Eddy County projects $363M cash balance and conservative FY26-27 revenue assumptions
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Summary
County finance staff presented a preliminary FY26-27 budget overview that projects a June 30, 2026 cash balance near $363 million, details major revenue drivers (GRT, oil and gas, property tax) and proposes a modest 4% increase to general fund revenue assumptions.
County finance staff presented the Eddy County preliminary outlook for fiscal year 2026-27, detailing collection results to date, revenue drivers and projected cash balances.
As of Dec. 31, 2025 the county reported collecting about 91% of total budgeted revenue and expending well under budget. Staff reported general fund revenue collections around 94% and noted the county started the fiscal year July 1 with approximately $290 million in general fund cash reserves; as of the December report the cash balance grew to about $341.1 million. Staff projected a June 30, 2026 cash balance near $363 million assuming remaining revenues and expenses track to projections.
Finance gave line-item detail: year-to-date oil and gas distribution of about $44.4 million (YTD average price $61.64), gross receipts tax collections of roughly $40.3 million as of December, and property tax receipts of about $24.6 million. Staff said gross receipts tax is a major revenue driver for the county, along with oil and gas; the county currently budgets property tax at $30 million.
Staff laid out reserve and usage scenarios, estimating one year of general fund operations at about $105 million and citing a desired general fund reserve (one-year support) used to bring the projected general fund cash available for use to roughly $138.8 million in the outlook. The presentation also covered historical variances showing recurring positive budget variances (actuals above budget) and a staffing and payroll summary reflecting recent benefits and insurance adjustments.
Commissioners discussed the county's relative fiscal strength compared with peers and noted conservative budgeting practices that led to large reserves. Staff said assumptions for oil and gas and gross receipts were purposely conservative; projected WTI and Henry Hub price assumptions were provided to justify revenue forecasts.
Next steps: finance will proceed with the budget timeline (ClearGov deployment and departmental submissions) and return to the commission as the FY26-27 budget is finalized.