[00:00:03]
IT'S 5:00 ON AUGUST 9 AND WE'RE GOING TO CALL TO ORDER THE SANDOVAL COUNTY BOARD OF COMMISSIONER FINANCE QUARTERLY REPORT AND I WILL NOW TURN THE FLOOR OVER TO
[2. STATUS OF THE TREASURER’S OFFICE]
THE COUNTY TREASURER.GOOD EVENING, CHAIRMAN, VICE CHAIR, AND COMMISSIONERS.
I'D LIKE TO BEGIN TONIGHT'S PRESENTATION WITH OUR CURRENT ORGANIZATIONAL FLOWCHART, WHICH INDICATES STAFF NAME AND TITLES IN MY OFFICE.
WE HIRED JEN FULLER AND SHE'S DOING A GOOD JOB GETTING ACCLIMATED TO HER NEW DUTIES.
RIGHT NOW IT IS OFFICIALLY AUDIT SEASON AND OUR TEAM IS INCREDIBLY BUSY --
>> I THINK YOU GUYS HAVE TO UNMUTE SO WE CAN HEAR.
>> I WILL START FROM THE BEGINNING.
I'M GOING TO BEGIN TONIGHT'S PRESENTATION WITH OUR FLOWCHART.
WE HIRED JEN FULLER AS OUR ACCOUNTING SPECIALIST AND SHE'S DOING A GREAT JOB GETTING ACCLIMATED TO HER NEW DUTIES.
RIGHT NOW, IT'S OFFICIALLY OUR ANNUAL AUDIT SEASON, SO ALL OF OUR VAULT STAFF IS WORKING DILIGENTLY ON ALL ITEMS NEEDED TO OUR AUDITORS AND OUR TAX RESEARCHERS UPFRONT IN OUR FOUR WINDOWS ARE BUSY COLLECTING ON THE LINK WENT ACCOUNTS TRYING TO CONTACT THOSE TAXPAYERS WHO NEED TO GET CAUGHT UP ON THEIR TAXES.
IN PARTICULAR, THOSE ACCOUNTS THAT ARE GETTING CLOSE TO THAT THREE YEAR DID GROSSI MARKS.
ONCE THOSE COSTS TO STATE GET ADDED, THE COUNTY WILL LOSE ON PENALTY AND INTEREST AND THE STATE WILL THEN KEEP IT.
ARE THERE ANY QUESTIONS REGARDING THAT PORTION? NO?
>> CHAIRMAN HEIL: ARE YOU ON THE AUCTION PART?
>> YES, I'M GOING TO ACTUALLY COVER THE AUCTION NEXT.
THEN I'LL WAIT TO COVER AND ASK YOU A QUESTION.
AN UPDATE ON OUR STATE AUCTION THAT TOOK PLACE AT NOON.
ISN'T THAT AWESOME? I THINK IT IS SUPPOSED TO BE LIKE A PLACEHOLDER.
SO I PROVIDED A DETAILED BREAKDOWN OF THE NUMBERS FROM OUR THREE-DAY AUCTION THAT TOOK PLACE, JUNE 6TH, 7TH, AND 8TH.
THE TOTAL COLLECTED FOR THE ACCOUNTS WAS $643,100.
HOWEVER, WE WERE NOTIFIED BY PROPERTY TAX DIVISION JUST THIS LAST WEEK THAT 12 OF THOSE ACCOUNTS, WHICH WERE AUCTIONED OFF, HAD BEEN RESCINDED DUE TO THE FACT THAT THE TAXPAYER OF ALL 12 ACCOUNTS WAS NOT PROPERLY NOTIFIED BY PROPERTY TAX DIVISION AND, THEREFORE, THEY WERE VOID.
UNFORTUNATELY, THEY BROUGHT TO THE TOTAL AMOUNT -- THE AMOUNT OF PENALTY AND INTEREST COLLECTED WAS $20,180.
THE COST TO STATE FEES WERE $12,625, WHICH THE STATE KEPT.
UNFORTUNATELY, OUT OF THE $625.
60 OF EXCESS MONEY WENT BACK TO THE DELINQUENT TAXPAYERS ON THOSE ACCOUNTS THAT WERE ACTUALLY AUCTIONED OFF.
DID YOU HAVE A QUESTION, CHAIRMAN, REGARDING THAT?
>> CHAIRMAN HEIL: WELL, MAY BE MORE OF A COMMON.
I WAS TALKING TO A REALTOR THAT DEALS A LOT IN LAND SALES IN RIO RANCHO STATE AND SHE WAS COMMENTING ABOUT HOW THESE LETTERS GO OUT TO PROPERTY OWNERS TO BUY THE PROPERTY FOR WHAT SHE SAID WAS $0.
AND SHE WAS SAYING IF WE'RE HAVING DIFFICULTY WITH REGARD TO THE COLLECTION OF TAXES ON SOME OF THESE, THAT MAYBE WE SHOULD COMMUNICATE MORE THROUGH THESE REAL ESTATE PEOPLE WHEN WE ACTUALLY GET THE PROPERTY MOVED AND THE TAXES PAID.
IT IS A REALLY GOOD IDEA AND I KNOW THERE HAVE BEEN OTHER INCIDENTS WHERE WE'VE HAD EVEN, FOR INSTANCE, RIO RANCHO LAND PARTNERS, THEY WANTED TO INQUIRE AND BUY HUNDREDS AND THOUSANDS OF ACCOUNTS.
THE ONLY ISSUE THEY WERE HAVING IS THAT THEY HAD TO PAY ALL THE -- >> CHAIRMAN
[00:05:08]
HEIL: TAXES.>> YES, AND THAT WAS THE ISSUE THEY WERE HAVING.
AND WE CAN'T WAIVE THE PENALTY AND INTEREST, SO THEY ACTUALLY WORKED WITH PTD TO HAVE THE COST OF STATE REMOVED, WHICH THE DIRECTOR OF PTD DID.
HE ALLOWED FOR THAT BECAUSE HE HAS THE AUTHORITY TO MAKE THOSE DECISIONS.
THEY WERE ABLE TO REMOVE THE COST OF STATE, BUT WE GOT TO KEEP THE PENALTY AND INTEREST.
