Borrower. 314, , , ,

152 CSD - LIBRARY PROGRAM LAC Library Borrowers' Rate FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Performance Measures Narrative and Analysis Library usage was relatively level in FY2015, with the circulation rate per registered borrower flat over FY2015 and the number of library visits slightly lower. However, in conjunction with the opening of the new White Rock Branch Library, door counts are on target for double-digit percentage increases in FY2016 with the circulation rate per registered borrower also on track to rise. 136

153 Parks Program Mission COMMUNITY SERVICES DEPARTMENT - PARKS AND OPEN SPACE The Parks and Open Space Program strives for continuous improvement in the promotion of safety and quality of the Parks infrastructure through reliable and consistent maintenance, design and development and enhancement of existing and new facilities and aesthetics of parks, trails and open spaces of Los Alamos County. Parks/Cemetery Program Budgets % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Program: Parks $ 1,833,709 1,985,165 2,049,449 1,849,219 2,069,463 4% 2,136,000 3% Parks Maintenance Proj-GF 132,326 37,269 38,761 38,761 87, % 90,000 3% Small Capital Maint Proj-CIP 0 125, , ,433 57,000 (54%) 57,000 0% Cemetery 61,807 35,000 35,020 35,020 35,000 0% 35,000 0% $ 2,027,842 2,182,434 2,894,663 2,694,433 2,249,244 3% 2,318,000 3% Expenditures by Fund: General $ 2,027,842 2,057,434 2,123,230 1,923,000 2,192,244 7% 2,261,000 3% Capital Improvement Fund 0 125, , ,433 57,000 (54%) 57,000 0% $ 2,027,842 2,182,434 2,894,663 2,694,433 2,249,244 3% 2,318,000 3% Expenditures by Type: Salaries $ 827, , , ,000 1,028,032 12% 1,059,000 3% Benefits 327, , , , ,137 9% 442,000 3% Contractual services 152, , , , ,882 (15%) 175,000 3% Other services 9,113 9,400 9,400 8,000 17,000 81% 18,000 6% Materials / supplies 317, , , , ,517 3% 183,000 3% Interfund charges 392, , , , ,676 (12%) 441,000 3% Capital outlay ,509 34,000 0 N/A 0 N/A Fiscal charges N/A 0 N/A $ 2,027,842 2,182,434 2,894,663 2,694,433 2,249,244 3% 2,318,000 3% FTE Summary: Regular (full & part time) % % Casual, Student,& Temp (44%) % % % Budget Overview The Parks budget focuses on establishing a higher level of safety, accessibility and playability of the parks, tot lots, and athletic fields including tot lots improvements (ADA compliance fall zone and access) and athletic field improvements/rehabilitation. Work will continue to develop the master plan for the Ashley Pond Park area, including soliciting public input and collaboration with contiguous and affected community groups. The funds will restore the structure of Ancestral Pueblo Site and undertake cooperative projects at the History Museum campus to enhance the MPNHP visitor experience. Staff will plan and construct a Neighborhood Pocket Park for Los Pueblos neighborhood. The tennis courts will be improved with ongoing resurfacing and Urban Park TC lighting. There will be further coordination of the volunteer cadre to improve overall safety and the quality of the trails system. 137

154 CSD - PARKS AND OPEN SPACE Program Purpose The purpose of the Parks and Open Space Program is to provide maintenance, design, and development of trails, open space and outdoor recreational facilities, including the perpetual care of Guaje Pines Cemetery, horse stables, public garden, public landscaped areas, etc., so the public may have a safe and enjoyable outdoor recreational experience. Trail Signage Pilot Project YCC and YES Core Restoring Kwage Mesa Trail Significant Accomplishments - FY2015 Installed first nine holes of Pinon Park Disc Golf Course. Assisted with installation of "Strange Trio" sculpture and landscaped site. Designed and constructed new picnic area at the Municipal Complex. Replaced five back stops at North Mesa and Overlook ballfields. New irrigation systems were installed at Western Area Park and Community Soccer Field Park. Updated trail signage as outlined in the international Mountain Biking Association plan. YCC constructed new multi-use trails in Rendija and Bayo Canyons. Performance Metrics Priority Strategic Focus Area Goal Performance Measures FY2009 FY2011 FY2013 FY2015 Quality Governance Operational Excellence Maintain Quality Essential Services and Supporting Infrastructure % of Residents Rating County Parks as "Good" or "Excellent". 88% 94% 92% 86% 95% 90% 85% Citizens Rate County Parks and Tot Lots 94% 92% 88% 86% 80% 75%

155 CSD - PARKS AND OPEN SPACE Priority Strategic Focus Area Goal Performance Measures FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Quality Governance Operational Excellence Maintain Quality Essential Services and Supporting Infrastructure Total Expenditures per Acre. $ $ $ $ Expenditure Costs Per Acre for Parks $ $ $ $ $ $ $ $ $ $ FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Performance Measures Narrative and Analysis The Parks and Open Space program provides property management services across a broad array of landscapes and facilities. This includes the Canyon Rim Trail, North Mesa Covered Arena, White Rock Visitor s Center and Recreational Vehicle Park, Median and Streetscape Areas, Canada del Buey Trail, Ashley Pond and surrounds, along with the newly opened White Rock Library and Youth Activity Center. The extensive parks, trails and athletic fields require attention to safety, wayfinding and playability for our active outdoor enthusiasts. The expenditure per acre is a result of addressing ongoing maintenance and improvements in an efficient and effective manner given environmental challenges and rising costs. The expenditures per acre is the ratio of the total number of acres to the Parks' general fund expenditures. In the past, interdepartmental charges were subtracted from the total general fund as specified by ICMA definition, but this does not accurately reflect total costs for maintenance. Historic figures have been adjusted using the same formula for the sake of comparison. 139

156 COMMUNITY SERVICES DEPARTMENT - RECREATION Recreation Program Mission The Recreation Program provides a variety of recreational opportunities for the citizens and visitors of Los Alamos County. Recreation Program Budget % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Sub-Program: Aquatic Center $ 1,013,389 1,149,234 1,167,393 1,056,000 1,110,762 (3%) 1,143,000 3% Golf 990, , , ,000 1,016,441 5% 1,047,000 3% Rink 185, , , , ,934 2% 193,000 3% Other Recreation 779, , , , ,555 2% 839,000 3% $ 2,969,189 3,098,756 3,149,016 2,851,000 3,128,692 1% 3,222,000 3% Expenditures by Fund: General $ 2,966,173 3,095,756 3,146,016 2,848,000 3,125,692 1% 3,221,000 3% Aquatic Center Gift Fund ,000 3,000 3,000 3,000 0% 3,000 0% $ 2,969,189 3,098,756 3,149,016 2,851,000 3,128,692 1% 3,224,000 3% Expenditures by Type: Salaries $ 1,538,452 1,566,289 1,566,289 1,418,000 1,611,750 3% 1,660,000 3% Benefits 513, , , , ,140 (4%) 564,000 3% Contractual services 173, , , , ,878 (3%) 206,000 3% Other services 24,246 17,020 17,120 15,000 22,160 30% 23,000 4% Materials / supplies 314, , , , ,404 3% 284,000 3% Interfund charges 392, , , , ,610 1% 480,000 3% Fiscal Charges 11,952 9,978 9,978 9,000 6,750 (32%) 7,000 4% $ 2,969,189 3,098,756 3,149,016 2,851,000 3,128,692 1% 3,224,000 3% FTE Summary: Regular (full & part time) % % Casual, Student,& Temp % % % % Budget Overview The funds in the budget uphold operational excellence in programing community services and events by increasing collaboration with community organizations on programs and events that enhance the quality of life for citizens as well as bring visitors to town. Staff will continue to provide and emphasize water safety to community and school groups, as well as a myriad of water-based recreational opportunities. It also funds additional programming to increase Rink Facility usage in the off season. The budgeted funds continues to grow the game of golf through numerous youth programs and improvement projects at the golf course that will emphasize sustainability and playability. In addition, the funds maximize and improve the community s overall participation in all facets of the golf course (cross country skiing, snow shoeing, hiking biking and dog walking). Special events including the Annual Easter Egg Hunt, High School Cross Country Track Meet bring large numbers of non-golfers to the facility. The budget also allows for the maximization of the use of the new Golf Course community room space in conjunction with the Cottonwood restaurant in order to bring many new guests to the Los Alamos Golf Course regional park. 140

157 CSD - RECREATION PROGRAM Program Purpose The purpose of the Recreation Program is to provide a variety of indoor and outdoor recreational opportunities to citizens and visitors of Los Alamos County so they can have a safe, enjoyable recreational experience that improves their mental and physical health. Significant Accomplishments - FY2015 Los Alamos Junior Golf Academy The Pumpkin Splash event hit new participant levels through partnerships with the LA Police Department, LA Fire Department, and local veterans' organizations using a heroes-themed event. Game of golf promoted and grown through customer service efforts. Partnered with Los Alamos County departments and community organizations to reach new heights in furthering community outreach and collaboration in regard to larger and more complex events such as Sciencefest, Enduro Fest, etc. Performance Measures Priority Strategic Focus Area Goal Performance Measures FY2009 FY2011 FY2013 FY2015 Quality Governance Operational Excellence Maintain Quality Essential Services Percent of Residents Who Rated Recreation Programs, Events, and Activities either "Good" or "Excellent". 83% 85% 85% 76% Residents Rating of Recreation Programs 95% 90% 85% 80% 83% 85% 85% 75% 70% FY2009 FY2011 FY2013 FY % 141

158 CSD - RECREATION PROGRAM Priority Strategic Focus Area Goal Performance Measures FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Number of rounds of Golf. 27,284 29,413 29,707 29,707 % of Golf Program Expenditures Offset by Fees and Other Revenues. 53% 53% 54% 53% Quality Governance Operational Excellence Maintain Quality Essential Services Number of Aquatics Center visitors for all purposes. % of Aquatics Program Expenditures Offset by Fees and Other Revenues. Number of Ice Rink visitors for all purposes. 134, , , ,000 26% 20% 22% 23% 30,150 30,615 30,600 30,600 % of Ice Rink Program Expenditures Offset by Fees and Other Revenues. 69% 52% 46% 49% Number of recreation program participants. 20,942 20,402 20,400 20,400 Performance Measures Narrative and Analysis The Recreation Administration budget is combined with the Recreation Programs budget bringing together the division manager, the front desk staff, office manager, and building maintenance activities to improve service levels and program delivery outcomes. At the Ice Rink, although participants are the same due to dryland training by LAHA and use by roller derby teams, revenues have remained flat due to work credit programs while expenditures have increased. Although Bear Camp has been discontinued, there has been a rise in contract instructor attendance. Safety Town and PEEC Take Over programs have been added. 142

159 Social Services Budget COMMUNITY SERVICES DEPARTMENT - SOCIAL SERVICES Expenditures by Fund: % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 General $ 1,516,316 1,430,557 1,556,493 1,409,000 1,755,734 23% 1,804,800 3% State Grants-DWI Fund 72,382 66, , ,667 77,000 16% 77,000 0% Health Care Assistance 1,945,223 2,066,304 2,066,304 2,066,304 2,068,919 0% 2,132,000 3% Expenditures by Type: 3,533,921 3,563,361 3,735,464 3,587,971 3,901,653 9% 4,013,800 3% Salaries $ 163, , , , ,230 14% 209,000 3% Benefits 56,823 59,012 59,012 53,000 96,984 64% 100,000 3% Contractual services 3,255,446 3,280,144 3,452,247 3,330,971 3,550,960 8% 3,653,800 3% Other services 5,390 6,300 6,300 6,000 4,200 (33%) 4,000 (5%) Materials / supplies 11,604 1,900 1,900 2,000 13, % 14,000 1% Interfund charges 41,614 38,424 38,424 35,000 32,379 (16%) 33,000 2% $ 3,533,921 3,563,361 3,735,464 3,587,971 3,901,653 9% 4,013,800 3% FTE Summary: Regular (full & part time) % % Budget Overview Health Care Assistance Program. These funds cover quarterly payments to the State for Safety Net Care Pool and County Share Medicaid. Also, staff contracts with local providers to render behavioral health services for residents not already covered under Medicaid, and for additional medical and dental services for detainees. Case Coordination. These funds address the need for an increased support network for low-income residents across County, especially for young families and older adults. Community Health Council & Other Coordination. Funds are budgeted to coordinate the Los Alamos Community Health Council, and regular collaboration with NM DOH staff, to hold regular interactive meetings of local stakeholders. The budget also supports residents with navigating and accessing health related programs and services, such as Medicaid, Medicare, and Affordable Care Act enrollment. Programs supported by the County are listed below including direct costs and indirect costs. Direct amounts include payments made by the County to a community agency contract. Indirect amounts (which are not entirely located in this department/division) include building maintenance, utilities, use of premises, some limited custodial, etc. FY 2017 FY 2017 FY 2017 FY2015 FY2016 Estimated Estimated Estimated Actual Budget Direct Indirect Total Social Services Programs Costs Costs Costs Social Services Programs-Early Intervention and Home-based $ 83,438 76, , ,529 Senior Services Public Health Office Lease 49,036 51,190 50,750 2,040 52,790 LAPS School Prevention Special 65,000 65,000 65, ,000 Senior Services 328, , , , ,838 Juvenile Justice 255, , , ,956 Family and Parent Education 35,000 35,000 76, ,150 Teen Center Operations 244, , , , ,612 Youth Activity Centers 165, , , , ,449 Total $ 1,225,356 1,259,344 1,535, ,064 2,532,324 Budget Overview The Social Services contracts provide a comprehensive parent education and family development program; recreational, educational, physical, transportation, meals, and social services to older adults through the operation of two senior centers; ongoing coordination, development, administration, and evaluation of juvenile services and programs; professional services related to substance abuse and suicide prevention within the schools; operation of two youth activity centers, including the renovated center in White Rock; and, operation of a teen center, providing a myriad of programs for teens as well as a place for teens to recreate and relax. Also provided for, is the case coordination and management for home-based services for older and frail adults and early intervention for families with younger children. 143

160 Program Purpose CSD - SOCIAL SERVICES PROGRAM The purpose of the Social Services Program is to provide recreational, educational and social services to all generations of Los Alamos. In addition, the Social Services division operates the Health Care Assistance Program (HCAP) and manages contracts for social services agencies. While HCAP has experienced a decline in activity since the expansion of Medicaid coverage in January 2014, coverage for behavioral health services is still available for those who meet the qualifications and are not covered under Medicaid or Medicare for services. The Division also provides some case coordination to assist residents with accessing health related programs, services, and insurances. The Division also coordinates the Los Alamos County Health Council (LACHC), a group who meets monthly on a wide range of health issues and provides staff support for three County Council Subcommittees. During FY2015, the Council received an increase in annually recurring funds from the NM Department of Health through efforts of the Social Services Division. The Division continues to manage several contracts with non-for-profit agencies who deliver social services throughout the Los Alamos Community. Teens Enjoying the New Center Significant Accomplishments - FY2015 Parent and Family Education. Family Strengths, who offers these education programs, experienced record attendance of its programs and services. The Network also prepared for a move into the former Pajarito Environmental Education Center facility on Orange Street; the move is expected to be complete by July The Network continues to pilot new programs and services, such as a Chinese parenting support group, adding new Spanish resources to their library, and offering an infant/child CPR class. Juvenile Services by the Justice Advisory Board. Staffed for Family and Youth Resource Advocates. In particular, JJAB acquired a grant from the United Way and the Public Schools to provide a full time Advocate at the Middle School. JJAB also piloted a weekly open-door counseling service, in partnership with Mesa Vista Wellness, at the Teen Center during finals week. Plans are being made to continue this service year round. JJAB continues to pilot other programs. Los Alamos Teen Center. Under the auspices of the Family YMCA, began preparations to move into the newly renovated Community Building over the summer. The move was complete in August The Center has been piloting new art and exercise-oriented programs with teens, and seen a modest increase in its membership. Senior Centers. Acquired funding from the State for a new kitchen in the White Rock Senior Center and for a new meal truck. In anticipation of a new facility, the White Rock Center moved into a temporary location during the spring and will likely be in this space through most of calendar year The Betty Ehart Center continues to offer home-based services for frail and/or elderly clients requiring assistance with various activities of daily living. 144

161 Performance Measures CSD - SOCIAL SERVICES PROGRAM Priority Strategic Focus Area Goal Performance Measures FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Quality Governance Operational Excellence Maintain Quality Essential Services Number of Adult and Youth Visits to Family Strengths Network. Number of Youth Served by the JJAB. Number of Youth Visits to the Youth Activity Centers. Number of Teen Visits to the Teen Center. Number of Meals Provided to Seniors. Number of Vehicle Trips Provided to Seniors. HCAP Number of Claims Processed. 6,117 7,386 7,400 7,500 5,685 7,042 8,634 10,200 12,733 11,691 11,000 12,000 15,045 15,200 15,300 16,000 24,495 25,022 26,750 28,000 8,826 8,750 9,300 9,300 3, ,520 2,000 HCAP Value of Claims. $240,697 $70,340 $86,106 $122,248 HCAP Claims and Program Payments 250,000 HCAP Number of Claims Processed. $240,697 HCAP Value of Claims. 200, ,000 $122, ,000 $70,340 $86,106 50, , ,520 2,000 FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Performance Measures Narrative and Analysis Although HCAP has experienced a decline in activity since the expansion of Medicaid coverage in January 2014, coverage for behavioral health services (ie. mental health counseling and/or substance abuse treatment services) is still available for those who meet the qualifications and are not covered under Medicaid or Medicare for services. HCAP also continues to cover behavioral, dental, and medical health costs of detainees. The Division provides some case coordination to assist residents with accessing health related programs, services, and insurances. While most contractors have experienced a modest increase in services rendered, some such as the Youth Activities Centers, experienced a small reduction in visits, due in part to construction. Many of the contractors have also been preparing for moves to new locations, such as the Youth Activity Center and Senior Center in White Rock, as well as the Family Strengths Network and the Teen Center in Los Alamos. The Division also coordinates the Los Alamos County Health Council (LACHC), a group who holds regular monthly public meetings on a wide range of health issues. The Division also participates in the Local DWI Council. 145

162 COMMUNITY SERVICES DEPARTMENT - CULTURAL SERVICES Cultural Services Program Budgets % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Type: Contractual services $ 288, , , , ,750 13% 503,000 3% Budget Overview The Cultural Services contracts provide a number of benefits to the community that enhance the quality of life and afford the community opportunities to attend free or low-cost cultural activities, such as musical or theatrical performances. The providers offer a strong connection with the history of Los Alamos and the Manhattan Project through free admission to the historical museum, lectures and programs. The Nature Center promotes life-long learning and enjoyment of the outdoor environment through nature-related programs and events, including exciting and interesting planetarium programs. The arts programs provide a space for individuals to develop their artistic talents and learn new skills using a wide variety of art mediums, including summer youth art camps. The free art gallery provides rotating exhibits for art enthusiasts of all ages. The Cooperative Extension Service furnishes free research-based information regarding horticulture, water conservation, health awareness, home economics, plus food safety and nutrition. The many free community-wide and family friendly events, festivals, and weekly summer concerts are funded through Cultural Services Contracts. Programs supported by the County are listed below including direct costs and indirect costs. Direct amounts include payments made by the County to a community agency contract. Indirect amounts (which are not entirely located in this department/division) include building maintenance, utilities, use of premises, some limited custodial, etc. FY2017 FY2017 FY2017 Estimated Estimated Estimated FY2015 FY2016 Direct Indirect Total Cultural Services Programs Actual Budget Costs Costs Costs Performing Arts 9,000 9,000 12,360 9,050 21,410 Art Center 5,000 5,000 10, , ,982 Cooperative Extension 91,475 92,936 92,202 12, ,175 Historical Museum/Education 100, , , , ,540 Concert Series 68,400 68,400 68, ,400 Nature Center 55, , , , ,531 Total 329, , , ,288 1,027,038 NOTE: The Indirect Cost for the Arts Council, Art Center at Fuller Lodge and the Historical Society does not include Major Facilities charges for Fuller Lodge. 146

163 CSD - CULTURAL SERVICES PROGRAM Program Purpose The purpose of the Cultural Services Program is to provide social and educational programs to residents and visitors to the community so they can enjoy and participate in special events, concerts, visual and performing arts and cultural programs. Significant Accomplishments - FY2015 Art Center at Fuller Lodge Offers Art and Art Classes to All Ages With the 70th anniversaries of both the Trinity Site test and the end of WWII, the Historical Society received an unprecedented number of media visits and requests for interviews during the past year. The Historical Society also celebrated the official designation of the Manhattan Project National Historical Park and partnered with LANL and Los Alamos County to host the MPHNP planning team in June The Society noted a significant increase in visitor interest in the history of Los Alamos as a result of the TV show Manhattan, a fictional show set during the time of the Manhattan Project. The cultural service providers continued more of their successful collaborative efforts (for example, 4th Fridays and the On-tap series) in conjunction with the Los Alamos Creative District. Community-wide events, like Winterfest and Halloweekend continued to be very popular and well-attended. Approximately 2,200 people attended the Annual Pumpkin Glow and over 600 people attended the Winterfest Fuller Lodge Open House. Both events are sponsored and organized by the Los Alamos Arts Council. The Pajarito Environmental Education Center (PEEC) opened the new Nature Center in April, The new exhibits and planetarium shows provide educational and entertaining workshops and programs for youth and adults. PEEC reports their daily attendance and program participation numbers have skyrocketed since the opening. The excitement over the Nature Center opening extended to other cultural service providers. For example, the Fuller Lodge Art Center hosted an exhibit called Canyons, Mesas, Mountains, and Skies (from the Nature Center mission statement) which proved to be one of the best attended exhibits of the year. The Art Center also continued to provide a very popular Summer Art Camp covering seven weeks during the 2015 summer and averaging approximately 40 to 60 youth per day, ages 4 to 17. The Art Center provides art camp scholarships based on the recipients exhibited love of the visual arts and financial need. 147

164 Performance Measures CSD - CULTURAL SERVICES PROGRAM Priority Strategic Focus Area Goal Performance Measures FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Number of Participants Served Through Historical Society Programs. 37,692 41,605 50,000 50,000 Quality Governance Operational Excellence Maintain Quality Essential Services Number of Participants Served Through the Fuller Lodge Art Center Programs. Number of Participants Served Through Arts Council Programs. Number of Participants Served Through Nature Center Programs. 30,504 30,826 31,000 32,000 11,370 12,172 11,500 12,500 12,603 19,891 35,000 40,000 Number of Participants Served by the NMSU Cooperative Extension Program. 17,737 8,516 12,000 13,000 Performance Measures Narrative and Analysis Entertaining, educational, and high-quality cultural and recreational programs are provided to the community through contractual relationships with local, non-profit organizations. Several of these organizations occupy County-owned facilities and make use of a substantial amount of volunteer time and effort to minimize their operating expenses. The combined number of volunteer hours for four of the cultural service providers totaled over 16,000 during FY

165 FIRE DEPARTMENT Fire Chief 1 FTE Safeguards/Security Labor Relations 1 FTE Administration Training Wildland Public Education 12 FTE Fire Marshal 1 FTE Deputy Fire Chief 1 FTE Safety Division Chief 1 FTE Fire and Life Safety 3 FTE Emergency Medical Services EMS Training Wildland Fire Training LANL Training Operations EMS Coordination Technology Accreditation Safety Operations 130 FTE 149

166 FIRE DEPARTMENT Description The Los Alamos Fire Department (LAFD) protects life, property, and the environment throughout Los Alamos County. LAFD delivers a level of service considered nuclear grade. This extremely high level of service is required by our cooperative agreement with the Department of Energy/National Nuclear Security Administration in the delivery of emergency services to the Los Alamos National Laboratory (LANL). The current cooperative agreement with DOE/NNSA began in October 2013 and ends in September LAFD is the only fire department in New Mexico that has obtained international accreditation through the Commission of Fire Accreditation International. Less than 200 fire departments in the United States have successfully achieved international accreditation status. All of LAFD s emergency responders and several administrative support staff members must achieve and maintain DOE Q clearance. LAFD firefighters, driver/engineers, and captains are represented by Local 3279 of the International Association of Firefighters. Mission Los Alamos Fire Department is proud to be entrusted with the safety and welfare of our community. We are honored to provide exceptional services for the preservation of life, the environment, and property. Budget Expenditures by Fund Fire (General Fund), 16% Fire Marshal (State Grants), 2% EMS (State Grants), 1% Fire Cooperative Agmt (CA), 81% 150

167 FIRE DEPARTMENT % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Fund: Fire - Cooperative Agmt (CA) $ 21,802,922 23,360,237 23,706,668 22,955,922 24,035,985 3% 24,642,125 3% Fire (General Fund) 3,910,167 4,263,915 4,263,915 3,859,600 4,829,176 13% 5,207,149 8% Fire Marshal (State Grants) 573, , , , ,000 0% 500,000 0% EMS (State Grants) 12,153 11,200 10,449 10,449 11,200 0% 11,200 0% $ 26,298,245 28,135,352 28,655,183 27,601,121 29,376,361 4% 30,360,474 3% Expenditures by Type: Salaries $ 11,294,357 12,048,192 12,048,192 11,666,649 12,407,043 3% 12,726,083 3% Benefits 5,219,861 5,421,686 5,421,686 5,249,991 5,583,169 3% 5,726,737 3% Contractual services 475, , ,152 1,020, ,296 2% 802,079 2% Other services 356, , , , ,846 44% 611,250 1% Materials / supplies 1,161,422 1,368,949 1,691,517 1,610, ,739 (28%) 999,310 2% Interfund charges 7,618,935 8,107,287 8,107,288 7,492,481 8,787,023 8% 9,266,770 5% Capital outlay 171, , , ,245 N/A 228,245 0% $ 26,298,245 28,135,352 28,655,183 27,601,121 29,376,361 4% 30,360,474 3% FTE Summary: Regular (full & part time) % % FTEs by Division: Emergency Medical % % Fire Life Safety % % Operations % % Training % % Administration % % % % Budget Overview The budget as proposed will allow LAFD to deliver emergency services at the level required by our Cooperative Agreement with DOE/NNSA and at the high level that is expected by Los Alamos County residents. In addition to addressing the strategic goals identified in the five year Community Driven Strategic Plan, the budget will facilitate action on the strategic and specific recommendations made in the department's fourth successful accreditation through the Commission on Fire Accreditation International. The budget will facilitate our on-going radio system updates, continue our efforts to mitigate the threat of catastrophic wildfires, continue our efforts to stay up to date with our emergency medical training and equipment, maintain the capability to effectively respond to technical rescue incidents, and provide the necessary tools and equipment to effectively respond to a hazardous materials incident. The budget is developed in correlation with the 10-year cooperative agreement with DOE/NNSA. This agreement started on October 1, 2013 and expires on September 30, The cooperative agreement budgets are calculated in line with the federal fiscal year (October-September). The LAC budget is determined by applying a.75 multiplier to the current Federal fiscal year budget and a.25 multiplier to the proceeding federal fiscal year budget. The cost share between DOE/NNSA and LAC starts in year one at an 80% DOE/NNSA cost and 20% LAC cost. Over the course of the ten year agreement the County's cost share rises to 26% and the DOE/NNSA share decreases to 74%. 151

168 Program Purpose LOS ALAMOS FIRE DEPARTMENT The main purpose of the Fire Department is to maintain a state of readiness and to respond to emergency incidents throughout the Los Alamos community, the Department of Energy and the Los Alamos National Laboratory so that life, environment, and property are preserved. The Fire Department also trains and qualifies its personnel to cope with real and potential emergency incidents throughout the Los Alamos community, the Department of Energy and the Los Alamos National Laboratory. Significant Accomplishments - FY2015 Achieved international accreditation through the Commission on Fire Accreditation International for the 4th time Added Truck 3 and Hazmat 1 to the LAFD response apparatus. Successfully launched the Los Alamos Fire Department EMT Bike Team. Performance Measures Priority Strategic Focus Area Goal Performance Measures Quality Governance Operational Excellence Maintain Quality Essential Services % of Residents Rating Fire and Rescue Services as "Good" or "Excellent". 91% 98% 98% 96% Residents Give Fire and Rescue Service High Ratings 100% 98% 98% 95% 90% 91% 96% 85%

169 Performance Measures LOS ALAMOS FIRE DEPARTMENT Priority Strategic Focus Area Goal Performance Measures FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Number of Public Education Events Conducted Quality Governance Operational Excellence Maintain Quality Essential Services and Supporting Infrastructure Fire Response Time. % of Calls Responded to Within the Benchmark for Response Time. EMS Response Time. % of Calls Responded to Within the Benchmark for Response Time. 74% 89% 90% 90% 87% 75% 90% 90% Response Times for Fire and EMS Services 95% 90% 85% 80% 75% 70% 65% 60% 55% 50% 87% 89% 90% 90% 74% 75% FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Fire Response Time. % of Calls Responded to Within the Benchmark EMS Response Time. % of Calls Responded to Within the Benchmark Performance Measures Narrative and Analysis Response times report the time interval from when the LAFD emergency responders are notified by dispatch and when they arrive on the scene. The department has established additional performance objectives that align with the CFAI Accreditation Standards of Cover model by alarm type in order to measure processing, turnout, travel and total response times. The total response benchmark objective for rural areas is 12 minutes and 20 seconds, and 7 minutes 20 seconds for suburban areas. The chart above shows that LAFD is meeting these benchmarks 89% of the time for fire responses and 75% of the time for EMS responses. 153

170 POLICE DEPARTMENT Chief of Police Deputy Chief Support Emergency Services 15 FTE Commander Operations 29 FTE Commander Crime Analysis Inmate Work Release Inmate Conduct/Security Food Safety Juvenile Detention Compliance Inmate Programs Shelter Operations County Liaison Staff Services 3 FTE Commander Planning EM Grants Radio Interoperability Police Dispatch Fire EM Dispatch NCIC Compliance Emergency Management Patrol Criminal Investigations Crime Prevention Community Relations FTO Program SRO Program Professional Standards Training/Recruiting Travel Policy Accreditation Evidence Grants Volunteer Coordinator Fleet LANL Liaison Records Capital Equipment Specialized Assignments Awards Dispatch Animal Control 4 FTE Detention 16 FTE Records 2 FTE Accreditation/ Internal Affairs 1 FTE LANL 1 FTE Evidence 1 FTE 154

171 POLICE DEPARTMENT Description The Los Alamos Police Department is a full service law enforcement agemcy committed to serving the public through professional, saafe, and ethical policing. The Department includes Operation (Patrol, Investigations, Community Liaison) Staff Services (LANL Liaison, Training, Evidence, Records), Support (Detention, Animal Control), and Emergency Management (Dispatch). Mission The mission of the Los Alamos Police Department is to provide quality, proactive law enforcement services to our community that promote an atmosphere of safety and security for both our residents and visitors while protecting the rights and guarantees provided under the Constitution of the United State of America and the State of New Mexico. Budget Expenditures by Program Operations 50% Records / Administration 12% Consolidated Dispatch 15% Detention 19% Animal Control 4% Expenditures as % of General Fund General Fund 85% Police 15% 155

172 Description POLICE DEPARTMENT The Los Alamos Police Department is a full service law enforcement agency committed to serving the public through professional, safe, and ethical policing. The Department includes Operations (Patrol, Investigations, Community Liaison) Staff Services (LANL Liaison, Training, Evidence, Records), Support (Detention, Animal Control), and Emergency Management (Dispatch). Mission The mission of the Los Alamos Police Department is to provide quality, proactive law enforcement services to our community that promote an atmosphere of safety and security for both our residents and visitors while protecting the rights and guarantees provided under the Constitution of the United State of America and the State of New Mexico. Department Budget Expenditures by Program: % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Animal Control $ 228, , , , ,030 36% 347,000 3% Detention 1,330,403 1,355,822 1,355,822 1,227,000 1,546,514 14% 1,593,000 3% Consolidated Dispatch 996,375 1,186,019 1,186,019 1,073,000 1,278,969 8% 1,317,000 3% Operations 3,737,110 3,960,925 4,537,732 4,134,354 4,152,969 5% 4,277,200 3% Records / Administration 1,226,568 1,023,810 1,023, ,000 1,022,713 0% 1,053,000 3% $ 7,519,329 7,775,178 8,351,985 7,586,354 8,338,195 7% 8,587,200 3% Expenditures by Fund: General $ 7,500,091 7,735,978 8,291,994 7,505,800 8,298,995 7% 8,548,000 3% State Grants 19,238 39,200 59,991 80,554 39,200 0% 39,200 0% $ 7,519,329 7,775,178 8,351,985 7,586,354 8,338,195 7% 8,587,200 3% Expenditures by Type: Salaries $ 4,445,174 4,533,783 4,478,691 4,080,354 4,904,594 8% 5,051,200 3% Benefits 1,822,426 2,040,643 2,010,230 1,819,000 2,186,195 7% 2,252,000 3% Contractual services 251, , , , ,962 (15%) 175,000 3% Other services 247, , , , ,347 6% 164,000 3% Materials / supplies 289, , , , ,930 72% 425,000 3% Interfund charges-other 432, , , , ,767 (5%) 480,000 3% Capital outlay 30, , , ,000 39,200 (67%) 40,000 2% Fiscal charges % 0 (100%) $ 7,519,329 7,775,178 8,351,985 7,586,354 8,338,195 7% 8,587,200 3% FTE Summary: Regular (full & part time) (4%) % By Division: Animal Control % % Detention % % Consolidated Dispatch (7%) % Emergency Management % % Records / Administration % % Operations (6%) % (4%) % Budget Overview It is incumbent upon the Police Department to sustain the high level of service we provide to our citizens and visitors. Funding is utilized to ensure the Police Department employees are properly equipped, trained, and staffed to provide safe, efficient, ethical, and professional law enforcement service. The Police Department will continue to maximize taxpayer dollars through community partnership and collaboration, grant funding opportunities, and internal efficiencies as a product of seeking National Accreditation through CALEA, as well as enhancements to several of our technological platforms including Computer Aided Dispatch and Records Management Systems. 156

