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Silver City manager: general fund balances at 64¢ and 93¢, state mandates monthly reporting
Summary
Town officials told the council the Department of Finance and Administration has required monthly reporting after quarter-end general fund balances of $0.64 and $0.93. Managers announced suspension of discretionary event sponsorships, contract reviews and possible rate increases to correct finances.
Silver City—Town management reported on March 10 that the New Mexico Department of Finance and Administration (DFA) has required monthly fiscal reporting after the townreported quarter-end general fund balances of $0.64 and $0.93.
Business operations manager Randy Hernandez told the council the towns first-quarter (JulySept) ending general fund balance was 64 cents and the second quarter (OctDec) ending general fund balance was 93 cents, which triggered heightened state oversight. "As you can imagine, this is deeply concerning to us," Hernandez said.
Town Manager Jackie Lalea said the council must take corrective actions. She announced immediate suspension of discretionary expenditures, including event sponsorship funding, a review of contracts and agreements for possible scaling back, and that staff will evaluate fee adjustments. The manager also said the sanitation fund is facing a shortfall and a rate increase will likely be proposed after data review.
Finance staff (identified in the record as Laura Ortiz and Loren/ Lorelei Tisa in different transcript lines) briefed DFA and were described as having secured a modest respite from the state but the additional oversight remains. Manager Lalea said staff will consider establishing sinking funds and revisit budget assumptions for overtime and material costs to restore stability.
Councilors praised staff for early detection and immediate measures but emphasized the difficulty of the decisions ahead. Councilor Prince commended staff for identifying the issue before the end of the first quarter. The council did not adopt specific rate or contract changes at the March 10 meeting; staff indicated further agenda items will follow for any rate changes or contract actions.
What happens next: monthly DFA reporting is now required; staff will present corrective measures and any proposed rate or fee changes in future council agendas.
Sources: Managers report and staff comments during the March 10 town council meeting.