IN THAT ASPECT, THAT WAS A BENEFIT US IN THE COUNTY AND A BENEFIT TO US AS THE TAXPAYERS BECAUSE RIO RANCHO LAND PAYERS TOOK OVER AND ACQUIRED THOSE PROPERTIES AND SAVED THEM FROM GOING TO AUCTION AND WE ENDED UP MAKING A PROFIT AS WELL.
IT'S KIND OF IN THE HANDS OF THE PROPERTY TAX DIVISION AND IT KIND OF DEPENDS ON WHO THE DIRECTOR AT THAT TIME IS AND SECRETARY BECAUSE THEY MAKE THE FINAL DECISION.
>> CHAIRMAN HEIL: THERE'S SOMEBODY THAT REAL ESTATE AGENTS LIKE THIS SHOULD BE CONTACTING? BECAUSE THERE'S SOME REAL ESTATE AGENTS WHO DON'T WANT TO SPEND ANY TIME OUT THERE, BUT THERE'S OTHERS THAT DO.
THERE'S SOME BENEFIT TO US IN GETTING THESE THINGS MOVED AND THE TAXES PAID IN FULL BEFORE THE STATE TAKES ALL THE MONEY.
>> I AGREE THAT WOULD BE A WONDERFUL IDEA.
MAYBE THAT'S SOMETHING WE CAN TALK TO PROPERTY TAX DIVISION, TOO, TO GET A HOLD OF ANY INTERESTED BUYERS THAT WANT TO TRY TO TAKE OVER THOSE PROPERTIES AND SEE WHAT WE CAN DO TO HELP THEM, AND LIKE YOU SAID, KEEP THE MONEY HERE IN THE COUNTY.
ARE THERE ANY OTHER QUESTIONS OR COMMENTS? OKAY.
WE'RE GOING TO MOVE ON TO AN UPDATE ON OUR TREASURERS AFFILIATE CONFERENCE.
IT'S UPON US, LADIES AND GENTLEMEN.
NEXT WEEK, TUESDAY, OUR FOUR DAY EVENT COMMENCES.
SANDOVAL COUNTY IS THE HOST COUNTY THIS YEAR AND WE'VE BEEN WORKING VERY HARD TO MAKE THIS AN EVENT TO REMEMBER.
THANK YOU TO ALL OF YOU WHO HAVE RESPONDED AND RSVPED TO ATTEND THE OPEN CEREMONY ON TUESDAY.
WE REALLY APPRECIATE THE SUPPORT AND PARTICIPATION.
OUR THEME FOR THE CONFERENCE IS SANDOVAL COUNTY, COLORFUL, CULTURAL, AND CAPTIVATING.
WE THOUGHT OF THAT BECAUSE, HONESTLY, I THINK OUR COUNTY REALLY DOES REFLECT ALL OF THOSE ADJECTIVES.
WE ARE REALLY EXCITED TO HOST THIS AND TO SHOWCASE OUR COUNTY.
I WANT TO GIVE A HUGE SHOUT OUT TO ARLANDO HARQUEZ WHO WORKED SO HARD TO MAKE THIS POSSIBLE.
ARLANDO HAS TAKEN ON THE BRUNT OF THE WORK AND IT HASN'T BEEN EASY AND I JUST WANT TO MAKE SURE I GIVE HIM CREDIT.
NEXT, I LIKE TO UPDATE YOU ON THE JUNIOR COUNTY TREASURER PROGRAM -- >> CHAIRMAN HEIL: BEFORE YOU GO ON, I APOLOGIZE I'VE NOT BEEN ABLE TO MAKE YOUR BEGINNING MEETING.
TUESDAY ON MY CALENDAR IS JUST FULL.
WE UNDERSTAND THAT COMPLETELY.
FOR THOSE WHO ARE ABLE TO GO, WE APPRECIATE THAT.
AN UPDATE TO OUR JUNIOR COUNTY TREASURER PROGRAM AS WELL AS AN INTERNSHIP PROGRAM THAT MY OFFICE IS GOING TO BE PARTICIPATING THIS SCHOOL YEAR IN PARTNERSHIP WITH CUBA SCHOOL DISTRICT.
JUNIOR TREASURER PROGRAM AND THE INTERNSHIP PROGRAM I'M GOING TO DISCUSS ARE TWO DIFFERENT PROGRAMS. I'M GOING TO START OFF WITH THE JUNIOR TREASURER PROGRAM.
IF YOU RECALL FROM THE PREVIOUS BOARD OF FINANCE MEETING, I ANNOUNCE THAT THE PROGRAM SET TO BEGIN THIS FALL SEMESTER IS GOING TO BE TAKING PLACE HERE.
IF YOU LOOK ON THE TREASURERS PAGE OF THE COUNTY WEBSITE IT GIVES YOU ALL OF THE INFORMATION AS FAR AS THE REQUIREMENTS, WHAT IT ENTAILS, AND REALLY WHAT WE'RE LOOKING FOR AS FAR AS APPLICATION WISE.
WE DON'T HAVE THE USUAL APPLICATION PROCESS.
WE ARE LOOKING FOR ESSAYS, SO THE ESSAY IS 500 WORDS OR LESS EXPLAINING WHY THEY WANT TO BE PARTICIPATE IN THE PROGRAM.
WHAT'S GOING TO HAPPEN IS A PANEL OF THREE WILL REVIEW SUBMITTED ESSAYS AND SELECT TWO COUNTY JUNIOR TREASURER'S.
AND THE TWO SELECTED STUDENTS WITHIN THE PROGRAM ARE GOING TO BE ANNOUNCED ON
[00:10:01]
FRIDAY, SEPTEMBER 15.I HAVE REQUESTED THAT INTERESTED CANDIDATES EMAIL THE ESSAY TO ME AND ALL THAT INFORMATION, AGAIN, IS ON THE WEBSITE.
THEN ONCE THEY ARE SELECTED, THIS OPPORTUNITY IS GOING TO ALLOW THOSE STUDENTS TO WORK DIRECTLY WITH ME HAND IN HAND.
AGAIN, THIS IS OPEN TO THE INCOME ENTIRE COUNTY.
CUBA HIGH SCHOOL, AND I HAVE REACHED OUT TO BERNALILLO HIGH SCHOOL AS WELL AS JEMEZ COUNTY.
TRYING TO GET STUDENTS INTERESTED AND LEARN WHAT THE COUNTY TREASURER DOES AND WHAT WE DO FOR THE PUBLIC AND HOW WE SERVE THE COUNTY.