173 LOS ALAMOS POLICE DEPARTMENT Program Purpose The purpose of Los Alamos Police Department (LAPD) is to provide police patrol, emergency response, dispatch services, investigations, records management, emergency management, planning, and disaster recovery, detention services, and animal control in accordance with Department's Mission, Vision, and Core Beliefs. Vision Statement To be free from crime and the fear of crime. Core Beliefs Professionalism, Accountability, Respect, Integrity, Teamwork, Communication Significant Accomplishments - FY2015 A total of 180 Part 1 Crimes were reported to the department representing a 15% decline from Violent crimes fell 22%, dropping for the fourth consecutive year. Officers investigated 215 accidents, down 11% from 241 in The Detective Section sustained an outstanding clearance rate of 83% of assigned cases. Performance Measures Priority Strategic Focus Area Goal Performance Measures FY2009 FY2011 FY2013 FY2015 Quality Governance Operational Excellence Maintain Quality Essential Services % of Residents Rating How Safe They Feel from Crime as "Always Safe" or "Usually safe". 91% 98% 99% 96% 100% 95% % of Residents That Feel Safe From Crime 98% 99% 96% 90% 85% 80% 91% FY2009 FY2011 FY2013 FY

174 LOS ALAMOS POLICE DEPARTMENT Performance Measures PART 1 CRIME VIOLENT CRIMES HOMICIDE MANSLAUGHTER RAPE AGG. ROBBERY AGG. ASSAULT TOTAL VIOLENT CRIMES % CHANGE -29% -2% 31% -31% -33% -35% PROPERTY CRIMES BURGLARY LARCENY AUTO THEFT ARSON TOTAL PROPERTY CRIMES % CHANGE -17% 26% -26% -32% 17% -12% TOTAL PART % CHANGE -19% 22% -13% -32% 4% -15% CALLS FOR SERVICE Minor Offense Report 15,677 15,422 15,378 16,194 15,508 11,982 13,391 General Offense Report 1,627 1,433 1,540 1,453 1,415 1,188 NA ALL CALLS 17,304 16,855 16,918 17,647 16,923 15,428 NA TRAFFIC (PATROL) ACCIDENTS DWI TRAFFIC TICKETS 1,737 1,403 1,504 2,175 1,796 1,723 2,608 TRAFFIC WARNINGS 2,644 2,244 2,481 2,917 2, NA Performance Measures Narrative and Analysis During the twelve months of 2015, officers responded to a total of 180 overall Part 1 Offense complaints, which represents a 15% decrease as compared to 213 offenses during the same period in Violent crime decreased from 34 in 2014 to 22 in 2015, a 35% decrease. Property crime decreased by 12% from 179 in 2014 as compared to 215 reported during 2015, an 11% decrease. both violent crime and property crime continue to decline. While many factors can contribute to crime rates within a community, the Los Alamos Police Department recognizes LA community partners for sustaining a high quality of life by reducing crime through the combined efforts of enforcement, education, prevention, and treatment. 158

175 COMMUNITY DEVELOPMENT DEPARTMENT Community Development Director 1 FTE Administration EnerGov System Business Registrations 4 FTE Housing 1 FTE Building Safety 5 FTE Planning 4 FTE New Development Infill Housing Housing Rehabilitation Program Affordable Housing Revitalization of Existing Stock First-time Homebuyers Housing Partnerships Housing Ordinances Commercial Building Permits Residential Building Permits Building Code Compliance Construction Inspections Community Education Code Enforcement Comprehensive Plan Development Code Land Use Applications Sign Permits Placement Permits Planning and Zoning Commission Board of Adjustment Interdepartmental Review Committee 159

176 Department Description COMMUNITY DEVELOPMENT DEPARTMENT The Community Development Department, CDD, consists of four divisions: Administration, Housing, Planning, and Building Safety. CDD serves as staff liaison to the Planning and Zoning Commission, Board of Adjustment, Fuller Lodge/Historic Districts Advisory Board, White Rock Master Plan Implementation Committee. CDD provides long-range planning for housing and comprehensive planning and also performs regulatory oversight functions. As part of the regulatory function, CDD is responsible for code enforcement and review of building and land development plans. These oversight functions ensure that the land developed and building construction are in compliance with the County Development Code and the Building Code, thereby protecting public health, safety and welfare. Budget Planning, 22% Expenditures by Program Administration, 32% Building Safety, 26% Housing, 21% Expenditures as % of General Fund General Fund 96% Comm Dev 4% 160

177 Department Budget COMMUNITY DEVELOPMENT DEPARTMENT % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Program: Administration $ 459, , , , ,838 3% 605,354 3% Housing 189, , , , , % 393,072 3% Building Safety 328, , , , ,380 13% 488,611 3% Planning 211, , , , ,498 (8%) 427,963 3% $ 1,189,318 1,624,425 1,839,425 1,665,000 1,859,339 14% 1,915,000 3% Expenditures by Fund: General $ 1,189,318 $ 1,624,425 $ 1,839,425 $ 1,665,000 $ 1,859,339 14% $ 1,915,000 3% $ 1,189,318 1,624,425 1,839,425 1,665,000 1,859,339 14% 1,915,000 3% FTE Summary: Regular (full & part time) % % FTEs by Division: Administration % % Housing % % Building Safety % % Planning % % % % 161

178 CDD - ADMINISTRATION Administration Division Mission The Administration Division provides the Community Development Department with permit technician, general support services and courteous customer service to internal staff and the community. Administration Division Budget % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Type: Salaries $ 298, , , , ,611 (2%) 369,369 3% Benefits 110, , , , ,131 (14%) 129,915 3% Contractual services 20,323 8,052 8,052 8,052 36, % 37,278 3% Other services 4,682 17,313 17,313 17,313 42, % 43,966 3% Materials / supplies 9,764 15,000 15,000 15,000 10,000 (33%) 10,300 3% Interfund charges 16,001 15,018 15,018 15,018 14,103 (6%) 14,526 3% $ 459, , , , ,838 3% 605,354 3% FTE Summary: Regular (full & part time) % % % % Budget Overview There is a reduction in salaries and benefits due to staff changes as well as employee benefit choices. Staff is dedicated to simplify the permitting process and enhance customer service delivery. EnerGov, the new permitting software, will be a significant tool in this endeavor, as it will provide data on departmental review time, overall turnaround time, and the status of each permit that is entered into the system. Program Purpose The Administration Division provides customer service to the residents and contractors who are engaging in the permitting process, and also provides administrative support to CDD staff as well as other internal customers. Administrative staff also oversees the system administration of EnerGov, a responsibility currently shared with Information Management staff, and ensures quality customer service and educational outreach for EnerGov's Citizen Access Portal (CAP) for permits, planning cases, business license, and citizen request (notification of potential Code violation). Significant Accomplishments for FY2015 Permitting Software Preparation and Planning: Staff spent significant time developing system configuration elements including Inspection Management, Cashiering, Business License, Permit Management, Plan Management, Request Management, Contact Management, Code Management, and System Management. Work also included developing individual workflows for each separate permit / license within each module (Business Licenses, Request/Code Violations, Permits and Plan). 162

179 HOUSING DIVISION Mission The mission of the Housing Division is to develop a mix of affordable housing and support the revitalization of housing thereby enhancing the livability of neighborhoods while improving overall housing quality. Program Budget % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Type: Salaries $ 128,289 86,569 86,569 86,569 94,606 9% 97,444 3% Benefits 58,102 35,269 35,269 35,269 37,781 7% 38,914 3% Contractual services 0 57, , , , % 251,326 3% Other services 3,173 3,700 3,700 3,700 5,230 41% 5,387 3% Materials / supplies N/A 0 N/A $ 189, , , , , % 393,072 3% FTE Summary: Regular (full, & part, time) p % % Budget Overview The budget includes $94,006 for the second year of the Housing Renewal Program. These funds support the operational side of the program that has been budgeted for $400,000 in loan funding from the Economic Development Fund. 163

180 Program Purpose CDD - HOUSING DIVISION The Housing Division is responsible for developing housing initiatives in support of the plans, strategies and ordinances approved by County Council. Housing Division staff will apply existing County ordinances and mechanisms to spur new housing development, improve and maintain existing housing stock, and foster partnerships to support the development of new housing programs. New White Rock Home From Los Alamos's Affordable Housing Program Significant Accomplishments - FY2015 Staff was able to successfully negotiate a development agreement and purchase agreement for A-19-A-1, which if fully developed will result in approximately 94 market rate single-family housing units. Negotiations on A-19-A-2 are underway with a completion date of summer It is expected that a portion of the "A-2" site will be comprised of approximately 60 affordable housing units for purchase. The housing rehabilitation program was successfully awarded to the Los Alamos Housing Partnership and has been branded as the "Los Alamos Home Renewal Program." The bulk of the 2016 program year work involved completing necessary policies and procedures for the loan program and associated loan documentation. This program will begin accepting applications on March 30, If demand is strong from income eligible borrowers, staff anticipates that 10 to12 projects will be funded and implemented in the first year of the program. Staff have developed a template/framework for a first time homebuyer program but did not have program funding for FY2016. The program was funded and will be implemented in FY

181 CDD - HOUSING DIVISION Performance Measures Priority Strategic Focus Area Goal Performance Measures FY2015 Actual FY2016 Estimate FY2017 Target Promote Maintenance and Enhancement of the Housing Stock Quality While Utilizing Available Infill Opportunities as Appropriate. Housing Promote the Creation of a Variety of Housing Options for All Segments of the LA Community. Support Development of Affordable Workforce Housing. NOTE: New programs in FY2016 AND FY2017. Quality of Life Number of Homeowners Provided Financial Assistance for Energy Efficiency and/or Emergency Repairs. Number of Housing Units Developed as Part of the A-19 Development. Number of Households Assisted with a First-time Homebuyers Program for LAC NA 0 15 Performance Measures Narrative and Analysis The Housing Renewal Program opens the end of March 2016, therefore, no data is available. There are plans for 94 market rate, single-family units and 60 affordable housing units in A-19. Infrastructure construction for the utilities and La Vista Street road section is currently underway. Progess with actual units built will be reported back to Council. 165

182 BUILDING SAFETY DIVISION Mission The mission of the Building Safety Division is to provide efficient plan review, permitting, inspection and public education to ensure a safe building environment. Program Budget % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Type: Salaries $ 229, , , , ,717 11% 329,309 3% Benefits 79, , ,617 97, ,555 18% 130,352 3% Contractual services 3,120 3,230 3,230 3,230 3,000 (7%) 3,090 3% Other services 4,730 4,500 4,500 4,500 12, % 12,437 3% Materials / supplies 1,750 6,900 6,900 6,900 5,850 (15%) 6,026 3% Interfund charges 9,519 8,732 8,732 8,732 7,183 (18%) 7,398 3% $ 328, , , , ,380 13% 488,611 3% FTE Summary: Regular (full & part time) % % Budget Overview There is an increase in advertising and other funds for two Code Enforcement Educational meetings and for monthly contractor and homeowner meetings. Memberships and Dues budget is added for the Building Inspector position which will be filled shortly. In addition, $1,800 is budgeted for waterproof pouches which are provided to contractors and homeowners to protect their permit paperwork from the elements. At the end of the construction project, staff requests that the pouch be reused by the contractors or returned to the Division. 166

183 Program Purpose CDD - BUILDING SAFETY DIVISION The purpose of the Building Safety Division is to administer the building codes and the nuisance codes within the County and enforce quality development improvements and property maintenance standards within the community. The Building Safety Division provides consultation, permits, and inspections to builders, homeowners and business owners to ensure compliance with applicable building codes. The Building Safety Division works in cooperation with County Fire, Police, Public Works, and Public Utilities Departments in the enforcement of the building and nuisance codes. Mechanical, electrical and plumbing plan review, permitting and inspections are handled by the New Mexico Construction Industries Division (CID). Permit Technician Assisting a Contractor Significant Accomplishments - FY2015 Enhanced customer service by increasing the pre-permit consultation inspections. Participated in the design of EnerGov. Ensured that Building Codes were met in the Smiths' Marketplace business complex. Facilitated the closure of a code-deficient commercial structure. Coordinated the condemnation and demolition of an abandonded commercial building. Performance Measures Priority Strategic Focus Area Goal Performance Measures FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Economic Vitality Quality of Life Economic Vitality Housing Promote a Strong and Diverse Economic Base by Encouraging New Business Growth. Promote Maintenance and Enhancement of Housing Stock Quality While Utilizing Available Infill Opportunities as Appropriate. Number of Commercial Permits Issued. Number of Residential Permits Issued. Number of Code Enforcement Cases. % of Code Enforcement Cases Corrected. Number of Building Permit Inspections and Educational Activities % 98% 97% 97% 1,839 2,081 2,100 2,

184 CDD - BUILDING SAFETY DIVISION The following chart reports the cycle time for permits issued during February Priority Strategic Focus Area Goal Performance Measures # of Permits Average Days from Acceptance to Issue (picked up) Average Wait for Customer Pickup Average of Net Review Time Target Review Time Quality Governance Operational Excellence and Communication Simplify the Permit Requirements and Improve Overall Process. Commercial Window/Door Replacement [1] Residential Interior Remodel, Limited Scope Same Day Re-Roof, New Roof Structures Retaining Wall / Fence Over 6ft 1 2 Same Day 2 15 Siding / Stucco Solar-Ground Mounted or Roof Mounted [2] Window / Door Replacement Grand Total 24 Notes [1] The turnaround time for this permit was influenced by the need for additional information from the applicant, coupled by a general slow down in the department due to staff learning to use the new permitting software, EnerGov. [2] The turnaround time for these permits were influenced by a general slow down in the department due to staff learning to use EnerGov; as well as incomplete and inconsistent application information from the same contractor. Below is an explanation of each data element: Average Days from Acceptance to Issue is dependent on internal, multi-department review and days waiting for customer pickup. Average Wait for Customer Pickup is the average number of days from completion of permit review to customer pickup. Average of Net Review Time is the number of work days spent on internal or multi-department review. Including time needed to obtain corrected or additional information from customer. Performance Measures Narrative and Analysis The implementation of EnerGov has given CDD the ability to accurately track permit cycle times. CDD has established target review times and have reviewed processes to further improve customer service. A single month of data is available at this time. As data is collected and analyzed for a full year, staff will continue to look for improvements to the processes that further reduces cycle time. 168

185 PLANNING DIVISION Mission The mission of the Planning Division is to manage quality development through effective planning and zoning practices designed to enhance the quality of life in residential neighborhoods and create vibrant business districts. Program Budget % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Type: Salaries $ 135, , , , ,434 (11%) 276,487 3% Benefits 67, , , , ,769 (10%) 126,452 3% Contractual services , N/A 0 N/A Other services 8,545 15,200 15,200 15,200 24,095 59% 24,818 3% Materials / supplies % 206 3% $ 211, , , , ,498 (8%) 427,963 3% FTE Summary: Regular (full & part time) % % Budget Overview The advertising budget remains level at $5,000 to cover required legal notices of Planning & Zoning Commission and other hearings. 169

186 CDD - PLANNING DIVISION Program Purpose The purpose of the Planning Division is to administer the Development Code (Chapter 16 of the Municipal Code) and process land use applications. The Planning Division is responsible for developing needed updates to the Comprehensive Plan. The Planning Division ensures coordinated and efficient use of the land in the County, supports Economic Development and Housing Program initiatives, and serves as the liaison to the Planning and Zoning Commission and the Board of Adjustment. Significant Accomplishments - FY2015 Staff began preparating for the update to the Comprehensive Plan by drafting and issuing an RFP for outreach and facilitation services. 16 land use cases were heard by the Planning & Zoning Commission; 10 waiver applications were heard by the Board of Adjustment. Performance Measures Priority Strategic Focus Area Goal Categories FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Subdivisions Summary Plat Quality Governance Operational Excellence Maintain Quality Essential Services and Supporting Infrastructure Land Use Applications Special Use Permits Waivers/Admin Deviations Site Plans Temporary Use Permit Rezoning County Code Revisions Sign Permits Building Related Placement Permits (Fences, and Structures under 120 sq ft) Total Priority Economic Vitality Quality Governance Strategic Focus Area Financial Sustainability Operational Excellence and Communication Goal Encourage the Retention of Existing Businesses. Significantly Improve the Quality and Simplify the Permit Requirements and Improve Overall Process. Performance Measures Number of Business Licenses and Registrations. FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Total* 1,017 1,094 1,162 1,050 New* New measure, will be tracked when the new permitting software is online - Average turnaround time (in calendar days) for processing land-use planning permits. * FY2014 and FY2015 are reported on a calendar basis due to the limitations of the old software. FY2016 data is based on the fiscal year. 170

187 Business Licenses and Registrations CDD - PLANNING DIVISION 1,400 1,200 1, ,017 1,094 1,162 1, FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Number of Business Licenses and Registrations. Total* Number of Business Licenses and Registrations. New* Performance Measures Narrative and Analysis The number of special use permits issued doubled from 2014 (4) to 2015 (8). Site plan applications increased while the number of sign permits decreased by three (3). Placement permits increased by approximately 40%. The number of business licenses/registrations has increased slightly; however, the amount of new business license applications appears to be dropping. It is too early to determine if this is a trend or a temporary anomaly. In addition, as staff enters renewal business licenses/registrations, staff is checking for and cleaning up any duplicates. 171

188 PUBLIC WORKS DEPARTMENT Public Works Director 1 FTE Administration Boards & Commissions Support Transportation Board 1.18 FTE Engineering and Project Management 12 FTE Traffic and Streets 24 FTE Custodial Maintenance 15 FTE Environmental Services FTE Engineering Surveying Civil & Architectural Design Project Management Contracts Scheduling Procurement Cost Estimating Inspections Capital Projects Manor Facilities Projects Boards & Commissions Fuller Lodge Historic Districts Advisory Board& WR Master Plan Implementation Committee Street Construction Street Repairs Signage Traffic Signals Streetlights School Flashers Traffic Control Snow & Ice Removal Street Marking & Striping Right of Way Maintenance Cleaning Services Planned Maintenance Event Support Facility Reservations Refuse Collection Recycle Collection Composting Household Hazardous Waste Recycling Program Commercial Collection Roll-Off Service Boards & Commissions Environmental Sustainability Deputy Director 1 FTE Airport 1FTE Transit FTE Fleet/Equipment 11 FTE Facilities Maintenance 14 FTE Commercial Air Service General Aviation Rental Car Service Tenant Leases Airport Operations Airport Maintenance Fixed Route Dial-A-Ride Bandelier Shuttle ACT Assist ACT Tracer Vehicle and Equipment Repairs Preventive Maintenance Vehicle & Equipment Purchases New Vehicle Inspection & Receiving Electric Vehicle Operations LA County Motor Pool Fuel for LA Schools Monthly Fuel Billing Car Wash Fuel Tanks & Generator Maintenance Monitor Fuel Tanks Fuel Ordering Preventive Maintenance Major Repairs Small Capital Projects Key Access Control Building Alarm System 172

189 Department Description Department Summary PUBLIC WORKS DEPARTMENT The Public Works Department, with its various divisions, works as one entity to serve the community's needs and effectively maintain a high quality of life for Los Alamos County residents and businesses. The Public Works Department continually develops innovative ways to deliver services in a cost effective manner and environmentally sound practices with a focus on strategic planning and the use of new technology to meet the needs now and into the future. The department consists of nine divisions; Administration, Airport, Custodial, Environmental Services, Engineering and Project Management, Facilities, Fleet, Traffic & Streets and Transit. The functional responsibilities of the Public Works Department encompass the County's public transportation system, waste collection and recycling and County facilities. Activities include planning, designing, and construction of the County's infrastructure; managing the County's environmental program; operation and maintenance of the County's streets and traffic control network; and, operation of the Airport and Atomic City Transit. The Department is also responsible for providing maintenance (custodial, and preventative) services to the forty-five County buildings. Transit, 14% Environmental Services 13% Expenditures by Program Airport 4% Facilities Maintenance 9% Custodial Maintenance 4% Major Facilities Maintenance, 5% Traffic & Streets 14% Fleet/Equipment 16% Engineering/ Surveying 4% Administration 1% Capital Projects - Roads, 14% Expenditures as % of General Fund General Fund 82% Public Works 18% 173

190 PUBLIC WORKS DEPARTMENT Department Description The Public Works Department is comprised of the following areas of responsibility: engineering and surveying, project management, equipment and fleet maintenance, street maintenance, traffic operations and maintenance, transit, environmental services, airport, and support of major maintenance and Capital Improvement Programs. Budget Summary Expenditures by Program: % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Administration $ 218, , , , ,466 59% 424,000 3% Engineering & Project Management 1,269,043 1,369,219 1,377,043 1,369,219 1,414,516 3% 1,455,000 3% Fleet/Equipment 4,390,474 4,379,491 4,885,648 4,885,648 4,817,114 10% 4,753,000 (1%) Traffic & Streets 4,122,853 4,010,304 4,741,270 4,741,270 4,114,517 3% 4,237,000 3% Transit 4,838,799 4,710,774 5,382,890 5,382,890 4,237,393 (10%) 4,364,000 3% Environmental Services 3,753,928 3,994,396 4,006,362 4,006,362 4,042,559 1% 4,164,000 3% Airport 1,127,140 1,828,498 1,917,697 1,917,697 1,184,786 (35%) 1,221,000 3% Facilities Maintenance 2,357,625 2,675,209 2,708,272 2,708,272 2,668,902 0% 2,749,000 3% Custodial Maintenance 1,068,920 1,120,409 1,139,095 1,139,095 1,140,583 2% 1,175,000 3% Major Facilities Maint Proj 2,380,541 1,602,802 3,773,357 2,448,134 1,602,802 0% 1,653,000 3% Capital Projects 5,871,605 3,947,080 11,011,954 10,844,201 4,647,080 18% 3,947,080 (15%) $ 31,399,777 29,896,492 41,327,898 39,821,098 30,281,718 1% 30,142,080 0% Expenditures by Fund: General $ 11,417,831 11,036,253 14,123,347 12,784,300 11,352,786 3% 11,693,000 3% Equipment 4,390,474 4,379,491 4,885,648 4,885,648 4,817,114 10% 4,753,000 (1%) Transit 4,838,799 4,710,774 5,382,890 5,382,890 4,237,393 (10%) 4,364,000 3% Environmental Services 3,753,928 3,994,396 4,006,362 4,006,362 4,042,559 1% 4,164,000 3% Airport 1,127,140 1,828,498 1,917,697 1,917,697 1,184,786 (35%) 1,221,000 3% Capital Projects 5,871,605 3,947,080 11,011,954 10,844,201 4,647,080 18% 3,947,080 (15%) $ 31,399,777 29,896,492 41,327,898 39,821,098 30,281,718 1% 30,142,080 0% FTE Summary: Regular (full & part time) % % Limited term % % % % FTEs by Division: Administration % % Engineering & Project Management % % Fleet/Equipment % % Traffic & Streets % (4%) Transit % % Environmental Services % % Airport % % Facilities Maintenance % % Custodial Maintenance % % % % Details on Capital Improvements Projects are provided in the Capital Improvement Program (CIP) Section. 174

191 PUBLIC WORKS DEPARTMENT - ADMINISTRATION Administration Division Mission The Administration Division provides the Public Works Department with support services and exceptional customer service to internal and external customers. In addition the Division provides staff support services to the Transportation Board. Administration Division Budget Expenditures by Type: % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Salaries $ 165, , , , ,925 57% 284,000 3% Benefits 31,951 66,603 96,603 96, ,182 68% 116,000 3% Contractual services 8, N/A 0 N/A Other services 6,288 7,240 7,240 7,240 12,900 78% 13,000 1% Materials / supplies 930 2,597 8,597 2,597 2,597 0% 3,000 16% Interfund charges 6,008 5,637 5,637 5,637 7,862 39% 8,000 2% $ 218, , , , ,466 59% 424,000 3% FTE Summary: Regular (full & part time) % % 175

192 PUBLIC WORKS DEPARTMENT - ENGINEERING & PROJECT MANAGEMENT Engineering and Project Management Mission The Engineering & Project Management Division s mission is to provide safe, reliable and sustainable municipal infrastructure in a fiscally and environmentally responsible manner utilizing technical and administrative expertise in the study, design and construction of capital improvement projects. The Division provides professional services in the areas of engineering, surveying, architecture, and project management through in-house and contracted resources. Such services also include financial, budget and grant management; procurement and contract management; scheduling; cost estimating; public involvement; asset management; and construction management and inspection. The Division provides leadership and participates in the planning, development, technical review and oversight of multimodal transportation improvements, storm water and floodplain management, land development, pavement management, survey and mapping, and facility improvements including new buildings, renovations and major facility maintenance projects. The Division collaborates with a variety of constituents and stakeholders including County residents and businesses, Council, Boards and Commissions, various County departments, state and federal agencies, and various public and private partners to provide infrastructure that meets the community s needs. Engineering and Project Management Program Budget % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Type: Salaries $ 886, , , , ,560 3% 990,000 3% Benefits 314, , , , ,510 14% 411,000 3% Contractual services 9,982 9,900 11,216 9,900 8,740 (12%) 9,000 3% Other services 18,713 24,333 24,333 24,333 19,652 (19%) 20,000 2% Materials / supplies 5,362 8,500 8,500 8,500 5,150 (39%) 5,000 (3%) Interfund charges 34,051 39,946 39,946 39,946 19,904 (50%) 20,000 0% Capital outlay 0 0 6, N/A 0 N/A $ 1,269,043 1,369,219 1,377,043 1,369,219 1,414,516 3% 1,455,000 3% FTE Summary: Regular (full & part time) Gen Fund % % Budget Overview The Engineering & Project Management Division will continue project management of multiple capital transportation and facility improvement projects in furtherance of Council s strategic goals. Planned accomplishments utilizing the FY2017 budget include completion of the following projects: White Rock Civic & Senior Center Mesa Library HVAC Replacement Canyon Rim Trail Phase 2 and Phase 3 Central Avenue Phase 2 Western Area Phase 4 Cumbres del Sol Subdivision Street Improvements NM 502 Improvements in coordination with NMDOT 176

193 Program Purpose PUBLIC WORKS - ENGINEERING AND PROJECT MANAGEMENT The Engineering & Project Management Division manages the study, design and construction of capital improvement projects such as multimodal transportation improvements including the pavement management program, facility improvements including the major facilities maintenance program, and provides surveying and mapping services. Golf Course Clubhouse and Community Meeting Room Opens Significant Accomplishments - FY2015 Completed Transportation Projects Include: 20th Street & Fuller Lodge Parking Lot Improvements Western Area Phase 3 Improvements Sherwood Boulevard Improvements Pavement Condition Survey Canyon Rim Trail Phase 2 Design & Bid Completed Facilities Projects Include: Teen Center Renovations White Rock Library and Youth Activity Center Fuller Lodge & Historic Museum Renovations Smart House Renovations Fire Station No. 3 Improvements White Rock Civic & Senior Center Design & Bid Ice Rink Parking Lot Completed Surveying Projects Include: Century Link Land Acquisition Trinity Site Development Re-plat Stables Survey and Monumentation 177

194 PUBLIC WORKS - ENGINEERING AND PROJECT MANAGEMENT Performance Measures Priority Strategic Focus Area Goal Performance Measures FY2014 Actual FY2015 Actual FY2016 Actual FY2017 Target Quality Governance Operational Excellence Maintain Quality Essential Services and Infrastructure. Percent Year over Year Increase in Paved Lane Miles Assessed as Being in "Fair" or Better Condition (PCI>61). Paved Lane Miles Assessed as Being in "Fair" or Better Condition (PCI>61) as a percentage of paved lane miles assessed. 2.60% 1.42% 3.30% 0% 78.47% 79.51% 79.39% 79.39% Pavement Condition Survey Results (2016 results) Length in Lane- Feet Length in Lane-Miles Percent PCI Range Condition Rating 2, % 0-24 Poor 117, % Unacceptable 178, % Satisfactory 665, % Fair 389, % Good 90, % Excellent Total Miles % CPM Measure % PCI 61 or Better County has an equivalent (12ft wide) total of lane miles (Does not include parking lots) Performance Measures Narrative and Analysis Data from the 2016 Pavement Management Report was utilized to compile the data contained herein. Funds were budgeted in the FY2015 Capital Improvements budget to update the report. This updated report provides a current County-wide pavement condition analysis for use in project programming and performance analysis in subsequent budget cycles. The equivalent lanes miles are calculated by taking the actual total area of a respective road segment and then dividing it by its assumed/equivalent lane width of 12 ft. As of March 1, 2016, Los Alamos County has approximately lane miles, an increase of 9.13 lanes miles compared to the previous year. This difference is attributed to more accurate readings in paved area taken from the pavement survey conducted for the 2016 Pavement Management Report. The Public Works Department anticipates no increase in lane miles having a PCI 61 or better for FY2017 due to projected flat project funding levels. 178

195 Fleet/Equipment Division Mission PUBLIC WORKS DEPARTMENT - FLEET/EQUIPMENT Respond to County equipment needs using creativity, flexibility, training depth, and technical expertise. divisions on a rental rate recovery basis. Provide equipment to operating Fleet/Equipment Program Budget % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Type: Salaries $ 561, , , , ,814 3% 621,000 3% Benefits 229, , , , ,995 14% 298,000 4% Contractual services 109,705 88,000 96,604 96,604 88,000 0% 91,000 3% Other services 29,522 25,396 25,396 25,396 25,396 0% 26,000 2% Materials / supplies 1,464,850 1,480,168 1,480,168 1,480,168 1,295,168 (12%) 1,334,000 3% Interfund charges 368, , , , ,741 59% 586,000 3% Capital outlay 1,626,137 1,587,060 2,084,613 2,084,613 1,948,000 23% 1,797,000 (8%) $ 4,390,474 4,379,491 4,885,648 4,885,648 4,817,114 10% 4,753,000 (1%) FTE Summary: Regular (full & part time) % % Budget Overview Fleet is responsible for all repair maintenance and preventive maintenance on all vehicles and equipment, tracking and managing maintenance costs, providing preventive maintenance before experiencing equipment failures, monitoring labor effectiveness, and performing other crucial tasks for meeting the full potential of maintenance and facility management. A primary objective is to control the overall cost of operating and maintaining vehicles and equipment in a manner that extends their useful life and controls the growth in the size of the fleet. Another objective is to standardize the composition of the fleet and to accurately budget for maintenance and replacement costs. All new purchases for vehicles and equipment are part of the budget cycle and are analyzed through Asset Works, the fleet management system. In addition, Wright Express software monitors fuel usage per gallon for all fleet vehicles. 179

196 Program Purpose PUBLIC WORKS - FLEET/EQUIPMENT PROGRAM The purpose of the Fleet/Equipment Program is to provide vehicle and equipment maintenance, repair and replacement services to County staff so they use safe and reliable County vehicles and equipment. Fleet Mechanics are Working to Keep Vehicles on the Road and Maintenance Costs Down. Significant Accomplishments - FY2015 Received new service truck for Fleet which will improve services in the field. Established mechanic training throughout the year, which improves the quality of repairs, and saves on downtime and cost. Performance Measures Priority Strategic Focus Area Goal Performance Measures FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Quality Governance Operational Excellence Maintain Quality Essential Services. Hours Billed as a Percentage of Hours Available. County vehicles meet 95% of PM compliance. 74% 75% 76% 76% New metric in % 96% 97% Performance Measures Narrative and Analysis Fleet staff ensure that County vehicles are meeting manufacture service intervals, which lowers repair costs and extends vehicle life. 180

197 Traffic and Streets Division Mission Traffic and Streets Program Budget PUBLIC WORKS DEPARTMENT - TRAFFIC AND STREETS Provide both planned and responsive monitoring and repair to minimize the life-cycle cost of our County transportation system and to ensure safe, comfortable and reliable infrastructure. % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Type: Salaries $ 1,368,037 1,295,311 1,295,311 1,295,311 1,330,406 3% 1,370,000 3% Benefits 609, , , , ,855 1% 706,000 3% Contractual services 612, ,734 1,579,420 1,579, ,697 (10%) 793,000 3% Other services 37,899 25,510 25,510 25,510 25,510 0% 26,000 2% Materials / supplies 643, , , , ,254 1% 551,000 3% Interfund charges 802, , , , ,995 23% 775,000 3% Capital outlay 49,146 15,800 15,800 15,800 15,800 0% 16,000 1% $ 4,122,853 4,010,304 4,741,270 4,741,270 4,114,517 3% 4,237,000 3% FTE Summary: Regular (full & part time) (4%) % Budget Overview This budget will be used to fulfill the Traffic and Streets Division Mission of providing planned and responsive monitoring and repair to minimize the life-cycle cost of our County transportation system and to ensure safe, comfortable and reliable infrastructure. This will be achieved by monitoring, repairing and replacing traffic signals, street lights and signs within the constraints of the budget presented. The roadway and associated infrastructure will be monitored, repaired and replaced as needed on a prioritized basis conforming to budget constraints. Roadway and right-of-way maintenance will also include: street sweeping, striping, vegetation control and snow removal. Pavement preservation funds will be primarily focused on crack sealing and slurry sealing roadways in coordination with the County Engineer and the Pavement Condition Index (PCI) report to maximize the longevity of the assets the County has in place. Employee development will focus on training pertinent to the job tasks of the individual employee with the goal of providing continued excellent customer service. 181

