Taos council adopts interim FY2026–27 budget after debates over discretionary funds and public‑safety equipment

The Taos Town Council approved an interim FY2026–27 municipal budget on May 20 after a lengthy presentation by Finance Director Jonathan Montoya and discussion among council members about priorities and internal allocations. Montoya presented a budget framework projecting roughly a 3% increase in gross receipts tax revenue and a proposed general fund revenue over expenditures of $747,252.

Montoya described projected totals and department-level allocations, and noted anticipated increases in medical costs and insurance premiums. "We anticipate that our gross receipts tax projected increase from prior year is going to be about 3%," Montoya told council as he walked through slides breaking down revenues and expenditures. He said the proposed budget includes a $20,778,126 total revenue projection and $20,030,873 in projected expenditures for the general fund in the draft.

Discussion focused on line‑item choices and the use of discretionary council funds. Council Member Romero raised concerns about increases in overtime for fire and whether some of that funding could be shifted to purchase lapel cameras for police; staff said allocations tied to FMLA and overtime estimates were based on actual expenditures and that reallocations could be considered when final actuals are available. Town Manager Lupe Martinez noted that staff will return to council with final budget numbers based on actuals through June 30 and that any reallocation requests could be examined with the final budget.

Council also debated the role of discretionary funds that provide council members small annual allocations to fund community or nonprofit projects. Proponents said the discretionary mechanism allows quick support for community needs that cannot wait for a longer budget process; critics said the practice makes them uncomfortable and asked staff to consider tighter controls. "We can make a recommendation to move the $40,000 that I added, and move that $40,000 to the police budget to cover the other contractual services regarding the lapels," Manager Martinez said when discussing options.

After discussion, the council voted to approve the interim budget and directed staff to return with final numbers at the end of June so that any reallocations could be discussed during final adoption. The vote to adopt the interim budget passed unanimously.