THAT IS WHAT THE JUNIOR TREASURER PROGRAM IS ABOUT.
THE INTERNSHIP PROGRAM IS DIFFERENT AND THIS IS SPECIFICALLY DEALING WITH THE CUBA SCHOOL DISTRICT.
I WAS RECENTLY APPROACHED BY AN EDUCATOR WITH CUBA SCHOOL DISTRICT AND SHE HAD ASKED ME ABOUT THE JUNIOR TREASURER PROGRAM.
SHE SAID SHE WAS TRYING TO FIND GOVERNMENT ENTITIES WHO WOULD BE WILLING TO PARTICIPATE IN THEIR PROGRAM BECAUSE IT IS A PAID INTERNSHIP PROGRAM VERY SIMILAR TO THE SUMMER INTERNSHIP PROGRAM THAT THE COUNTY HAS PARTICIPATED IN THE PAST SEVERAL YEARS.
SO WHAT THIS WILL DO IS THIS WILL TAKE PLACE DURING THE SCHOOL YEAR AND IT WILL ONLY BE ON MONDAYS.
THEY WILL ONLY BE WORKING ON MONDAYS.
THIS OPPORTUNITY GIVES THE HIGH SCHOOL STUDENTS AN OPPORTUNITY TO COME INTO OUR OFFICES AND LEARN THE PROCESS OF.
HOWEVER, THERE GOING TO BE MATURED BY A MANAGER OR SUPERVISOR IN OUR OFFICE.
THEY'LL BE ANSWERING TO THEM AND THEY WILL BE LEARNING EVERYTHING THE TAX OFFICERS DO.
I'M REALLY EXCITED ABOUT THIS.
IT WILL BE OUR RESPONSIBILITY TO TRY GET OUR YOUNG PEOPLE INTERESTED BECAUSE I FEEL LIKE WE ARE LOSING THEM.
HOPEFULLY THIS WILL GAIN SOME INTEREST AND HOPEFULLY FUTURE EMPLOYEES OF THE COUNTY.
THAT IS ALL I HAVE TO SAY ABOUT THAT.
YOU WILL HAVE ANY QUESTIONS REGARDING EITHER OF THOSE PROGRAMS? NO QUESTIONS? PERFECT.
WE ARE GOING TO GO NEXT TO ACCOUNT BALANCES WITH THE NEW MEXICO BANK AND TRUST.
I'VE INCLUDED AS OF TODAY THE BALANCES IN YOUR PACKET.
AS HE CAN SEE, OUR GENERAL FUND IS AT $54.
6 MILLION WHILE OUR TAX PAYMENT ACCOUNT IS SITTING AT $1.
THE TOTAL OF ALL SANDOVAL COUNTY ACCOUNTS ARE AT $64.
AS YOU WILL SEE, WE HAVE A NEW BANK ACCOUNT CALLED MEDICAL SELF INSURED ON THE LOWER LEFT-HAND CORNER OF THAT PAGE.
THAT ACCOUNT IS SPECIFICALLY FOR COUNTY EMPLOYEES HEALTH INSURANCE COVERAGE AS WE NO LONGER HAVE PRESBYTERIAN AS OUR INSURER AND WE ARE NOW INSURED BY UNITED HEALTHCARE.
THE GOOD NEWS ABOUT THIS NEW ACCOUNT IS JUST LIKE ALL THE OTHER NEW MEXICO BANK AND TRUST ACCOUNTS IS WE HAVE AN INTEREST-BEARING ACCOUNT WHERE WE ARE NOW EARNING 4.
5 BASIS POINTS ON EACH ACCOUNT.
THE INTEREST RATES RECENTLY WENT UP BY FOUR BASIS POINTS IN JULY.
AS AN FYI, I WANT TO LET YOU KNOW THERE HAS BEEN A NAME CHANGE ON THE KIDS IMCA ACCOUNT SINCE THEY ARE NO LONGER LEASING FROM US.
THE NEW NAME ON THE ACCOUNT IS CUBA CENTER LOAN.
I JUST WANT TO GIVE YOU AN FYI BECAUSE DURING OUR NEXT MEETING IT WILL REFLECT THAT NEW NAME.
ARE THERE ANY QUESTIONS REGARDING OUR BANK ACCOUNTS? NO QUESTIONS? NEXT, CHIEF DEPUTY MCPARLIN IS GOING TO BE PRESENTING OUR TAX MANAGEMENT SCHEDULE, THEN TREASURER OPERATIONS MANAGER, HOLLY AGUILAR, WILL PRESENT THE BONDED DEBT SCHEDULE AND GRT.
MCPARLIN: I HAVE A COUPLE OF REPORTS TO SHARE THAT ARE BASED UPON THE COLLECTIONS.
THE FIRST IS THE TAX MAINTENANCE SCHEDULE FOR COLLECTIONS ON TAX YEAR 2022 WE ARE CURRENTLY AT 97.
7% AND FOR THE PAST 10 YEARS WE WERE AT 99.
NEXT IS A REPORT THAT IS GENERATED FOR DFA EVERY YEAR AND HELPING PREPARE TAX LEVIES FOR GO BONDS.
THIS IS A GREAT SNAPSHOT FOR HOWEVER TAX HAS INCREASED OVER THE PAST FIVE YEARS ALONG WITH COLLECTIONS.
[00:15:02]
AS YOU CAN SEE, FOR 2022 WE BILLED $157.8 MILLION AND WE HAVE COLLECTED $153.
2 MILLION, WHICH LEAVES US FOR OUR COLLECTION RATE AT 97.
THE LAST SLIDE I HAVE IS THE COST TO STATE THAT WAS JUST APPLIED IN ACCORDANCE WITH STATE STATUTE JULY 23.
ANY ACCOUNT WITH THE DELINQUENT BALANCE FOR MORE THAN TWO YEARS IS ASSESSED $125 COST THE STATE FEE AND IS TURNED OVER TO THE STATE.
WE CURRENTLY APPLIED THE FEE FOR THE TAX YEAR 2020.
731 ACCOUNTS RETURNS TOTALING $91,375 WITH A CURRENT BALANCE OF $89,152.
AS YOU CAN SEE, THERE HAS BEEN A DECREASE IN THE OVERALL BALANCE BECAUSE THE PAYMENTS ARE COMING IN AND BEING MADE.