198 Program Purpose PUBLIC WORKS - TRAFFIC AND STREETS The Traffic and Streets Program is charged with the responsibility of monitoring, repairing, and maintaining the surface transportation system and traffic control equipment in Los Alamos County. The Program provides responsible, quality maintenance of the transportation system to ensure safe, comfortable and efficient roads and streets, while minimizing citizen inconvenience; installs and maintains roadway signage, striping, traffic signals, streetlights and school flashers; manages roadwork zones, supports special events, and provides analysis services to the traveling public, police, fire, and road construction crews so they can travel and work more efficiently and in a safe environment. Streets Crews Assisting with the Arts For Public Places, San Ildefonso Pots Art Significant Accomplishments Streets - FY2015 Assisted with the transport and unloading of San Ildefonso Pots to the work area in preparation for installation. Extended shoulder on Overlook Road for parking. Reconstructed shoulders on Ski Hill Road with culverts and concrete. Constructed drainage behind house at 2820 Arizona. Reconstructed and paved East Paige Loop after water main break. Completed FEMA IS courses. Installed drainage pipe adjacent to 115 Longview. Cut curb and made drainage with rip rap at ECO Station. Replaced damaged fiber vault for IT at PCS. Started new construction and paved the Cul-de-sac at the end of street by the Co-op Market. Built site for the Strange Trio sculpture reinstallation in White Rock. Sloped the landfill, built drainage pond and covered the methane line at the ECO Station. Stacked concrete wall at Overlook Transfer station. Set up traffic control and worked the Fireworks show in White Rock on July 4. Fixed driveway for grand opening of the Library in White Rock and cleared the lot for overflow parking. Reconstructed both Zuni cul-de-sacs. Made access to the Reservoir so Water Production could start cleaning out debris. Completed County-wide clean up of weeds and removal of tree brush. Reconstructed the drain on Los Arboles Dr. Significant Accomplishments Traffic - FY2015 Upgraded the Sherwood Boulevard streetlights. Installed lighting for the Strange Trio art sculpture. Upgraded the lighting in the Fuller Lodge and Aquatic Center parking lots, 15th Street, and 20th Street. Installed the ACT Smart Disc. Installed tubular markers on medians. Installed a traffic signal and sign at the Eco Station. Re-aligned and re-striped Library overflow parking lot. Installed Central Ave webcam. 182

199 Performance Measures PUBLIC WORKS - TRAFFIC AND STREETS Priority Strategic Focus Area Goal Performance Measures FY2009 FY2011 FY2013 FY2015 Quality Governance Operational Excellence Maintain Quality Essential Services % of Citizens Rating Road Conditions as "Good" or "Excellent". 69% 62% 67% 67% 70% 65% 69% Citizens Rating of the Road Conditions 62% 67% 67% 60% 55% FY2009 FY2011 FY2013 FY2015 Performance Measures Priority Strategic Focus Area Goal Performance Measures FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Quality Governance Operational Excellence Maintain Quality Essential Services and Infrastructure Number of Lineal Feet of Lane Lines Striped & Maintained. Number of Signs Maintained, Fabricated, or Installed. Number of Traffic Signal Replaced, Maintained, or Repaired. Number of Street Sweeping Lane Miles Completed. 423, , , ,000 1, ,000 1, ,317 4,020 4,400 4,000 Cost of Street Sweeping. $129,593 $172,462 $172,462 $170,000 Cost per Lane Mile Number of Lane Miles in the Streets Preservation Project. Cost of Streets Preservation Project $39.07 $42.90 $39.20 $ $715,000 $650,000 $1,104,542 $626,790 Performance Measures Narrative and Analysis The FY2016 streets preservation project consisted of a cutler process that is more expensive per lane mile than other surface treatment processes such as fog seal or crack sealing. $364,542 in funds were transferred to the Streets Preservation Project from the Roadway Capital Fund. FY2017 goals are to focus more on surface treatments such as crack sealing and slurry seals. 183

200 Transit Division Mission Transit Program Budget PUBLIC WORKS DEPARTMENT - TRANSIT The purpose of the Transit Program is to provide safe, efficient, and dependable transportation choices to the traveling public of Los Alamos County so they will experience improved mobility throughout the community. % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Type: Salaries $ 1,562,785 1,668,996 1,668,996 1,668,996 1,795,532 8% 1,852,000 3% Benefits 715, , , , ,355 11% 914,000 3% Contractual services 245,401 61, , ,612 66,250 8% 68,000 3% Other services 36,812 72,951 72,951 72,951 43,722 (40%) 45,000 3% Materials / supplies 53, , , , ,780 (14%) 114,000 3% Interfund charges 1,273,634 1,194,791 1,194,791 1,194,791 1,268,034 6% 1,306,000 3% Capital outlay 950, ,778 1,386,432 1,386,432 62,720 (92%) 65,000 4% $ 4,838,799 4,710,774 5,382,890 5,382,890 4,237,393 (10%) 4,364,000 3% FTE Summary: Regular (full & part time) % % Limited term N/A % % % Budget Overview The proposed budget enables the ongoing operations of Atomic City Transit, including fixed route (9 buses on 7 routes in peak service), ADA complementary paratransit, general public demand-response service in the evening, afternoon express service (5 buses on 5 routes on school days) seasonal shuttle service to Bandelier National Monument and transportation for a variety of County-sponsored special events. The budget leverages some $2.2 million in Federal Transit Administration funds, administered by the New Mexico Department of Transportation, for administration, operating and capital assistance for Federal Fiscal Year 2017 (Oct. 1, 2016 Sep. 30, 2017). 184

201 PUBLIC WORKS - TRANSIT DIVISION Program Purpose The purpose of the Transit Program is to provide safe, efficient, and dependable transportation choices to the traveling public of Los Alamos County so they will experience improved mobility throughout the community. Smart Discs Technology ADA Transit Bus Significant Accomplishments - FY2015 Implemented routes and schedule changes, per the Transit Study approved by Council in January Installed Smart Discs on all bus stops throughout the system to publicize all the ways real-time transit information can be assessed, and to give estimated times of departure from each stop. Implemented ADA complementary paratransit service (dba ACT Assist) in Los Alamos County for the first time, per DOT, ADA requirement for entities operating fixed route service. Performance Measures Priority Strategic Focus Area Goal Quality Governance Operational Excellence Maintain Quality Essential Services Performance Measures % of Citizens Rating Transit Services as "Good" or "Excellent". FY2009 FY2011 FY2013 FY % 99% 98% 97% Citizens Rating of Transit Services 100% 99% 98% 97% 98% 99% 98% 97% 96% 95% FY2009 FY2011 FY2013 FY

202 Performance Measures PUBLIC WORKS - TRANSIT DIVISION Priority Strategic Focus Area Goal Performance Measures FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Quality Governance Operational Excellence Maintain Quality Essential Services and Infrastructure Number of Oneway Passenger Trips. Number of Miles of Service Provided. LAC General Fund Contribution. 517, , , , , , , ,000 $1,300,000 $1,200,000 $1,188,000 $1,000,000 Cost per Mile from General Fund. $ 1.78 $ 1.95 $ 1.92 $ 1.61 The General Fund Contribution to Transit Continues to Decrease Performance Measures Narrative and Analysis Routes and schedule changes occurred at the end of January 2016, and the full impact of those changes (one-way passenger trips, vehicle hours, and vehicle miles) have not been measured. Federal funding assistance for both capital and operating is expected to rise with passage of the FAST ACT, a long-term transportation bill, in December 2015, but may not filter down from the New Mexico Department of Transportation (NMDOT) to rural transit agencies until FY2017. It is anticipated that Los Alamos County will continue to score well on performance measures set by NMDOT, which may also mean increased funding (up to 10%) for administration and operating expenses in Federal FY2017. Increases in Federal funding translate into fewer General Fund dollars being transferred to the Transit Fund. 186

203 Department Description Environmental Services Division Mission PUBLIC WORKS DEPARTMENT - ENVIRONMENTAL SERVICES The Environmental Services Division is responsible for the operation of the County transfer station, commercial and residential refuse collection, curbside and drop off recycling, and composting of yard waste. The Environmental Services Division provides post-closure care maintenance to the LAC closed landfill and curbside refuse and recycle collection services for residential and commercial customers. The Environmental Services Division also operates the main Eco Station located on East Jemez Road and the White Rock Collection Center and Sullivan Field Convenience Center. Environmental Services Program Budget % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Type: Salaries $ 759, , , , ,487 6% 875,000 3% Benefits 336, , , , ,945 (13%) 342,000 3% Contractual services 964,458 1,196,100 1,196,100 1,196,100 1,304,717 9% 1,344,000 3% Other services 18,741 39,935 41,517 41,517 42,500 6% 44,000 4% Materials / supplies 73, , , , ,470 1% 175,000 3% Interfund charges 1,103,461 1,045,186 1,045,186 1,045, ,811 (6%) 1,012,000 3% Capital outlay 136, N/A - N/A Fiscal charges 360, , , , ,629 0% 372,000 3% $ 3,753,928 3,994,396 4,006,362 4,006,362 4,042,559 1% 4,164,000 3% FTE Summary: Regular (full & part time) % % Budget Overview Environmental Services Division will provide residential curbside collection of trash and recycle material on a weekly basis for ~6,850 residential customers. Environmental Services will also provide commercial recycle and trash dumpster collection for ~300 customers. Additional services that will be accomplished with the proposed budget include: Manage Eco Station Operations, Sullivan Field Recycling Center, and Overlook Collection Center in compliance with NMED Solid Waste Rules. Increase opportunities for waste diversion through the Reuse Area, increase recycling performance by implementing incentive based programs such as Recycle Bank and working with Los Alamos Public Schools, and increase composting efforts which will reduce overall waste generation. Provide educational and outreach to the community to promote environmental sustainability through the methods of recycling, reuse, waste reduction and composting. Provide assisted refuse and recycling services to members of our community in need of this service. Provide quarterly brush and bulk item collection for residential customers in effort to mitigate wildland fires and maintain defensible space. Host events that promote environmental sustainability including Clean Up Los Alamos Day, Recycle Fashion Show to celebrate America Recycles Day, and Business Recycler of the Year Award. 187

204 PUBLIC WORKS - ENVIRONMENTAL SERVICES Program Purpose Provides exceptional solid waste and sustainability services to create a better community for current and future generations. Significant Accomplishments - FY2015 Adjusted rates to be more aligned with the true cost to serve. Started an analysis of the brush and bulk item collection to improve the efficiency, waste diversion efforts and overall customer service. Started and close to completing the Interim Permit Review for the Transfer Station. Performance Measures Educational Tours are Appreciated by LA Youth. Priority Strategic Focus Area Goal Performance Measures FY2009 FY2011 FY2013 FY2015 Quality Governance Operational Excellence Maintain Quality Essential Services % of Citizens Rating Residential Recycling Services as "Good" or "Excellent". % of Citizens Rating Waste Collection as "Good" or "Excellent". 83% 82% 71% 88.0% New metric in 2015 survey. 94% 90% 85% 80% Citizen Satisfaction with Residential Recycling Services 83% 82% 88.0% 75% 70% 71% 65% FY2009 FY2011 FY2013 FY

205 Performance Measures PUBLIC WORKS - ENVIRONMENTAL SERVICES Priorities Strategic Focus Areas Goals Performance Measures FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Quality Governance Operational Excellence Maintain Quality Essential Services and Infrastructure Residential Waste Generated per Account (in tons). Percent of Waste Recycled per EPA Guidelines. Percent of Waste Diverted from the Landfill % 34.5% 35.1% 36.1% 43.9% 44.0% 46.0% 48.0% Performance Measures Narrative and Analysis Los Alamos County continues to increase waste diversion opportunities and decrease waste generation by reuse, recycling and composting. 189

206 Airport Division Mission Airport Program Budget PUBLIC WORKS DEPARTMENT - AIRPORT The Airport Division will maintain and enhance the Los Alamos Airport to ensure safe air transportation and mobility is maintained for both general aviation and the new commercial air service. Expenditures by Type: % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Salaries $ 114, , , , ,097 (4%) 108,000 3% Benefits 37,244 42,609 42,609 42,609 29,165 (32%) 30,000 3% Contractual services 806,704 1,396,300 1,480,012 1,480, ,400 (44%) 800,000 3% Other services 36, , , ,900 58,450 (46%) 60,000 3% Materials / supplies 8,267 22,810 28,297 28,297 21,050 (8%) 22,000 5% Interfund charges 123, , , , ,124 28% 169,000 3% Capital outlay 0 20,000 20,000 20,000 30,000 50% 31,000 3% Fiscal charges % 1, % $ 1,127,140 1,828,498 1,917,697 1,917,697 1,184,786 (35%) 1,221,000 3% FTE Summary: Regular (full & part time) % % Budget Overview The proposed budget allows the airport to continue to maintain the existing infrastructure (runway, taxiways, lighting systems, safety areas, etc.) in a manner that meets or exceeds the FAA standards for General Aviation airports. In addition, upgrades are planned for the weather station and the aging rotating beacon is scheduled to be replaced. Capital projects include replacing the perimeter security fence along NM 502 and Airport Road with an eight foot vinyl clad chain link fence meeting FAA standards and designing a new building for the storage of the airport s snow removal equipment. Both of these projects are eligible for FAA and State grant funding. The budget also includes funding to purchase one of the old hangars located on the west side of the airport adjacent to Airport Road that are contained in the runway safety area. These hangars are all privately owned and the Airport Master Plan calls for the removal of these hangars when the new development proposed for the west end of the airport begins. 190

207 Program Purpose PUBLIC WORKS - AIRPORT The purpose of the Airport Program is to provide aircraft operating areas, storage facilities and terminal facilities to aircraft owners, operators and passengers so they can safely and efficiently complete their travel to and from the County. Ready for Take-off Significant Accomplishments - FY2015 The contract with New Mexico Airlines (NMA) to provide commercial air service between Los Alamos and Albuquerque was cancelled by the County in January A new RFQ for air service was issued and Boutique Air (BOU) was selected to provide commercial air service to Albuquerque. The new service began on November 1, 2015 with 18 round trip flights per week to Albuquerque. However, Boutique Air cancelled the contract on April 30, The FAA has tentatively agreed to fund a project in FY2016 to crack seal, seal coat, and re-mark the runway at the airport to preserve the pavement. The project is estimated to cost $400,000 with the FAA paying 90% of the costs, the State paying 5% of the costs and the County paying 5% of the costs. The Department of Energy is in the process of removing the five concrete pads that they had constructed on an old landfill at the airport. The pads experienced severe settling and became unsuitable for the construction of hangars. A 60 X 60 foot hangar with three T-hangars will be constructed on the newly constructed, stablized concrete pad. Performance Measures Priority Strategic Focus Area Goal Performance Measures FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Number of Based Private Aircraft. % of Operating Expenses Recovered Through Revenues. Expenditure per Takeoff and Landing Accommodated (Private Aircraft). Load Factor Performance of Airlines Quality Governance Operational Excellence Maintain Quality Essential Services and Infrastructure 41% 30% 34% 34% $ $ $ $ NMA 37.7% NMA 47.5% BOU 30% n/a Performance Measures Narrative and Analysis The number of aircraft based at the airport has remained relatively steady at approximately 60 for the past two years. The construction of the new row of hangars mentioned under Significant Accomplishments would encourage additional aircraft to be based at the airport and would provide a large hangar for the storage of larger aircraft, something that has not existed at the airport in the past. 191

208 PUBLIC WORKS DEPARTMENT - FACILITIES MAINTENANCE DIVISION Mission The Facilities Maintenance Division will perform preventive facilities maintenance, major repairs, work space planning support, emergency facilities-related support, review of contract documents for contracted facilities construction and maintenance projects, and provide small construction projects with its licensed contractor staff. Facilities Maintenance Program Budget % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Type: Salaries $ 771, , , , ,228 2% 805,000 3% Benefits 318, , , , ,118 0% 403,000 3% Contractual services 254, , , , ,578 48% 428,000 3% Other services 15,321 17,800 17,858 17,858 17,800 0% 18,000 1% Materials / supplies 146, , , , ,000 0% 185,000 3% Interfund charges 850,349 1,041,329 1,041,329 1,041, ,178 (15%) 910,000 3% Fiscal charges N/A 0 N/A $ 2,357,625 2,675,209 2,708,272 2,708,272 2,668,902 0% 2,749,000 3% FTE Summary: Regular (full & part time) % % Budget Overview The Facilities Maintenance Division oversees the preventive maintenance, maintenance and small project in most of the County buildings. This includes working on HVAC system and all of the components for these systems. Staff is also the overseeing contractor for small projects and provides support to Major Facilities Maintenance and CIP projects. 192

209 Program Purpose PUBLIC WORKS - FACILITIES MAINTENANCE DIVISION The purpose of the Facilities Maintenance Division is to provide routine maintenance and repair to ensure the community has timely, safe and reliable use of County facilities. Significant Accomplishments - FY2015 Supported all other divisions and departments within the County. Remodeled the kitchen at the Golf Course. Installed sculptures and art throughout County buildings. Remodeled the offices in the Library, which previously housed the Information Management Division, into a youth center space. Performance Measures Priority Strategic Focus Area Goal Performance Measure FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Quality Governance Operational Excellence Maintain Quality Essential Services Total Facilities Costs per Square Foot. $2.61 $2.88 $3.27 $3.23 Total Facilities Costs per Square Foot to Maintain County Buildings $4.00 $3.50 $3.27 $3.23 $3.00 $2.50 $2.61 $2.88 $2.00 FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Performance Measures Narrative and Analysis The cost of square footage has gone up due to the increase in the number of new buildings and the complexity of the maintenance required on the new equipment. 193

210 PUBLIC WORKS DEPARTMENT - CUSTODIAL MAINTENANCE DIVISION Mission The mission of the Custodial Maintenance Division is to promote innovative approaches, conscientious stewardship, and outstanding customer service while delivering clean and safe work, recreation and meeting spaces to the County. In addition to maintaining County buildings, the Custodial Maintenance Division is also responsible for County facility reservations which include such facilities as Fuller Lodge, Municipal Building, The Betty Ehart Senior Center and the White Rock Complex. The division maintains approximately 556,324 square feet of County property on a daily basis and provides support for approximately 3,000 events each year for both the County and the Public within County facilities. Custodial Maintenance Program Budget % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Type: Salaries $ 581, , , , ,447 (1%) 596,000 3% Benefits 276, , , , ,779 (1%) 316,000 3% Contractual services 105, , , , ,815 16% 123,000 3% Other services 1,286 6,250 6,250 6,250 8,750 40% 9,000 3% Materials / supplies 69,075 80,391 89,434 89,434 99,001 23% 102,000 3% Interfund charges 35,564 36,241 36,241 36,241 27,791 (23%) 29,000 4% $ 1,068,920 1,120,409 1,139,095 1,139,095 1,140,583 2% 1,175,000 3% FTE Summary: Regular (full & part time) % % Budget Overview The Custodial Maintenance Division is responsible for maintaining over one-half million square feet of County buildings and this budget will be used to fulfill those duties which include daily cleaning, floor work, window cleaning, pest control and event support. The objective is to provide these services in an efficient, cost-effective way with the goal of creating pleasant environments for the citizens and County staff, while helping to extend the life of our County facilities. 194

211 Program Purpose PUBLIC WORKS - CUSTODIAL MAINTENANCE DIVISION The purpose of the Custodial Maintenance Division is to provide cleaning, planned maintenance, and event support services to County staff and facility users so they can have attractive, clean, and timely use of County facilities. Custodial Staff Receive Thanks from County Employees for all of Their Work Significant Accomplishments - FY2015 Successfully transitioned to a new facility reservation software system which allows the public to view available dates and times for County facility rentals. Provided the golf course community room with a new public address system and exterior sweeper. Upgraded the public address system in the Betty Ehart Senior Center with a new amplifier and microphones. Increased availability of projectors and public address system to all County facilities. Assisted facilities staff with the installation of the Municipal Building holiday tree. Began the certification process for Green Seal and environmentally friendly chemicals. Smoothly transitioned to the Public Works Department from the Community & Economic Development Department. 195

212 Performance Measures Results PUBLIC WORKS - CUSTODIAL MAINTENANCE DIVISION Priority Strategic Focus Area Goal Performance Measure FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Quality Governance Operational Excellence Total Custodial Maintain Quality Costs per Square Essential Services Foot. $ 1.88 $ 2.01 $ 1.98 $ 1.95 $2.10 $2.05 $2.00 $1.95 Trend in Custodial Costs for County Buildings $2.01 $1.98 $1.95 $1.90 $1.85 $1.88 $1.80 $1.75 FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Performance Measures Narrative and Analysis The cost per square foot continues to decrease from $2.06 in FY2012 to a FY2016 estimate of $1.98. This is due to an increase in square feet maintained without an increase in staff. With continued operational efficiencies, an additional square foot decrease is expected in FY2017 to $

213 UTILITIES DEPARTMENT Utilities Manager 1 FTE Administration 7 FTE Engineering 11 FTE Utility Billing Customer Service 6 FTE Electric Production 12 FTE Electric Distribution 13 FTE Gas FTE * Wastewater 9 FTE Hydroplant Generation San Juan Operations Contract Administration Photovoltaic Array Power Scheduling Substation Maintenance Switching Station Maint Overhead Maintenance Meter Maintenance Gas Distribution Meter Maintenance Gas Safety Wastewater Collection Lift Stations Wastewater Treatment Water Production 9.25 FTE Water Distribution Pumping Power Wells Booster Pump Stations Storage Tanks Transmission Lines Non Potable System Meter Maintenance Fire Hydrants Distribution Lines * All FTEs work in Gas, Water Distribution, and Wastewater Collection. 197

214 Department Mission, Vision and Values UTILITIES DEPARTMENT Mission: Provide safe and reliable utility services in an economically and environmentally sustainable fashion. Vision: Be a high-performing utility matched to our community, contributing to its future with diversified and innovative utility solutions. Values: The Utilities Department values our: CUSTOMERS by being service-oriented and fiscally responsible. EMPLOYEES AND PARTNERSHIPS by being a safe, ethical and professional organization that encourages continuous learning. NATURAL RESOURCES through innovative and progressive solutions. COMMUNITY by being communicative, organized and transparent. Department Description Los Alamos County (LAC) Utilities Department's function is to provide our customers with quality electric, natural gas, water, and wastewater services to meet current and future needs and to achieve the highest level of customer satisfaction. Department Summary Expenditures by Program/Subfund Water Distribution 3% Wastewater 8% Water Production 16% Gas 7% Electric Production 54% Electric Distribution 12% 198

215 UTILITIES DEPARTMENT % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Program: Electric Production $ 45,825,289 53,595,350 55,467,587 51,119,523 38,384,238 (28%) 40,936,801 7% Electric Distribution 5,869,309 6,345,774 9,847,074 9,822,901 8,459,151 33% 6,664,513 (21%) Gas 4,976,199 6,254,339 6,833,303 6,833,303 5,304,078 (15%) 5,176,369 (2%) Water Production 4,220,877 5,202,409 9,114,280 5,202,409 11,583, % 4,784,913 (59%) Water Distribution 2,118,292 2,704,023 3,785,550 2,704,023 2,163,320 (20%) 2,136,322 (1%) Wastewater 4,967,022 4,968,577 6,489,128 6,489,128 5,501,226 11% 14,988, % $ 67,976,988 79,070,472 91,536,922 82,171,287 71,395,628 (10%) 74,687,229 5% Expenditures by Type: Salaries $ 6,455,467 6,560,886 6,560,886 6,560,886 6,677,675 2% 6,709,168 0% Benefits 2,374,218 2,494,914 2,494,914 2,494,914 2,557,396 3% 2,609,352 2% Contractual services 38,006,365 57,907,615 70,250,146 60,944,483 36,332,581 (37%) 38,761,951 7% Other services 1,400,020 1,701,983 1,701,983 1,701,983 1,759,366 3% 1,752,620 0% Materials / supplies 1,642,306 1,475,679 1,559,598 1,499,626 1,590,080 8% 1,594,980 0% Interfund charges 4,022,386 3,524,352 3,524,352 3,524,352 3,663,750 4% 3,669,925 0% Capital outlay 245, , , ,140 13,611, % 13,710,140 1% Advances to other funds 800, N/A 0 N/A Fiscal charges 13,030,636 5,017,903 5,017,903 5,017,903 5,203,731 4% 5,879,093 13% $ 67,976,988 79,070,472 91,536,922 82,171,287 71,395,628 (10%) 74,687,229 5% FTE Summary: Regular (full & part time) % % Casual, Student,& Temp (16%) % % % By Division: Electric Production % % Electric Distribution (9%) % Gas % % Water (10%) % Wastewater % % % % Budget Summary The overall Utilities Fund budget is a reduction of 10.25% from the FY2016 budget, due primarily to lower commodity costs. Per Council guidance, a 3% increase for salaries is included in the budget. The FY2017 budget includes one additional limited term FTE for Water Distribution. This additional person will assist an existing limited term staff member in changing out water meters in preparation for system-wide deployment of advanced metering infrastructure (AMI). Under Electric Production, funding is included for double-filling a Hydro Plant Maintenance Technician position for one year in anticipation of an existing staff member's retirement in FY2018. The Utility Manager's budget includes $100,000 for staffing realignment resulting from the 2016 compensation survey. In Electric Production, the forecast cost for purchased power is $35.00 and $38.00 per MWh in FY2017 and FY2018 respectively. This is down from $45 budgeted for FY2016. A savings of $4.1M is anticipated in fuel costs at San Juan through the new coal sales agreement. Likewise, in Gas Distribution, the new NMMEAA deal guarantees a discount of $0.274 per MMBTU which is included in both budgets. Natural gas market prices remain low. Gas purchases are budgeted at $3.174/MMBTU (before the NMMEAA discount). DPU has worked hard over the past several years to refurbish the gas distribution system and is now in a position to reduce project funding. As such, the budget proposes a 10% reduction in the fixed portion of the commodity rate charged to gas utility customers each year. Further rate reductions are anticipated if the pass-through cost of gas rate structure is continued. The Wastewater division's sewer service rate increase of 8% codified in FY2012 is included in the FY2017 budget. The capital plan includes design of the White Rock Treatment Plant in FY2017 and construction in FY2018. Because of rate pressure, all except the most necessary collection system projects have been curtailed. Debt service on the new bond issue to fund the White Rock plant and other inflationary drivers will necessitate future increases. With current projections, existing cash reserves will be exhausted by the end of FY2020. Even with 2% per year increases planned for fiscal years 2020 through 2022 and 1.5% increases in 2023 through 2025, cash position will continue to deteriorate without further curtailment of expenditures or additional rate increases. 199

216 Budget Summary FY2016 water sales are falling short of the reduced projected sales that were budgeted, primarily due to consistent rainfall in the summer season. To remain conservative, FY2017 projected sales have been reduced from 880,000 Kgal to 775,000 Kgal, and projections for production have been reduced from 1,400,000 Kgal to 1,150,000 Kgal. With the resulting revenue projections, all except the most critical capital spending has been curtailed. Additionally, a 10% increase in wholesale water rates in FY17 and inflationary increases of 2% per year thereafter are projected in Water Production, and a 10% increase followed by 5% increases every other year are projected in Water Distribution. Utility Department Significant Accomplishments - FY2015 DPU officially became a member of the Utah Associated Municipal Power Systems, or UAMPS. Through UAMPS, DPU is eligible to participate in the Carbon Free Power Project should it choose. This project will develop the world's first small modular nuclear reactor power generating station. DPU achieved Roadrunner Recognition from Quality New Mexico's Performance Excellence Awards Program. The subsequent feedback report identifying strengths and opportunities for improvement is serving as the basis for planning efforts to improve the quality of service to customers. It became apparent in FY2015 that more public input was needed to give guidance to the BPU on issues of carbon neutrality, future renewable energy supply resources and how to fairly deal with distributed generation resources such as roof-top solar facilities at customers' homes. Accordingly, the Board of Public Utilities advertised for citizens to participate in a Future Energy Resources (FER) committee. Membership consisted of representatives from the Los Alamos Public Schools, the business community, a customer with roof-top solar, Los Alamos National Laboratory, the County's Environmental Sustainability Board and two citizens at large. The FER Committee met through the spring and early summer of 2015, completing a report and presenting it to the BPU in July. The BPU accepted the report and is presently evaluating the report recommendations. DPU fared well in the 2015 Customer Survey with 90% of residential and commercial respondents rating the overall reliability of water,sewer, and gas services as either "excellent" or "good." Similarly, 89% of residential customers rated the overall quality of the electrical service as "excellent" or "good." 200

217 Division Description UTILITIES DEPARTMENT - ELECTRIC The Utilities Electric Production and Distribution Divisions manage the County's electric generation and transmission resources to meet the electric energy requirements for LAC customers and the DOE's Los Alamos National Laboratory in the most cost-effective manner. The Deputy Utilities Manager, Power Supply/Electric Production is Manager of Operations for the LAC/DOE Operating Committee which sets policy for the combined LAC/DOE power pool. The Distribution Division is responsible for maintenance, operation, and repair of all electric distribution lines and equipment owned by the County of Los Alamos to provide delivery of electric power to its customers. Electric Production Program Budget % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Revenue and Expenditure Summary: Revenues $ 43,904,672 50,052,004 50,052,004 49,225,197 38,444,861 (23%) 40,963,704 7% Expenditures 45,825,289 53,595,350 55,467,587 51,119,523 38,384,238 (28%) 40,936,801 7% Net Revenues (Exp.) $ (1,920,617) (3,543,346) (5,415,583) (1,894,326) 60,623 (102%) 26,903 (56%) Expenditures by Sub-Program: El Vado Generation $ 539, , , , ,454 42% 488,315 (22%) Abiquiu Generation 272, , , , ,655 (13%) 399,088 0% Contract Administration 34,676 24,414 24,414 24,414 19,736 (19%) 20,128 2% Load Control 1,517,364 1,451,902 1,628,693 1,451,902 1,696,876 17% 1,531,455 (10%) Transmission - PNM 1,236,134 1,380,000 1,380,000 1,380,000 1,380,000 0% 1,380,000 0% Transmission - Other 1,918,534 2,238,379 2,238,379 2,238,379 2,540,523 13% 2,621,168 3% Purchased Power 10,845,290 20,393,884 20,393,884 18,722,611 14,147,976 (31%) 14,972,854 6% Photovoltaic Array 98,926 92,000 92,000 92,000 92,000 0% 92,000 0% Debt Service 10,159,917 2,528,081 2,528,081 2,528,081 2,529,392 0% 2,536,071 0% Property Taxes 345, , , , ,212 (8%) 440,212 0% Insurance 98, , , , ,000 0% 115,000 0% San Juan Operations 12,433,944 22,536,911 22,536,911 20,036,911 9,354,837 (58%) 11,425,255 22% Laramie River Operations 3,185, ,049, % 3,184,154 4% SMR Project , % 300,000 0% Interdepartmental Charges 489, , , , ,089 13% 415,633 0% Eng/Admin O/H 684, , , , ,263 5% 765,468 (1%) Capital Expenditures 1,963, ,000 2,045,446 2,045, ,000 44% 250,000 (50%) $ 45,825,289 53,595,350 55,467,587 51,119,523 38,384,238 (28%) 40,936,801 7% Expenditures by Type: ` Salaries 1,128,246 1,026,963 1,026,963 1,026,963 1,046,830 2% 1,037,746 (1%) Benefits 380, , , , ,197 6% 391,046 (3%) Contractual services 32,383,133 47,638,647 49,506,564 45,162,820 31,895,761 (33%) 34,722,631 9% Other services 495, , , , ,220 (7%) 614,320 0% Materials / supplies 97,649 74,400 78,720 74, , % 160,600 0% Interfund charges 1,174,707 1,129,929 1,129,929 1,129,929 1,210,188 7% 1,205,337 0% Capital outlay 6, , , , , % 269,050 (49%) Fiscal charges 10,159,917 2,528,081 2,528,081 2,528,081 2,529,392 0% 2,536,071 0% $ 45,825,289 53,595,350 55,467,587 51,119,523 38,384,238 (28%) 40,936,801 7% FTE Summary: Regular (full & part time) % % Budget Overview The forecast cost for purchased power is $35.00 and $38.00 per MWh in FY2017 and FY2018 respectively, down from $45 budgeted for FY16. We are also anticipating approximately $4.1M savings in fuel costs at San Juan through the new coal sales agreement. With the El Vado Turbine Rewind project completed in FY2016, the FY2017 budget includes $81k for resurfacing the floors at the El Vado plant. Also included is $300k for our share of the Small Modular Reactor (SMR) Phase 1 site study work. Additionally, technology expenditures are budgeted at $155k to include SCADA upgrades, NERC CIP V5 compliance software, and an anticipated professional services agreement for compliance support. 201

