Clovis City Commission Special Meeting - May 22, 2025: Approval of FY2026 Preliminary Budget
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Clovis City Commission Special Meeting - May 22, 2025: Approval of FY2026 Preliminary Budget
The Clovis City Commission held a special meeting on May 22, 2025, at the North Annex of the Clovis-Carver Library. The sole agenda item was the approval of the Fiscal Year 2026 Preliminary Budget. The meeting began with a prayer, the Pledge of Allegiance, roll call, and unanimous adoption of the agenda. The budget presentation was led by Finance Director Ms. Melanson, with City Manager Mr. Howalt available by phone for questions. After discussion, the commission voted to approve the preliminary budget.
Discussion Items
- Budget Presentation: Ms. Melanson provided a detailed summary of the FY2026 Preliminary Budget, which is due to the state Department of Finance and Administration by June 1, 2025. Key points included:
- The city budgets conservatively, with gross receipts tax revenues running approximately 18% above budgeted levels. However, actual gross receipts are about 0.74% below the prior year, indicating flat revenue growth.
- Property tax calculations are based on 2024 valuations; the impact of the new veterans tax exemption approved during the 2025 legislative session remains unknown and will be monitored.
- There are no salary increases budgeted for FY2026. A salary study is underway to ensure competitiveness and alignment with potential state minimum wage increases.
- Two new positions were added: a dedicated city clerk role (splitting the current clerk/finance director position) and a full-time position for the senior meals program.
- The animal shelter has been allocated approximately $3 million from American Rescue Plan funds or general fund cash reserves.
- Information technology receives additional funding for completion of door security systems across departments.
- Public works continues to receive $395,000 for residential paving.
- Capital outlay includes $9.5 million for behavioral health projects (previously approved contracts).
- The lodgers tax non-promotional fund allocates $30,000 annually for fireworks and events at Green Acres.
- The preliminary general fund cash balance is projected at $7.3 million, with the state-required minimum reserve of $2.8 million (1/12th of general fund) and $1.6 million in designated funds.
- Enterprise funds (sanitation, wastewater, airport) are facing decreasing cash balances due to rising operational costs and equipment needs; rate studies are being considered.
- The budget totals approximately $75 million in revenues, with the largest sources being taxes and licenses, grants (including $9 million for behavioral health), and service charges. Expenses are dominated by personnel services ($34.7 million), capital outlay ($19 million), operating expenses ($28 million), and debt payments ($4.3 million).
- Public safety (fire and police) remains the highest budgeted expense area.
- Commission Discussion: Commissioner Porter thanked staff for the thorough presentation. The mayor highlighted the city's conservative budgeting approach and the importance of department directors in managing finances.
Key Outcomes
- Motion and Vote: A motion to approve the FY2026 Preliminary Budget was made by the Mayor Pro Tem and seconded by Commissioner Tarsen. The vote resulted in 5 votes in favor, 2 members absent, and 1 abstention. The motion carried, and the FY2026 Preliminary Budget was adopted. The meeting then adjourned.
Meeting Transcript
This meeting, uh this special city commission meeting uh in order to handle one very important item. We'll we'll begin with a prayer and honor our flags. Lord, thank you for your goodness and your grace and mercy shown to us daily. God, we thank you for your favor and blessing on Clovis and Canon and our our beloved community. We ask for continued favor, we ask for wisdom as those elected by our neighbors to uh make decisions concerning budget and policy and vision. Lord, we thank you that that you you provide wisdom. Uh Lord, we pray you'd continue to pour your blessings out, and we ask all of this. I ask all of this in the name of Jesus. Amen. And to the Republic for which it stands one nation under God. We are called to order with the clerk. Please call roll. Commissioner Porter. Here. Commissioner Cassaus. Commissioner Garza? Here. Commissioner Paula. Here. Commissioner Zamora. Here. Commissioner Tarsen? Here. Mayor Po Tim Bryant? Here. Mayor Morris. Here. Thank you, Ms. Reyes. Next we have approval of the agenda. Are there any objections? And hearing and seeing no objections, the agenda is adopted and yes, votes are recorded for each of the members that has a set new business where we'll take up the one item that you'll be asked to consider this morning, and it is request for approval of the fiscal year two thousand twenty-six preliminary budget. At this point each of you have had the opportunity to spend time with the city manager and the finance director going over this proposed budget and have your questions uh answered and your suggestions accepted. Um however, I believe we have a a good summary presentation uh that Ms. Melanson is going to provide. Is that right? Yes. Ms. Melanson, you have the floor. Thank you, Mayor, Mayor Pro Cham and Commissioners. It is that time again. Preliminary budget. It is due to our oversight at DFA by June first at midnight. Umce this is approved, everything is ready. I have all signatures that I need, everything's in the form, so I will be uploading it this afternoon. Easily meeting that. Um so department directors again continue their knowledge and our use of the MUNIS software and my understanding and how it all works as making it easier, um faster process we did start earlier this year. Um again, we review all of the budgets with making any necessary adjustments to our utilities and our fuel. And most of the capital outlay is money that has been funded within their departments. There were a few exceptions for some necessary vehicles to maintain fleet and funding for our animal control that are being paid for out of general fund cash reserves.
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