HOWEVER, AS TREASURER TAYLOR SAID, THAT PNI GOES TO THE STATE SO WE DON'T GET TO KEEP IT.
AS TREASURER TAYLOR SAID, OUR OFFICE HAS BEEN WORKING DILIGENTLY TRYING TO COLLECT THE DELINQUENT TAXPAYERS TO KEEP THE FUNDS WITHIN THE COUNTY.
IT'S A LITTLE HARD TO SEE ON ZOOM, SO I APOLOGIZE FOR THAT, BUT CAN YOU GO BACK ONE SLIDE? SO ON THIS SLIDE, IS THAT TOP NUMBER, THAT'S 97 AND SOME CHANGE, IS THAT CORRECT?
BLOCK: AND WE ARE BEHIND THE PAST YEARS, CORRECT?
MCPARLIN: WHERE ACTUALLY HEADING COLLECTION FOR THE CURRENT TAX YEAR.
BLOCK: THAT'S WHAT I'M CONFUSED.
AGAIN, I APOLOGIZE I CAN'T READ THE SLIDES VERY WELL ON ZOOM.
BLOCK: CAN YOU TELL ME WHAT'S THE 2022, 2021, AND 2020 YEARS?
MCPARLIN: DO YOU WANT TO KNOW THE COLLECTION RATE OR THE AMOUNT THAT WAS BILLED AND COLLECTED?
BLOCK: NO, JUST THE COLLECTION AND PERCENTAGE.
FOR 2022 THE COLLECTION SO FAR IS 97.
BLOCK: OKAY, SO THAT 97 IS THE HIGHEST NUMBER ON THAT CHART, CORRECT?
MY QUESTION IS DO YOU EXPECT THAT NUMBER TO GO HIGHER OR ARE WE DONE WITH THAT?
MCPARLIN: IT WILL GO HIGHER BECAUSE WHEN WE ACCEPT THE 2023 TAX ROLL WE WILL HAVE NINE MORE ADDITIONAL YEARS TO COLLECT ON 2022.
HOPEFULLY WE CAN GET THAT TO 100%.
BLOCK: YEAH, YOU'LL NEVER GET TO 100, BUT PERFECTION IS THE STANDARD.
LASTLY, WHY DO YOU THINK WE ARE AHEAD THIS YEAR COMPARED TO OTHER YEARS?
MCPARLIN: GEEZ, MAYBE THE OUTREACH THAT WE'VE BEEN DOING.
THE TAX COLLECTORS HAVE BEEN VERY DILIGENTLY ABOUT FINDING DIFFERENT SEARCH ENGINES THAT WILL WORK TO FIND ADDRESSES TO TRY TO CONTACT THESE TAXPAYERS.
JUST MAYBE THE RESEARCH THE TAX RESEARCHERS ARE DOING.
I THINK THAT'S A GREAT ANSWER.
MAY BE AT THE RIGHT ANSWER, MAYBE IT'S NOT, BUT IT'S A GOOD ANSWER.
I WANT TO THANK MADAM TREASURER FOR YOUR LEADERSHIP ON THAT.
THOSE ARE GREAT NUMBERS, SO THANK YOU TO YOU AND YOUR ENTIRE STAFF.
>> CHAIRMAN, COMMISSIONER BLOCK, THANK YOU FOR THAT AND WE APPRECIATED.
WE WORK VERY HARD AND WE HAVE AN AMAZING TEAM, SO THANK YOU FOR THAT.
BLOCK: MAYBE THEY OUTREACH ON THE OTHER END THE CITIZEN DOESN'T CARE FOR THAT, BUT YOU'RE GETTING THE TAX MONEY AND, SO THAT'S A GOOD THING.
>> CHAIRMAN HEIL: YES, GO AHEAD.
>> I'M SORRY, I'M GOING TO GO BACK TO PAGE 10 BECAUSE COMMISSIONER BLOCK WAS DOING THIS.
ALL THESE YEARS, 2013-2021 YOU HAVE A PERCENTAGE COLLECTED AND THEY ALL SHOW 99 POINT SOMETHING PERCENT.
HOWEVER, THAT IS A 10 YEAR ROLLING AVERAGE, CORRECT?
>> IF THINGS DON'T CHANGE THE NEXT FIVE YEARS IT'S GOING TO BE 97.
[00:20:01]
>> CHAIRMAN HEIL: COMMISSIONER?
BRUCH: FOR CLARITY I GUESS I WOULD LIKE TO UNDERSTAND BECAUSE YOU HAVE THOSE ADDITIONAL YEARS TO CONTINUE TO COLLECT THOSE FUNDS, THAT PERCENTAGE DOES GO UP.
SO WHAT WE'RE WORKING BACK IN TIME IS THAT COLLECTION RATE HAS INCREASED OVER THE YEARS BASED ON YOU DIDN'T GET IT THAT YEAR IN 2013, BUT YOU GOT IT EVENTUALLY.
YOUR DOING SO WONDERFULLY AT THE 99 PERCENT LEVELS OVER THE COURSE OF THESE YEARS.
>> CHAIRMAN, COMMISSIONERS, THAT IS CORRECT.
>> BUT IS IT A 10 YEAR AVERAGE IN THAT CATEGORY?
>> COMMISSIONER BLOCK IS SAYING WE DID COLLECT 99 NOW.
ANYTHING ELSE? TREASURY OPERATIONS MANAGER HOLLY AGUILAR WILL NOW SHARE HER PRESENTATION.
AGUILAR: GOOD EVENING, CHAIRMAN AND EVERYONE.
[LAUGHTER] I WOULD LIKE TO START WITH OUR GROSS RECEIPTS TAX.
2 MILLION IN GROSS RECEIPTS TAX AND 22/23.
2 MILLION AND LAST FISCAL YEAR AND ONLY $12.
1 MILLION IN FISCAL YEAR 2021.
WE HAVE RECEIVED $6 MILLION DURING THE LAST QUARTER OF THIS FISCAL YEAR.
>> CHAIRMAN HEIL: WE NEED TO JUMP AHEAD TWO PAGES, RIGHT? ONE PAGE.
AGUILAR: ARE THERE ANY QUESTIONS?
>> CHAIRMAN HEIL: SO WE NEVER KNOW REALLY WHERE OUR GROSS RECEIPTS TAX ARE COMING FROM.