218 Program Purpose UTILITIES - ELECTRIC PRODUCTION The purpose of the Electric Production Program is to provide electrical energy services to the Los Alamos County Electric Distribution Division and the Department of Energy/Los Alamos National Laboratory so they can reliably serve their customers at competitive prices. Contractors work on replacing the large rotor at the El Vado Hydroelectric Facility as part of the El Vado Rewind Project. A turbine at the Abiqui Hydroelectric Facility. Significant Accomplishments - FY2015 Contractors work on replacing the large rotor at the El Vado Hydroelectric Facility as part of the El Vado Rewind Project. Significant progress was made in FY2015 on large multi-year initiatives that will be completed in FY2016: Environmental upgrades completed at the San Juan Generating Station allow for more efficient generating processes. Completed the generator rewind and turbine refurbishment project at the El Vado hydroplant. Completed the Ownership Restructuring Agreements for the San Juan Generating Station with an anticipated 29% reduction in fuel cost starting January 1, This equates to a savings of approximately $15 million over the next 7 1/2 years. Secured approval for membership in Utah Associated Municipal Power System (UAMPS) from DFA, allowing DPU to participate in the Carbon Free Power Project and other initiatives. Performance Measures Priority Strategic Focus Area Goal Performance Measures FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Quality Governance Operational Excellence Maintain Quality Essential Services and Supporting Infrastructure Percent of total energy supplied from County-owned resources and long-term purchase contracts. Cost per MWH generated from owned resources and long term contracts. 78% 75% 59% 59% $72.21 $58.35 $81.24 $

219 Electric Distribution Program Budget UTILITIES DEPARTMENT - ELECTRIC % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Revenue and Expenditure Summary: Revenues $ 19,072,119 15,142,592 15,142,592 14,947,592 15,123,853 0% 15,314,855 1% Less Interfund Commodity (8,159,311) (9,091,213) (9,091,213) (9,091,213) (7,000,000) (23%) (7,750,000) 11% Adjusted Revenues $ 10,912,808 6,051,379 6,051,379 5,856,379 8,123,853 34% 7,564,855 (7%) Expenditures 5,869,309 6,345,774 9,847,074 9,822,901 8,459,151 33% 6,664,513 (21%) Net Revenues (Exp.) $ 5,043,499 (294,395) (3,795,695) (3,966,522) (335,298) 14% 900, % Expenditures by Sub-Program: Supervsn, Misc. Dir. Admin. $ 646, , , , ,771 5% 702,560 2% Substation Maintenance 31,741 34,073 34,073 34,073 37,100 9% 38,703 4% Switching Station Maint. 11,012 28,073 28,073 28,073 28,129 0% 28,632 2% Overhead Maintenance 304, , , , ,336 5% 462,907 2% Underground Maintenance 298, , , , ,640 1% 377,228 2% Meter Maintenance 70, , , , ,885 0% 129,416 2% Interdepartmental Charges 495, , , , ,969 1% 428,969 0% Eng/Admin O/H 548, , , , ,308 5% 980,204 (1%) In Lieu Taxes 453, , , , ,602 18% 542,422 1% Debt Service 1,653,088 1,287,959 1,287,959 1,287,959 1,264,358 (2%) 1,255,148 (1%) Capital Expenditures 1,356,808 1,589,411 5,066,538 5,066,538 3,536, % 1,718,324 (51%) $ 5,869,309 6,345,774 9,847,074 9,822,901 8,459,151 33% 6,664,513 (21%) Expenditures by Type: Salaries $ 2,928,698 3,130,376 3,130,376 3,130,376 3,247,082 4% 3,224,410 (1%) Benefits 1,045,411 1,168,128 1,168,128 1,168,128 1,186,197 2% 1,221,781 3% Contractual services 826,073 2,044,390 5,491,517 5,481, ,610 (54%) 936,110 0% Other services 600, , , , ,889 12% 799,190 1% Materials / supplies 745, , , , ,980 (4%) 410,180 0% Interfund charges (2,065,117) (2,502,868) (2,502,868) (2,502,868) (2,670,799) 7% (2,649,831) (1%) Capital outlay 134,693 87, , ,525 3,293, % 1,467,525 (55%) Fiscal charges 1,653,088 1,287,959 1,287,959 1,287,959 1,264,358 (2%) 1,255,148 (1%) $ 5,869,309 6,345,774 9,847,074 9,822,901 8,459,151 33% 6,664,513 (21%) FTE Summary: Regular (full & part time) (10%) % Casual, Student,& Temp % % (9%) % Budget Overview No rate increases are projected in FY2017 or FY2018 for Electric Distribution, although a rate restructuring may be proposed in response to recommendations of the Future Energy Resources Committee. The 10-year forecast includes essentially inflationary increases of 1.5% per year after FY2018. Approximately $500k in overhead and underground replacements originally budgeted in FY2015 did not get completed. Now that we have a contract in place with an outside vender these replacements are re-budgeted for FY2017. The Los Alamos Sub Station (LASS) project is scheduled for FY2017 and is budgeted at $1M. Total ED project spending of $3.5M in FY2017 is funded through the FY2014 bond issue. 203

220 UTILITIES - ELECTRIC DISTRIBUTION Program Purpose The purpose of the Electric Distribution Program is to provide electric energy services to Los Alamos County retail customers so they have access to reliable service at a reasonable price. DPU's Electric Distribution Crew The division's new "backyard unit" has been put to extensive use with tree trimming, transformer replacement and pole replacements. Despite the risks the linemen take on the job, there were no reportable loss-time injuries for the crew in FY2015. Significant Accomplishments - FY2015 Due to improvements in the electric system over the past several years, the SAIDI for Los Alamos County was at 56 minutes at the end of FY2015. The measure was 7% below our target of 60 minutes, which itself is 40% below the national average SAIDI, not including major outage events, of 100 minutes. Electric Distribution tested 1,141 electric transformers and found 38 were at or above the threshold of 50PPM that identifies them as "PCB contaminated." Of these, 34 were replaced in FY underground and 20 overhead. The four remaining contaminated units are scheduled for replacement in FY2016. Four obsolete, live-front transformers were replaced and four additional transformers were installed in a continuing effort to install additional transformers during pole replacements so that each transformer serves no more than eight customers. The Electric Distribution crew installed more than 2000 feet of primary electric line in White Rock along Meadow Lane and replaced four transformers and secondary conductors. In Los Alamos, they installed 700 feet of underground primary 3- phase conductors to provide a contingency feed on North Mesa. 204

221 Performance Measures UTILITIES - ELECTRIC DISTRIBUTION Priority Strategic Focus Area Goal Performance Measures FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Quality Governance Operational Excellence Maintain Quality Essential Services and Supporting Infrastructure System Average Interruption Duration Index (SADI) or the amount of time the average customer could expect to be without power, as a percentage of the American Public Power Association (APPA) average for this region. Ratio of Los Alamos County residential rate to the average rate of the 3 nearest electrical utilities. 105% 93% 100% 100% 83% 99% 95% 98% Performance Measures Narrative and Analysis Due to improvements made to the electric system over the past several years, outages have been fewer in number and duration, allowing LAC to fall below the regional average for the amount of time a customer can expect to be without power. Even with an electric rate increase in February 2015, DPU's rates are still lower than those of neighboring communities. 205

222 Division Description Gas Distribution Program Budget UTILITIES DEPARTMENT - GAS DISTRIBUTION The Utilities Gas Distribution Division is responsible for maintenance, operation, and repair of all gas distribution lines and equipment owned by LAC in order to provide gas service to its customers. In addition, the division conducts gas leak safety checks on a regular basis and responds to customer gas safety requests. % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Revenue and Expenditure Summary: Revenues $ 5,453,645 7,143,233 7,143,233 4,813,000 5,680,587 (20%) 5,123,228 (10%) Expenditures 4,976,199 6,254,339 6,833,303 6,833,303 5,304,078 (15%) 5,176,369 (2%) Net Revenues (Exp.) $ 477, , ,930 (2,020,303) 376,509 (58%) (53,141) (114%) Expenditures by Sub-Program: Supervsn, Misc. Dir. Admin. $ 262, , , , ,661 28% 298,322 0% Gas Distribution 236, , , , ,235 (30%) 337,217 (1%) Gas Meters 101, , , , ,420 (6%) 151,963 1% Interdepartmental Charges 399, , , , ,035 10% 285,035 0% Eng/Admin O/H 562, , , , ,460 5% 701,712 (1%) In Lieu Taxes 184, , , , ,857 (8%) 196,710 (5%) Cost of Gas 2,410,445 3,512,378 3,512,378 3,512,378 2,505,410 (29%) 2,505,410 0% Capital Expenditures 818, ,000 1,245,017 1,245, ,000 17% 700,000 (14%) $ 4,976,199 6,246,339 6,833,303 6,833,303 5,304,078 (15%) 5,176,369 (2%) Expenditures by Type: Salaries $ 563, , , , ,965 (8%) 325,529 3% Benefits 45, , , , ,100 15% 158,722 3% Contractual services 2,970,448 4,224,378 4,779,395 4,779,395 2,522,410 (40%) 2,512,410 0% Other services 191, , , , ,357 6% 236,210 (6%) Materials / supplies 211, , , , ,500 (51%) 129,500 0% Interfund charges 984,830 1,052,663 1,052,663 1,052,663 1,118,746 6% 1,113,998 0% Capital outlay 9, ,000 N/A 700,000 (14%) $ 4,976,199 6,254,339 6,833,303 6,833,303 5,304,078 (15%) 5,176,369 (2%) FTE Summary: Regular (full & part time) % % Casual, Student,& Temp (23%) % % % Note: FTE includes Gas, Water Distribution & Wastewater Budget Overview The new NMMEEA deal guarantees a $0.274 discount, which is included in the budgets for FY2017 and FY2018. Natural gas market prices remain low, and gas purchases are budgeted at $3.174/MMBTU (before the NMMEAA discount). Over the past several years the Department has worked hard on refurbishing the gas distribution system, and is now in a position to reduce project funding. We will continue to budget at a level which we feel will sustain the system in good condition, but propose in this budget to start to spend down some gas utility cash reserves. To this end, this budget proposes a 10% reduction in the fixed portion of the commodity rate charged to consumers in each year. If the pass through cost of gas rate structure is continued we would propose to further reduce the cash balance through additional rate reductions. 206

223 UTILITIES - NATURAL GAS DISTRIBUTION Program Purpose The Utilities Natural Gas Distribution Program is responsible for maintenance, operation and repair of all gas distribution lines and equipment owned by Los Alamos County in order to provide gas service to its customers. In addition, the division conducts gas leak safety checks on a regular basis and responds to customer gas safety requests. A gas meter is read in Los Alamos. Plans are under way for implementing Advanced Metering Infrastructure, which would eliminate the need to manually read meters. Significant Accomplishments - FY2015 Nearly two-thirds (62%) of residential customer survey respondents rated the overall performance of the gas service as "excellent." This is the highest percentage since the inception of the survey in The State of New Mexico's triennial audit of the Los Alamos DPU gas system was completed with no safety violations or significant regulatory non-compliance issues. Performance Measures Priority Strategic Focus Area Goal Performance Measures FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Quality Governance Operational Excellence Maintain Quality Essential Services and Supporting Infrastructure Percent of LAC price to New Mexico Gas Company rate to its customers Expenditure per natural gas customer served 91% 85% 92% 93% $ $ $ $ Performance Measures Narrative and Analysis Due to the variable gas rate design, which allows for continuing coverage of the cost of gas, Los Alamos' price remains well below that of New Mexico Gas Company. Expenditures were also lower than expected in FY2015 because the cost of gas has been consistently dropping since March Average Gas Bill Comparison: Los Alamos County and NM Gas Company FY2017 Target FY2016 Estimate $40.00 $43.20 $35.00 $38.00 FY2015 Actual FY2014 Actual $48.33 $50.52 $57.01 $56.91 $ $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 LAC Average Bill New Mexico Gas Company Average Bill 207

224 Division Description UTILITIES DEPARTMENT - WATER The Utilities Water Division is responsible for maintenance, operation, and repair of all water lines and equipment owned by the County of Los Alamos to provide safe water services to its customers. The Water Production Division ensures water quality control measures that meet or exceed state and federal regulations on safe drinking water. Water Production Program Budget % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Revenue and Expenditure Summary: Revenues $ 3,919,003 5,099,586 5,099,586 5,099,586 6,671,317 31% 4,986,419 (25%) Expenditures 4,220,877 5,202,409 9,114,280 5,202,409 11,583, % 4,784,913 (59%) Net Revenues (Exp.) $ (301,874) (102,823) (4,014,694) (102,823) (4,912,298) 4677% 201, % Expenditures by Sub-Program: Supervision and Oper. $ 916,070 1,071,733 1,071,733 1,071, ,649 (9%) 991,861 2% Pumping Power 552, , , , ,000 (6%) 800,000 0% Wells 99, , , , ,508 (10%) 138,775 1% Booster Pump Stations 124, , , , ,236 (11%) 126,754 1% Treatment 64,471 75,442 75,442 75, ,199 39% 105,595 0% Storage Tanks 10,796 28,475 28,475 28,475 19,600 (31%) 19,798 1% Transmission Lines 67,820 61,716 61,716 61,716 65,509 6% 66,248 1% Non Potable System 65, , , , , % 370,422 (42%) Interdepartmental Charges 332, , , , ,893 16% 263,893 0% Eng/Admin O/H 473, , , , ,254 5% 502,071 (1%) State Water Tax 29,237 45,000 45,000 45,000 45,000 0% 45,000 0% Capital Expenditures 537,197 1,554,400 5,424,792 1,554,400 7,644, % 1,075,000 (86%) Advances to Other Funds 800, N/A 0 N/A Debt Service 159, , , , ,182 9% 279,496 0% $ 4,232,555 5,202,409 9,114,280 5,202,409 11,583, % 4,784,913 (59%) Expenditures by Type: Salaries $ 608, , , , ,209 (11%) 613,708 3% Benefits 243, , , , ,666 (11%) 236,734 3% Contractual services 627,340 1,938,200 5,808,592 1,938, ,800 (67%) 358,800 (43%) Other services 90,747 66,000 66,000 66,000 66,000 0% 66,000 0% Materials / supplies 130, , , , ,400 0% 228,400 0% Interfund charges 1,560,404 1,701,734 1,701,734 1,701,734 1,772,893 4% 1,769,710 0% Capital outlay 0 109, , ,065 7,803, % 1,232,065 (84%) Advances to other funds 800, N/A 0 N/A Fiscal charges 159, , , , ,182 9% 279,496 10% $ 4,220,877 5,202,409 9,114,280 5,202,409 11,583, % 4,784,913 (59%) FTE Summary: Regular (full & part time) (10%) % Budget Overview The capital plan for Water Production, like last year, includes non-potable projects that are funded through a partial grant/loan from the Water Trust Board (WTB). These projects will only occur if the WTB funding is realized. The capital plan also includes the ski hill pipeline construction, which is funded through transfers from the general County and from the ski hill operator. Additionally, a replacement well is budgeted in FY2017, to be funded from fund balance. With the reduced revenue projections and curtailed capital spending for FY2017 and FY2018, the only project on the agenda aside from those mentioned above is the Camp May Tank Freeze Protection project. All other projects have been pushed out in the 10-year plan and will be reevaluated by the asset management teams each budget cycle. With the accounting established to separate costs for potable and non-potable systems, a non-potable water master plan has also been developed. A rate about double what is currently being charged was suggested in that plan. However, to avoid rate shock at budget time to the largest users of the non-potable system--the schools, parks, and ski hill--that rate increase has been postponed until FY2018. In the interim, the costs of the newly separated systems will be evaluated. For budget planning purposes, rate assumptions were made of $1.15/Kgal for FY2017 and $2.50/Kgal for FY

225 UTILITIES - WATER PRODUCTION Program Purpose The purpose of the Water Production Program is to provide water supply and treatment services to Los Alamos National Laboratory and Los Alamos County water distribution division so they can provide safe, pure water to their customers. Significant Accomplishments - FY2015 The Water Production division established accounting to separate non-potable system costs from potable system costs. As the non-potable system grows, this separation will allow for more accurate data analysis, job costing, and budgeting. Completed an interim DPU FEMA project to dredge the Los Alamos Reservoir and improve the access road. In the past three years, the Water Production division has successfully acquired a total of $2.39 million from the Water Trust Board for effluent water system expansion. The non-potable water system has been improved so that non-potable water is now provided at pressures that allow the existing users (golf course, North Mesa parks, Los Alamos Middle School) to irrigate without using pump stations. Performance Metrics Guaje Booster Station Pajarito Booster Station Priority Strategic Focus Area Goal Performance Metric FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Quality Governance Operational Excellence Maintain Quality Essential Services and Supporting Infrastructure Percent of water tests in compliance with SDWA standards. Total operating and maintenance expense per thousand gallons of water produced 100% 100% 100% 100% $2.41 $2.63 $2.77 $2.92 Performance Metrics Narrative and Analysis Although all completed tests complied with the SDWA standards, only 25 samples were taken in September This was less than the required 30 samples for a valid sampling. DPU received a notice of violation for too few samples from the New Mexico Environment Department, Drinking Bureau in February No fines were assessed. DPU was required to notify all customers and complete a full re-sampling in June of The consumer confidence report was mailed to all customers on May 7, 2015 which included the required notice. In regard to total operating and maintenance expense per thousand gallons of water produced, both production and expenditures were lower than expected. However, there was a greater difference, percentage-wise, in production driving the per-thousandgallon expense up slightly. 209

226 Water Distribution Program Budget UTILITIES DEPARTMENT - WATER % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Revenue and Expenditure Summary: Revenues $ 3,904,541 4,825,800 4,825,800 4,825,800 4,507,250 (7%) 4,507,250 0% Less Interfund Commodity $ (2,894,585) $ (2,452,420) $ (2,452,420) $ (2,452,420) $ (2,456,750) 0% $ (2,505,885) 2% Adjusted Revenues $ 1,009,956 $ 2,373,380 $ 2,373,380 $ 2,373,380 $ 2,050,500 (14%) $ 2,001,365 (2%) Expenditures 2,118,292 2,704,023 3,785,550 2,704,023 2,163,320 (20%) 2,136,322 (1%) Net Revenues (Exp.) $ (1,108,336) $ (330,643) $ (1,412,170) $ (330,643) $ (112,820) (66%) $ (134,957) 20% Expenditures by Sub-Program: Supervsn, Misc. Dir. Admin. $ 181, , , , ,979 (2%) 185,836 2% Hydrants 53,757 63,511 63,511 63,511 58,860 (7%) 59,924 2% Water Distribution 326, , , , ,105 40% 368,523 (9%) Water Meters 351, , , , , % 699,124 1% Interdepartmental Charges 265, , , , ,649 12% 251,649 0% Eng/Admin O/H 560, , , , ,887 5% 571,266 (1%) Capital Expenditures 379,079 1,061,000 2,142,527 1,061,000 0 (100%) 0 N/A $ 2,118,292 2,704,023 3,785,550 2,704,023 2,163,320 (20%) 2,136,322 (1%) Expenditures by Type: Salaries $ 319, , , , ,127 32% 500,654 2% Benefits 210, , , , ,892 24% 197,988 0% Contractual services 401,813 1,102,000 2,183,527 1,102, ,000 (86%) 116,000 (26%) Other services 7,321 9,500 9,500 9,500 9,500 0% 9,500 0% Materials / supplies 252, , , , ,500 71% 444,500 0% Interfund charges 926, , , , ,801 8% 860,180 0% Capital outlay 0 7,500 7,500 7,500 7,500 0% 7,500 0% $ 2,118,292 2,704,023 3,785,550 2,704,023 2,163,320 (20%) 2,136,322 (1%) Note: FTES for Gas, Water Distribution & Wastwater are included under Gas. Budget Overview The Water Distribution division will be initiating a federally mandated backflow prevention program. In FY2017, the initial consultation, investigation, inspection and setup will take place. Maintainance of the program will begin in FY2018. Crews will be making improvements systemwide. They will replace non-functioning water distribution valves throughout both FY2017 and FY2018, as well as enhancing the PRV maintenance program by incorporating improvements such as stainless steel coated bolts and valve kits, which will wear better in the long term. The most significant effort for Water Distribution crews in upcoming years will be in water meter replacements. Crews plan to change out 2000 water meters in both fiscal years in preparation for DPU's system-wide rollout of the Advanced Metering Infrastructure program. To accomplish this, the division will hire an additional limited term FTE who, along with an existing limited term staff member, will focus primarily on water meter change outs. The division has also budgeted for a significant amount of overtime for crews changing out meters on weekends. 210

227 Program Purpose UTILITIES - WATER DISTRIBUTION The purpose of the Water Distribution Program is to provide potable and fire suppression water supply services to Los Alamos County utility customers and the Los Alamos Fire Department so they can meet their consumptive and fire protection needs at a competitive price. DPU's Gas, Water Distribution & Sewer Collection Crew Significant Accomplishments - FY2015 Water crews have been aggressively replacing water meters putting them ahead of schedule for the Advanced Metering Infrastructure project. Almost 1,000 new water meters were installed at residential water service sites throughout the County. Fifty-eight percent of residential Customer Survey respondents rated the overall performance of the water service as "excellent." The average ratings increased from 3.4 in 2013 to 3.6 in Ratings are on a 4-point scale. Performance Measures Priority Quality Governance Strategic Focus Area Operational Excellence Goal Maintain Quality Essential Services and Supporting Infrastructure Performance Mesures Average LAC customer 6,000 gallon bill as compared to neighboring communities. Numer of water service disruptions per 100 customers. Operating and maintenance expenditures per customer served. FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target 66% 67% 67% 85% $240 $220 $243 $250 Performance Measures Narrative and Analysis Water service disruptions to customers are expected to increase through FY2017 due to various construction projects that will require planned, limited water disconnects. Water Bill Comparison for 6,000 Gallons Residential Customer LAC Espanola & Santa Fe FY2017 Target $35.59 $49.51 FY2016 Estimate FY2015 Actual FY2014 Actual $33.07 $33.07 $32.69 $49.51 $49.51 $49.51 $ $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 $

228 Division Description UTILITIES DEPARTMENT - WASTEWATER The Utilities Wastewater Division is responsible for maintenance, operation, and repair of all wastewater pipelines, treatment facilities and equipment owned by the County of Los Alamos to provide wastewater services that meet or exceed state and federal wastewater regulations and provide for cost effective reuse of the majority of the system effluent discharge in a safe and effective manner. Wastewater Program Budget % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Revenue and Expenditure Summary: Revenues $ 5,098,780 5,326,963 5,326,963 5,326,963 5,198,721 (2%) 15,198, % Expenditures 4,967,022 4,968,577 6,489,128 6,489,128 5,501,226 11% 14,988, % Net Revenues (Exp.) $ 131, ,386 (1,162,165) (1,162,165) (302,505) (184%) 210,433 (170%) Expenditures by Sub-Program: Supervsn, Misc. Dir. Admin. $ 195, , , , ,618 38% 254,313 (21%) Wastewater Collection 507, , , , ,572 (1%) 389,058 (8%) Lift Stations 111, , , , ,729 (11%) 248,682 1% Wastewater Treatment 1,319,144 1,340,290 1,340,290 1,340,290 1,388,309 4% 1,380,071 (1%) Interdepartmental Charges 496, , , , ,402 10% 406,402 (1%) Eng/Admin O/H 441, , , , ,797 5% 501,407 (1%) Debt Service 1,057, , , ,230 1,155,799 19% 1,808,378 56% Capital Expenditures 837, ,000 2,389,551 2,389,551 1,050,000 21% 10,000, % $ 4,967,022 4,968,577 6,489,128 6,489,128 5,501,226 11% 14,988, % Expenditures by Type: Salaries $ 906,806 1,020,262 1,020,262 1,020, ,462 (4%) 1,007,121 3% Benefits 449, , , , ,344 (2%) 403,081 3% Contractual services 797, ,000 2,480,551 2,480, ,000 (80%) 116,000 (38%) Other services 14,179 26,000 26,000 26,000 26,400 2% 27,400 4% Materials / supplies 204, , , , ,100 (3%) 221,800 2% Interfund charges 1,440,810 1,345,146 1,345,146 1,345,146 1,368,921 2% 1,370,531 0% Capital outlay 95,458 24,000 24,000 24,000 1,172, % 10,034, % Fiscal charges 1,057, , , ,230 1,155,799 19% 1,808,378 56% $ 4,967,022 4,968,577 6,489,128 6,489,128 5,501,226 11% 14,988, % FTE Summary: Regular (full & part time) % % Note: FTES for Gas, Water Distribution & Wastewater are included under Gas. Budget Overview The Wastewater Division will be focused on continuing quality operations while preparing to replace the 60-year-old trickling filter plant in White Rock, which provides sewage treatment services for about 2,200 of Los Alamos County's 6,900 sewer customers. Situated near baseball, softball, and soccer fields, the existing plant will be completely replaced by a modern facility that will produce high quality irrigation water for public spaces. The design phase of the project is scheduled for FY2017 and the construction phase for FY

229 UTILITIES - WASTEWATER COLLECTION AND TREATMENT Program Purpose The purpose of the Wastewater Program is to provide sanitary sewer collection and treatment services to Los Alamos utility customers so they can have their wastewater safely and efficiently handled, and that downstream communities can have an environmentally safe river and effluent customers can receive safe irrigation water. DPU's Wastewater Collection Crew Hard at Work DPU's Los Alamos Wastewater Treatment Plant Crew Significant Accomplishments - FY2015 The refurbishments of three sewer lift stations were completed in FY2015. Formal planning for the replacement/reconstruction of the White Rock Wastewater Treatment Plant began in FY2015. Performance Measures Priority Strategic Focus Area Goal Performance Measures FY2014 Actual FY2015 Actual FY2016 Estimate FY2017 Target Quality Governance Operational Excellence Maintain Quality Essential Services and Supporting Infrastructure Number of sewer back-ups per 100 customers. Operating expenses per sewer customer served $652 $617 $639 $643 Performance Metrics Narrative and Analysis During for the twelve months ended June 30, 2015, there were 10 sewer back-ups due primarily to the age and condition of underground infrastructure. Sewer maintenance, cleaning and condition assessment continues to be a key focus to reduce the frequency of back-ups. The operating expenses per sewer customer were lower than expected due to below-budget expenditures for FY2015. Administrative and management staffing vacancies in FY2015 resulted in the decreased expenditures. 213

230 NON DEPARTMENTAL - OTHER FUNDS The funds in this section do not specifically fall under any one department and are therefore, included in this section. Other Funds Descriptions Special Revenue Funds are used to account for revenues that are legally restricted to expenditures for specified purposes. The Emergency Declarations Fund accounts for expenditures incurred by the County as a result of the Las Conchas wildfire in June/July 2011 and flood damage in September Debt Service Funds are used to account for the accumulation of resources for and the payment of long-term debt principal and interest. Debt Service is financed by a portion of the gross receipts tax imposed and collected by the State and distributed to the County. Please see future debt service schedule in the Other Information section under Debt Summary. Other Funds Budget % % FY2016 FY2016 FY2017 Variance FY2018 Variance FY2015 Adopted Revised FY2016 Adopted FY2017 vs Projected FY2018 vs Actual Budget Budget Projected Budget FY2016 Budget FY2017 Expenditures by Program: Other non-specific program $ 6,283,079 6,269,109 9,783,962 9,783,962 6,264,647 0% 6,268,597 0% $ 6,283,079 6,269,109 9,783,962 9,783,962 6,264,647 0% 6,268,597 0% Expenditures by Fund: Emergency Declarations Fund $ 12, ,514,853 3,514,853 0 N/A 0 N/A Debt Service 6,270,396 6,269,109 6,269,109 6,269,109 6,264,647 0% 6,268,597 0% $ 6,283,079 6,269,109 9,783,962 9,783,962 6,264,647 0% 6,268,597 0% In FY2013, the County refinanced its GRT Revenue debt reducing the annual principal and interest payment by $733K, or 11%, on the GRT revenue bonds that were issued for capital construction projects. 214

231 CAPITAL IMPROVEMENT PROGRAM - TABLE OF CONTENTS Capital Improvement Program Project Selection Process CIP Planning in the Context of a Biennial Budgeting Approach..217 Relationship between the CIP and the Operating Budgets..217 How Are Operating Budgets Affected by Capital Project Construction? 218 Assumptions Applied to Calculate the Operating Expense Impacts Projected New Revenue Assumption. 218 Fund Structure Used to Account for Capital Projects CIP Planning in the Context of a Biennial Budgeting Approach 219 Funding Sources Summary of Expenditures Group Infrastructure Capital and Maintenance Road Reconstruction..222 Information Technology Capital Projects Parks Maintenance and Small Capital Other Enterprise Funds CIP Utilities CIP

232 Capital Improvement Program Project Selection Process In December 2015, Council identified a list of potential capital improvement projects (CIP) for future funding based on strategic goals, previous submissions, existing needs and existing master plans. As part of their consideration of which projects to fund and at what levels, Council requested a series public meetings be held to garner public input and interest in future capital projects primarily broken down into three topic areas: Economic Development/Infrastructure, Parks & Recreation and Quality of Life. Seven meetings were held in January and February of On March 1 st, Council set a target dollar amount of $20 million for a possible capital improvements bond and narrowed the list of projects that will proceed through the initial pre-conceptual design phase (Phase 1). The County s Public Works department will seek one consultant to perform a Phase 1 analysis on the complete list of capital projects. Phase 1 analysis includes potential site selection and its feasibility, cost estimates and basic program schematics for the projects. For those projects that are largely street and/or utility improvements, County staff will develop the majority of cost estimates; however, the consultant will be asked to compile this information into a common format for all projects and provide limited visual representations of such projects as appropriate. After the scope of work and cost for each of the projects are determined, the next step is for the consultant to determine annual operations, maintenance, and staffing costs. Council will then determine which projects to fund and at what levels and set the schedule for a possible bond election. Below is the list of 12 projects that will proceed through the initial pre-conceptual design phase. Economic Development Projects 20th Street Extension master plan, street, utilities Parcel A-8 Utility Stub out street, utilities Deacon Street master plan DP Road Improvements street, utilities Existing Facilities Projects Golf Course Improvements irrigation system, tee box, greens/turf Tennis Courts add four courts at Urban Park or eight courts on North Mesa Ice Rink Improvements locker rooms, lobby, restrooms, sun shade New Facilities Projects Recreation Center basketball and volleyball courts, indoor soccer, running track, team locker rooms located either near Aquatic Center or on North Mesa Leisure Pool co-located with pool at Aquatic Center Splash Pads splash pad in White Rock and Water Feature in Ashley Pond Park Softball, baseball & soccer fields varsity fields in White Rock plus multi-use fields on North Mesa (could include school property) Indoor Ice Rink located either near the Aquatic Center or on North Mesa 216

233 CIP Planning in the Context of a Biennial Budgeting Approach Beginning with FY2005 budget development, Los Alamos County has used a biennial budgeting approach. The first year of a biennial cycle is adopted by County Council to provide the appropriations. The second year acts as a projection only, and is not adopted, so that the budget can be more easily reformulated to address evolving needs and conditions. For most aspects of the budget, the second year of the biennial cycle essentially is an update of the original projection that becomes formally adopted. However, the second year still undergoes a rigorous examination by staff and must receive formal adoption by County Council. The County annually updates its CIP. The update process means evaluating potential changes and incorporating new information, including mid-year budget revisions approved by Council or the findings of engineering studies, which would naturally require some re-prioritization or adjustments to the scope of projects. For projects that construct new infrastructure assets, the County has estimated the year impacts of these assets upon the governmental operating budgets and fund equity and includes these impacts the Long Range Financial Projection (LRFP). Each fall, County staff will reevaluate the County s LRFP and Capital Improvement Budget by updating future County revenue and expense estimates and by incorporating any changes in CIP project schedules and budgets that may have been approved by Council during the preceding year. Each year s Adopted CIP budget will contain line items for particular approved projects, as well as lump-sum budget allocations for possible future project studies and possible projects that may still be in the conceptual phase. Relationship between the CIP and the Operating Budgets The County coordinates the operating and capital budgets so that future capital needs will be integrated with projected operating requirements. For the General Fund, all the various recurring revenue streams are forecasted in the LRFP across a 10-year horizon to demonstrate any foreseeable, significant changes. Whenever possible, non-recurring revenues are programmed for one-time expenditures (such as capital expenditures for infrastructure or economic development assets). Additionally, changes in operating expenditures are also forecasted. Prior to approval of the CIP, the future maintenance and operating impacts (both revenues and expenditures) on the General County operating budgets are analyzed, and these impacts, if significant, are then disclosed in the budget document s Long Range Financial Plan (LRFP) to demonstrate the long-term impact of the CIP on the financial condition and position of the County. 217

