City approves $25 million final budget

The Tucumcari City Commission on Thursday approved a $25 million final budget for fiscal year 2021 that began July 1 and extends to June 30, 2021, and includes a deficit of $631,945.

Documents show the budget calls for revenues of $24,725,932 in revenue and $25,357,877 in expenditures, leaving the deficit of $631,945.

City Finance Director Rachelle Arias told the commission a $447,892 deficit in the city’s general fund budget accounts for most of the total deficit. Despite the budget deficit, however, end-of-year results show the general fund finishing the year with a $216,081 favorable balance because of less-than-anticipated financial activity in the fund.

Interim city manager Mark Martinez warned the commission starting the budget year with deficits is not advisable and recommended that commissioners reconsider cash reserve policies to avoid budgeting deficits in the future.

“I want to reiterate the danger of starting the budget with a deficit,” he said. “We need to reallocate that cash so we don’t operate in deficits for the sake of a policy.”

The commission voted 3-1 to approve the budget. District 1 Commissioner Ralph Moya abstained, and District 2 Commissioner Paul Villanueva was absent.

The city finished fiscal 2020, which ended June 30, with a surplus of $189,020, according to Arias’ reports for the month of June and last three months of fiscal year 2020. The commission voted separately to approve the month-end and quarter-end reports with 3-1 votes, with Moya abstaining.

In cash accounts, the city’s general fund finished the year with $10. 4 million in cash bank accounts, with nearly $9 million in the general fund’s cash account, Arias reported.

Arias also reported on gross receipts tax revenue increases and decreases to the city over the past nine years. For 2020, she said, the city’s gross receipts taxes increased by 3.3% despite COVID-19 setbacks in lodging and restaurant businesses.

In previous years, change rates in gross receipts taxes ranged from an increase of 6.8% in 2014 to a decrease of 3.8% in 2018.

Overall, Arias said, the average annual increase in gross receipts tax revenues was about $25,000.

In other action, the commission:

• Renewed a contract with Egolf, Ferlic, Martinez and Harwood LLC law firm in Albuquerque to handle water rights matters for the city. Under the renewed contract, the firm will receive $25,000 from the city, $5,000 more than in previous contracts. The firm includes Brian Egolf, speaker of the New Mexico House of Representatives.

• Acknowledged a proclamation recognizing American Wind Week, signed by Mayor Ruth Ann Litchfield, that recognizes wind energy’s $3.4 billion contribution to capital investment, its support of 2,000 jobs in the state and its $8 million in state and local tax contributions annually.

Martinez reported a part needed to repair the city’s pothole-repair device arrived, and the city should be able to resume pothole repairs within two weeks.

Other topics of discussion at Thursday’s meeting included:

• Progress in prosecuting out-of-town property owners who have neglected their land in the city.

• Enforcement of masking requirements and other COVID-19 regulations. Moya asked whether the city should be more active in enforcing mask requirements.

Martinez said city employees have been asked to wear masks, especially if they can’t maintain social distance. One employee has left the city, he said, because of vulnerability to the virus.

District 5 Commissioners Todd Duplantis said, “With all of this going on (regarding COVID-19), we have to remember we’re all neighbors. I don’t like this ‘new normal,’ but we are all in this together. We can all respect each other.”

Litchfield pointed out there were 28 COVID-19 cases in Tucumcari as of Thursday.

• Local efforts to establish a brand for Tucumcari. District 4 Commissioner Chris Arias said the local branding committee is preparing to conduct a survey to show “how Tucumcari views Tucumcari.”

• Mosquito abatement after recent rains. Duplantis said the possibility mosquitoes could carry COVID-19 adds some urgency. Health experts, however, say it is very unlikely mosquitoes can spread the virus.

• Ute Lake water. Moya pointed out the city could lose its right to 6,000 acre feet of drinking water from the lake, and the city should ensure it makes arrangements to ensure the water gets used. He suggested arrangements through Quay County or the Arch Hurley Conservancy District. If the water is not used, he said, the city could lose rights to that water.

Commissioner Arias said the city is actively involved with the Eastern New Mexico Water Utility board to protect its rights to Ute Lake water. Interests in Curry and Roosevelt counties also have a claim on Ute Lake water, he said.