A STATE JUST SENDS IT TO US, CORRECT? WE ASSUME A LOT OF IT HAS TO DO WITH AMAZON PURCHASES AND EGGS LIKE THAT.
AGUILAR: THEY DO SEND US A BREAKDOWN, BUT IT GIVES YOU THINGS LIKE RETAIL SALES BUT IT DOESN'T GIVE YOU ANYTHING BROKEN DOWN FROM THAT OR IT GIVES YOU CONSTRUCTION INDUSTRY OR RESEARCH INDUSTRY, BUT IT DOESN'T TELL ME MORE THAN THAT, YOU DON'T KNOW HOW MUCH IS COMING FROM ONE SPECIFIC LITTLE PORTION OF THAT.
>> CHAIRMAN HEIL: CAN YOU TELL WHAT COMES FROM ONLINE SALES?
AGUILAR: NO, THEY DO NOT TELL YOU THAT BECAUSE ONLINE SALES CAN BE BROKEN DOWN INTO ALL THOSE DIFFERENT INDUSTRIES.
>> CHAIRMAN HEIL: OKAY THANK YOU.
AND THAT I'D LIKE TO GO ON TO OUR DEBT SCHEDULE.
AT THE CLOSE OF THE FISCAL YEAR WE OWED A TOTAL OF $40.
6 MILLION IN PRINTABLE PAYMENTS AND $6.
3 MILLION IN INTEREST PAYMENTS TOTALING A TOTAL OF $46.
ARE THERE ANY QUESTIONS? OKAY.
I WOULD LIKE TO TURN THIS MEETING BACK OVER TO TREASURER TAYLOR NOW.
THAT CONCLUDES THE PART OF OUR STATS FROM THE TREASURER'S OFFICE.
ARE THERE ANY ADDITIONAL QUESTIONS REGARDING ANYTHING THAT WE DISCOVERED? OKAY.
[3. STATUS OF COUNTY INVESTMENTS]
NO QUESTIONS.MAY WE MOVE ON TO STATUS ACCOUNTING INVESTMENTS, CHAIRMAN?
TAYLOR: MAY WE MOVE ON WITH STATUS OF COUNTY INVESTMENTS?
>> CHAIRMAN HEIL: I ASSUME YOU JUST WERE.
WE'RE GOING TO START WITH INVESTMENT SUMMARY AND WHAT SHE'S DONE BREAKING DOWN INVESTMENT SUMMARY FOR YOU AND THEN PASS IT DOWN TO GPA.
AGUILAR: THANK YOU, TREASURER TAYLOR.
WE CURRENTLY HAVE 3 MILLION INVESTED IN LGIP ACCOUNTS, THAT'S LOCAL GOVERNMENT INVESTMENT POOL.
4 MILLION IN ZION AND -- HELD IT NEW MEXICO BANK AND TRUST.
WE IN THE DEFENSE WILL YEAR AT $56.
9 MILLION INVESTED AND EARNED $611,000 IN OUR INVESTMENTS.
>> CHAIRMAN HEIL: SO WHAT IS ON THE REST OF THAT PAGE AND HOW THAT NUMBER IS BROKEN DOWN?
AGUILAR: THE TOP PORTION IN THE BLUE IS A SUMMARY OF ALL OF THE BOTTOM AND THE
[00:25:05]
BOTTOM IS BROKEN DOWN BY THE THREE LGIP ACCOUNTS, WHICH IS ECONOMIC DEVELOPING, CASH MANAGEMENT, AND OUR HCAP ACCOUNT.AND PURPLE ON THE SIDE, THAT'S OUR CD WE HAVE, AND THAT'S THE GENERAL FUND CD.
AT THE BOTTOM IT SHOWS ALL OF OUR FIVES ACCOUNT, WHICH THE ONE THAT IS TITLED AMICIDS WILL BE CHANGING OVER TO NEW MEXICO CENTER.
WE HAVE A SHORT-TERM INVESTMENT PLAN, AND THAT'S JUST FOR THINGS THAT A REFINANCE DEPARTMENT FEELS THEY ARE GOING TO BE NEEDING MONEY FOR SIN, BUT WE'VE GOT IT IN A HIGHER EARN INVESTMENT THAT'S LIQUID RIGHT NOW.
>> CHAIRMAN HEIL: WHEN WE THINK ASSUME, IS THAT WEEKS OR QUARTERS OR MONTHS?
AGUILAR: SHE JUST TELLS US WE'RE GOING TO NEED $5 MILLION BY OCTOBER AND WE TRY TO PLAN FOR THAT.
[LAUGHTER] >> CHAIRMAN HEIL: OKAY.
ARE THERE ANY OTHER QUESTIONS? OKAY.
I WOULD LIKE TO TURN THE REST OF THE INVESTMENTS OVER TO GPA.
>> DEANNE IF YOU CAN HOLD ON ONE SECOND, WE'RE HAVING TROUBLE HEARING YOU.
WOODRING: CAN YOU HEAR ME NOW?
WOODRING: [INDISCERNIBLE] HAVE MY MICROPHONE ON.
BLOCK: NO ISSUES ON THE ZOOM HEARING HER.
WOODRING: IS THAT BETTER? CAN YOU HEAR ME NOW? TREASURER?
BLOCK: IT'S LOUD AND CLEAR ON ZOOM.
DEANNE, COULD YOU TRY TO SPEAK AGAIN, PLEASE?
BUSINESS DEANNE AT GPA TESTING.
CAN YOU HEAR ME? CAN'T HEAR ME.
YOU CAN HEAR ME ON THE ZOOM, CORRECT?
IT STILL VERY FAINT, SO THEY'RE WORKING ON IT.
IT LOOKS LIKE IT'S AN ISSUE ON OUR END.
>> CHAIRMAN HEIL: [LAUGHTER] IS THAT THE GOOD KNEE OR THE BAD KNEE?
[00:30:02]
TAYLOR: DEANNE, I'M GOING TO GIVE YOU A CALL ON MY CELL PHONE AND I'M JUST GOING TO PUT IT UP TO THE MICROPHONE BECAUSE WE'RE HAVING SOME ISSUES.WOODRING: IF YOU CALL ME ON MY CELL PHONE, YES.
WOODRING: I DO NOT HAVE A CALL COMING IN.