234 How Are the Operating Budgets Affected by Capital Project Construction? Operating impacts were estimated and then projected over 10 years for each of the following seven categories. 1. Personnel costs 2. Program costs 3. Custodial/Facilities maintenance (other than personnel) 4. Parks/Landscape 5. Pavement/Parking lots 6. Utilities 7. Operating revenues from leases, fees, property tax, and GRT Assumptions Applied to Calculate the Operating Expense Impacts Operating expense impact is defined as the amount of incremental, new costs associated with a project. Programs costs are associated with new or increased programming due to the new asset. For instance, the new teen center has the amount to run the actual program as a program cost. For the maintenance and utility impacts, the baseline expenditure level against which the incremental change was calculated was derived from an average of the past two or three fiscal years interdepartmental charges (IDCs) by facility of the maintenance, custodial and utility costs. In some cases, actual utility costs are used. It is estimated that having new replacement facilities will initially decrease average annual maintenance, and perhaps even initially decrease the combined utility expenses on a prorated square foot basis. However, it is also assumed that these savings will naturally erode over time, as systems in the new buildings wear and the cost of repair components and associated labor increases. Therefore, the cost of maintenance is assumed to conservatively increase an average of 3% annually over the life of the asset. It is also assumed that the combined utility rate (combined consumption of water, gas and electric) would increase at an average annual rate of 3%. These average rates of increase are used in the calculations to smooth the likely ups and downs in the costs over time due to unforeseeable events and natural economic pressures. Projected new revenue assumption (where applicable) The assumption is that County staff and the public will at least utilize the replacement asset as much as the current one and that utilization would increase in many cases. 218

235 Fund Structure Used to Account for Capital Projects The County primarily uses one fund, the Capital Improvement Projects Fund (CIP Fund), to budget and account for Capital Project expenditures when those assets will be used in the County s general governmental activities. The Capital Projects Permanent Fund accounts for amounts received under a settlement of prior years gross receipts taxes, established by the County Council and the County Charter for Capital Projects. The corpus of this Permanent Fund is invested, and the real value of the fund principal must be maintained at a level that keeps pace with a federally published inflation index. Distributions from the CIP Permanent Fund to the CIP Fund are based upon a formula set in the County Code. To construct infrastructure assets to use in the County s business-type activities, there are several enterprise funds, also called Major Proprietary Funds in the County financial reports, which the County uses to account for Capital Project expenditures. Joint Utility System Fund for electric, gas, water, and wastewater projects. Environmental Services Fund. Airport Fund for projects such as the extension of the runway. CIP Planning in the Context of a Biennial Budgeting Approach Beginning with FY2005 budget development, Los Alamos County has used a biennial budgeting approach. The first year of a biennial cycle is adopted by County Council to provide the appropriations. The second year acts as a projection only, and is not adopted, so that the budget can be more easily reformulated to address evolving needs and conditions. For most aspects of the budget, the second year of the biennial cycle essentially is an update of the original projection that becomes formally adopted. However, the second year still undergoes a rigorous examination by staff and must receive formal adoption by County Council. The FY2016 Capital Improvement Program Expenditure Summary presents a multiple year plan beginning with FY2016. The FY2016 CIP provides the funding levels only within the Capital Budget. The budgets for the years FY2016 through FY2025 are projected for long-range financial planning purposes. Within this context, the County annually updates its CIP. The update process means evaluating potential changes and incorporating new information, including mid-year budget revisions approved by Council or the findings of engineering studies, which would naturally require some re-prioritization or adjustments to the scope of projects. For projects that construct new infrastructure assets, the County has estimated the year impacts of these assets upon the governmental operating budgets and fund equity and includes these impacts the Long Range Financial Projection (LRFP). Each fall, County staff will reevaluate the County s LRFP and Capital Improvement Budget by updating future County revenue and expense estimates and by incorporating any changes in CIP project schedules and budgets that may have been approved by Council during the preceding year. Each year s Adopted CIP budget will contain line items for particular approved projects, as well as lump-sum budget allocations for possible future project studies and possible projects that may still be in the conceptual phase. 219

236 Funding Sources The table below shows the amount of new money available to fund CIP projects, without the inclusion of debt. These amounts do not include fund balance carryover or project savings from previous or current year. Capital Improvement Projects Fund Funding Sources FY2016 FY2017 FY2018 Projected Adopted Projected General Fund Transfer $11,649,826 $4,144,080 $3,644,080 Enterprise Fund Transfers 1,600, Permanent Fund Transfer 1,229,000 1,230,000 1,268,000 Grant & State Shared Revenues 2,142, , ,000 Debt Proceeds Land Sale Proceeds 0 150, ,000 Total $16,621,267 $6,104,080 $5,712,080 Summary of Expenditures In addition to the expenditures above, $1,200,000 is projected to be transferred for Schools projects in FY2016. Capital Improvement Projects Fund Program Expenses FY2016 Projected FY2017 Adopted FY2018 Projected Capital Improvements $6,550,106 $0 $0 Road Projects 10,844,201 3,947,080 3,947,080 Parks Small Capital 771,433 57,000 57,000 Information Technology Projects 6,259, , ,080 Schools Projects (unallocated) 0 500,000 0 Senior Center & Grant 1,666, CIP Phase I Concept Designs 1,000, Canyon Rim Trail - Phase III 1,000, Mountain Bike Trails 500, Manhattan Project Park Signage 0 50,000 0 Historic District Wifi 0 150,000 0 Total $28,592,487 $4,993,160 $4,293,

237 Group Infrastructure Capital and Maintenance The following section shows projected amounts and projects for Road Reconstruction, Information Technology Capital, Parks Small Capital and Major Maintenance, and Major Facilities Maintenance. These on-going group infrastructure projects require year to year funding. Amounts from previous years are carried over to provide continuous funding for these planned projects. The new amounts proposed for FY2017 are shown below. Group Infrastructure FY2016 Projected FY2017 Adopted FY2018 Projected Road Reconstruction $ 10,844,201 $ 3,947,080 $ 3,947,080 Information Technology Capital 6,259, , ,080 Parks Major Maintenance - General Fund 36,269 87, ,200 Parks Small Capital - CIP Fund 771,433 57,000 57,000 Major Facilities Maintenance - General Fund 2,448,134 1,602,802 1,653,000 Total $20,359,923 $5,983,743 $6,197,360 The next section provides more information on individual group projects and amounts. 221

238 Road Reconstruction These projects address the Transportation Improvement and Maintenance Plan developed by the Public Works Department. Description Location Avg. PCI Budget/Estimate FY 2017 Central Avenue 15th to 9th 43 $ 2,200,000 North Mesa Phase 1 Cumbres del Sol Subdivision Camino Uva Camino Cereza Camino Durasnilla Camino Mora Camino Manzana 37 $ 1,747,080 FY 2017 Adopted Budget $ 3,947,080 FY 2018 Sherwood Boulevard Grand Canyon to Aztec 41 $ 2,500,000 North Mesa Phase 2 Pueblo Canyon Cliffs 1 Capulin Alamo Oro Ct. Big Rock Loop (San Ildefonso South) Cedro Ct. FY 2018 Projected Budget $ 3,947,080 FY 2019 Deacon Street 20th to 15th 42 $ 1,600,000 Barranca Mesa 3 Subdivision Camino Encantado Turquoise Kachina Encino Obsidian Tecolote Escondido 44 $ 2,465,000 FY 2019 Projected Budget $ 4,065,000 FY 2020 North Mesa Phase 3 Loma Linda Subdivision North Mesa Phase 4 Cumbres del Norte Subdivision FY 2021 North Mesa Phase 5 Tsikumu Village Subdivision Barranca Mesa 4 Subdivision Phase 1 10 Year Road Reconstruction CIP FY Based Upon Average Pavement Condition Index (PCI) Loma Linda Drive La Tierra La Mirada Camino Redondo Camino Medio Cumbres Patio Cheyenne Iroquois Seminole Souix Ute Yuma Navajo Road Osito Coyote Totavi El Nido Puye 48 FY 2020 Projected Budget 50 FY 2021 Projected Budget 43 $ 1,447, $ 2,093,500 $ $ $ $ 2,093,500 4,187,000 2,156, $ 2,156,500 4,313,

239 Road Reconstruction Description Location Avg. PCI Budget/Estimate FY 2022 DP Road Trinity to End 50 $ 3,500,000 Various Roads TBD NA $ 942,000 FY 2022 Projected Budget $ 4,442,000 FY 2023 Barranca Mesa 4 Subdivision Phase 2 Barranca Road Loma de Escolar La Cueva Cascabel 53 $ 2,200,000 Western Area Phase 5 Denver Steels Subdivision 10 Year Road Reconstruction CIP FY Based Upon Average Pavement Condition Index (PCI) 34th 35th 36th Ridgeway Questa Pueblo 54 $ 2,375,000 FY 2023 Projected Budget $ 4,575,000 FY 2024 Central Avenue 9th to 4th 58 $ 2,500,000 Barranca Mesa 4 Subdivision Phase 3 Los Pueblos Street Taos San Juan Tesuque Laguna Chaco Bonita Pilar 56 $ 2,212,000 FY 2024 Projected Budget $ 4,712,000 FY 2025 Bathtub Row Area Bathtub Row Rose St. Peach St. Nectar 59 $ 2,400,000 Western Area Phase 6 Orange/Nickel Subdivision Orange Street Nickel 35th Street 56 $ 2,453,000 FY 2025 Projected Budget $ 4,853,000 FY 2026 Western Area Phase 7 Remaining Streets 41st/45th/46th/47th NA $ 2,500,000 Various Roads TBD NA $ 2,499,000 FY 2026 Projected Budget $ 4,999,

240 Information Technology Capital Projects Information Technology Capital Projects include equipment, new software, software upgrades, fiber connections, etc. that meet the County s capitalization criteria and are accounted for in the CIP fund. Information Technology Capital Projects FY2017 Adopted FY2018 Projected Network Switch Replacement $289,080 $289,080 Total $289,080 $289,080 Major Facilities Maintenance These on-going Major Facilities Maintenance projects are significant enough to be segregated but are not capital in nature. They are accounted for in the General Fund. Major Facilities Maintenance Program Expenses FY 2017 FY 2018 Adopted Projected FY19-23 Aquatic Center $0 $0 $349,813 Betty Ehart Senior Center 0 519,316 0 Mesa Public Library 1,500, , ,908 Community Building 0 350,000 0 Fire Station #2 229, Fire Station #3 500, Fire Station # ,707 Fire Station # ,821 Little Theater 0 0 1,336,775 Red Cross Building ,263 Civil Defense 0 0 1,370,367 Overlook Park Maint Building ,765 Golf Course Maint Building ,752 Airport Building 0 279, ,973 Facility Condition Assessment ,000 Other 22, Total $2,252,287 $1,663,192 $4,704,

241 Parks Maintenance and Small Capital The projects listed below are split into two categories Parks Small Capital and Parks Major Maintenance. Small Capital Projects are capital in nature and are accounted for in the CIP Fund. Parks Major Maintenance Projects are significant maintenance projects but do not meet the County s capitalization criteria and, therefore, are accounted for in the General Fund. All of these projects are part of the Parks Integrated Maintenance Plan updated annually. Major Parks Maintenance Small Capital Projects are budgeted in the CIP Fund. Parks Maintenance Projects are budgeted in the General Fund. Parks Maintenance & Small Capital FY2016 Adopted FY2017 Adopted FY2018 to FY221 Total All Years TOTAL $161,269 $144,781 $470,200 $776,250 Parks Maint. Projects - General Fund 36,269 87, , ,250 Parks Small Capital - CIP Fund 125,000 57, , ,000 Central District 0 30,000 33,000 63,000 Library/Skatepark - Maint Projects 8,000 8,000 Small Sites - Small Capital 25,000 25,000 Fuller Lodge - Ancestral Pueblo Site Maint. 30,000 30,000 Eastern District 6,269 27,781 66, ,050 Central Avenue Streetscape 6,269 27,781 38,000 72,050 Trails - Maint. Projects 19,500 19,500 East Park - Maint. Projects 8,500 8,500 Northern District 89,000 70, , ,700 N Mesa Stables/Rodeo Grounds - Maint. Projects 29,300 29,300 Femaville/N Mesa Soccer - Small Capital 40,000 40,000 N Mesa Sports Complex - Maint. Projects 58,400 58,400 N Mesa Sports Complex - Small Capital 49,000 36,000 85,000 Barranca Mesa Park - Maint. Projects Tennis 30,000 16,000 46,000 Barranca Mesa /Los Pueblos Neighborhood Park 40,000 40,000 Western District ,000 19,000 Urban Park - Small Capital 19,000 19,000 White Rock District 11, ,500 97,500 Overlook Park - Maint. Projects 11,500 11,500 Overlook Park - Small Capital 11,000 20,000 31,000 Pinon Park - Small Capital 40,000 40,000 Rover Park - Small Capital 15,000 15,000 Other 55,000 17, , ,000 Tennis Courts - Maint. Projects 30,000 47,000 77,000 Playgrounds/Totlots - Small Capital/Maint. 25,000 17,000 62, ,

242 Detail of Parks Maintenance and Small Capital Projects in FY2015 and FY2016 Central District SC Ancestral Pueblo site restoration and landscaping surrounding area Eastern District MP Central Ave flower baskets, LaMesa Trail Northern District SC NM Picnic Grounds small picnic shelter, tables, grills, hand water hydrants, dog park irrigation; NM Sports Complex bleacher sunscreens White Rock District SC Overlook Spirio resurface pavement, bleacher replacement Other SC Replace playground/tot lots, including demolition and new features Other Enterprise Funds CIP The Airport Fund CIP includes projects that are contingent upon FAA funding. FY2017 projects include: Airport CIP Program and Funding Source Los Alamos County FAA/State Total Replace Security Fence $120,500 $389,500 $510,000 Design Snow Removal Equipment Building 4,000 76,000 80,000 Environmental Documentation 10, , ,000 Hanger Acquisition 30,000 30,000 Total $164,500 $655,500 $820,000 The Economic Development Fund includes funding for potential future economic development projects including: Middle-mile Fiber - $2,000,000 Ski Hill / Fire Protection water system improvements $2,000,

243 Joint Utility System Fund - Capital Projects FY2017 (1 July June 2017) Budget ELECTRIC PRODUCTION $ 505,000 Abiquiu Controls Upgrade 375,000 Abiquiu & El Vado Battery Replacement 130,000 ELECTRIC DISTRIBUTION 3,536,053 Los Alamos URD Replacement (cables, jboxes, pedestals) 300,000 White Rock URD Replacement (cables, jboxes, pedestals) 300,000 New LASS Substation 1,000,000 New TC1-TC2 to LASS Substation (LANL work) 500,000 New Feeders 13T,15T,16T,LAMC 500,000 Overhead System Replacement (polex, xarms, transformers; includes funding rebudgeted from FY15) 627,000 County Labor and Benefits 309,053 GAS DISTRIBUTION 810,000 East Road Steel Gas Replacement 810,000 WATER DISTRIBUTION - WATER PRODUCTION 7,644,400 Pajarito Well No. 6 - Construction 3,000,000 NP Los Alamos Reservoir Pipeline (Water Trust Board) 644,400 Ski Hill Supply Pipeline Construction (County/Ski Hill 50/50 Funding, N/A DPU) 4,000,000 SEWER COLLECTION 150,000 Joya/Mimbres/Kayenta Sewer Mains & Services Replacement Phase 2 150,000 WASTEWATER TREATMENT 900,000 WRTP Design 900,000 WASTEWATER TREATMENT AND SEWER COLLECTION TOTAL $ 1,050,

244 Joint Utility System Fund - Capital Projects FY2018 (1 July June 2018) Budget ELECTRIC PRODUCTION $ 250,000 Abiquiu Runner Repair 100,000 Abiquiu 3-Ton Jib Crane 150,000 ELECTRIC DISTRIBUTION 1,718,324 Los Alamos URD Replacement (cables, jboxes, pedestals) 250,000 White Rock URD Replacement (cables, jboxes, pedestals) 250,000 WR Substation Switchgear1 Refurbishment 350,000 WR Substation Transformer Oil Retention Bay 150,000 Overhead System Replacement (polex, xarms, transformers) 400,000 County Labor and Benefits 318,324 GAS DISTRIBUTION 700,000 Western Area/Quemazon Loop Alternate PRV Feed 250,000 SCADA Improvements Phase 1 250,000 PRV Site Improvements Phase 1 200,000 WATER DISTRIBUTION - WATER PRODUCTION 1,075,000 Camp May Tank Freeze Protection & SCADA Upgrade 250,000 NP New Group 12 Tank (Water Trust Board) 825,000 SEWER COLLECTION 500,000 Kayenta Siphon to WR WWTP Interceptor (Funding from WRTP Loan) 500,000 WASTEWATER TREATMENT 9,500,000 WRTP Construction 9,500,000 WASTEWATER TREATMENT AND SEWER COLLECTION TOTAL $ 10,000,

245 Joint Utility System Fund - Capital Projects FY2019 (1 July June 2019) Budget ELECTRIC PRODUCTION $ 300,000 El Vado Replace Main Transformer 300,000 ELECTRIC DISTRIBUTION 3,000,000 Los Alamos URD Replacement (cables, jboxes, pedestals) 300,000 White Rock URD Replacement (cables, jboxes, pedestals) 300,000 Overhead System Replacement (polex, xarms, transformers) 400,000 EA4 Feeder Replacement 2,000,000 GAS DISTRIBUTION 450,000 SCADA Improvements Phase 2 250,000 PRV Site Improvements Phase 2 200,000 WATER DISTRIBUTION 825,000 PRV Replacement 75,000 Aspen School Area Waterline Replacements Phase 3 750,000 WATER PRODUCTION 1,440,000 Pajarito Well No. 5 MCC Replacement - Construction 265,000 RTU Replacement - 3 Each 75,000 Reconfigure/Repair Automatic Valves 9, 10 & ,000 NP New Group 12 Tank (Water Trust Board) 950,000 SEWER COLLECTION 530,000 Canyon Road VCP Crossings (2 Each) 50,000 Aspen School Area Sewerline Replacement/Rehabilitation - Phase 3 80,000 Equipment/Vehicle New Vactor Truck 400,000 WASTEWATER TREATMENT 250,000 Compost Facility Storage Bins Safety Project 200,000 LA WWTP UV Control Upgrades 50,000 WASTEWATER TREATMENT AND SEWER COLLECTION TOTAL $ 780,

246 Joint Utility System Fund - Capital Projects FY2020 (1 July June 2020) Budget ELECTRIC PRODUCTION $ - ELECTRIC DISTRIBUTION 1,800,000 Los Alamos URD Replacement (cables, jboxes, pedestals) 300,000 White Rock URD Replacement (cables, jboxes, pedestals) 300,000 Overhead System Replacement (polex, xarms, transformers) 1,200,000 Townsite Circuit 15, 3 PHASE ($600K) White Rock Circuit1, 3PHASE ($600K) GAS DISTRIBUTION 450,000 SCADA Improvements Phase 3 250,000 PRV Site Improvements Phase 3 200,000 WATER DISTRIBUTION 975,000 Aspen School Area Waterline Replacements Phase 2 750,000 Paint Barranca Mesa Tank No ,000 WATER PRODUCTION 2,200,000 Repaint Guaje Booster Station No. 1 Tank and Add Additional Tank 750,000 San Juan Chama Project Environmental Assessment 350,000 NP Replace White Rock Booster Station and Chamisa School Connection (WTB) 1,100,000 SEWER COLLECTION 580,000 Aspen School Area Sewerline Replacement/Rehabilitation - Phase 2 80,000 Western Area Backyard Sewer Mains & Services Replacement Phase 1 250,000 North Community Backyard Sewer Main & Services Replacement Phase 1 250,000 WASTEWATER TREATMENT 140,000 LA WWTF Design of Filtration System 140,000 WASTEWATER TREATMENT AND SEWER COLLECTION TOTAL $ 720,

247 Joint Utility System Fund - Capital Projects FY2021 (1 July June 2021) Budget ELECTRIC PRODUCTION $ - ELECTRIC DISTRIBUTION 1,800,000 Los Alamos URD Replacement (cables, jboxes, pedestals) 300,000 White Rock URD Replacement (cables, jboxes, pedestals) 300,000 Overhead System Replacement (polex, xarms, transformers) 1,200,000 Townsite Circuit 13, 3 PHASE ($600K) White Rock Circuit2, 3 PHASE ($600K) GAS DISTRIBUTION 250,000 White Rock Steel Valve Project Phase 1 250,000 WATER DISTRIBUTION 750,000 Aspen School Area Waterline Replacements Phase 3 750,000 WATER PRODUCTION 4,100,000 Repaint Guaje Booster Station No. 2 Tank 1 and Replace Tank 2 with Larger Tank 800,000 Repaint Guaje Booster Station No. 3 Tank Nos. 1 & 2 500,000 San Juan Chama Project (Well Site 3 Test Well & Permit)** Not In Budget 1,500,000 NP New Bayo Booster Tank & Booster Station Upgrades (WTB) 1,300,000 SEWER COLLECTION 260,000 Rio Bravo Lift Station 180,000 Aspen School Area Sewerline Replacement/Rehabilitation - Phase 3 80,000 WASTEWATER TREATMENT 1,400,000 LA WWTF Construction of Filtration System 1,400,000 WASTEWATER TREATMENT AND SEWER COLLECTION TOTAL $ 1,660,

248 Joint Utility System Fund - Capital Projects FY2022 (1 July June 2022) Budget ELECTRIC PRODUCTION $ - ELECTRIC DISTRIBUTION 2,000,000 Los Alamos URD Replacement (cables, jboxes, pedestals) 400,000 White Rock URD Replacement (cables, jboxes, pedestals) 400,000 Overhead System Replacement (polex, xarms, transformers) 1,200,000 Townsite Circuit 16, 3 PHASE ($600K) White Rock Circuit1, 1 PHASE ($600K) GAS DISTRIBUTION 250,000 White Rock Steel Valve Project Phase 2 250,000 WATER DISTRIBUTION 600,000 PRV Replacement (3 Each) 225,000 Paint Barranca Mesa Tank No ,000 WATER PRODUCTION 6,550,000 Otowi Booster Station No. 1 Replacement 3,000,000 San Juan Chama Project (Well Site 3 Design)** Not In Budget 1,300,000 San Juan Chama Project (Well Site 2 Test Well & Permit)** Not In Budget 1,500,000 NP Rover and Pinon Park & School Extensions (Water Trust Board) 750,000 SEWER COLLECTION 850,000 Old Pueblo WWTP Sewer Canyon Drop 350,000 Western Area Backyard Sewer Mains & Services Replacement Phase 1 250,000 North Community Backyard Sewer Main & Services Replacement Phase 1 250,000 WASTEWATER TREATMENT 200,000 LA WWTP High Efficiency Blower 125,000 LA WWTP DO Meters Replacement 75,000 WASTEWATER TREATMENT AND SEWER COLLECTION TOTAL $ 1,050,

249 Joint Utility System Fund - Capital Projects FY2023 (1 July June 2023) Budget ELECTRIC PRODUCTION $ - ELECTRIC DISTRIBUTION 2,000,000 Los Alamos URD Replacement (cables, jboxes, pedestals) 400,000 White Rock URD Replacement (cables, jboxes, pedestals) 400,000 Overhead System Replacement (polex, xarms, transformers) 1,200,000 Townsite Ski Hill Circuit, 3 PHASE ($600K) White Rock Circuit2, 1 PHASE ($600K) GAS DISTRIBUTION 250,000 White Rock Steel Valve Project Phase 3 250,000 WATER DISTRIBUTION 500,000 PRV Replacement (3 Each) 225,000 Fairway 47th to West Area Water Line Replacements 500,000 WATER PRODUCTION 7,700,000 Repaint Tank 4A 500,000 New Additional Tank at Otowi Well 4 Tank (Anniversary Tank) 1,000,000 San Juan Chama Project (Well Site 3 Construction)** Not In Budget 6,200,000 San Juan Chama Project (Well Site 2 Design)** Not In Budget 1,300,000 East Jemez Road Water Line Replacement (PW3 to NM4) 1,000,000 NP Extension to Barranca Mesa (Water Trust Board) 650,000 SEWER COLLECTION 860,000 Western Area Backyard Sewer Mains & Services Replacement Phase 2 250,000 North Community Backyard Sewer Main & Services Replacement Phase 2 250,000 Loma Vista Lift Station 180,000 El Gancho Lift Station 180,000 WASTEWATER TREATMENT 125,000 Equipment/Vehicle Replacement 125,000 WASTEWATER TREATMENT AND SEWER COLLECTION TOTAL $ 985,

250 Joint Utility System Fund - Capital Projects FY2024 (1 July June 2024) Budget ELECTRIC PRODUCTION $ - ELECTRIC DISTRIBUTION 2,000,000 Los Alamos URD Replacement (cables, jboxes, pedestals) 400,000 White Rock URD Replacement (cables, jboxes, pedestals) 400,000 Overhead System Replacement (polex, xarms, transformers) 1,200,000 Townsite Circuit 15, 1 PHASE ($600K) White Rock Circuit1, Wire 3 PHASE ($600K) GAS DISTRIBUTION 250,000 Pipeline Repair & Replacement / Equipment 250,000 WATER DISTRIBUTION 800,000 North Mesa Distribution Upgrades 800,000 WATER PRODUCTION 8,100,000 Otowi Well No. 2 - Hydrogeology/EIS/Design & NM OSE Permitting 175,000 State Road 4 Pipeline Rehabilitation/Replacement 800,000 San Juan Chama Project (Well Site 2 Construction)**Not In Budget 6,200,000 NP Bayo Booster Winter Storage Pond (Water Trust Board) 925,000 SEWER COLLECTION 450,000 Western Area Backyard Sewer Mains & Services Replacement Phase 3 250,000 SCADA Improvements 200,000 WASTEWATER TREATMENT 500,000 Non Potable Pressure Line into LA WWTP 500,000 WASTEWATER TREATMENT AND SEWER COLLECTION TOTAL $ 950,

251 Joint Utility System Fund - Capital Projects FY2025 (1 July June 2025) Budget ELECTRIC PRODUCTION $ - ELECTRIC DISTRIBUTION 2,000,000 Los Alamos URD Replacement (cables, jboxes, pedestals) 400,000 White Rock URD Replacement (cables, jboxes, pedestals) 400,000 Overhead System Replacement (polex, xarms, transformers) 1,200,000 Townsite Circuit 13, 1 PHASE ($600K) White Rock Circuit2, Wire 3 PHASE ($600K) GAS DISTRIBUTION 250,000 Pipeline Repair & Replacement / Equipment 250,000 WATER DISTRIBUTION 900,000 Denver Steel Area East Portion Water Line Replacements 900,000 WATER PRODUCTION 10,700,000 Otowi Well No. 2 Construction 3,000,000 San Juan Chama Project (Well Site 1 Test Well & Permit)** Not In Budget 1,500,000 San Juan Chama Project (Well Site 1 Construction)**Not In Budget 6,200,000 NP Upper Townsite Pipeline and Connections (WTB) 525,000 SEWER COLLECTION 700,000 Arkansas Area Backyard Sewer Mains & Services Replacement 150,000 Airport Canyon Sewer Drop 550,000 WASTEWATER TREATMENT 400,000 LA WWTP Standby Gen-Set Upgrade 400,000 WASTEWATER TREATMENT AND SEWER COLLECTION TOTAL $ 1,100,

252 Joint Utility System Fund - Capital Projects FY2026 (1 July June 2026) Budget ELECTRIC PRODUCTION $ - ELECTRIC DISTRIBUTION 2,000,000 Los Alamos URD Replacement (cables, jboxes, pedestals) 400,000 White Rock URD Replacement (cables, jboxes, pedestals) 400,000 Overhead System Replacement (polex, xarms, transformers) 1,200,000 Townsite Circuit 16, 1 PHASE ($600K) White Rock Circuit1, Wire 1 PHASE ($600K) GAS DISTRIBUTION 250,000 Pipeline Repair & Replacement / Equipment 250,000 WATER DISTRIBUTION 700,000 Denver Steel Area West Portion Water Line Replacements 550,000 PRV Replacement (2 Each) 150,000 WATER PRODUCTION 3,550,000 Rehabilitation of 14" Townsite Transmission Line Couplings/Pipeline Phase I 1,250,000 Abandon Guaje Well 1A 1,000,000 San Juan Chama Project (Well Site 1 Design)** Not In Budget 1,300,000 SEWER COLLECTION 1,430,000 Bayo Sewer Lift Station Replacement Sewerline 500,000 Laguna Sewer Canyon Drop 750,000 North Road Lift Station 180,000 WASTEWATER TREATMENT 250,000 Equipment / Vehicle 250,000 WASTEWATER TREATMENT AND SEWER COLLECTION TOTAL $ 1,680,

253 OTHER INFORMATION TABLE OF CONTENTS OTHER INFORMATION Financial Policies Schedule of Full-Time Equivalent (FTE) Positions Schedule of Interfund Transfers Equipment Replacement Schedules Schedule of Recurring Grants. 269 Debt Summary General Fund Revenue Detail. 276 Statistics Glossary Acronyms and Abbreviations Index

254 FINANCIAL POLICIES I. PURPOSE The purpose of these financial policies is to give overall direction to Council, management, and employees for the long-term financial operation of the Incorporated County of Los Alamos. This direction is not only intended to be the basic framework for strategic long-term financial planning for the delivery of services to all the citizens and visitors of the County, but is also intended to provide specific policy guidance for the development of the annual budget. These policies may also be used by those who are familiar with County operations to communicate to others how certain community goals are being addressed. II. GENERAL POLICY STATEMENT The Incorporated County of Los Alamos shall strive to maintain a sound financial condition by taking a fiscally conservative and disciplined approach to revenue forecasting, budgeting, capital improvement programming, investing of public funds, and managing its expenditures and debt. This goal will be accomplished by making financial decisions based on the community's ability to pay; maintaining reserves for emergencies and future expenditure demands; and providing future generations with the ability to borrow capital without severe financial burden or undue constraint. III. OPERATING POSITION A. General Fund Unassigned Fund Balance The General Fund Unassigned Fund Balance shall be the source used by Council and management to deal with unforeseen contingencies or to fund necessary and worthwhile projects and programs which may arise during the course of the fiscal year but have no specific long term funding source. Examples include (but are not limited to) the matching of grants, funding of loans to other funds, and providing capital for transfers to other funds. This can also be a source of funds that helps to mitigate the magnitude of adverse budget changes if larger and longer-term negative revenue trends occur. The method to be used for utilization of this account is by formal budget revision approved by the Council. The target amount to be maintained in the General Fund Unassigned Fund Balance is twenty percent (20%) of General Fund actual revenues. The amount should be adjusted during the course of budget development and re-adjusted based upon audited figures. The following process must be followed whenever the General Fund Unassigned Fund Balance falls below 15% of actual revenues: Within 90 calendar days of the acceptance of a Comprehensive Annual Financial Report that indicates that the balance is below the 15% level, the Council must approve a documented plan to rebuild the balance to at least 15% of actual revenues within a period of three fiscal years. The plan may include enhanced or new revenues, reduced expenditures, or a combination utilizing both additional revenue and reduced expenditures. The documented plan must be considered by Council during each annual budget development cycle until the balance is restored to the 15% level. 238

255 FINANCIAL POLICIES B. Nonspendable Fund Balance Nonspendable fund balances are recorded in governmental funds, where the resources cannot be spent to satisfy current obligations. This includes resources that are not in a spendable form (inventories, prepaid amounts, long-term loans/receivables, or assets held for resale) and resources that are legally or contractually required to remain intact, such as the principal balance in the Capital Projects Permanent Fund. C. Restricted Fund Balances Restricted fund balances are recorded in governmental funds, where there are constraints placed upon the use of the resources either by an external party (grants, donations for a specified purpose, bond agreements, etc.) or imposed by law (federal, state, or local). The most significant restricted balances are described below. 1. Restricted for Cash Requirements. The purpose of this balance Restricted for Cash Requirements is to provide a margin to help maintain services during periods of economic decline; meet emergency conditions which may threaten the life, health, or safety of our citizens; meet major unanticipated cash flow shortfalls; and maintain the County's credit rating. The account is established to satisfy the requirements of the State Department of Finance and Administration (DFA) to maintain a cash balance of at least one twelfth of annual General Fund revised budgeted expenditures. The amount to be maintained in the balance Restricted for Cash Requirements is one twelfth (8.3%) of General Fund revised budgeted expenditures. The amount should be adjusted during the course of budget development and re-adjusted based upon audited figures. 2. Restricted for Income Stabilization (in the Capital Projects Permanent Fund). In accordance with County Code section , the resources in the Permanent Fund in excess of principal are restricted and should be accumulated for eventual transfer to the Capital Improvement Projects Fund or addition to principal. D. Economic Development (formerly the Self Sufficiency Fund) Fund Balance Assigned for Economic Development The purpose of this fund was initially to account for the receipt, management, investment, and expenditure of the $22.6 million lump-sum buyout payment from DOE that was the negotiated payment the County received under the Atomic Energy Community Act. It was established as a special revenue fund in recognition of the unique circumstances under which the County received the funds and because the use of the funds is intended to be limited. This fund is not intended to be a permanent fund. The establishment of this separate fund recognizes: 239

