During a city work session, Tucumcari commissioners and staff debated options for employee health insurance, possible across‑the‑board pay increases and how those choices would affect the municipal budget and services.

Commissioners and staff discussed three principal insurance scenarios: the city continuing to pay 100% of employee health insurance premiums, a 90/10 city/employee cost split, and an 85/15 split. Finance staff presented a blended estimate showing a 90/10 scenario would add roughly $300,000 to the budget; staff said the 100% option would raise costs substantially and could prompt larger numbers of employees to enroll at the next open enrollment opportunity, which takes effect Jan. 1 following an October election period.

The commission debated how to balance insurance generosity with other priorities. Several commissioners urged a gradual approach (for example, moving to 85% or 90% city coverage with a modest wage increase), citing uncertainty in revenues and potential midyear adjustments. Commissioners also discussed staggered raises (proposals mentioned included $1.00, $1.50 and $2.00 per hour) tied to different insurance splits; staff said the $2.00 plus 100% coverage scenario would significantly increase the budget and that the commission could revisit changes at midyear if revenues allow.

Staff and commissioners explored the budgetary mechanics for funds that supplement departments. Finance staff clarified how restricted state fire funds are recorded separately (state fire fund line codes were cited) and said those allocations generally are intended for equipment and functional items rather than salaries. Staff noted the cemetery, recreation and other functions receive transfers from the general fund and that prior budget classifications influence how those transfers appear in the current draft.

The work session also reviewed personnel levels across departments. Street department staff reported three filled positions and two seasonal workers; parks was budgeted for three positions with two currently filled; wastewater and water operations were discussed with staffing targets but actual counts described as fluid. Staff said seasonal hires are being used as a trial period before moving successful workers to full time.

Capital and operational needs were discussed: public works staff described planned purchases of trucks, backhoes and a loader and said larger equipment acquisitions would be placed under a capital cap and funded through capital accounts when possible. Staff said they are seeking to cap single capital purchases at a threshold (discussed around $120,000–$130,000) and to recover full reimbursement where eligible.

On grants and audits, staff reported active work to preserve and secure grant funding. Staff said they recently met with the U.S. Army Corps of Engineers about a roughly $4 million opportunity and that city staff were arranging audit documentation the Corps and other funders requested. Staff also said they expect to secure approximately $7 million in combined grants from the Corps and the New Mexico Water Trust Board if the commission approves required match letters at an upcoming meeting. A separate waterline project for the north side was discussed; staff cited a figure of about $770,000 for one component. Staff emphasized that some grant awards depend on the city providing match letters and completing outstanding audit items.

Commissioners asked for more detailed, line‑by‑line budget information and a revised staffing/org chart that reflects current vacancies and positions proposed for the coming year. Staff pledged to return with updated numbers, including the effects of different insurance and wage scenarios, and recommended the commission consider midyear adjustments once actual revenues and audit work are clearer.

Ending

The work session ended with commissioners agreeing to continue the budget conversation at future meetings and to weigh implementation risk from outstanding audit work and grant match requirements before committing to a more generous insurance or wage package.