Farmington continues to see decreased GRT revenues
FARMINGTON — Revenues from gross receipts taxes remain about 6 percent less than the previous fiscal year for the city of Farmington, according to City Manager Rob Mayes.
In a Mayor's Table video released this week, Mayes and Mayor Tommy Roberts discussed the financial state of the city.
About four months into fiscal year 2017, the city is anticipating a $2.4 million deficit, according to the Mayor's Table video.
Earlier this year, the city implemented 5 percent budget cuts totaling approximately $3 million. Mayes said those cuts, along with cash reserves, should cover the projected $2.4 million deficit and carry the city through fiscal year 2017.
In the mayor’s video, Mayes and Roberts said tapping into cash reserves is a strategic option. Roberts said the cash reserves should not be drawn down too much further.
“We don’t want anyone to think that this cash is a recurring option,” Mayes said during the video.
In a text message to The Daily Times, Mayes said city officials have not made any speculation as to how Tuesday's election results will affect the city's financial state.
"Regardless, I would assume any impacts would not be immediately realized," Mayes said in a text message.
He said the election will likely not impact the city's budget this fiscal year.
The City Council will have a work session Tuesday morning during which it likely will approve submitting the first set of budget adjustments for review to and approval from the New Mexico Finance Authority. Mayes said in a text message that the budget adjustments are procedural and are not related to the economic conditions in the city.
Hannah Grover covers government for The Daily Times. She can be reached at 505-564-4652.