256 FINANCIAL POLICIES 1. The dependence the County has upon actions related to our single largest employer (DOE/LANL) and the impact of decisions made by other entities that may have far reaching and significant effects upon County resources and service levels; and 2. The need to invest and expend the balance in this fund in order to create economic development and diversify the economy, and to decrease the County s dependence upon DOE/LANL. By County Council direction, the balance in the Economic Development Fund, including interest earnings, should be used for providing initial capital for economic development projects, economic development loans, housing rehabilitation loans, land development, or similar activities which are designed to achieve Council s economic development strategic goals. E. Debt Service Fund Balance Assigned for Debt Service The County s Gross Receipts Tax (GRT) taxpayer base is significantly concentrated in a single taxpaying entity. This represents an additional unique risk for the County whenever GRT revenue bonds are outstanding. To help mitigate this additional risk, the County may, at the direction of the County Council, accumulate a fund balance Assigned for Debt Service over and above any legally required debt service reserve amount. Additonally, this balance may accumulate residual interest over and above those funds that are restricted by debt agreements. F. Fund Balances Assigned for Continuing Appropriations The fund balances Assigned for Continuing Appropriations segregates a portion of fund balance which reflects part of the unexpended appropriations at June 30th that are reappropriated and carried forward to the subsequent fiscal year. County Council approval is required through the established formal budget revision process. G. Fund Balance Assigned for Capital Projects The fund balance Assigned for Capital Projects segregates a portion of the fund balance in the Capital Improvement Projects Fund to reflect Council s intent that these funds be spent for approved capital projects. H. Fund Balance Assigned for Emergency Response and Recovery The fund balance Assigned for Emergency Response and Recovery is reflected in the Emergency Declarations Fund to reflect Council s intent that these funds be spent for recovery efforts in response to federally declared emergencies. I. Fund Balance or Working Capital of Other Funds Financial planning for other County operating funds should provide a positive fund balance, the appropriate level of which would be dictated by legal requirements and characteristics of 240

257 FINANCIAL POLICIES the individual fund and the specific purpose(s) of the fund. These would include, as appropriate: 1. Legal or regulatory requirements affecting revenues and expenditures, e.g., Charter requirements to maintain the real value of the Capital Projects Permanent Fund. 2. Cash flow requirements to support operating expenses. 3. Relative rate stability from year to year for enterprise and internal service funds. 4. Susceptibility to emergency or unanticipated expenditures. 5. Long-term maintenance and replacement plans for infrastructure and equipment. 6. Ability to support debt service requirements. The financial planning for other County operating funds should avoid large rate increases from one year to the next. If the unassigned fund balance or working capital balance becomes excessive within any fund, action shall be taken in the subsequent budget cycles to reduce the balance. Reductions may be accomplished by the deferral of rate increases, rebates to customers, or utilization of funds for one-time expenditures that do not unduly increase ongoing operating expenses. IV. INTERFUND ACTIVITIES A. General Fund Transfers to Other Funds Annual transfers of General Fund revenues to other funds should be construed as payments intended only for the support of specific programs. If revenues generated within those funds exceed the budgeted estimates, the amount of the budgeted transfer from the General Fund will be reduced accordingly. B. Utility Profit Transfers to the General Fund The General Fund shall include a utility profit transfer as a source of its annual revenues. The amount of the profit transfer shall be based upon independently audited figures and calculated in accordance with the County Code to ensure that budgeted transfers from the Utility Funds to the General Fund will occur without impact to operations. C. Interfund Loans Interfund loans are made under the following conditions: The loan is approved by the County Council. The County Council shall review and approve the proposed lending terms including interest rate, period of repayment, and other terms. 241

258 D. Interdepartmental Charges FINANCIAL POLICIES Los Alamos County will use Interdepartmental Charges (IDCs) in order to fully account for all costs of providing services including administrative and indirect support. IDCs will be utilized, particularly for enterprise and internal service fund activities, to account for and recover only those costs where it is determined to be reasonable and cost effective to do so. IDCs will be allocated in an equitable and reasonable manner among benefited departments. E. Pooling of Cash and Investments Funds which participate in the pooled cash and investments portfolio are allocated investment earnings on a pro-rata basis, for eligible funds. Funds with positive cash balances are credited their pro-rata share of investment earnings, while funds with negative balances are charged interest expense. F. Recording of Interfund Transactions Whenever interfund transactions occur the County shall record the complete transaction within the financial records. The financial records include the budget, the comprehensive annual financial report, and applicable interim reports. V. OPERATING BUDGET A. Pay-As-You-Go Operating Budget The County shall conduct its operations on a pay-as-you-go basis from available current revenues. To the fullest extent possible, the County shall fund from general revenues those activities that generally benefit a significantly large number of County citizens. Activities that benefit a small portion of the community should be funded directly by those benefited through user fees in accordance with the adopted User Fee Policy rather than through general County resources. To carry out these policy objectives, the County will adhere to the following practices: 1. The County will fund annual operating expenses from current revenues and available fund balances consistent with these financial policies. 2. The County will only fund a new recurring activity if there is an assured funding source for continuing the activity. 3. To initiate new General Fund supported activities, trade-offs of existing activities must first be considered by the County, unless there is a new revenue source available to fund such activities. 4. The County will review existing activities annually to determine the need to continue or modify them. 242

259 FINANCIAL POLICIES The County shall observe the following practices regarding the management of its resources: 1. The County will encourage economic development activities to broaden its tax base. 2. The County will minimize its General Fund contributions to fund special activities that can be supported by dedicated tax revenues or user fees. 3. The County will annually plan and budget for a reasonable level of maintenance to existing major infrastructure including streets and facilities in order to minimize lifecycle costs. 4. Services for the public or others that can be accomplished effectively by outside agencies for less cost will be performed by an outside agency instead of the County. 5. The County s compensation program will be competitive to attract and retain motivated and high-performing staff members. 6. The County will coordinate the operating and capital budgets so that future capital needs will be integrated with projected operating requirements. 7. The County will seek regional cooperation and funding for any program that has regional benefits. 8. The County will only participate in intergovernmental programs that are consistent with the long-term vision and goals of the County. While observing these practices, the County will strive to prepare a balanced budget that adheres to the following definition: An individual fund's adopted budget is considered balanced if the current year estimated revenues, plus transfers in from other funds, plus appropriations of fund balance is at least as much as the current year estimated expenditures, plus transfers out to other funds. This condition must be true for the single annual budget and in total for the projected following three years. The entire County budget is considered balanced when each individual fund budget is balanced. When looking to see if a fund has a balanced budget, the use of (or appropriation of) fund balance is considered a satisfactory source for balancing the budget if the fund balance is already restricted, committed, or assigned for such use. For example, using the assigned fund balance in the Capital Improvement Projects Fund as a source for capital projects, even with no other current revenues or operating transfers in, is a legitimate use and would balance the budget. On the other hand, using the unassigned fund balance in the General Fund as a source for regular ongoing operations for multiple years would not be a preferred use and if it was necessary, the budget would not be considered balanced. 243

260 FINANCIAL POLICIES B. Revenues The County shall observe the following practices to manage its revenues effectively: 1. Encourage economic development activities to broaden the County's tax revenue base. 2. Pursue state-wide tax structure revisions to obtain the greatest tax source flexibility for the County. 3. Aggressively collect revenues and coordinate revenue reporting with appropriate parties. 4. To the fullest extent possible and when appropriate, establish user fees and charges at levels which recover the full costs of providing the services. 5. Review fees and charges annually, and develop a system for periodically changing rates to keep pace with changes in the costs of providing services. 6. Charge fees for all services that benefit limited interests within the community with the exception of human services needs for persons with limited ability to pay. 7. Whenever possible and practical, use multi-year forecasting techniques and tools in order to detect in advance significant changes in revenue. 8. Use one-time revenues for one-time expenditures whenever appropriate. 9. Provide management with regular reports comparing actual revenue to budget estimates. C. Expenditures The County shall observe the following practices to manage its expenditures effectively: 1. Ensure that the expenditure growth rate will not exceed the revenue growth rate. 2. Where possible, use performance measures and productivity indicators and integrate them into the annual budget. 3. Analyze all costs of a service and make cost projections for at least three years before increasing a level of service or adding new services. 4. Take advantage of changing technology, improved systems, and management techniques whenever available in order to reduce long-term costs and improve productivity. 5. Eliminate any program or service which is no longer necessary. 244

261 FINANCIAL POLICIES 6. Before undertaking any agreements that would create fixed costs, determine fully and project for at least three years the cost implications (both operating and capital) of such agreements. 7. Whenever possible and practical, use multi-year forecasting techniques and tools in order to detect in advance significant changes in expenditures. 8. Prior to any change in the salary and benefit level, prepare a complete cost analysis and multi-year year projection of salaries and benefits. 9. Provide management with regular reports comparing actual expenditures to budgeted appropriations. 10. Transfers into or out of budget line items for salaries or employee benefits may be made only after the County Manager has approved the transfer. D. Grants The Council shall review and approve non-recurring grants during the fiscal year. The annual budget will recognize non-recurring grant revenues and expenditures only after Council acceptance of such grants. Prior to accepting any grant, the County shall analyze the cost-effectiveness of the grant. The analysis should include the consistency of the grant with the County vision and long-term goals, the full costs associated with administering the grant including indirect support for grant management, accounting and auditing, the feasibility of continuing the program with County resources after the conclusion of grant funding, and that the program offered by the grant will benefit a significant number of County citizens. VI. INVESTMENTS County funds will be invested in accordance with State law, the Charter, the County Code and the adopted Investment Policy. The County will apply the prudent investor rule to all its investments. This standard states that investments are made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence would exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of the capital as well as the probable income to be derived. All idle cash shall be continuously invested at the highest available rate, but only in instruments allowed under the investment policy. Disbursement, collection, and deposit of all funds will be scheduled to ensure maximum cash availability and investment earnings. 245

262 FINANCIAL POLICIES VII. CAPITAL IMPROVEMENT PROGRAMMING, FINANCING, AND MAINTENANCE A. Capital Improvement Programming In developing the County's capital improvement projects, the County shall evaluate the need for the capital project and its urgency; perform a long-term cost-benefit analysis of the project; determine the financing sources available for the project and the project's impact on the County's ongoing operating and maintenance costs; and plan for its future replacement. Highest priority capital improvement projects should be those projects deemed necessary to remedy deficient conditions adversely impacting safety, health, and security; those projects necessary to meet mandatory federal, state, and local legal requirements; those projects which represent a phase of an approved master plan or represent ongoing implementation of phased projects approved in previous years; or those projects which maintain the structural or architectural integrity of existing infrastructure. B. Capital Improvement Financing Annually, a 10-year Capital Improvement Program (CIP) will be updated and incorporated into the Long Range Financial Projection (LRFP). The process of updating the CIP will include evaluating new proposed major CIP projects (over 1% of the General Fund s operating budget) and prioritizing them with already approved projects, as well as adding a new year to the plan. It will not include a comprehensive re-evaluation of all projects already included in the CIP. Those, generally, should proceed as previously programmed. CIP projects will not be funded unless they are included in the approved CIP budget. Addition of new projects to the CIP will be contingent upon identifying the funding sources for all phases of the project and committing, through Council approval, all such sources. The annual budget, the LRFP, and the 10-year CIP should include sufficient funding for adequate maintenance and the orderly replacement and/or upgrade of all capital plant and equipment. All County assets should be maintained at a level that protects the initial capital investment and minimizes future maintenance and replacement costs. Prior to approval of any capital project, the future maintenance and operational costs of the project must be fully analyzed and those costs must then be included in the approved LRFP for full disclosure of the long-term maintenance and operating impact of the project. The annual budget should include funding for capital programs as identified in the CIP. The County will actively pursue external long-term financing in accordance with its Debt Management Policy. The County will also pursue external grant funding for CIP project financing whenever it is available and practical to do so. C. Capital Plant Maintenance The County shall establish and maintain an inventory showing the condition of its capital plant and shall develop long-term replacement schedules for use in setting priorities and capital financing plan development. 246

263 FINANCIAL POLICIES VIII. DEBT MANAGEMENT The County will manage its debt in accordance with its adopted Debt Management Policy. IX. LONG RANGE FINANCIAL PROJECTION The County Manager will, as an initial step in the development of the annual budget, present to Council for consideration and approval a Long Range Financial Projection (LRFP). This action recognizes that short-term financial plans (annual budgets) need to be placed within a long-term context to be effective and properly coordinated from year to year. Approval by Council indicates their long-range financial policy direction. The projection will cover 10 years, and will include operational and capital budgets that impact the General Fund. The projection will be updated at least annually. Updating includes: A. Adding new items from the updated CIP, including the operating impact of new capital items; B. Reviewing and updating assumptions used for forecasting purposes; C. Adding any changes which reflect more current information and significantly change the projection; and D. Determining the financial effect of any significant changes in County policy. Only the annually adopted budget appropriates funds for expenditure. However, the annual budget should be developed to fit within the context of the LRFP. The LRFP should be approved annually concurrently with the annual budget. This approval shall not be construed as agreement with every aspect and assumption within the plan, but shall be considered as a formal acknowledgment of the projected potential long-term impact of adoption of the annual budget. X. ACCOUNTING & FINANCIAL REPORTING The County shall follow a high standard in all financial reports by: A. Preparing appropriate financial reports in accordance with Generally Accepted Accounting Principles (GAAP); B. Making all possible and ethical efforts to obtain unmodified independent auditors opinions on every annual report; C. Adopting a spirit of full disclosure in preparing annual reports; D. Refraining from the use of creative accounting to defer costs or hide long-term problems; 247

264 FINANCIAL POLICIES E. Disclosing within interim reports or analysis all pertinent assumptions which may impact decision making; and F. Minimizing the number of funds and accounts to prevent unnecessary complexity and cost of maintaining and auditing the records while maintaining ease of reporting. XI. PERFORMANCE MEASURES The County will develop strategic and program performance measures to be used as a component of decision making and to be incorporated into the budgeting process. The performance measures should: A. Be based upon program goals and objectives that relate to a statement of program purpose that are developed within the context of broader strategic goals and objectives; B. Measure program results or accomplishments; C. Provide for comparisons over time; D. Measure efficiency and effectiveness; E. Be reported internally and externally; F. Be monitored and used in decision-making processes; and G. Be limited to a number and degree of complexity that can provide an efficient and meaningful way to assess the effectiveness and efficiency of key programs. GLOSSARY OF TERMS Advances An account used to segregate a non-spendable portion of fund balance to indicate the noncurrent portion of long-term interfund receivables that do not represent expendable and available financial resources. This accounting is established by GAAP and is used by the County for interfund loans--particularly from the General Fund to other County funds. Capital Projects An account that assigns a portion of the fund balance that reflects money set aside for capital improvement projects. Cash Requirements An account which restricts a portion of the fund balance within the General Fund that is equal to one twelfth of General Fund revised budgeted expenditures. The amount is segregated to provide a margin to help maintain services during periods of economic decline; meet unanticipated cash flow shortfalls; meet emergency conditions which may threaten the life, health and safety of our citizens; and maintain the County s credit rating. 248

265 FINANCIAL POLICIES Cemetery Perpetual Care An account used to restrict a portion of the fund balance in the General Fund, which by contract with the purchasers of cemetery lots, is restricted for future care of the cemetery. When the cemetery is fully developed and all lots are sold, the interest earnings from this reserve will be used to guarantee the maintenance of the cemetery property. Committed Fund Balance A committed fund balance is a portion of the fund balance that is required by County code to be used for a specific purpose. Continuing Appropriations An account used to assign a portion of fund balance which reflects part of the unexpended appropriations at June 30th that are re-appropriated and carried forward to the subsequent fiscal year. Council and County Manager approval is required through the established formal budget revision process. Debt Service An account used to restrict the fund balance in the Debt Service funds to demonstrate that this balance is only expendable for debt service purposes as required by provisions of individual legal debt instruments. Additional fund balance amounts may be assigned by Council. Fund Balances Fund Balance is generally defined as the difference between fund assets and fund liabilities of governmental type funds. In enterprise and internal service type funds, Retained Earnings is a similar concept. The State Department of Finance and Administration (DFA) is required to report local governments fund balances at the end of each fiscal year to the state legislature. Los Alamos County shall record certain restrictions and commitmentsof fund balance which have specific and/or legal future local uses. Grants An account used to restrict a portion of fund balance for expenditure once certain grant requirements are met. This account is established by GAAP and by conditions of the grant award. Health Care Assistance An account used to restrict the full fund balance in the Health Care Assistance Fund to demonstrate that this balance is only expendable on the specific activities allowed by the applicable statutes. This reserve is established by the statutory restrictions on the second County increment of Gross Receipts Tax revenue and may be expended with Council approval only for those allowed purposes. Further information, restrictions, and guidelines are contained in the Council approved Health Care policy which is updated periodically. 249

266 FINANCIAL POLICIES Inventories An account used to segregate a non-spendable portion of fund balance because supplies inventories are not readily available financial resources. This accounting is established by GAAP and is limited to warehouse stock and golf course pro shop inventory items. Lodgers Tax An account used to restrict a portion of fund balance in the Lodgers Tax Fund which is planned for promotional activities or expenditure on specific capital infrastructure items allowed by statute. This restriction is established by the statutory restrictions on the lodger s tax revenue and may be expended with Council approval only on those allowed purposes. Prepaid Items An account used to segregate a non-spendable portion of fund balance which is not available for expenditure. This accounting is established by GAAP. Restricted Fund Balances A restricted fund balance is a portion of the fund balance that has external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislations which require the resources to be used only for a specific purpose. Unassigned Fund Balances The amount of the fund balance that is totally available for appropriation for any legal purpose. This term is limited in usage to governmental type funds. In proprietary type funds working capital is a similar concept. 250

267 FTE SUMMARY - FY2015 THROUGH FY2017 Department FY 2015 Adopted FY 2016 Adopted FY 2017 Adopted County Council Municipal Court County Manager's Office (CMO) County Assessor's Office County Attorney's Office County Clerk's Office Probate Court County Sheriff Community Development Administrative Services Community Services Department Fire Department Police Department Public Works Department Utilities Department Total FTEs - All Funds

268 FTE DETAILED SCHEDULE - FY2015 THROUGH FY2017 Position Title FY 2015 Adopted FY 2016 Adopted FY 2017 Adopted County Council Council Chair Council Total FTEs Municipal Court Municipal Judge Probation Officer Court Administrator Court Clerk Office Specialist Total Regular FTEs Bench Warrant Fund Office Specialist Total Regular FTEs Department Total Regular FTEs County Manager's Office (CMO) County Manager Deputy County Manager Assistant to County Manager Office Manager Sr. Office Specialist CIP Fund Business and ERP Manager Total Regular FTEs Communications & Public Relations Comm. & Public Relations Administrator Visual Information Specialist Total Regular FTEs Human Resources Human Resources Manager Assist Human Resources Manager HRIS Manager Payroll Coordinator Benefits & Pension Manager Human Resources Technician Training Manager Payroll Specialist Sr Human Resources Technician

269 FTE DETAILED SCHEDULE - FY2015 THROUGH FY2017 Position Title FY 2015 Adopted FY 2016 Adopted FY 2017 Adopted Sr. Office Specialist Total Regular FTEs Human Resources-Safety/Risk Management Risk Manager Safety Specialist Total Regular FTEs Total HR FTEs Economic Development Economic Vitality Administrator Marketing Specialist Total Regular FTEs Department Total Regular FTEs County Assessor's Office County Assessor Chief Deputy Assessor Chief Appraiser Appraiser Apprentice Appraiser Sr. Assessment Specialist Assessment Specialist Total Regular FTEs Property Valuation Fund Chief Appraiser Appraiser Apprentice Appraiser Total Regular FTEs Department Total Regular FTEs County Attorney's Office County Attorney Assistant County Attorney Associate County Attorney Legal Assistant I Legal Assistant II Department Total Regular FTEs

270 FTE DETAILED SCHEDULE - FY2015 THROUGH FY2017 Position Title FY 2015 Adopted FY 2016 Adopted FY 2017 Adopted County Clerk's Office Elections/Recording County Clerk-Elected Official Chief Deputy Clerk Bureau of Elections Manager Sr. Deputy Clerk Deputy Clerk Total Regular FTEs Temp/Casual Department Total FTEs Probate Court Probate Judge-Elected Official Department Total Regular FTEs County Sheriff Sheriff-Elected Official Sr. Office Specialist Total Regular FTEs Temp/Casual Department Total FTEs Administrative Services Finance Chief Financial Officer Deputy Chief Financial Officer Accounting Operations Manager Budget & Performance Manager Sr. Budget Analyst Sr. Accountant Payroll Coordinator Payroll Specialist Senior Management Analyst Accountant Accounts Payable Coordinator Accounts Payable Specialist Account Clerk Health Care Total Regular FTEs

271 FTE DETAILED SCHEDULE - FY2015 THROUGH FY2017 Position Title FY 2015 Adopted FY 2016 Adopted FY 2017 Adopted Finance-Purchasing Chief Purchasing Officer Buyer-Planner Sr. Buyer-Planner Management Analyst Supply Specialist g Total Regular FTEs Total Finance FTEs Information Management-Information Technology Management Analyst Chief Information Officer IT Program Manager App Analyst-Developer Telecom Network Specialist Network Engineer Sr App Analyst-Developer Senior Systems Administrator Systems Administrator Database Administrator IT Project Manager Service Desk Supervisor Communications Specialist I Senior Technical Support Specialist Technical Support Specialists Office Specialist Total Regular FTEs Temp/Casual Total IT FTEs Information Management-Records Records and IM Administrator Comm. Spec. I Sr. Office Specialist Total Records Regular FTEs Information Management subtotals Total Regular FTEs Temp/Casual Total IM FTEs Department Total Regular FTEs Department Total Temp/Casual Department Total All FTEs

272 FTE DETAILED SCHEDULE - FY2015 THROUGH FY2017 Position Title FY 2015 Adopted FY 2016 Adopted FY 2017 Adopted Community Services Department CSD-Administration Community Services Director Management Analyst Sr. Management Analyst Office Manager Sr. Office Specialist Total Regular FTEs DWI Fund Management Analyst Library Library Manager Program Specialist Office Specialist Sr. Office Specialist Assistant Library Manager Sr. Librarian Librarian Sr Library Specialist Library Specialist Sr Library Technician Total Regular FTEs Temp/Casual Total FTEs Parks Parks Superintendent Assistant Parks Superintendent Open Space Specialist Parks Maintenance & Construction Spec. III Parks Maintenance & Construction Spec. II Office Specialist Sr. Office Specialist Parks Maintenance & Construction Spec. I Total Regular FTEs Temp/Casual Total FTEs Recreation-Administration Parks, Recreations, & Open Space Mgr Recreation Leader Sr. Recreation Leader Recreation Programs Manager Recreational Customer Service Assoc

273 FTE DETAILED SCHEDULE - FY2015 THROUGH FY2017 Position Title FY 2015 Adopted FY 2016 Adopted FY 2017 Adopted Sr. Office Specialist Customer Service Supervisor Senior Rec Customer Service Associate Customer Service Associate Custodian Total Regular FTEs Temp/Casual Total FTEs Recreation-Aquatic Center Recreation Program Manager Aquatics Center Program Coordinator Aquatics Maintenance Specialist Senior Lifeguard Lifeguard Custodian Total Regular FTEs Temp/Casual Total FTEs Recreation-Rink Recreation Program Manager Assistant Golf/Ice Rink Professional Senior Recreation Leader Recreation Leader Total Regular FTEs Temp/Casual Total FTEs Recreation-Golf Course Golf Course Maintenance Superintendent GC Maintenance Assistant Superintendent Golf Course Equipment Mechanic Golf Course Manager Head Golf Professional Assistant Golf/Ice Rink Professional Total Regular FTEs Temp/Casual Total FTEs Recreation subtotals Total Regular FTEs Temp/Casual Total FTEs

274 FTE DETAILED SCHEDULE - FY2015 THROUGH FY2017 Position Title FY 2015 Adopted FY 2016 Adopted FY 2017 Adopted Social Services Social Services Manager Health Care Specialist Case Coordinator Total Regular FTEs CSD - Health Care Assistance Fund Health Care Specialist Case Coordinator Total Regular FTEs Department Total Regular FTEs Department Total Temp/Casual Department Total All FTEs Fire Department Administration Fire Chief Deputy Fire Chief Fire Battalion Chief - LANL Training Fire Battalion Chief - DVC Safety Fire Battalion Chief - Wildland Fire Battalion Chief - EMS Fire Battalion Chief - Training Fire Battalion Chief Safeguards & Security/Labor Relations Mgr Management Analyst Sr Accountant Sr. Office Specialist EMS Trainer Coordinator Total Regular FTEs Operations Fire Battalion Chief (A, B, C Shift) FLS Tech. Specialist Fire Captain Driver Engineer Firefighter II/Firefighter 1/Cadet Total Regular FTEs Fire Life Safety Fire Battalion Chief Sr. Office Specialist Fire and Life Safety Coordinator Fire and Life Safety Tech Specialist Total Regular FTEs

275 FTE DETAILED SCHEDULE - FY2015 THROUGH FY2017 Position Title FY 2015 Adopted FY 2016 Adopted FY 2017 Adopted Training Fire Battalion Chief Fire Captain Sr. Office Specialist Total Regular FTEs Emergency Medical Services Fire Battalion Chief Sr. Office Specialist EMS Trainer Total Regular FTEs Department Total Regular FTEs Police Department Animal Control Animal Shelter Manager Sr Public Services Aide PSA Supervisor Public Services Aide Total Regular FTEs Detention Detention Supervisor Detention Corporal Detention Shift Supervisor Detention Officer I Total Regular FTEs Dispatch CDC Supervisor Police Chief Sr. Office Specialist Dispatcher Shift Supervisor Dispatcher II Dispatcher I Total Regular FTEs Emergency Management Police Commander-non uniform Senior Office Specialist Office Specialist Total Regular FTEs

276 FTE DETAILED SCHEDULE - FY2015 THROUGH FY2017 Position Title FY 2015 Adopted FY 2016 Adopted FY 2017 Adopted Operations Police Sergeant Police Corporal Police Officer Total Regular FTEs Administration/Records Police Chief Deputy Police Chief Police Commander Office Manager Sr. Office Specialist Evidence and Training Tech Records Specialist Total Regular FTEs Department Total Regular FTEs Public Works Department PW Administration Public Works Director Deputy Public Works Director Office Manager Sr. Office Specialist Total Regular FTEs Engineering & Project Management County Engineer Engineering Project Manager Projects Manager Sr. Engineer Chief Surveyor Engineering Associate Senior Engineering Aide Engineering Aide Total Regular FTEs Facilities Maintenance Facilities Manager Construction Specialist III Construction Specialist II Sr. Office Specialist Construction Specialist I Total Regular FTEs

277 FTE DETAILED SCHEDULE - FY2015 THROUGH FY2017 Position Title FY 2015 Adopted FY 2016 Adopted FY 2017 Adopted Custodial Maintenance Lead Custodian Custodian Superintendent Custodian Senior Office Specialist Total Regular FTEs Fleet Fleet Mechanic II Fleet Supervisor Sr. Office Specialist Fleet Mechanic I Fleet Manager Fleet Shop Foreman Total Regular FTEs Traffic & Streets Traffic & Streets Manager/Engineer Street Maint. Superintendent Asst Street Superintendent Lead Equipment Operator Sr. Equipment Operator Sr. Office Specialist Equipment Operator Traffic Electrician I Traffic Operations Manager Traffic Electrician III Transportation Safety Specialist Traffic Electrician II Signs & Marking Technician I-III Total Regular FTEs Transit Public Works Director Deputy Public Works Director Transportation Safety Specialist Transit Manager Sr. Office Specialist Management Analyst Transit Supervisor Transit CS Rep/Dispatcher III Transit CS Rep/Dispatcher I Transit Dispatcher-Operator ll Transit Operator I Transit Operator lll

278 FTE DETAILED SCHEDULE - FY2015 THROUGH FY2017 Position Title FY 2015 Adopted FY 2016 Adopted FY 2017 Adopted Transit Operator II Lead Transit Operator Total Regular FTEs Total Limited Term - Transit Operators Total FTEs Environmental Services Public Works Director Environmental Services Manager Environmental Services Supt Environmental Services Trainee Asst Environmental Services Supt Lead Equipment Operator Management Analyst Scale Operator Sr. Office Specialist Sr. Equipment Operator Office Specialist Laborer Equipment Operator Total Regular FTEs Airport Airport Manager Office Specialist Total Regular FTEs Department Total Regular FTEs Department Total Limited Term Department Total All FTEs Community Development Department Administration Community Development Director Office Manager Permit Technician Management Analyst Sr. Office Specialist Total Regular FTEs Housing Housing & Special Project Manager Sr. Office Specialist Office Specialist Total Regular FTEs

279 FTE DETAILED SCHEDULE - FY2015 THROUGH FY2017 Position Title FY 2015 Adopted FY 2016 Adopted FY 2017 Adopted Building Building Safety Manager Sr. Building Inspector Building Inspector Code Enforcement Inspector Total Regular FTEs Planning Principal Planner Senior Planner Assistant Planner Total Regular FTEs Department Total Regular FTEs Utilities Department Administration Utilities Manager Dep. Util. Mgr.-Finance Public Relations Manager Utilities Business Operations Manager Sr. Office Specialist Management Analyst Public Affairs Specialist-Utilities Total Regular FTEs Temp/Casual Total FTEs Billing Billing and Service Specialist Senior Billing and Service Specialist Sr. Management Anaylst Management Analyst Total Regular FTEs Engineering Dep. Util. Mgr.-Engineering Environmental Compliance Specialist Environmental Compliance & Conservation Spec Water & Energy Conservation Officer GIS System Specialist SCADA System Technician SCADA System Coordinator

280 FTE DETAILED SCHEDULE - FY2015 THROUGH FY2017 Position Title FY 2015 Adopted FY 2016 Adopted FY 2017 Adopted Sr. Engineer Engineering Project Manager Engineering Associate Total Regular FTEs Meter Reading Meter Reader Supervisor Meter Reader II Meter Reader I Total Regular FTEs Electric Production Deputy Utility Manager-Power Supply Power Scheduler/Energy Analyst Power System Supervisor Sr. Management Analyst Senior Hydro-Elec Maint Tech Sr. Power System Operator Power System Operator Hydro Elec Engineer/Supt Lead Hydro. Plant Maint. Tech Hydro. Plant Maint. Tech Total Regular FTEs Electric Distribution Dep. Util. Mgr.-Elec. Dist Line Electrician Supervisor Engineering Associate Sr Engineering Aide Engineering Project Mgr Journeyman Lineman Total Regular FTEs Gas/Water/Sewer Dep. Util. Mgr.-GWS Services GWS Superintendent GWS Field Supervisor GWS Supervisor GWS Pipefitter Utility Line Locator GWS Service Worker GWS Shop Supervisor GWS Apprentice II GWS Apprentice I Meter Reader Supervisor

281 FTE DETAILED SCHEDULE - FY2015 THROUGH FY2017 Position Title FY 2015 Adopted FY 2016 Adopted FY 2017 Adopted Engineering Aide GWS/WWTP/WP Trainee Total Regular FTEs Temp/Casual Total FTEs Wastewater Treatment Plant WW Treatment Plant Superintendent WW Treatment Plant Supervisor Sr. WW Treatment Plant Operator WW Treatment Plant Operator WW Treatment Plant Oper. Appr II WW Treatment Plant Oper. Appr I GWS/WWTP/WP Trainee Total Regular FTEs Water Production Dep. Util. Mgr.-GWS Services Water Systems Superintendent Water Systems Elec. Technician Water Systems Operator Water Systems Apprentice II Water Systems Apprentice III 1 Water Systems Apprentice I Total Regular FTEs Department Total Regular FTEs Department Total Temp/Casual Department Total All FTEs

282 SCHEDULE OF INTERFUND TRANSFERS - FY2017 Adopted and FY2018 Projected FY 2017 Adopted Operating transfers out of: Operating transfers into: State Shared / Capital Capital Electric Gas Other Special Economic Improvements Projects General Utility Utility Revenues Development Fire Projects Permanent Total General $ 0 648, , ,725, ,634,110 Health Care Assistance 317, ,000 Economic Development 1,000, , ,150,000 Other Special Revenues 15, ,000 Debt Service Fund - Revenue Bonds 6,264, ,264,647 Capital Improvement Projects 4,713, , ,230,000 6,523,160 Water ,000, ,000,000 Transit Fund 1,000, ,000,000 Airport 396, ,486 $ 13,706, , , ,000 2,000,000 1,725, ,000 1,230,000 20,300,403 FY 2018 Projected Operating transfers out of: Operating transfers into: State Shared / Capital Capital Electric Gas Other Special Economic Improvements Projects General Utility Utility Revenues Development Fire Projects Permanent Total General $ 0 657, , ,750, ,641,294 Health Care Assistance 317, ,000 Economic Development , ,000 Other Special Revenues 15, ,000 Debt Service Fund - Revenue Bonds 6,268, ,268,597 Capital Improvement Projects 3,713, , ,268,000 5,561,160 Transit Fund 1,000, ,000,000 Airport 396, ,486 $ 11,710, , , , ,750, ,000 1,268,000 16,419,

