Clovis commission adopts preliminary FY 02/1926 budget; no tax increases

The Clovis City Commission on Monday approved a preliminary fiscal-year 02/1926 budget by a vote of five in favor, one abstention and two members absent, adopting the document the city will submit to the Department of Finance and Administration for review.

City Clerk and Finance Director Leanne Melanson, who presented the plan, said the preliminary budget must be filed with DFA by June 1 and that she will upload the signed documents after the meeting. "It is that time again. Preliminary budget. It is due to our oversight at DFA by June 1 at midnight," Melanson said.

The preliminary plan does not raise any city taxes. Melanson told commissioners the budget reflects recent gross-receipts performance and the city’s conservative approach to spending. "We did not make any increases, any changes to any of our taxes for this budget session," she said.

Why it matters: the preliminary budget sets spending and reserve targets the city will use while preparing a final FY 02/1926 budget for later review. The document includes multi‑year commitments and designated funding that affect capital projects, public-safety staffing and service programs.

Key items in the preliminary budget include: - Two new full-time positions: a dedicated city clerk (separating that role from the finance director) and a full-time coordinator for the senior meals program. - A $100,000 transfer from the general fund to recreation to continue support for Clovis Schools athletic programs. - An allocation of roughly $3,000,000 for the animal shelter, funded from either American Rescue Plan Act funds or general fund cash reserves, according to the presentation. - Lodgers-tax nonpromotional fund set to allocate $30,000 for the annual fireworks display and events at Greenacres. - Continued funding of $395,000 to public works for residential paving projects, maintained amid stable price assumptions.

Melanson reported preliminary balances and reserves: the city’s preliminary general fund cash balance is $7,300,000; the state-required minimum reserve is $2,800,000 (described in the presentation as equivalent to one-twelfth of the general fund); and designated funds total about $1,600,000. The presentation showed budgeted total revenues near $75,000,000 and budgeted personnel services of roughly $34,700,000.

The presentation also flagged enterprise funds with declining cash balances and noted the city is considering rate studies for utilities (sanitation, wastewater, airport) to determine future rate needs; no rate changes were adopted in the preliminary budget.

Commission discussion was brief. City Manager Hovalt (on the phone) was acknowledged as available for questions; no additional changes were offered before a motion to adopt. Mayor Pro Tem moved to approve the preliminary budget; the motion was seconded by Commissioner Tarsten. After roll call and acknowledgment that two members were absent and one abstained, the motion carried.

Next steps: Melanson said the signed preliminary budget will be uploaded for DFA review and that the commission will consider a final budget later in July when year-end actuals and department carryovers are available.