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Third‑quarter financial review: Taos County records general fund surplus but several core funds require transfers
Summary
At a May 12 meeting, county finance staff reported third‑quarter results showing a year‑to‑date general fund surplus but structural shortfalls in public works, EMS and the jail fund that required transfers and will need addressing in the FY26 budget.
Taos County finance staff presented third‑quarter fiscal year 2025 financial results to the county commission on May 12, reporting a year‑to‑date general fund surplus but warning that several core funds — public works, emergency ambulance services and the adult detention center — are operating with recurring shortfalls that have required transfers from other funds.
Finance Director (presenter identified as Emily, last name not specified) and Deputy Finance Director Wendy Harris summarized revenue and expense performance and highlighted items that will affect next year’s budget decisions.
Why it matters: Commissioners were shown fund‑level results that will influence FY26 budget choices. While the general fund showed a notable surplus year to date, operational funds that support roads, emergency medical services and the jail are structurally dependent on transfers and one‑time grants to maintain services.
Key takeaways
- General fund: Year‑to‑date recurring revenues were reported at $16.3 million (about 70% of budgeted revenues for the period) and recurring expenses at $12.0 million, producing a $4.28 million surplus year to date and an ending cash balance reported at about $13.15 million. The finance presenter said grants and transfers have materially affected the year‑over‑year comparison.
- Public works and roads: The public works fund is running a structural deficit (revenues cover roughly one‑third of the budgeted amount); the department relied on $600,000 in third‑quarter transfers to stabilize the fund and staff warned that continued transfers will likely be needed.
- Emergency medical services (ambulance) and dispatch: EMS reported revenue increases aided by a one‑time state grant of about $450,000 but was still running a payroll‑driven deficit; finance recommended scheduled transfers in Q4 to cover shortfalls. Dispatch revenues and expenses were reported as steady and under budget.
- Adult detention center (ADC): The ADC fund showed a significant year‑to‑date deficit and required a $506,000 transfer from the general fund in the second quarter. Finance staff warned the jail fund’s recurring revenues are insufficient to support ongoing operations, particularly payroll and inmate care costs.
- Senior programs and other grants: Senior services and long‑term care grants rely on state and federal funding that is tapering; finance noted the senior programs are running at a deficit and that ARPA or other one‑time funds used in prior years are no longer available.
Quotes and follow‑ups
Finance staff said: “Despite a healthy year‑to‑date surplus [in the general fund], cash reserves are slightly lower than the same period last year, likely due to higher outflows or timing differences in revenue and expenditure cycles.” Commissioners asked for further detail on permit‑related revenues and were directed to a revenue‑detail slide that breaks down building permits, liquor licenses and other non‑tax receipts that feed the general fund.
No formal action was taken at the meeting; finance asked the commission to consider these fund positions when preparing the FY26 budget and to note that several funds will require transfers or structural adjustments.
