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Third-quarter financial overview: county reports $335M in cash and investments; GRT trending below budget
Summary
City finance staff reported total cash and investments of about $335 million and said gross receipts tax receipts are running lower than budgeted, projecting a year-end shortfall relative to the adopted FY 2025 forecast.
Los Alamos County finance staff presented the FY 2025 third-quarter financial overview to the County Council on May 20, reporting $335 million in total cash and investments and highlighting concerns about gross receipts tax (GRT) receipts.
Why this matters: GRT is a key revenue source for the general fund and affects the county’s operating and capital budgets; in the third quarter staff reported GRT collections below the adopted forecast and discussed timing for potential budget and bond actions.
Key financial figures - Cash and investments: Total reported at about $335,000,000 across county, utilities and permanent funds (compared with $312,000,000 a year earlier). - Portfolio: Approximately 66% of county cash was held in U.S. Treasuries and agencies, and about 10% was invested with the State Investment Council in the permanent fund portion.
GRT and revenue outlook - Third-quarter GRT receipts in the general fund were reported at about $65.3 million (roughly 70% of revised budget as of March 31), with staff projecting GRT will end FY 2025 about 15% lower than the adopted budgeted projection — a roughly $4 million additional reduction from prior assumptions. - Staff noted final FY 2025 GRT numbers will not be available until late September; an ordinance to set a new GRT increment would be taken in October to meet state notification timing for a July 2026 implementation.
Expenditures and capital projects - General fund expenditures were 56% of revised budget as of March 31, with some major lines (economic development, facilities, traffic and streets) having funds budgeted but not yet spent. - CIP fund spend-to-date was listed at approximately $38.5 million (about 45% of the life-to-date budget). Major projects budgeted but not spent include the broadband project ($35 million) and Fire Station 4.
Grants and fiscal impacts - Several departments reported potential grant funding impacts: utilities cited a projected reduction in state revolving funds that could translate to roughly $2 million per year in reduced SRF availability; emergency management noted cuts to federal EOC funding for FY 2026.
Transparency tools - Finance staff previewed a forthcoming financial transparency portal that will publish adopted revenue and expenditure budgets, vendor payments and payroll on a regularly updated public website. Staff said the portal updates weekly and will go live by the end of the month.
Council discussion - Councilors asked about salary savings, vacant positions and the composition of the GRT decline. Staff responded that salary savings reflect vacancies and timing of hires and that more detailed industry-level GRT breakdowns could be explored with the state for future reporting.
Next steps: Finance staff will continue quarterly updates, finalize year-end adjustments, and work with bond advisors on timing tied to the broadband project and other CIP needs.
