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Los Alamos reports FY25 fourth‑quarter results: GRT decline, strong investment returns and a looming long‑range funding gap
Summary
County finance and investment advisers reported Sept. 16 that gross receipts tax revenue fell sharply in FY25 while investment income was strong, producing a mixed unaudited year‑end picture and prompting staff to model revenue scenarios for the council.
Los Alamos County finance officials told the County Council on Sept. 16 that unaudited FY25 results show revenues and expenditures both below budget, a significant decline in gross receipts tax revenue, and unusually strong investment income that partially offset the revenue shortfall.
Melissa Dadzie, the county chief financial officer, and investment advisor Diane Woodring presented the fourth‑quarter financial overview and an investment report. Woodring said the operating portfolio and the separately managed utility portfolio produced strong earnings during the fiscal year; interest income rose from about $6.8 million to $8.1 million and fair‑market‑value gains in State Investment Council holdings added roughly $6 million in value for the county’s long‑term funds. Woodring reported the invested portfolio produced an approximate 5.8% return for the year on the funds she manages.
Why it matters: the county’s long‑range plan relies on a baseline of GRT receipts. Staff said the new FY25 GRT baseline is lower than last year and that the council will need to consider revenue options to maintain reserve policy targets.
Key figures and timeline:
- Adopted FY25 general fund revenue budget: $124.9 million; unaudited FY25 actuals reported to date: $117.1 million. - Adopted FY25 general fund expenditures: $96.5 million; unaudited FY25 expenditures (not including carryovers): $84.5 million. - GRT decline: staff reported GRT for FY25 was down roughly 15% (about $12.9 million) from the prior baseline; that decline drove much of the revenue shortfall. - Investment income: interest income reported at approximately $8.1 million for the fiscal year; market value increases in SIC funds added about $6 million in unrealized gains. - CIP expenditures in FY25: roughly $38.9 million (life‑to‑date, 36% of project budgets).
Long‑range projection and GRT next steps:
Budget staff presented a 10‑year projection that incorporates the revised FY25 GRT baseline and current CIP commitments. With the new baseline, the projection shows county reserves remain above policy targets through FY27 under the half‑cent GRT scenario the council asked staff to model, but long‑term projections through FY29 show reserves beginning to decline below the county’s 20% reserve target. Finance staff and the county manager told councilors they will present detailed scenarios and an ordinance for a GRT increase at upcoming meetings; staff noted that to make a GRT change effective July 1, 2026, required notifications to the New Mexico Department of Finance and Administration (DFA) must be timely.
Council discussion and next steps:
Councilors asked for additional supporting data and scenario analysis. Wyka and county staff committed to a follow‑up council meeting (scheduled Sept. 30) that will include detailed GRT scenarios and the introduction of a GRT ordinance for consideration. In the meantime, staff stressed the FY25 financial statements are unaudited and small adjustments may arise during the formal audit process.
Reported caveats: the figures discussed were unaudited management statements; staff said the formal audit is under way and that minor adjustments remain possible.
