Tucumcari faces $556,000 deficit

The city of Tucumcari faces a deficit of $556,205 for the fiscal year that begins July 1 and ends June 30, 2022, without some serious budget cuts, City Manager Mark Martinez warned city commissioners at a public work session Thursday afternoon.

“The budget is not looking real great,” Martinez said, “but we have to try to get as close to a zero budget as possible.”

City finance director Rachelle Arias said the deficit is in the city’s general fund, financed mostly through property and gross receipts taxes, and the funds that receive money from the general fund.

Other city operations, including the water department, wastewater department and sanitation, are funded through fees paid by city residents.

Martinez said rising costs, mostly in salary increases due to a mandated rise in minimum wage from $10.50 to $11.50 per hour, and declining tax base have combined to create a serious deficit in the budget if significant cuts are not made elsewhere.

Thursday’s work session was the first in a series of such meetings to find ways to reduce the deficit with minimal effect on city services.

Martinez said he would like to reduce personnel costs by not filling vacant positions and combining duties of some jobs to reduce the number of positions required for city operations.

As an example, Martinez proposed an animal control officer could double as a code-enforcement official.

An alternative that would raise the pay only of employees who are earning less than minimum wage would cause morale problems, and some experienced employees whose pay would be the same as others at entry level “might leave and go elsewhere.”

Commissioners seemed to agree one valid approach would be to appeal to Quay County government for assistance in some areas.

Tucumcari has “the only public library, only public swimming pool and the only public recreation center in the county,” District 4 Commissioner Chris Arias said, making a case for an appeal to the county.

District 1 Commissioner Ralph Moya added that Tucumcari provides ambulance service to much of the county without adequate reimbursement.

District 5 Commissioner Todd Duplantis said the city and the county could split the cost of road maintenance throughout the county.

“We’d pay half, and they’d pay half,” he said.

Other commissioners noted the county receives a greater share of gross receipts taxes than the city.

Duplantis said he would volunteer to appear before the county commission.

Noting the cost of major repairs to the city’s public pool have kept the pool closed this summer, as it was last summer because of COVID-19 concerns, Duplantis also proposed it be replaced by a splash park that would be far less costly.

Other possible solutions included contracting out operation of the city’s golf course, airport and convention center.

Martinez said such moves might remove some headaches, but the city still would be responsible for upkeep of the facilities.

Arias proposed the city could sell properties that are not being used.

Those properties need to be appraised, Martinez said.