283 FY2017 Equipment Replacement Schedule Unit # Division Estimated Year of Description Replacement Unit Cost 1070 Police Operations Division 2007 Ford Crown Victoria $30, Police Operations Division 2008 Ford Explorer $30, Police Operations Division 2010 Ford Expedition $35, Police Operations Division 2010 Ford Expedition $35, Fleet Division 2002 Truck Utility body 1 ton/1.5 ton $125, Traffic and Streets 2002 International Truck 5CY with attachments $225, Parks Maintenance 2007 Jacobsen Cushman Turf Truck $10, Parks Maintenance 2002 John Deere 310 Backhoe $90, Parks Maintenance 2009 Bluebird Sod Cutter $7, Parks Maintenance 2000 Ryan Sod Cutter $7, Parks Maintenance 2002 Kubota industrial Tractors up to 50hp $20, Parks Maintenance 2003 Industrial Tractor $105, Golf Course 2002 John Deere Industrial Tractor $45, Golf Course 2007 Mower Rear Flail $20, Golf Course 2005 Mower Rotary Riding $80, Facilities Maintenance 2007 Truck with utility body 1 ton 4x4 $35, County Assessor 2003 Full Size Sedan $25, Fleet Motor Pool 2000 Utility Vehicle 4WD $25, Ice Rink 2000 Gas Powered Ice Edger $4, Ice Rink 2000 Gas Powered Ice Edger $4, Streets 1983 Flatbed Trailer $10, Streets 2007 Truck Dump 10cy Equipment Fund Subtotal $180,000 $1,148,000 Enterprise Fund Unit # Division Estimated Year of Description Replacement Unit Cost 1064 Utilities Electrical Distribution 2007 Truck Utility body 1 ton 4WD Crew Cab $35, PW Environmental Services 2009 Truck 1 ton with Container Carrier $120, PW Environmental Services 2006 Refuse Truck Side Loader $300, PW Environmental Services 2008 Pickup 1/2 ton 4WD Extended cab $40, Utilities Gas 2000 John Deere 310 Backhoe $90, Utilities Waste Water 2005 Truck 3/4 ton Utility body 4x4 with Tommy gate $40, Utilities Waste Water 2005 Truck Dump 5 cy Equipment Fund Subtotal $105,000 $730,000 Transit Fund Because these buses are grant funded, the grant funded portion resides in the Transit Budget. The replacement cost of these buses is split between the Transit Fund and the Equipment Fund. Unit# Division Year of In Equipment Description Full Cost Transit Fund Unit Fund Budget 4085 PW Transit 2009 Trolley $350,000 Transit Fund Subtotal $70,000 $70,000 Equipment Fund Grand Total $1,948,

284 FY2018 Equipment Replacement Schedule General County Unit# Division Estimated Year of Description Replacement Unit Cost 1089 Police Department 2008 Chevrolet Express Van $35, Police Department 2009 Ford Expedition $35, Police Department 2009 Ford Expedition $35, Police Department 2010 Ford Crown Victoria $30, Police Department 2010 Ford Crown Victoria $30, Parks Maintenance 2004 Ford Ranger Economy 4WD Ext Cab $25, Parks Maintenance 2010 Hustler Super z 28hp mower reel type riding $15, Parks Maintenance 2010 Hustler Super z 28hp mower reel type riding $15, Parks Maintenance 2008 John Deere 370 mower Rear mount Flail $15, Parks Maintenance 2008 john Deere 370 mower Reel Type Riding $15, Parks Maintenance 2003 Freightliner truck 5cy $120, Golf Course 2006 John Deere Industrial Tractor $40, Facilities Maintenance 2008 Truck with Utility body 1 ton 4x4 $35, Fire Marshall 2002 Utility Vehicle 4WD $35, Fleet Motor Pool 2005 Mini Van $25, Warehouse 1991 Forklift Electric $60, Streets 2001 Pickup 1/2 4x4 extended cab $35, Streets 2002 Truck Dump 10cy $200, Streets 2005 Street Sweeper Equipment Fund Subtotal $250,000 $1,050,000 DPU and Environmental Services Unit# Division Estimated Year of Description Replacement Unit Cost 1088 Utilities Electrical Production 2008 Truck 1/2 ton 4WD Ext Cab $32, Utilities Water Production 2009 Truck 3/4 ton Utility body 4WD Ext Cab $35, Utilities Electrical Distribution 2007 Truck with Digger Derrick DC47 $275, PW Environmental Services 2011 Refuse Truck Side Loader $300, PW Environmental Services 2007 Truck 1.5 ton fuel truck DPU and Environmental Services Subtotal $35,000 $677,000 Transit Because these buses are grant funded, the grant funded portion resides in the Transit budget. The replacement cost of these buses is split between the Transit Fund and The Equipment Fund. Estimated Year of Unit# Division Description Full Cost Grant Funds Replacement Unit Cost 4087 PW Transit 2008 Ford Transit Bus $350,000 $280,000 $70,000 Transit Subtotal Equipment Fund Grand Total $70,000 $1,797,

285 Schedule of Recurring Grants Estimates for FY 2017 FY 2017 Dept/Div Funding Grant Description Amount Fire NMPRC Fire Protection Fund $ 500,000 NMDOH Emergency Medical Services Fund 11,200 Municipal Court Community Services Police Transit Public Works NMAOC Automation Fund 20,000 NMCYFD Juvenile Justice Advisory Board 199,000 NMDCA Library State Aide 11,000 NMDFA Local DWI Distribution 77,000 NMDFA General Obligation Bonds 41,200 NMDOT Operation DWI 10,000 NMDFA Law Enforcement Protection Fund 39,200 NMDHSEM Emergency Management Planning Grant 108,000 NMDHSEM State Homeland Security Grant Program 150,000 NMDOT Transit ,088,272 NMDOT School Bus Route Program 87,000 NMDOT County Arterial Program 28,000 NMDOT Cooperative Program 64,300 Total $ 3,434,172 Note: These figures are based on estimated grant amounts. Adjustments to actual amounts will be presented to Council for approval during mid year budget revisions. 269

286 DEBT SUMMARY General Obligation Debt The County has no General Obligation debt. Computation of the Legal Debt Limit The County of Los Alamos is the only Class H (city / county government) in the state of New Mexico. A review of Article IX, Section 13 of the New Mexico Constitution limits the amount of general obligation indebtedness for a county, city, town, or village to four percent (4%) of the assessed valuation. This article is silent regarding an entity which is both a city and a county. However, the New Mexico Department of Finance and Administration (DFA) indicates that the limitation for Los Alamos County should also be four percent (4%) of assessed valuation. The County relies on this guidance in calculating the legal debt limit for FY 2015 (based on tax year 2014 valuation) at approximately $27.3 million. This limit applies to general obligation debt. As the County presently has none outstanding, $27.3 million is also the County s current general obligation debt capacity. Gross Receipts Tax (GRT) Revenue Bonds GRT Revenue Bonds 2008/2013 Series On October 21, 2008, the County closed on the sale of The Incorporated County of Los Alamos, New Mexico Gross Receipts Tax (GRT) Improvement Revenue Bonds, Series The original bonds were issued in the amount of $75,000,000 with a final maturity date of June 1, On June 26, 2013, the County issued $38,235,000 Gross Receipts Tax Refunding Revenue Bonds, Series 2013 which advance refunded a portion of the 2008 Series. The net proceeds of $49,926,817 (including $5,178,930 in premiums net of discount [$115,496], $6,700,000 additional funding from the County less $187,113 in underwriting, insurance and issuance costs) were deposited into escrow and used to pay a portion of the interest on the 2008 Series when due beginning December 1, 2013 through June 1, 2028 and redeem the outstanding 2008 Series maturing on June 1, 2029 and after, when callable on June 1, The un-refunded Series 2008 Revenue Bonds have principal outstanding of $12,540,000 at June 30, 2015, with a final maturity date of June 1, Interest on the bonds is payable semi-annually at rates ranging from 3.45% to 5.00%, with an average coupon rate of 4.22%. The advanced refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $9,653,817. The difference, reported in the accompanying financial statements as a deferred outflow of resources, is being charged to operations through the year 2028 using the straight-line method. The County completed the advance refunding in order to reduce its total debt service payments over the next 14 years by $9,515,950, and to recognize an economic gain (difference between the present values of the old and new debt service payments) of $1,151,198. The bonds were issued for the purpose of providing funds for public projects related to public facilities, roads and streets, public works, parks and recreation, and community services. The two largest projects to be funded with the proceeds are the Airport Basin Project and the Judicial / Police / Jail Complex Project. 270

287 DEBT SUMMARY Revenues pledged to cover debt service include (1) the County's State-Shared Gross Receipts Tax Revenues, at the rate authorized (currently 1.225%), (2) the Municipal Gross Receipts Tax Revenues, which equal one and one quarter percent (1.25%), (3) the Municipal Infrastructure Gross Receipts Tax Revenues, in an amount of one-eighth of one percent (0.125%), and (4) the third one-eighth of one percent (0.125%) increment of County Gross Receipts Tax Revenues. The schedules of current year activity and annual maturity requirements of the 2008 GRT Bonds and 2013 GRT Advance Refunding Bonds are as follows: Year ending 2008 Series 2013 Series June 30 Principal Interest Principal Interest 2016 $ 3,970, , ,645, ,175, , ,645, ,395, , ,645, ,620,000 1,645, ,090,000 1,460, ,765,000 4,995, ,760, ,445 $ 12,540,000 1,325,675 38,235,000 13,923, Series Principal $ 12,540, Series Principal 38,235,000 Unamortized balances: Discounts and premiums 5,281,683 $ 56,056,683 Utility System Revenue Bonds All Joint Utility System revenue bonds are secured by a pledge of the net revenues of the Joint Utility System and certain funds established pursuant to the bond indentures. Accordingly, the bondholders may not seek repayment from the general public or any other fund of the County. The County has complied with all indenture requirements. Utility Revenue Bonds 2014 A and B Series On August 13, 2014, the County issued The Incorporated County of Los Alamos, Joint Utility System Bonds, Series 2014A (tax-exempt) and 2014B (taxable). The bonds were issued in the par amount of $21,690,000 with a final maturity date of June 1, 2034 for the Series 2014A and June 1, 2021 for the Series 2014B. Interest on the bonds is payable semi-annually beginning December 1, 2014 at rates ranging from 3.1% to 5.10% for the series 2014A and 0.37% to 2.91% for the series 2014B. 271

288 DEBT SUMMARY The Series 2014A and 2014B bonds were issued to refund the Joint Utility Fund Bonds, Series 2004A, 2004B, and advance refund Series 2006A, and 2006B, and provide $16,853,827 for Joint Utility System projects. The net proceeds of $22,652,043 (including $1,067,958 in premiums, less $105,915 of bond issuance costs) along with $7,994,493 of prior debt service restricted reserves from the 2004/2006 fund proceeds, were used to retire the outstanding 2004/2006 Series Utility Revenue Bonds. Proceeds of $1,436,504 from the 2014A series and proceeds of $2,514,099 of the 2014B series were also used to advance refund remaining portions of the 2006A/B series bonds payable. As a result, the 2004 A and B and 2006 A and B Series Utility Revenue Bonds have been removed from the government wide statement of net position. The advanced refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $747,197. The difference, reported in the accompanying financial statements as a deferred outflow of resources, is being charged to operations through the year 2034 using the straight-line method. The County completed the advance refunding in order to reduce its total debt service payments over the next 10 years by $8,317,334, and to recognize an economic gain (difference between the present values of the old and new debt service payments) of $303,540. The scheduled annual maturity requirements of the 2014 Series A and B Utility Revenue Bonds as of June 30, 2015 are as presented below. 2014A Series 2014B Series Year ending June 30 Principal Interest Principal Interest 2016 $ 540, ,140 1,515, , , ,600 1,530, , , ,785 1,550, , , ,950 1,575, , , ,930 1,615,000 91, ,585,000 1,209,165 1,655,000 48, ,475, , ,310, , $ 10,315,000 4,032,733 9,440, , A Series Principal $ 10,315, B Series Principal 9,440,000 Unamortized balances: Discounts and premiums 972,685 Total payable $ 20,727,

289 Utility Revenue Bonds 2010 Series DEBT SUMMARY On August 12, 2010, the county issued $13,085,000 in Utility Revenue bonds (2010 Series A, B, C, D). These are 20-year bonds and will be fully amortized on June 1, The Series A are tax-exempt bonds with an aggregate principal of $3,785,000. The Series B are taxable direct payment Build America bonds with an aggregate principal of $1,535,000. Series C are taxable direct payment Recovery Zone Economic Development bonds with an aggregate principal of $3,680,000. Series D are taxable bonds with an aggregate principal of $4,085,000. The bonds have various interest rates with a blended interest rate of 5.355%. The Build America and Recovery Zone Economic Development bonds both include a federal subsidy component, receipt of which is dependent on meeting federal reporting requirements. The total federal subsidy is $2,168,587 for the life of the bonds and is recorded as intergovernmental revenue when earned. The primary purpose of the bond issue was to enhance the County s Utility System by constructing a low flow turbine generator at the County s Abiquiu hydroelectric plant, constructing new and renovating existing electric distribution lines both in the overhead and underground systems, including but not limited to transformers, switchgear, protective devices and other appurtenances and equipment; and improving and renovating water distribution and transmission systems. The scheduled annual maturity requirements of the 2010 Series A, B, C, and D Utility Revenue Bonds as of June 30, 2015 are as presented below A Series 2010 B Series 2010 C Series 2010 D Series Year ending June 30 Principal Interest Principal Interest Principal Interest Principal Interest Total 2016 $ 455, , , , , ,210 1,250, , , , , , ,894 1,243, ,000 98, , , , ,868 1,251, ,000 83, , , , ,828 1,247, ,000 63, , , , ,191 1,244, ,095,000 66,200 1,535, , ,000 1,110,836 1,160, ,607 6,221, ,410, ,752 1,525, ,104 5,858,856 $ 3,495, ,925 1,535, ,357 3,680,000 2,856,424 3,605,000 1,848,702 18,317, A Series Principal $ 3,495, B Series Principal 1,535, C Series Principal 3,680, D Series Principal 3,605,000 Unamortized balances: Discounts and premiums 94,688 Total payable $ 12,409,

290 DEBT SUMMARY Intergovernmental Notes Payable Business-type Activities Beginning in December 2005 through January 2013, the County entered into various agreements to borrow $21,533,598 from several State of New Mexico Agencies, to partially fund various projects. The purpose of each loan, the source of debt service payments, and other details are described below: CWSRF : To partially fund the construction of a new wastewater treatment facility. The loan is to be repaid solely from the net revenues from the operation of only the Wastewater subfund, which is a part of the Joint Utility System Fund. WTB 63: To construct a water line to transfer treated effluent water to County parks and ball fields. The loan is to be repaid from existing Utility system revenues. The agreement included a grant in the amount of $585,720. PP 1898: To construct a solid waste transfer station. The loan is to be repaid from Municipal Environmental Services Gross Receipts Tax revenues. WTB 89: To finance the costs of Phase II of the water conservation, treatment and reuse infrastructure project. The loan is to be repaid from existing Utility water system revenues. The agreement included a grant in the amount of $319,648. ARRA CWSRF 09: To finance the costs of Phase II of the effluent reuse infrastructure project. The loan is to be repaid from existing Utility water system revenues. The agreement included a grant in the amount of $150,000. WTB 156: To finance the costs of Phase II of the water conservation, treatment, and reuse infrastructure project. The loan is to be repaid from existing Utility water system revenues. The agreement included a grant in the amount of $590,000. WTB 157: To finance the costs of environmental studies for a proposed collector well for water from the San Juan/Chama Diversion Project. The loan is to be repaid from existing Utility water system revenues. The agreement included a grant in the amount of $200,000. WTB 220: To finance the costs of the project to upgrade public safety at the Los Alamos Canyon Dam. The loan is to be repaid from existing Utility water system revenues. The agreement included a grant in the amount of $900,000. WTB 221: To finance the costs of the water conservation treatment recycling or reuse project at the Los Alamos Canyon Reservoir. The loan is to be repaid from existing Utility water system revenues. The agreement included a grant in the amount of $210,

291 DEBT SUMMARY Loan terms and repayment schedules are shown below: Loan Number New Mexico Environment Department New Mexico Water Trust Board and New Mexico Finance Authority New Mexico Finance Authority New Mexico Water Trust Board and New Mexico Finance Authority CWSRF WTB 63 PP 1898 WTB 89 New Mexico Environment Department Construction Programs Bureau New Mexico Water Trust Board and New Mexico Finance Authority New Mexico Water Trust Board and New Mexico Finance Authority New Mexico Water Trust Board and New Mexico Finance Authority New Mexico Water Trust Board and New Mexico Finance Authority ARRA CWSRF O9 WTB 156 WTB 157 WTB 220 WTB 221 Totals Date of agreement Dec 2005 Apr 2007 May 2007 Nov 2008 Dec 2009 Jul 2010 (a) Jul 2010 (b) Nov 2011 Jan 2013 Beginning principal 14,355,105 65,080 5,861,189 79, , ,500 50, , ,000 Term of agrement, in years Interest rate 3% % % Administrative fee % % 0.44% 0.25% 0.25% 0.25% 0.25% Payable in year ending 6/30/2016: Principal 619,325 3, ,021 4,056 9,835 7,292 2,472 30,472 6, ,603 Interest and/or admin fee 345, , , , ,248 Total 964,888 3, ,613 4,190 15,783 7,570 2,566 31,713 7,186 1,398,851 Payable in year ending 6/30/2017: Principal 637,905 3, ,515 4,066 10,131 7,310 2,478 30,546 6, ,106 Interest and/or admin fee 326, , , , ,759 Total 964,888 3, ,629 4,190 15,784 7,570 2,566 31,711 7,185 1,398,865 Payable in year ending 6/30/2018: Principal 657,042 3, ,346 4,076 10,434 7,328 2,484 30,620 6, ,510 Interest and/or admin fee 307, , , , ,366 Total 964,888 3, ,646 4,189 15,783 7,569 2,566 31,709 7,185 1,398,876 Payable in year ending 6/30/2019: Principal 676,753 3, ,533 4,087 10,747 7,347 2,490 30,694 6, ,856 Interest and/or admin fee 288, , , , ,038 Total 964,888 3, ,665 4,190 15,783 7,570 2,566 31,706 7,185 1,398,894 Payable in year ending 6/30/2020: Principal 697,056 3, ,078 4,097 11,070 7,365 2,497 30,769 6, ,164 Interest and/or admin fee 267, , , ,750 Total 964,888 3, ,684 4,190 15,783 7,570 2,567 31,705 7,186 1,398,914 Payable in five years ending 6/30/2025: Principal 3,811,786 16,502 1,116,562 20,638 60,534 37,102 12, ,967 35,041 5,265,709 Interest and/or admin fee 1,012, , , , ,729,133 Total 4,824,442 16,709 1,808,730 20,951 78,915 37,851 12, ,487 35,927 6,994,842 Payable in five years ending 6/30/2030: Principal 4,418,908 6,658 1,364,583 12,509 70,178 37,569 12, ,859 35,481 6,115,480 Interest and/or admin fee 405, , , , ,531 Total 4,824,445 6,683 1,809,354 12,571 78,916 37,852 12, ,432 35,927 6,977,011 Payable in five years ending 6/30/2035: Principal - - 1,309,401-15, ,600 14,316 1,370,640 Interest and/or admin fee , ,217 Total - - 1,448,025-15, ,679 14,370 1,509,857 Total payable Principal 11,518,775 39,456 4,709,039 53, , ,313 37, , ,444 17,284,068 Interest and/or admin fee 2,954, ,165, ,278 2, ,615 2,706 5,192,041 Total 14,473,327 40,099 6,874,346 54, , ,552 38, , ,150 22,476,

292 GENERAL FUND REVENUE DETAIL FY2015 Actual FY2016 Adopted Budget FY2016 Revised Budget FY2016 Projected FY2017 Adopted Budget Variance FY2017 vs FY2016 FY2018 Projected Budget Variance FY2018 vs FY2017 REVENUES Gross receipts taxes $ 35,390,169 39,066,000 39,066,000 40,517,000 41,607,000 7% 42,332,000 2% Property taxes 5,381,987 6,919,566 6,919,566 6,919,566 6,992,560 1% 7,132,000 2% Interdepartmental charges 6,587,030 6,142,492 6,142,492 6,142,492 6,893,926 12% 7,083,782 3% User charges 2,040,153 2,153,590 2,153,590 2,061,394 2,088,851 (3%) 2,138,831 2% Investment income (loss) 581,674 1,925,000 1,925, ,000 1,270,000 (34%) 1,231,000 (3%) Grants 836, ,700 2,143,098 3,043,108 1,147,200 33% 1,106,000 (4%) Other 1,185,297 1,172,899 1,172,899 1,176,350 1,284,430 10% 1,247,104 (3%) TOTAL REVENUES $ 52,002,962 58,243,247 59,522,645 60,364,910 61,283,967 5% 62,270,717 2% GROSS RECEIPTS TAXES Gross Rec Tax-Muni-Prior $ 11,868,309 13,102,000 13,102,000 13,588,000 13,955,000 7% 14,196,000 2% Gross Rec Tax-Municipal 2,920,229 3,224,000 3,224,000 3,344,000 3,434,000 7% 3,494,000 2% Gross Rec Tax-Muni Infra 1,460,114 1,612,000 1,612,000 1,672,000 1,717,000 7% 1,747,000 2% Gross Rec-County 3rd Pledged 1,460,114 1,612,000 1,612,000 1,672,000 1,717,000 7% 1,747,000 2% Gross Rec Tax-County 1,460,114 1,612,000 1,612,000 1,672,000 1,717,000 7% 1,747,000 2% Gross Rec Tax-Co. Correctional 1,460,114 1,612,000 1,612,000 1,672,000 1,717,000 7% 1,747,000 2% St Shared-Gross Rec Tax 14,761,175 16,292,000 16,292,000 16,897,000 17,350,000 6% 17,654,000 2% Total Gross Receipts Tax 35,390,169 39,066,000 39,066,000 40,517,000 41,607,000 7% 42,332,000 2%. PROPERTY TAXES Prop Taxes-Residential 4,340,017 5,731,497 5,731,497 5,731,497 5,732,769 0% 5,847,000 2% Prop Taxes-Nonresidential 997,273 1,188,069 1,188,069 1,188,069 1,259,791 6% 1,285,000 2% Property Taxes-Interest 27, N/A N/A Property Taxes-Penalty 17, N/A N/A Total Property Taxes 5,381,987 6,919,566 6,919,566 6,919,566 6,992,560 1% 7,132,000 2% INTERDEPARTMENTAL CHARGES IDC Charges-General County 1,681,306 1,842,161 1,842,161 1,842,161 2,111,961 15% 2,175,320 3% IDC Charges-Refuse 373, , , , ,520 (21%) 305,416 3% IDC Charges-Utilities 2,067,291 1,432,384 1,432,384 1,432,384 1,759,993 23% 1,812,793 3% IDC-Indirect O/H-LANL Contract 2,465,155 2,494,669 2,494,669 2,494,669 2,725,452 9% 2,790,254 2% IDC-Interdepartmental Charges 6,587,030 6,142,492 6,142,492 6,142,492 6,893,926 12% 7,083,782 3% USER CHARGES Alcoholic Beverage Licenses 6,325 4,000 4,000 2,000 4,500 13% 4,600 2% Business License Fees 46,001 35,000 35,000 40,000 40,000 14% 41,200 3% Animal Licenses (14%) 140 8% Building Permits 181, , , , ,000 (5%) 206,000 3% Marriage Licenses 840 1,200 1, ,000 (17%) 1,000 0% Other Nonbus Licenses/Permits 10,175 2,101 2,101 3,500 5, % 5,200 4% Lemon Lot Permits 6,930 7,500 7,500 7,500 8,000 7% 8,200 3% Licenses And Permits 252, , , , ,630 (1%) 266,340 3% Fines-Traffic 38,349 80,000 80,000 60,000 65,000 (19%) 67,000 3% Correction Fees-Magistrate Ct 31,643 20,000 20,000 20,000 20,000 0% 20,600 3% Correction Fees-Municipal Ct 17,589 25,000 25,000 25,000 22,000 (12%) 22,660 3% Court Facilities Fee 7,983 4,000 4,000 11,000 5,700 43% 5,800 2% Field Sobriety Training Fees (14%) 300 0% Muni Ct Electronic Mon Fees 10,071 3,000 3,000 4,800 4,600 53% 4,700 2% Muni Ct Drug Testing Fees 1,985 5,000 5,000 2,200 2,700 (46%) 2,800 4% Traffic Safety Fee-LAC 3,909 5,000 5,000 5,000 5,000 0% 5,200 4% Muni Ct DWI Probation Fees 1,780 1,500 1,500 2,500 1,700 13% 1,800 6% Probation Fees 580 3,500 3,500 1,700 1,900 (46%) 2,000 5% Community Service Fee 6,034 5,000 5,000 8,300 5,000 0% 5,000 0% Alternative Sentencing Fee 11,725 10,000 10,000 16,000 12,100 21% 12,500 3% Miscellaneous Court Fees Other 1,487 1,000 1,000 6,500 2, % 2,600 4% Deposit/Bond Forfeitures ,100 1, % 1,050 5% Magistrate DWI Probation Fees 5,938 4,000 4,000 3,800 5,000 25% 5,200 4% Magistrate DWI Comm Svc Fees N/A 0 N/A Magistrate Probation Fees 3,570 3,000 3,000 3,500 3,200 7% 3,300 3% Magistrate Comm Svc Fees N/A 135 4% Magistrate Electronic Mon Fees 5,850 8,000 8,000 1,300 4,000 (50%) 4,120 3% Magistrate Drug Testing Fees 2,745 2,000 2,000 3,000 2,500 25% 2,600 4% Fines And Forfeits 152, , , , ,330 (9%) 169,365 3% 276

293 GENERAL FUND REVENUE DETAIL FY2016 Adopted Budget FY2016 Revised Budget FY2017 Adopted Budget Variance FY2017 vs FY2016 FY2018 Projected Budget Variance FY2018 vs FY2017 FY2015 Actual FY2016 Projected Probate Court Fees (12%) 830 4% Candidate Filing Fees % 620 3% Recording Fees 47,362 41,480 41,480 50,000 54,000 30% 55,600 3% Planning Fees 11,540 6,933 6,933 3,000 6,000 (13%) 6,200 3% Plan Review Fee 22,234 35,000 35,000 18,000 25,000 (29%) 26,000 4% Duplicating/Printing Services 630 2,894 2, (76%) 720 3% Sale Of Documents/Publications 43,364 28,432 28,432 41,000 43,000 51% 44,300 3% Sales Of Food 26,896 20,000 20,000 13,000 22,000 10% 23,000 5% Sales Of Merchandise 45,845 90,000 90,000 23,000 40,000 (56%) 41,000 3% Art Commission Sales N/A 0 N/A Other Charges For Services 18,949 40,000 40,000 10,000 30,000 (25%) 31,000 3% Chgs Svcs-General 218, , , , ,100 (16%) 229,270 3% Civil Service Fees 4,493 5,000 5,000 5,000 5,000 0% 5,200 4% Fingerprinting Fees 688 3,000 3, ,000 (33%) 2,100 5% Prisoner Housing Reimbursement 12, ,000 4,000 N/A 4,200 5% Special Services-Police 11,737 20,000 20,000 14,000 14,000 (30%) 14,500 4% Work Release Admin Fees N/A 0 N/A Chgs Svcs-Public Safety 29,391 28,000 28,000 22,670 25,000 (11%) 26,000 4% MISC SALES/SERVICE N/A 720 3% REVENUES N/A 720 3% Cemetery Equipment Rentals N/A 103 3% Cemetery Liners 18,072 15,000 15,000 25,000 20,000 33% 21,000 5% Cemetery Openings N/A 0 N/A Sales-Cemetery Lots (40%) 17,008 15,000 15,000 19,000 17,000 13% 17,500 3% Sales-Cemetery Lots (60%) 25,512 25,000 25,000 29,000 25,000 0% 26,000 4% Animal Pickup Fees 1,437 1,000 1,000 2,100 1,300 30% 1,400 8% Animal Shelter Fees 1,611 2,000 2,000 1,200 2,000 0% 2,100 5% Chgs Svcs-Environment 63,640 58,000 58,000 76,500 65,400 13% 68,103 4% Daily Fees/Passes-Adult 154, , , , ,000 (3%) 155,000 0% Daily Fees/Passes-Family 2,406 3,000 3,000 5,000 3,000 0% 3,100 3% Daily Fees/Passes-Group 5,553 9,000 9, ,000 (33%) 6,200 3% Daily Fees/Passes-Senior 3,492 3,000 3,000 6,000 4,000 33% 4,150 4% Daily Fees/Passes-Youth/Junior 22,873 23,000 23,000 31,000 25,000 9% 26,000 4% Annual Passes-Adult 123, , , , ,000 0% 120,000 0% Annual Passes-Family 7,150 4,000 4,000 4,000 6,000 50% 6,200 3% Annual Passes-Senior 11,172 6,000 6,000 6,000 9,500 58% 9,800 3% Annual Passes-Youth/Junior 29,270 15,000 15,000 15,000 23,000 53% 24,000 4% Three-Month Passes-Adult 14,077 17,000 17,000 17,000 16,000 (6%) 16,500 3% Three-Month Passes-Family 6,586 8,000 8,000 8,000 7,000 (13%) 7,200 3% Three-Month Passes-Senior 7,036 8,000 8,000 8,000 8,000 0% 8,200 3% Three-Month Passes-Youth/Jr 7,010 11,000 11,000 11,000 10,000 (9%) 10,300 3% Monthly Passes-Adult 18,820 7,000 7,000 7,000 8,000 14% 8,200 3% 10/12 Punch Passes-Adult 50,163 75,000 75,000 75,000 60,000 (20%) 62,000 3% 10/12 Punch Passes-Senior 6,524 9,000 9,000 9,000 8,500 (6%) 8,800 4% 10/12 Punch Passes-Youth/Jr 9,084 14,000 14,000 14,000 13,000 (7%) 13,400 3% Recreation Fees-Classes 76,203 97,000 97,000 97,000 80,000 (18%) 83,000 4% Recreation Fees-Special Events 26,168 20,000 20,000 20,000 22,000 10% 23,000 5% Recreation Fees-Sports 5,867 6,000 6,000 6,000 6,500 8% 6,700 3% Recreation Fees-LA Schools 0 4,000 4,000 4,000 3,000 (25%) 3,100 3% Recreation Fees-Other 79,689 92,000 92,000 92,000 96,000 4% 99,000 3% Camping Fees 13,682 10,000 10,000 10,000 9,000 (10%) 9,300 3% Library Fees 4,664 3,000 3,000 3,000 4,000 33% 4,100 3% Special Culture/Rec Fees-0Ther N/A 0 N/A Chgs Svc-Culture/Recreation 684, , , , ,193 (3%) 716,934 2% Bldg Rental-Fuller Lodge 29,350 46,828 46,828 46,828 43,000 (8%) 44,000 2% Bldg Rental-LA Comm Building 8,447 11,609 11,609 11,609 10,000 (14%) 10,300 3% Bldg Rental-Residences 9,377 13,500 13,500 13,500 12,500 (7%) 12,900 3% Bldg Rentals-Other 2,930 40,000 40,000 40,000 13,000 (68%) 13,400 3% Land Rental-LA Gymnastics 16,638 17,500 17,500 17,500 17,000 (3%) 17,500 3% Land Rentals Smiths 156, , , , ,000 (8%) 157,000 0% Land Rental-Sombrillo 72,513 59,508 59,508 59,508 66,000 11% 68,000 3% Land Rental-Stables 65,881 65,000 65,000 65,000 69,000 6% 71,000 3% Land Rental-RV Storage 31,837 28,000 28,000 28,000 30,000 7% 31,000 3% Land Rentals-Other 104,160 40,000 40,000 40,000 87, % 90,000 3% Rentals-Concessions 1,978 2,000 2,000 2,000 2,000 0% 2,100 5% Rentals-Lane Time 8,304 8,000 8,000 8,000 8,000 0% 8,200 3% Rentals-Lockers And Storage 10,473 18,000 18,000 18,000 15,000 (17%) 15,500 3% 277