TAYLOR: DEANNE, THE PHONE THAT I HAVE, THE PHONE NUMBER THAT I'M USING, IT SAYS THAT IT'S RESTRICTED FOR SOME REASON, CAN YOU GIVE ME A CALL ON MY CELL PHONE?
>> CHAIRMAN HEIL: NOW THE BROADCAST OF THAT, YOU'LL BE GETTING MORE CALLS.
[ECHOING] I'M GOING TO TAKE MY EARPHONES OFF.
I'M REALLY EXCITED FOR THIS REPORT.
I'M GOING TO BE COVERING NOT ONLY THE QUARTER END, BUT THE YEAR END WHERE WE HAVE SOME ATTRACTIVE RESULTS FOR THE FULL YEAR.
I WANTED TO START WITH -- LET ME JUST FIX SOMETHING HERE.
I'M GOING TO START WITH THE MARKET OVERALL.
AND I'M DOING A LOT OF EDUCATION THINGS RIGHT NOW AT CONFERENCES AND, UNFORTUNATELY, I WILL NOT BE ATTENDING THE TREASURERS CONFERENCE NEXT WEEK, BUT MY TEAM WILL BE THERE.
THIS IS JUST TO LOOK BACK AT THE LAST 40 YEARS AND WHAT I WANTED TO PULL OUT OF THIS SLIDE IS THE TRENDLINE THAT WE'VE SEEN.
MARK GO UP, MARCUS GO DOWN, THE GREEN MONTH IS THE -- AND BLUELINE IS TWO YEAR TREASURY.
WE TALKED ABOUT HOW THE CURVE INVERTS AND TWO YEAR WILL GET LOWER THAN THE
[00:47:03]
OVERNIGHT MONEY AND THAT'S WHAT'S HAPPENED AND EVERY TIME THAT HAPPENS EVENTUALLY[00:47:05]
THE RATES REVERSE.[00:47:06]
NOT ONLY RIGHT NOW ARE WE HAD A 14 YEAR HISTORICAL HIGH IN INTEREST RATES BECAUSE WE CAME OUT OF THAT LOW SOUND 1% RATE ENVIRONMENT BACK IN 2008, BUT WE'RE ALSO LOOKING LIKE WE'RE PEAKING OUT IN RATES.IT DOESN'T MEAN WE'RE GOING TO 7%.
I THINK WE ARE GOING TO STALL AT 5 1/2% ON SHORT-TERM MONEY, WHICH GIVES US OPPORTUNITIES TO BUY MORE MONEY AT MUCH MORE ATTRACTIVE RATES BACK WHEN WE STARTED.
HERE IS A CLOSER LOOK AT THAT JUST OVER THE LAST YEAR.
AGAIN, SAME PICTURE WHERE THIS IS THE TWO YEAR NOTE RELATIVE TO THE 10 YEAR NOTE WHICH IS INVERTED, SO NORMALLY THE TWO YEAR SHOULD BE LOWER THAN THE 10 YEAR AND IT'S HIGHER.
THAT WAS THE INDICATION WE SAW BACK IN 22 THAT THINGS ARE CHANGING AND THAT'S EXACTLY WHAT HAPPENED.
AT THE BOTTOM IT SHOWS THE HUGE JUMP COMING INTO THE END OF THE YEAR.
WHEN WE LOOK AT MARCH, THE TWO YEAR YIELD WE ENDED AT 90.
HISTORICALLY, WE HAVE NOT SEEN THESE EVER.
I'M REALLY EXCITED ABOUT HOW YOUR PORTFOLIO IS PERFORMING AND REMAINING BALANCED THROUGH THESE GYRATIONS AND RATES.
SO HERE IS A DEPICTION OF THE INVERTED CURVE.
WAS JUST ADMITTING YESTERDAY WHERE ONE OF THE QUESTIONS ASKED WERE WHY ARE WE NOT BUYING 10 YEAR NOTES OR TWENTY-YEAR NOTES IN THIS ENVIRONMENT IF WE THINK RATES ARE COMING BACK DOWN.
THE TWENTY-YEAR NOTES ARE OVER THAT HUMP AND THEY ARE YIELDING 20% OR THE FRONT END IS 5 1/2.
MY ANSWER TO THAT QUESTION IS WE DON'T INVEST.
WE DON'T HAVE A REASON TO INVEST THAT LONG.
THE ONLY REASON WE INVEST IS IF YOU KNOW WE HAVE A KNOWN LIABILITY TO MATCH IN THAT PLACE.
TENTATIVELY, WE ARE KEEPING THAT PORTFOLIO AND THE FIVE-YEAR PORTFOLIO AND BENEFITING FROM UPWARD RATES.
WHAT'S HAPPENING? WHY IS THIS GOING ON? THIS IS A DEPICTION OF THE CPI CONFIGURES AND IT'S AN INFLATION COMPONENT AND SHOWS THAT WE RECENTLY WENT UP TO THAT CRAZY 9% INFLATION NUMBER WHICH TALKING BY THIN TRANSITORY.
IS BECAUSE OF COVID? IS BECAUSE OF THE SUPPLY CHAIN? IT'S DEFINITELY FALLING OUT THAT IT PROBABLY WAS.
THE FED'S GOAL IS TO GET THE INFLATION NUMBER 22% AND WE ARE AT 3% RIGHT NOW.
THEY DID ONE MORE MOVE ON JULY 27 OR 26TH TO MOVE INTEREST RATES UP AND REALLY HOPING THAT THEY ARE DONE.
THEY ARE ABLE TO GET THROUGH A SOFT LANDING OR CUT THE ECONOMY OFF.
WE REMAIN CHALLENGES THE FED CONTINUES ON ITS PATH TO CONTROL INFLATION.
WE HAVE NOT SEEN THE NUMBERS YET AND WE ARE STILL ANTICIPATING THAT SHOULD MOVE US DOWN THE NOTCH WITH 6-7% MORTGAGE RATES.
ARE NOT SAYING A LOT OF HOME SALES.
IT'S THE REVERSE WHERE PEOPLE WILL NOT SELL THEIR HOMES BECAUSE THEY HAVE THOSE LOWER MORTGAGES, SO THERE'S A LACK OF INVENTORY ON THE MARKET, SO IT'S GOING TO BE INTERESTING TO SEE HOW THAT PLAYS OUT.
