Council directs staff to pursue half‑cent GRT option, discusses dedicating funds for housing

Los Alamos County Council on April 23 directed staff to develop an ordinance and return to council by Oct. 31, 2025, to pursue a half‑cent gross‑receipts tax (GRT) increase effective July 1, 2026, as part of long‑range financial planning. The motion, which passed 6–1, instructed staff to prepare the required state process and included language about transfers to a housing fund.

Council and staff described four GRT scenarios that staff modeled for the FY2026 budget and the 10‑year financial projection. Staff said the county’s GRT baseline has declined from the peaks of recent years and that without additional revenue, reserves could dip below the county’s 20% policy in out years. In the presentation staff noted that, at current revenue levels, a quarter‑cent GRT increment was estimated to generate roughly $7.2 million per year and a half cent roughly double that amount.

Discussion among councilors focused on two linked priorities: stabilizing long‑term county revenues to avoid future cuts, and establishing a funding source to address a long‑standing local need for affordable and workforce housing. Councilor Reedy argued an additional quarter‑cent dedicated to housing would “provide…7,000,000 or so a year, plus or minus, going into a housing fund,” and that a dedicated fund could be used to buy deed restrictions, backstop bond financing, support down‑payment or ADU incentives, or participate in projects to reduce barriers to development.

Staff clarified that the GRT increment itself would be adopted by ordinance and that GRT is an unrestricted local tax under state law; councils can adopt a parallel local ordinance to direct or pledge those revenues to a special fund for housing. Staff warned that such a pledge creates obligations that must be honored if the council later encumbers funds for a specific project, but that creating a dedicated fund would improve the county’s ability to leverage bond financing or attract developer participation.

On procedure, Councilor Reedy moved that staff return no later than Oct. 31, 2025 with the steps to pursue a half‑cent GRT increase to be effective July 1, 2026; Councilor Hammond seconded. A roll call vote recorded six yes votes and one no; the motion passed. Councilor Reger cast the lone no vote.

Ending: Council’s direction does not itself change tax rates; it instructs staff to prepare ordinances and analysis for council consideration later this year. Staff will return with ordinance language, revenue modeling and options for dedicating part of that increment toward an affordable/workforce housing fund.