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Clovis adopts $2026 fiscal year budget; grants projected to exceed tax revenue
Summary
The City Commission approved the final FY2026 budget, which includes two new positions, $8.5 million in general fund ending cash and projected grant revenue exceeding tax revenue by roughly $2 million. The resolution was adopted unanimously.
The Clovis City Commission on Thursday adopted the fiscal year 2026 budget, approving Resolution No. 3331-2025. Finance Director Leanne Melanson told the commission the final budget is balanced and must be submitted to the New Mexico Department of Finance and Administration by midnight on July 31.
Melanson said the city updated cash balances to actual ending amounts and added two positions — an evidence supervisor in the police department and a parks maintenance specialist to support the zoo. She said carryovers from FY2025, insurance claims and capital outlay for hail damage repairs were included in the final figures.
Melanson reported overall grant revenue for FY2026 increased by $30 million compared with preliminary estimates; of that increase, roughly $28 million was state and federal grants. She said the city will receive slightly more in grants than in taxes for the year — about $41 million in grant revenue versus tax revenue lower by about $2 million.
Melanson outlined the city’s reserve and designations: the general fund ending cash is budgeted at approximately $8,500,000; the DFA-required municipal reserve (one-twelfth) is $3,100,000; $70,000 is designated to offset MissionSquare employer contributions; $1,500,000 is designated for the city manager's reserve for Mr. Hovalt's expenditures; and $550,000 is set aside for remaining May 2023 storm repairs. That leaves undesignated funds of a little over $3,000,000, Melanson said.
City Manager Justin Hovalt and several commissioners praised department directors and staff for preparing the budget. Commissioner Casaus moved adoption of the final budget; Commissioner Porter seconded. The vote was taken by voice and the motion carried unanimously.
Melanson also said that salary increases are not included in this budget and will be presented separately to the commission — likely this fall after the city completes work with a consultant on personnel costs.
The mayor said the full budget document will be posted on the city website in the coming weeks and staff agreed to post the budget presentation used during preliminary discussions if it is not already available online.