THE LAST ONE WE TOUCHED ON THE LABOR MARKETS.
THIS IS THE KEY TO RETAINING A STABLE ECONOMY.
NORMALLY WHEN INTEREST RATES GO UP, THE FED IS SQUEEZING OUT LABOR COSTS.
THAT'S WHAT WE ARE HOPING IS HOLDING TRENDS AND IF HE CAN STAY HEALTHY THROUGH THIS, WE WILL BE ON THAT SAFE LANDING THAT WE ARE PROJECTING.
WE THINK THIS IS ONE OF THE REASONS THAT IS HOLDING UP IN THE TOP LINE IS 55 AND OLDER PEOPLE THAT ARE NOT GOING BACK TO WORK AFTER THE PANDEMIC.
THEY REALIZED THAT THEY DON'T NEED TO.
NOW THAT WE HAVE A 5% ENVIRONMENT PROBABLY INVESTING OVER THAT AND HAVE DECENT INCOMES.
WE ARE SEEING THE YOUNGER POPULATION COMING BACK TO WORK, WHICH IS PROBABLY A GOOD SIGN.
LASTLY, ON THE FUTURES MARKET, WE LOOK AT THE TREND LINE THAT THE MARKET IS EXPECTED FROM THE FED.
AS I MENTIONED, THIS IS REJECTING FOR ANOTHER 25 BASIS POINTS WE COUNT IN JULY AND WE EXPECT THE FED TO GET DOWN TO AROUND 2%.
WE ARE STARTING TO SEE A PAIN IN THE SYSTEMS WHERE WE HAVE THE SMALLER BANKS WHO HAD TO BORROW AT SUCH HIGH RATES WHEN THEY WERE PAYING OUT SUCH LOW RATES.
WE HAD AROUND WHERE -- CAME IN AND DID AN OUTLOOK, BUT THEY MAY BE DOWNGRADING SEVERAL OF THE LARGER BANKS.
IF THEY KEEP PRICING THESE RATES, WE MAY BE IN SOME PRESSURE IN CURRENT MARKETS.
SO LET'S LOOK -- ANY COMMENTS ON THAT PORTION OF THE PRESENTATION?
>> CHAIRMAN HEIL: YES, I GUESS I DO.
SO I READ FINANCIAL REPORTS ON A PRETTY REGULAR BASIS AND I SEE A LOT OF, I DON'T KNOW, PROPHESIERS PART OF IT HAS TO DO WITH THE LABOR COST IS GOING UP.
CERTAINLY HASN'T KEPT UP WITH INFLATION, BUT WHAT IS YOUR PROGNOSTICATION?
WOODRING: TREASURER, CAN YOU REPEAT THAT QUESTION, PLEASE?
TAYLOR: SO HE WAS ASKING ABOUT THE CHANGES IN THE -- SEE NOW I FORGOT WHERE YOU BEGIN WITH YOUR QUESTION.
>> CHAIRMAN HEIL: THE INVERTED YIELD CURVE ALMOST ALWAYS PREDICTS A RECESSION.
I MEAN, IF YOU GO BACK 40, 50 YEARS IT'S ALMOST CONSISTENTLY PREDICTING RECESSION.
I THINK 1966 AND A FEW OTHER YEARS.
SO WHAT IS YOUR EXPECTATION AS YOU'RE HELPING US INVEST OUR MONEY?
WOODRING: [INAUDIBLE] TYPICALLY IS A RECESSION.
WE'RE JUST DETERMINING WHETHER IT'S GOING TO BE A SOFT LANDING OR NOT.
THAT'S WHAT ALL THE NUMBERS ARE GOING TOWARDS AND WE'RE PREPARING FOR, WHICH MEANS INTEREST RATES ARE GOING LOWER.
WE ARE KEEPING YOU FULLY INVESTED AS MUCH AS WE CAN AND MAINTAIN AS MUCH AS WE CAN SO YOU'RE ABLE TO BENEFIT FROM THESE HIGHER RATES THAT WE HAVE TODAY.
SO WHEN WE LOOK AT THE PORTFOLIO NEXT, WE MANAGE BOTH YOUR INVESTMENT COMPONENT AND TRACKING CASH AT THE BANK AND LGIP AND AT THE END OF THE YEAR YOU ENDED INVESTMENTS AS HOLLY REPORTED.
[00:50:01]
THOSE BALANCES CONTINUE TO MOVE UP IN RATES AS WELL.SO THE ENDING YIELD ON THE PORTFOLIO, AND I THINK SOME OF YOU WILL REMEMBER THIS, IT ENDED AT 31.
THAT'S A REALLY GREAT SIGN FOR EARNINGS IN THE PORTFOLIO.
THE MARKET YIELD IS WITHOUT MARKET HAS RESET TO, SO WE'RE LIKING THAT A LITTLE BIT, BUT AS MATURITIES DO, WE REINVEST.
SEEING THESE NICE RESULTS IS REALLY GOING TO PULL OUT, AND I HAVE THE ACTUAL DOLLAR RETURNS FOR THE COUNTY ON THE NEXT COUPLE OF SLIDES.
AT THE BOTTOM OF THE SLIDE YOU LOOK AT YOUR ALLOCATIONS.
YOU HAVE ABOUT 50% IN BANK DEPOSITS, 7.
5% AGENCIES, AND WE ARE STILL WAITING TOWARDS US TREASURIES.
WE ARE STARTING TO GET -- WE ARE LIMITED ON THE ASSET CHOICES THAT WE HAVE.
WE ARE LIMITED, BUT AS WE SEE WE ARE BUYING AGENCIES IF WE CAN.
I SHOULD NOTE ALSO ON AUGUST 1, S AND P, EXCUSE ME, FED CAME IN AND DID A DOWNGRADE ON US DEBT DOWN FROM AAA.
IN 2008 WHEN WE HAD OUR FINANCIAL CRISIS, DOWNGRADED US FROM DOUBLE A TO TRIPLE A.
WAS MORE A SIGNAL TO MAKE SURE THAT THE FEDERAL GOVERNMENT KNEW THAT WE WERE WATCHING THESE DEBT LEVELS AND TO BE AWARE.
OBVIOUSLY, THE FEDERAL GOVERNMENT CAN PRINT MONEY, SO THE DEFAULT RISK REMAINS LOW ON THAT PAPER, BUT IT DOES IMPACT SECURITIES YOU HAVE IN US TREASURIES AND AGENCIES.
