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Commission records FY2526 budget approval and reviews July revenue; oil and gas distributions exceed budgeted volumes
Summary
Per state statute, county staff recorded approval of the final FY2526 budget for the meeting minutes. Finance staff reported July gross-receipts and oil-and-gas distributions above last year and above the fiscal-year budget assumptions.
County staff noted that, per the state statute, the Board of Commissioners must record approval of the final FY2526 county budget in the meeting minutes; the item was presented as informational.
A finance presenter reviewed the July revenue report. For gross receipts the county collected approximately $6,400,000 for July, putting collections about 8% above this time last year. For oil and gas distributions, the county collected approximately $6,700,000 for production equipment and royalties combined.
The finance presenter provided commodity activity behind the distributions: for the business activity period that produced July's distribution, the county reported about 27,700,000 barrels of oil at an average price of $58.69 per barrel and about 172,200,000 units of gas averaging $2.84 per unit. The presenter reminded commissioners that the county budgeted 22,000,000 barrels for the fiscal year at $52 per barrel and 125,000,000 units of gas at $2 per unit, meaning actual production and prices are already running above initial budget assumptions.
The board moved to approve the revenue report and recorded affirmative votes; a roll call on the subsequent budget-versus-actuals discussion showed general revenue and expense tallies for July, with countywide revenue of about $74,900,000 year to date and transfers of about $54,200,000 for the fiscal year. The finance presenter said general-fund expenses were lower than a typical monthly percentage, reporting about 6% expensed for July without transfers.
Why this matters: Oil and gas distributions are a substantial portion of Eddy County revenue. Higher-than-budgeted production and commodity prices can materially affect county revenues and budget planning.
Next steps: Finance staff will continue to monitor production, price, and transfer levels and present budget-versus-actual reports to the board.