294 GENERAL FUND REVENUE DETAIL FY2016 Adopted Budget FY2016 Revised Budget FY2017 Adopted Budget Variance FY2017 vs FY2016 FY2018 Projected Budget Variance FY2018 vs FY2017 FY2015 Actual FY2016 Projected Rentals-Sports Equipment 114, , , , ,000 5% 115,000 0% Rentals-Training Room 1,769 3,000 3,000 3,000 3,000 0% 3,100 3% Rentals-Miscellaneous 4,034 3,000 3,000 3,000 3,000 0% 3,100 3% Rentals/Concessions-Outside 639, , , , ,500 2% 662,100 2% TOTAL USER CHARGES 2,040,153 2,153,590 2,153,590 2,061,394 2,088,851 (3%) 2,138,831 2% INVESTMENT INCOME Interest Income-Investments 964,452 1,925,000 1,925, ,000 1,270,000 (34%) 1,231,000 (3%) Interest Income-Res Assets N/A 0 N/A Interest Income-Prorated (477,921) N/A 0 N/A Gain(Loss)-Invest Adjust To FV 95, N/A 0 N/A Investment Income 581,674 1,925,000 1,925, ,000 1,270,000 (34%) 1,231,000 (3%) GRANTS Federal Direct-Other , ,357 0 N/A 0 N/A Federal Indirect-Other 194, , , , ,000 13% 170,000 0% Federal Sh Rev-Forest Reserve 4,665 5,000 5, (100%) 0 N/A Federal In Lieu Taxes (PILT) 78,643 53,700 53,700 53,700 75,000 40% 75,000 0% Federal In Lieu Taxes (DOE) 0 200, ,000 1,105, ,000 8% 215,000 0% Intergov't Revenue-Federal 278, ,700 1,264,055 2,164, ,000 13% 460,000 0% State-Library Operations 11,670 10,000 11,290 11,300 11,000 10% 11,000 0% State-G.O. Bond Distribution 11, ,676 43,676 41,200 N/A 0 (100%) State Grant-E , , , , ,000 80% 180,000 0% State Grant-DWI Rdblk/Bckledwn 0 0 4,608 4,608 0 N/A 0 N/A State Grants-Police-Other ,000 37,000 0 N/A 0 N/A State Grants-Other 213, , , , ,000 83% 275,000 0% St Shared-Small Cty Assistance 150, , , , ,000 3% 180,000 0% State Shared Revenues-Other 0 20,000 20,000 20,000 0 (100%) 0 N/A Intergov't Revenue-State 558, , , , ,200 51% 646,000 (6%) TOTAL GRANT REVENUE 836, ,700 2,143,098 3,043,108 1,147,200 33% 1,106,000 (4%) OTHER REVENUE In Lieu Tax-Electric Utility 223, , , , ,036 9% 325,036 0% In Lieu Tax-Gas Utility 77,004 95,139 95,139 60,000 96,385 1% 96,385 0% Franchise Tax-Cable TV 94,223 86,000 86, , ,000 16% 100,000 0% Franchise Tax-Telephone 23,676 35,000 35,000 19,000 20,000 (43%) 20,000 0% Franchise Tax-Electric Utility 247, , , , ,778 19% 305,598 1% Franchise Tax-Gas Utility 107, , ,000 80, ,472 (14%) 100,325 (10%) Property Taxes-Interest 27, ,000 20,000 N/A 20,000 0% Property Taxes-Penalty 17, ,000 13,260 N/A 13,260 0% Other Taxes\Licenses-Penalty N/A 0 N/A Taxes 817, , , , ,930 10% 980,604 (1%) Interfund Loan Interest 15, ,500 0 N/A 0 N/A Interfund Misc Revenues 15, N/A 0 N/A Pension Forfeitures 147, , , , ,000 36% 120,000 (20%) Insurance/Pension Forfeitures 147, , , , ,000 36% 120,000 (20%) Donations-Library 77,055 45,000 45,000 45,000 45,000 0% 45,000 0% Donations-Recreation 0 8,000 8, (100%) 0 N/A Donations-Parks 0 8,000 8, (100%) 0 N/A Donations 77,055 61,000 61,000 45,000 45,000 (26%) 45,000 0% Other Judgments/Settlements 600 4,000 4, ,000 (75%) 1,000 0% Discounts Taken 3, % 500 0% Miscellaneous Revenues-Other 87,015 99,500 99, , ,000 1% 100,000 0% Miscellaneous Revenues 90, , , , ,500 (2%) 101,500 0% TOTAL OTHER REVENUE TOTAL REVENUE 1,147,955 1,172,899 1,172,899 1,176,350 1,284,430 10% 1,247,104 (3%) $ 51,965,621 58,243,248 59,522,646 60,364,911 61,283,968 5% 62,270,718 2% 278

295 LARGEST EMPLOYERS TYPE OF NUMBER OF EMPLOYER BUSINESS EMPLOYEES [a][b] Los Alamos National Laboratory Research and Development 10,827 Los Alamos County Government 670 Los Alamos Public Schools Education 658 SOC (Guard Force) Security 357 Los Alamos Medical Center Medical Services 320 Los Alamos National Bank Banking 176 Sources: Individual Employers, NM Department of Labor. [a] As of June 30, 2015 [b] For rankings, number of employees who work in the County is not limited to those who also live in the County. 279

296 OTHER DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS PUBLIC SCHOOL ENROLLMENT (b) YEAR POPULATION (a) (Grades K through 12) ,796 3, ,822 3, ,931 3, ,022 3, ,130 3, ,150 3, ,950 3, ,159 3, ,348 3, ,058 3,509 SOURCES: (a) The U. S. Census Bureau, in addition to conducting population surveys every ten years, makes annual population estimates by County. (b) New Mexico Public Education Department, 280

297 AGE BRACKET POPULATION BY AGE BRACKET, COUNTS AND PERCENTAGES NUMBER % NUMBER % NUMBER % NUMBER % NUMBER % NUMBER % 0-4 years 1, % 1, % 1, % 1, % 1, % % 5-19 years 4, % 5, % 4, % 3, % 4, % 3, % years % % % % % % years 2, % 2, % 2, % 2, % 1, % 1, % years 2, % 2, % 3, % 3, % 3, % 2, % years 1, % 2, % 2, % 3, % 3, % 3, % years % % 1, % 1, % 2, % 2, % 65 and over % % % 1, % 2, % 2, % Totals 13,037 15,198 17,599 18,115 18,343 17,950 SOURCE: U.S. Census Bureau 8,000 Los Alamos County Population Trend by Age Group 7,000 6,000 Population 5,000 4,000 3,000 2, years years years 55 and over 1,

298 ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN TAX YEARS ASSESSED VALUE 1) CENTRALLY TOTAL TAX REAL PERSONAL ASSESSED NET YEAR 2) PROPERTY PROPERTY 3) PROPERTY 4) EXEMPTIONS VALUATION 2006 $681,038,910 $11,144,780 $7,688,420 ($7,980,370) $691,891, ,055,040 12,568,470 7,556,300 (8,151,920) 727,027, ,658,990 11,300,110 8,046,650 (8,147,160) 735,858, ,878,040 10,531,960 5,973,100 (8,291,310) 709,091, ,140,660 10,955,750 7,027,020 (8,405,180) 691,718, ,219,200 11,563,780 7,300,910 (8,744,840) 702,339, ,444,690 9,321,500 6,051,950 (9,111,190) 699,706, ,495,870 8,850,630 5,478,780 (9,042,360) 692,782, ,194,260 9,404,350 5,601,990 (8,878,910) 667,321, ,879,010 8,390,600 5,762,060 (8,944,770) 682,086,900 1) Assessed valuation is calculated at 33 1/3% of estimated actual value for all ten years. 2) Tax year refers to corresponding fiscal year (i.e., the 2014 tax year corresponds to fiscal year 2015). 3) Includes mobile homes. 4) Assessed value of communications, pipeline and gas, public utility, airline, mineral, and certain construction property within the County is determined by the New Mexico State Property Tax Department. A breakdown of real and personal property is not available. 282

299 PROPERTY VALUE, NEW CONSTRUCTION, AND BANK DEPOSITS LAST TEN YEARS COMMERCIAL CONSTRUCTION RESIDENTIAL CONSTRUCTION TOTAL ASSESSED NUMBER NUMBER COMMERCIAL CALENDAR PROPERTY OF MARKET OF MARKET FISCAL BANK YEAR VALUE PERMITS VALUE PERMITS VALUE YEAR DEPOSITS 2006 $691,891, $3,952, $20,308, $807,000, ,828, ,045, ,510, ,750, ,858, ,904, ,695, ,000, ,091, ,711, ,571, ,117, ,027, ,975, ,002, ,535, ,038, ,003, ,588, ,644, ,818, ,563, ,427, ,691, ,825, ,100, ,063, ,364, ,200, ,889, ,860, ,518, ,086, ,704, ,052, ,879,

300 TEN PRINCIPAL PROPERTY TAX PAYERS TAXPAYER TYPE OF BUSINESS PERCENTAGE 2015 OF TOTAL ASSESSED ASSESSED VALUATION VALUATION PHC-LOS Alamos Inc. Medical Services $ 8,478, % Central Park Square LLC Real Estate 5,264, % Los Alamos National Bank Banking 4,702, % TOPVALCO, Inc. Food & Drug 4,678, % Los Alamos Commerce and Development Real Estate 3,775, % Qwest Corp.( Century Link) Telephone Utility 3,366, % Housing Solutions LLC Real Estate 3,256, % Oppenheimer Place Condo Assoc Inc Real Estate 3,207, % Smiths Food & Drug Center Inc Food & Drug 2,195, % NMC Holdings LLC Scientific Research 2,177, % Total assessed valuation of ten principal taxpayers 41,102, % Total assessed valuation of other taxpayers 640,984, % Total 2015 assessed valuation $ 682,086, % 284

301 GLOSSARY Accrual Basis. The basis of accounting under which transactions are recognized when they occur, regardless of the timing of related cash flows. Expenses are recorded at the time liabilities are incurred and revenues are recorded when earned. Unbilled services are recorded as receivables at year end. Ad Valorem Taxes. Commonly referred to as property taxes, are levied on both real and personal property according to the property's valuation and the tax rate. Allot. To divide an appropriation into amounts which may be encumbered to expended during an allotment period. Annualize. Taking changes that occurred during the fiscal period, and calculating their full cost for one year for the purpose of preparing an annual budget. Appropriations. A legal authorization granted by the County Council to make expenditures and to incur obligations for specific purposes. An appropriation is limited in amount and time when it may be used unless it is for capital projects such as constructing roads and buildings. Assessed Valuation. A determination of value set by a government upon real estate or other property as a basis for levying taxes. Assessment Ratio. The ratio at which the tax rate is applied to the tax base. Asset. Any owned physical object (tangible) or right (intangible) having a monetary value or an item or source of wealth expressed in terms of any cost benefiting a future period. Attrition. A method of achieving a reduction in personal by not refilling the positions vacated through resignation, reassignment, transfer, retirement, Authorized Positions. Employee positions which are authorized in the adopted budget. Availability of non-county Funds. A criteria used by the CIP Committee to evaluate projects for the CIP Plan. Availability of non-county (grant) funds adds attractiveness to any project. Applicant will be required to describe what the sources of outside funding will be (e.g. Federal, State or Local grants, donations), what progress they have made towards obtaining those funds, and the likelihood of actually receiving the funds. This includes public-private partnership. Available (Unassigned) Fund Balance. This refers to the funds remaining from the prior year which are available for appropriation and expenditure in the current year. Balanced Budget. A budget in which the total of proposed expenditures do not exceed the total of estimated income and fund balances. Base Budget. Cost of continuing the existing levels of service in the current budget year. 285

302 GLOSSARY Bond. A written promise to pay a specified sum of money (called the face value or principal) at a specified date or dates in the future (called the maturity dates) together with interest at a specified rate. Bond Refinancing. The payoff and re-issuance of bonds, to obtain better interest rates and/or bond conditions. Budget. A government's plan of financial and program operations for a given period including proposed expenditures and a proposed means of financing them. Budgetary Basis. This refers to the basis of accounting used to estimate financing sources and uses in the budget. This generally takes one of three forms: GAAP, cash, or modified accrual. Budget Calendar. The schedule of key dates which a government follows in the preparation and adoption of the budget. Budgetary Control. The control or management of a government in accordance with the approved budget for the purpose of keeping expenditures within the limitations of available appropriations and resources. Capital Assets. Assets of significant value and having a useful life of several years. Capital assets are also called fixed assets. Capital Budget. The appropriation of bonds or operating revenue for improvements to facilities, and other infrastructure. Capital Expenditure. A Capital Expenditure is made when purchasing a fixed asset having a value of $1,000 or more and a useful life of more than one year. Capital Improvements. Expenditures related to the acquisition, expansion or rehabilitation of an element of the government's physical plant; sometimes referred to as infrastructure. Capital Improvements Program. A plan for capital outlay to be incurred each year over a fixed number of years to meet capital needs arising from the government's long-term needs. Capital Improvement Project. Any physical asset with a useful life of three years or more and a value of more than $10,000 that is expected to be purchased in the next six years. Capital Project. A Capital Project is a major construction, acquisition or renovation project with a definite duration and clear purpose that adds more than $100,000 in value to the government s infrastructure assets. Also called capital improvements. 286

303 GLOSSARY Capital Outlay. Fixed assets which have a value of $5,000 or more and have a useful economic lifetime of more than one year; or, assets of any value if the nature of the item is such that it must be controlled for custody purposes as a fixed asset. Capital Reserve. An account used to segregate a portion of the government's equity to be used for future capital program expenditures. The amount of capital reserve is roughly equal to the government's annual equipment depreciation and an amount identified as being needed for future capital acquisition. Cash Basis. A basis of accounting in which transactions are recognized only when cash is increased or decreased. Collective Bargaining Agreement. A legal contract between the employer and a verified representative of a recognized bargaining unit for specific terms and conditions of employment (e.g., hours, working conditions, salary, fringe benefits, and matters affecting health and safety of employees). Commodities. Expendable items that are consumable or have a short life span. Examples include office supplies, gasoline, minor equipment, and asphalt. Constant or Real Dollars. The presentation of dollar amounts adjusted for inflation to reflect the real purchasing power of money as compared to a certain point in time in the past. Consumer Price Index (CPI). A statistical description of price levels provided by the U.S. Department of Labor. The index is used as a measure of the increase in the cost of living (i.e., economic inflation). Contingency. A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted. Contractual Services. Services rendered to a government by private firms, individuals, or other governmental agencies. Examples include utilities, rent, maintenance agreements, and professional consulting services. Cost-of-living Adjustment (COLA). An increase in salaries to offset the adverse effect of inflation on compensation. Customer(s). An individual or group of individuals who receives the services produced through a Program. Debt Service. The cost of paying principal and interest on borrowed money according to a predetermined payment schedule. Dedicated Tax. A Tax levied to support a specific government program or purpose. 287

304 GLOSSARY Deficit. The excess of an entity's liabilities over its assets or the excess of expenditures or expenses over revenues during a single accounting period. Demand Measure. A numeric measure of service requests or requirements, and/or customers requesting or requiring service. If Demand exceeds Output, a Demand Measure is required for a Program. Department. The basis organizational unit of government which is functionally unique in its delivery of services. Depreciation. Expiration in the service life of capital assets attributable to wear and tear, deterioration, action of the physical elements, inadequacy or obsolescence. Development-related Fees. Those fees and charges generated by building, development and growth in a community. Included are building and street permits, development review fees, and zoning, platting and subdivision fees. Disbursement. The expenditure of monies from an account. Distinguished Budget Presentation Awards Program. A voluntary awards program administered by the Government Finance Officers Association to encourage governments to prepare effective budget documents. Diversifies the Economy. A criteria used by the CIP Committee to evaluate projects for the CIP Plan. Adds non-lanl basic jobs; adds new housing units; increases County tax revenues; moves the County toward greater self-sufficiency; Leverages public investment with private funds. Employee (or Fringe) Benefits. Contributions made by a government to meet commitments or obligations for employee fringe benefits. Included are the government's share of costs for Social Security and the various pension, medical and life insurance plans. Encumbrances. The commitment of appropriated funds to purchase an item or service. To encumber funds means to set aside or commit funds for a specified future expenditure. Entitlements. Payments to which local governmental units are entitled, pursuant to an allocation formula determined by the agency providing the monies, usually to state or the federal government. Expenditures. A net decrease in financial resources. Expenditures include operating expenses which require the use of current assets. This term designates the cost of goods delivered or services rendered, whether paid or unpaid, including expenses, provision for debt retirement not reported as a liability of the fund from which retired, and capital outlays. Expenses. Charges incurred (whether paid immediately or unpaid) for operations, maintenance, interest or other costs. 288

305 GLOSSARY Financial Plan. A summary by fund of planned revenues, expenditures, operating transfers, reserves, and undesignated fund balances. Fiscal Policy. A government's policies with respect to revenues, spending, and debt management as these relate to government services, programs and capital investment. Fiscal policy provides an agreed-upon set of principles for the planning and programming of government budgets and their funding. Fiscal Year. A twelve-month period designated as the operating year for accounting and budgeting purposes in an organization. The County fiscal year runs July 1 through June 30 annually. Fixed Assets. Assets of long-term character that are intended to continue to be held or used, such as land, buildings, machinery, furniture, and other equipment. Full Faith and Credit. A pledge of a government's taxing power to repay debt obligations. Full-time Equivalent (FTE). The amount of time a position has been budgeted for, in terms of the work year of a regular full-time employee. For example, a position which has been budgeted to work full time for only six months is 0.5 FTE. Function. A group of related activities aimed at accomplishing a major service or regulatory program for which a government is responsible (e.g., public safety). Fund. An independent fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and changes in these assets and liabilities. Fund Balance. The excess of the assets of a fund over its liabilities, reserves, and carryovers. GAAP. Generally Accepted Accounting Principles. Uniform minimum standards for financial accounting and recording, encompassing the conventions, rules, and procedures that define accepted accounting principles. General Obligation (G.O.) Bond. This type of bond is backed by the full faith, credit and taxing power of the government. Goal. A statement of broad direction, purpose or intent based on the needs of the community. A goal is general and timeless. Governmental Funds. These funds are used to account for governmental activities utilizing public revenues and expenditures. 289

306 GLOSSARY Grants. A contribution by a government or other organization to support a particular function. Grants may be classified as either operational or capital, depending upon the grantee. Health, Safety and/or Legal Mandate. A criteria used by the CIP Committee to evaluate projects for the CIP Plan. The maximum points will be awarded for those projects that address urgent and significant health and safety needs. For purposes of this criterion, urgent refers to the immediacy of the need; and significant addresses both the severity of health and safety risk and scope of population at risk. Applicant will be required to describe the urgency and significance of the health and safety need. Applicant will also be required to describe the legal mandate and the potential consequences of not complying with the mandate. Indirect Cost. A cost necessary for the functioning of the organization as a whole, but which cannot be directly assigned to one service. Infrastructure. The physical assets of a government (e.g., streets, water, sewer, public buildings and parks). Interdepartmental Charges. Refer to charges by one fund or department, e.g., Equipment Fund, to another fund or department for services provided. Interfund Transfers. The movement of monies between funds of the same governmental entity. Intergovernmental. Refers to transactions between different levels of government, e.g., city, county, state, and federal. Intergovernmental Revenue. Funds received from federal, state and other local government sources in the form of grants, shared revenues, and payments in lieu of taxes. Internal Service Charges. The charges to user departments for internal services provided by another government agency, such as data processing, or insurance funded from a central pool. Lapsing Appropriation. An appropriation made for a certain period of time, generally for the budget year. At the end of the specified period, any unexpected or unencumbered balance lapses or ends, unless otherwise provided by law. Levy. The total amount to be raised by general property taxes for purposes specified in the property tax levy motion. Levy Rate. The amount of tax levied for each $1,000 of assessed valuation. Liability. Indebtedness of a government entity, such as amounts owed to vendors for services rendered or good received, and principal and interest owed to County bondholders. These are debts or legal obligations which must be paid at some future date. 290

307 GLOSSARY Line-item Budget. A budget prepared along departmental lines that focuses on what is to be bought. Long-term Debt. Debt with a maturity of more that one year after the date of issuance. Materials and Supplies. Expendable materials and operating supplies necessary to conduct departmental operations. Mil. The property tax rate which is based on the valuation of property. A tax rate of one mill produces one dollar of taxes on each $1,000 of assessed property valuation. Modified Accrual Basis. The basis of accounting used by governmental-type funds. Under it, revenues are recognized when they become both "measurable" and "available" to finance expenditures of the current period. Net Budget. The legally adopted budget less all interfund transfers and interdepartmental charges. Nominal Dollars. The presentation of dollar amounts not adjusted for inflation. Adjusting for inflation would be done to reflect the real purchasing power of money today. Objective. Something to be accomplished in specific, well-defined, and measurable terms and that is achievable within a specific time frame. Object Detail. An expenditure classification, referring to the lowest and most detailed level of classification, such as electricity, office supplies, asphalt, and furniture. Obligations. Amounts which a government may be legally required to meet out of its resources. They include not only actual liabilities, but also encumbrances not yet paid. Operating Budget. Plans of current expenditures and the proposed means of financing them. The annual operating budget is the primary means by which most of the financing of acquisitions, spending, and service delivery activities of a government are controlled. Operating Budget Impact. A criteria used by the CIP Committee to evaluate projects for the CIP Plan. Applicant will be required to submit an analysis of the future financial impact the project will have on annual operating and maintenance costs. Negative points will be awarded to projects that have a significant negative impact on operating budgets. Operating Expenses. The cost for personnel, materials, and equipment required for a department to function. 291

308 GLOSSARY Operating Impacts. Operating impacts are the additional, incremental revenues or costs associated with the project-any new cost or revenue streams resulting from the project less existing expenditures and revenues where applicable. They include maintenance expenses, utility and personnel expenses, GRT revenues from project-specific construction spending and operating revenues. Operating Revenue. Funds that the government receives as income to pay for ongoing operations. It includes such items as taxes, fees from specific services, interest earnings, and grant revenues. Operating revenues are used to pay for day-to-day services. Ordinance. A formal legislative enactment by the Council. Pay-as-you-go Basis. A term used to describe a financial policy by which capital outlays are financed from current revenues rather than through borrowing. Performance Indicators. Specific quantitative and qualitative measures of work performed as an objective of specific departments or programs. Performance Budget. See the terms Program Budget and Program Performance Budgeting. Performance Measurement. Statistical indicators that permit program evaluation to be conducted in a budgetary context. Performance Target. Percentage or number for each Program performance measure that will be the desired level of performance for the upcoming budget period. Personal Services. Expenditures for salaries, wages, and fringe benefits of a government's employees. Prior-Year Encumbrances. Obligations from previous fiscal years in the form of purchase orders, contracts which are chargeable to an appropriation, and for which a part of the appropriation is reserved. They cease to be encumbrances when the obligations are paid or otherwise terminated. Program. A functional grouping of departmental expenditures or activities which are directed toward a common purpose, consistent over time and meet the following criteria: comprehensive, distinctive, practical and clear. Program Budget. A budget which allocates money to the functions or activities of a government rather than to specific items of cost or to specific departments. Program Performance Budgeting. The annual or biennial process where Program expenditures are planned, appropriated, and balanced with available resources (estimated revenues and certain fund balances). In addition to establishing appropriations, a performance 292

309 GLOSSARY budget establishes specific and measurable Performance Targets that are achievable with planned expenditures. Program Purpose. A single sentence describing for each Program: its name, Services, Customers, and desired Result. Purpose Statements are required for each Program. Program Revenue (Income). Revenues earned by a program, including fees for services, license and permit fees, and fines. Proprietary Fund. A category of funds which includes enterprise and internal service funds. Enterprise funds operate by creating a cash flow to pay for the services by issuing fees and charges. Internal service funds account for the costs of County departments providing services. Public Benefit. A criteria used by the CIP Committee to evaluate projects for the CIP Plan. Maximum points will be awarded to those projects that provide a benefit to the largest portion of the public. Purpose. A broad statement of the goals, in terms of meeting public service needs, that a department is organized to meet. Repair Existing versus Adding New. A criteria used by the CIP Committee to evaluate projects for the CIP Plan. This criterion indicates that there is a preference for replacing existing infrastructure and addressing existing infrastructure or functionality deficiencies before adding new infrastructure. Reserve. An account used to segregate a portion of a fund balance to indicate that it is not available for expenditures, or it is legally set aside for a specific future use. Resolution. A special or temporary order of a legislative body; and order of a legislative body requiring less legal formality than an ordinance or statute. Resources. Total amounts available for appropriation including estimated revenues, fund transfers, and beginning balances. Result Measure. A direct or indirect percentage/ratio measure of Program benefit or effectiveness. At least one Result Measure is required for every Program. Revenue. Amounts received by a governments from sources including taxes, fines, fees, grants, or charges for services, which can be used to finance government operations or capital assets. These amounts increase the net assets of the government. For those revenues which are recorded on an accrual basis, this term designates additions to assets which (a) do not increase any liability, (b) do not represent recovery of an expenditure, (c) do not represent the cancellation of certain liabilities without a corresponding increase in other liabilities or a decrease in assets, and (d) do not represent contributions of fund capital in Enterprise and Internal Service Funds. 293

310 GLOSSARY Revenue Bond. This type of bond is backed only by the revenues from a specific enterprise or project, such as a hospital or toll road. Service Lease. A lease under which the lessor maintains and services the asset. Service Level. Services or products which comprise actual or expected output of a given program. Focus is on results, not measures of workload. Source of Revenue. Revenues are classified according to their source or point of origin. Special Revenue Funds. These funds consists of several revenue sources that are earmarked for specific purposes. Supplemental Appropriation. An additional appropriation made by the governing body after the budget year or biennium has started. Supplemental Requests. Programs and services which departments would like to have added (in priority order) over their target budget, or if revenue received is greater than anticipated. Tax Levy. The resultant product when the tax rate per one hundred dollars is multiplied by the tax base. Taxes. Compulsory charges levied by a government for the purpose of financing services performed for the common benefit of the people. This term does not include specific charges made against particular persons or property for current or permanent benefit, such as special assessments. Transfers In/Out. Amounts transferred from one fund to another to assist in financing the services for the recipient fund. Unencumbered Balance. The amount of an appropriation that is neither expended nor encumbered. It is essentially the amount of money still available for future purposes. Unassigned Fund Balance. The portion of a fund's balance that is not restricted or committed for a specific purpose and is available for general appropriation. User Charges. The payment of a fee for direct receipt of a public service by the party who benefits from the service. Variable Cost. A cost that increases/decreases with increases/decreases in the amount of service provided such as the payment of a salary. Working Capital. The difference between current assets and current liabilities, or net current assets of proprietary-type funds. 294

311 ACRONYMS AND ABBREVIATIONS ACCTS - Accounts ABS - Airport Basin Site ADA - Americans with Disabilities Act ADMIN - Administration AIDS - Acquired Immune Deficiency Syndrome AKC - American Kennel Club APPR - Apprentice ASST - Assistant ATAB - Air Transportation Advisory Board AWOS - Automated Weather Observation System BLDG - Building BRASS - Budget Reporting and Analysis Support System BUD - Budget BY - Biennial Year BYE - Biennial Year Ending CAO - County Administrators Office CATH - Cathode CD - Community Development CDC - Community Development Committee CDD - Community Development Department CGF - Cerro Grande Fire CHGS - Charges CIGNA - Connecticut General Life Insurance Company CIP - Capital Improvement Program CLASS - County of Los Alamos Software System CMRR - Chemistry and Metallurgy Research Replacement COLA - Cost-Of-Living Adjustment COMP - Compensation CPI - Consumer Price Index CPM - Center for Performance Management CPR - Cardio Pulmonary Resuscitation CSD - Community Services Department DARE - Drug Abuse Resistance Education DEVEL - Development DFA - Department of Finance and Administration DMG - David M. Griffith & Associates DOE - Department of Energy DWI - Driving While Intoxicated EGWS - Electric, Gas, Water and Sewer EM - Emergency Management EMNRD - Energy, Minerals and Natural Resources Department EMS - Emergency Medical Services EMT-D - Field Defibrillation Program ENG - Engineer ENVIRON- Environmentalist EPM - Engineering and Project Management 295

312 ACRONYMS AND ABBREVIATIONS EVSP - Economic Vitality Strategic Plan FD - Fund FR - Fair and Rodeo Board FTE - Full Time Equivalent FY - Fiscal Year GAAP - Generally Accepted Accounting Principles GF - General Fund GFOA - Government Finance Officers Association GIS - Geographical Information System GO - General Obligation GRT - Gross Receipts Tax GS - General Services GWS - Gas, Water and Sewer HVAC - Heating, Ventilating And Cooling HR - Human Resources HRIS - Human Resources Information System ICIP - Infrastructure and Capital Improvement Program ICMA - International City/County Management Association IDC - Interdepartmental Charge IHC - Indigent Health Care IMPROV - Improvement IS - Information Services ISF - Internal Service Funds IT - Information Technology KPI - Key Performance Indicator LA - Los Alamos LAC - Los Alamos County LA CASA - Los Alamos Citizens Against Substance Abuse LACEPP - Los Alamos County Employee Pension Plan LADOC - Los Alamos Dog Obedience Club LAGA - Los Alamos Golf Association LANL - Los Alamos National Laboratory LEDA - Local Economic Development Act LEED - Leadership in Energy & Environmental Design LRFP - Long Range Financial Plan MADD - Mother Against Drunk Drivers MAINT - Maintenance MAP - Management Action Plan MBL - Mutual Benefit Life MECH - Mechanical MFM - Major Facilities Maintenance MGMNT - Management MGR - Manager MIC - Medical Indigent Care MISC - Miscellaneous MKTG - Marketing MSM - Major Street Maintenance 296

313 ACRONYMS AND ABBREVIATIONS NAFTA - North American Free Trade Agreement NMAMA - New Mexico Association of Municipal Airports NSF - Non-Sufficient Fund OMB - Office of Management and Budget OSHA - Office of Safety and Health Administration OPR - Operator PAC - Public Access Channel PC - Personal Computer PD - Police Department PERA - Public Employees Retirement Association PILT - Payments in Lieu of Tax PLT - Plant PR - Parks and Recreation Board PRIDE - Parents Resource Institute for Drug Education PROF - Professional PROJ - Project PUB AFF - Public Affairs PW - Public Works RDS - Roads REP - Representative RES - Resource RFP - Request for Proposal RSVP - Retired Senior Volunteer Program SCADA - System Control And Data Acquisition SER - Service SFG - Solutions For Governments SPEC - Specialist STS - Streets SUPT - Superintendent SUPV - Supervisor SVCS - Services TB - Transportation Board TECH - Technician TEMP - Temporary TRADE - Tri-Area Association for Economic Development TSRP - Trinity Site Revitalization Project UNM - University of New Mexico VFW - Veterans of Foreign Wars WP - Water Production WR - White Rock WW - Wastewater WWTP - Wastewater Treatment Plant XFER - Transfer YMCA - Young Men s Club of America 297

314 INDEX A Acronyms & Abbreviations Account Groups... 6 Administrative Services Department Airport Fund Assessed Property Value B Bases of Accounting/Budgeting Budget Adjustments... 5 Budget Message... ii Budget Process... 3 Activities... 3 Approving Authority... 5 Responsibilities... 3 Revisions... 5 Budget Summary C Calendar... 7 Capital Projects Funds... 69,120,159,172 Combined Fund Statement Capital Improvements Projects Fund Capital Projects Permanent Fund Capital Improvement Program Capital Projects-Utilities Combined Budget Statement Combined Budget-County Wide-Rev. and Expenditure Commercial Bank Deposits Common Changes Communications Device Community Development Department Community Services Construction, Commercial & Residential Council Goals County Manager County Assessor County Attorney County Clerk County Council County Fund Types... 5 County Services County Sheriff D Debt Management Debt Service Funds GRT Revenue Bonds Debt Summary Demographic Statistics Department Summaries Table of Contents

315 INDEX E Economic Development Fund... 64,159 Elected and Appointed Officials Emergency Declarations Fund Employee Benefit Costs Employers, Largest Encumbrances... 5 Enterprise Funds... 7, 71 Joint Utility Fund Combining Fund Statement Environmental Services Fund...78 Transit Fund Fire Fund Airport Fund Equipment Fund Equipment Replacement Schedule Expenditure Comparison Expenditure Summaries F Financial Plan, Long Range Financial Policies Fire Department... 80, 149 Fire Fund Full-Time Equivalent/Temp/Casual Detail Comparison Fundamental Services Fund Statements - Combined Fund Statements Table of Contents Fund Type - Descriptions Governmental Funds Proprietary Funds Non-Budgetary Funds... 6 G General Budget Information... 3 General County Information General Fund Changes Comparison Expenditures Fund Statement Sources of Funds-Revenues Uses of Funds-Expenditures Transfers to Other Funds Revenues Comparison Revenue Detail General Obligation Debt Glossary Gross Receipts Taxes Grants Guidance... ii 299

316 INDEX HI Health Care Assistance Fund Infrastructure and Capital Improvements Program Interdepartmental Charges Interfund Activities Interfund Loans Interfund Transactions Internal Service Funds Combining Fund Statement Equipment Fund Risk Management Fund Introduction... 1 J Joint Utility System Fund KL Lodgers' Tax Fund Long Range Financial Projection Los Alamos Geography Ancient History Recent History Today County Map M Maintenance Services Measurement Focus Municipal Court N Non-Budgetary Funds/Account Groups... 6 O Operating Budget Operating Position Operations Guide Organizational Chart-County Wide....9 Other Demographic Statistics Other Information Table of Contents P Performance Measures Police Department Policy Document... 3 Population ,280,

317 INDEX Property Taxes/Levies Property Tax Valuation Property Value, New Construction & Bank Deposits Proprietary Funds Public School Enrollment Public Works Department Q Quality of Life Services R Reader's Guide... 1 Revenues Comparison General Fund Revenue Detail Risk Management Fund S Services Significant Changes Special Revenue Funds Combining Fund Statement Economic Development Fund Emergency Declarations Fund Health Care Assistance Fund Lodgers' Tax Fund Other Special Revenue State Grants State Shared Revenue Staffing Changes Statistical Data: Largest Employers Population by Age Bracket, Counts & Percentages Assessed & Estimated Actual Value of Taxable Property Other Demographic Statistics Property Value, New Construction & Bank Deposits Principal Taxpayers TU Transfers Transit Fund Unassigned Fund Balance Utility Department Utility System Fund Utility Profit Transfers to the General Fund VWXYZ Vision Statement

318