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Los Alamos Council directs manager to prepare ordinance proposing a 5/8‑cent GRT increase after fiscal review
Summary
Following data showing FY25 GRT receipts finished about 14% below projections, council voted 6–1 to direct the county manager to return with a proposed ordinance to increase the county gross‑receipts tax by 5/8ths (to be introduced Oct. 7, public hearing Oct. 28) to shore up long‑range projections and support capital and housing priorities.
Los Alamos County Council on Sept. 30 directed the county manager to return with a proposed ordinance to increase the county gross‑receipts tax (GRT) by five‑eighths of a cent, to be introduced Oct. 7 with a public hearing Oct. 28 and an intended effective date of July 1, 2026.
Administrative Services Director Helen Paraglio reviewed a 10‑year long‑range financial projection showing FY25 GRT receipts closed roughly $4 million (about 14%) below the budget baseline. Paraglio presented modeled rate scenarios: a half‑cent, 9/16ths and 5/8ths. She explained that a 1/16th increment is about $1.8 million of revenue in the county’s model; a half‑cent corresponded to about $14.3 million and 5/8ths to about $17.9 million under current assumptions. The 5/8ths option produced the most cushion for reserves and enabled planned bond issuance and transfers without large program cuts.
Representative Chandler (NM Legislature) gave a state‑level perspective, saying earlier manufacturing exemptions enacted at the legislature had the unintended effect of reducing local GRT revenue tied to lab contracting, contributing to the county’s shortfall. She observed that the laboratory and its contractors would bear a substantial share of the increment, given the local GRT composition.
Councilors debated scale, fairness and uses. Some raised concerns about the impact on small businesses and low‑income consumers; others emphasized maintaining reserves, protecting bond ratings and funding capital priorities (broadband, affordable housing and public safety). Councilors discussed earmarking versus assigning fund balance for housing and using transfers rather than dedicated tax earmarks to preserve flexibility.
After public comment and deliberation, Councilor Hamman moved to direct the county manager to return with a proposed ordinance to increase the county GRT rate by 5/8ths; the motion passed 6–1 (Councilor Rigger opposed).
Next steps: county staff will draft the ordinance and related pro forma financial statements and bring an ordinance for introduction Oct. 7, with a public hearing Oct. 28. Staff said the increment would be modeled into bond planning (broadband bond introduction planned in late October) and long‑range financial statements for rating agencies.
