FARMINGTON — Farmington City Council may approve during its Tuesday evening meeting annexing about 888 acres of land southwest of the city that would severely decrease San Juan County tax revenues.
"There's going to be a significant loss given the size of some of these businesses," County Operation Officer Mike Stark said.
The annexation of a little more than 888 acres includes portions of West Pinon Street, West Murray Drive and the Bisti Highway. The move would incorporate the following businesses: Cascade Bottled Water, FedEx, Giant Convenience Store, Havens Trucking, Four Corners Precast, San Juan Regional Medical Center, Drake Well Servicing, Triple P Oilfield Services, a 7-2-11 Convenience Store and US West Communications, according to city documents.
If annexed, the city would collect gross receipts taxes from those businesses. Incorporating would also open more space for industrial development within city limits.
The annexation would increase the city's size by 4 percent, according to city documents.
Both short- and long-term projections indicate the city would break even in the annexation.
In the first five years, the city could generate roughly an additional $110,000 to $730,000 in gross receipts taxes, according to city projections. And 20 years after the annexation, the city could earn about $580,000 to $1 million more in taxes.
Long-term projections calculate the city will need to pay $650,000 once and $552,182 each year to provide services to the area.
This month the county received $2,959,425.09 in gross receipt taxes, in March it received $2,810,606.66 and in February it received $3,216,828.02, according to New Mexico Taxation & Revenue Department records.
But planning for the county's loss of gross receipt taxes is difficult, Stark said.
Business earnings are private, so the county cannot calculate how much less revenue it will receive, he said. The gross receipts taxes also are distributed in lump sums, so the county cannot determine which business produces the most revenue, he said.
Much of the taxes collected from the proposed 888-acre annexation benefit only two county funds — its fire protection fund and environmental fund, he said.
The county cannot prevent a city from annexing, he said.
Farmington officials presented the planned annexation to the county commission during its regular meeting April 15. Many residents who objected said they were concerned the annexation would encroach on their private property.IF YOU GO:
What: Farmington City Council meeting
When: 7 p.m. Tuesday
Where: City Hall, 800 Municipal Drive, Farmington
More info: Go to www.fmtn.org.