ALSO ON THIS SHEET IT SHOWS AVERAGE MATURITY IS THERE.
EFFECTIVE MATURITY DURATION IS AT.
WE CONTINUE TO MANAGE TO THAT DISCIPLINE WE TALKED ABOUT.
THE NEXT COUPLE SLIDES ARE YOUR COMPLIANCE REPORT.
YOU CAN SEE HOW POLICY VERSUS HOW YOU ARE INVESTED.
33% IN TREASURIES, 7% IN AGENCIES, AND LARGE BALANCE THERE AT THE BANK.
YOU SHOULD HAVE A GOOD AUDIT GOING THROUGH THOSE NUMBERS.
THE SECOND PAGE THERE IS ON MATURITY CONSTRAINTS.
WE REMAINED WELL WITHIN THE MATURITY -- AS WELL.
WHEN WE LOOK AT THE COMPOSITE OF THE PORTFOLIO, WHAT MAKES UP ALL OF THE INVESTMENT MONEY WE HAVE ECONOMIC DEVELOPMENT HAS LOCATED AND INVESTMENT COMPONENT OF $3.
5 MILLION IS INVESTED AND AS MATURITIES COME OFF THAT IS 220.
THE CASH AT THE BOTTOM THERE IS A NEW PORTFOLIO THAT WE JUST STARTED THAT I THINK IS GOING TO FIT WELL FOR THE COUNTY, AND WHAT THAT PICKS UP IS CASH NEEDS THAT YOU HAVE AS YOU GET TAX MONEY AT THE END OF THE YEAR WE'LL BE DOING ANOTHER ANALYSIS TO SEE IF MORE SHOULD GO OVER THERE AND FOUND NO ONE LIABILITIES.
THIS ALLOWS US TO -- I THINK THAT SHOULD PLAY OUT NICELY IN THIS HIGH RATE ENVIRONMENT.
HERE'S A PICTURE OF YOUR BALANCES OVER THE YEARS.
YOU CAN SEE THAT $120 MILLION PEAKED IN JANUARY.
THAT WAS DURING YOUR TAX CYCLE AND YOU'RE ENDING THE YEAR RIGHT AT THAT $114 MILLION, WHICH IS UP ABOUT $2 MILLION FROM WHERE YOU WERE LAST YEAR.
WE'RE SEEING THAT THE BOOK YIELD LAST YEAR ON JULY 30 IT WAS AT.
WE ARE HOLDING DURATION CONSISTENTLY.
AND THEN HERE IS THE GREAT NEWS.
WE RAN ACCRUAL EARNINGS FOR LAST YEAR AND NOW LAST YEAR.
LAST YEAR THERE WAS ABOUT A 70 MILLION AVERAGE BALANCE.
WE SEE THAT INCREASE IN SIZES.
THAT IS THAT SIGNIFICANT IMPACT FROM RISING RATES AND ABILITY TO ADJUST THE PORTFOLIO STRUCTURE AND SHIFT MORE TO INVESTMENTS, WHICH I THINK IS GOING TO BENEFIT THE COUNTY IN THE LONG RUN.
THE BOTTOM SIGN REFLEX CHANGE IN MARKET VALUE.
WHATEVER WE HOLDING IN POSITIONS MARKET VALUE WILL GO DOWN.
THIS YEAR THE MARKET MAY CHANGE BY $1.
THE GOOD NEWS IS BECAUSE YOU'RE EARNING MORE ON CASH FLOW, THAT IS STILL A POSITIVE NUMBER.
WE ARE NOT AFRAID OF MARKET CHANGE.
IT'S A DYNAMIC OF THE MARKET AND AS INTEREST RATES COME DOWN WE START TO SEE UNREALIZED GAINS ON THE SIDE OF THAT.
AND THE REST OF THESE PAGES THERE'S A LOT OF NUMBERS IN HERE, BUT THIS IS JUST A CHANGE QUARTER OVER QUARTER FOR YOU TO REVIEW.
THE BIGGEST THING RIGHT HERE IS ON THE BOOK YIELD WHERE WE SEE ALL THE WAY UP TO 3.
17, WHICH IS REALLY ATTRACTIVE.
WE CONTINUE TO USE THE CURVE AND KEEP YOU DIVERSIFY AND MATURITY STRUCTURE AS BEST WE CAN.
AND AND THIS IS THE TYPES OF SECURITIES THAT YOU HAVE.
SO WE'RE DIVERSIFYING AS MUCH AS WE CAN WITHIN THAT.
AND THIS IS JUST A POINT OUT ON THE FINANCIAL INSTITUTIONS YOU HAVE.
YOU HAVE THE NEW MEXICO BANK AND TRUST CD, THE DEPOSITS, THE $3 MILLION, AND THEN THERE'S A BALANCE IN THE MONEY MARKET FUND AT THE ZION'S BANK.
TAYLOR: DOES ANYBODY HAVE ADDITIONAL QUESTIONS? SORRY.
DOES ANYONE HAVE ADDITIONAL QUESTIONS?
>> CHAIRMAN HEIL: DOESN'T LOOK LIKE IT.
COMMISSIONER BLOCK, ANY QUESTIONS?
BLOCK: I CAN SEE YOU, CHAIRMAN, AND YOU LOOK GREAT.
>> CHAIRMAN HEIL: [LAUGHTER] >> J.
I THINK THAT'S ALL THE QUESTIONS WE HAVE.
TAYLOR: OKAY, CHAIRMAN, IF THERE'S NO OTHER QUESTIONS, I TURN THE MEETING OVER.
>> CHAIRMAN HEIL: I JUST WANT TO MAKE A COMMENT.
I CONTINUE TO BE IMPRESSED WITH GPA OF MANAGEMENT OF OUR FUNDS.
>> CHAIRMAN HEIL: FROM WHAT I SAW IN THE FIRST THREE OR FOUR YEARS I WAS HERE COMPARED TO WHERE WE ARE NOW, BIG CHANGE.
>> CHAIRMAN HEIL: ANY OTHER QUESTIONS FOR THE TREASURER? WE'LL STAND ADJOURNED.
THANK YOU, COMMISSIONERS.
* This transcript was compiled from uncorrected Closed Captioning.