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Los Alamos County reports strong investment returns but lower GRT; staff to present GRT options Oct. 7
Summary
County finance staff reported a strong FY25 investment year and an unaudited $117.1M in revenues, but gross receipts tax collections fell about 15% (~$12.9M). Staff will present GRT increase scenarios and introduce an ordinance Oct. 7 to make a change effective by July 1, 2026 if adopted.
County finance staff told the council on Sept. 16 that investment returns bolstered FY25 finances even as gross receipts tax (GRT) receipts declined.
Deanne Woodring, an independent investment adviser with Government Portfolio Advisors, reported the county’s managed portfolio produced a roughly 5.8% return for the fiscal year and noted $113 million in shorter‑term liquidity and about $140 million in direct Treasury and agency investments. Woodring said investment income rose from about $6.8 million the prior year to roughly $8.1 million this year; the State Investment Council (SIC) holdings added an additional reported fair‑market‑value gain.
Budget and Performance Manager Erica Thomas presented unaudited FY25 results showing adopted budgeted revenues of $124.9 million versus unaudited actuals of about $117.1 million. Thomas said GRT was down approximately 15% (about $12.9 million), and that investment income partially offset the decline. She noted the county remains in the middle of its audit, meaning adjustments are possible.
Using the new, lower GRT baseline, staff showed long‑range financial projections and scenarios that included a half‑cent GRT increase folded into FY27 projections. Thomas and CFO Melissa Dadzie said an October 7 council meeting will include an extensive GRT overview and introduction of a GRT ordinance; they reminded the council that documentation must be filed with the Department of Finance and Administration (DFA) to make any rate change effective by July 1, 2026.
Councilors asked detailed questions about carryovers, the composition of the SIC investments, liquidity targets (staff cited a 20% liquidity target), and whether more than a half‑cent would be required to meet reserve targets long‑term. Staff said they will present multiple scenarios and recommended levers for council consideration at upcoming meetings.
The council will return to the question of GRT on Sept. 30 and Oct. 7 as staff prepares scenarios and the ordinance introduction.
