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Lovington staff present balanced FY27 budget with $2 million in cuts and no raises
Summary
City staff presented a balanced fiscal 2027 interim budget that trims roughly $2 million from initial requests by canceling raises and new positions, assumes a monthly GRT of $956,000, and defers decisions on pay adjustments until updated cash figures are available.
City staff presented a conservative, balanced interim budget for fiscal year 2027 and recommended submitting it without salary increases or new positions while continuing work to identify funding options for future raises.
The budget presenter told the commission the original, unfiltered budget requests were roughly $2 million above conservative revenue expectations but that staff have cut $2 million to reach balance: "I promised the commission a balanced budget and we have cut $2 million from this initial budget," the finance presentation stated.
Key assumptions include a monthly gross receipts tax (GRT) projection of $956,000. The presenter said health insurance costs are rising and are budgeted to increase by 13% next year, driving a significant portion of personnel cost growth: "There will be no raises in this budget for any department," he said.
Staff detailed specific cuts: canceled salary increase requests and new positions (one HR generalist exception retained), elimination of a $72,000 zoning-code rewrite in planning and zoning, reductions in police overtime and two certified officer positions, cuts to fire overtime and one requested building upgrade position, and targeted trims across parks, animal control and the senior center. The presenter added the capital projects fund includes secured grant funding of about $5.27 million and that some large capital projects are already award-backed.
Commissioners pressed staff on assumptions and options for employee compensation. Discussion topics included whether to increase the local GRT, ways to capture administrative savings (for example, passing credit-card convenience fees to payers), options to adjust retirement/benefits offerings for new hires (PAR vs. 401(k) plans), and whether to repair an aging street sweeper or purchase a replacement.
Staff recommended submitting the interim budget now — which would lock most line items in the state DFA system while allowing adjustments to beginning cash balances — and returning in July/August with updated cash figures so the commission could reconsider raises before final adoption in mid-September.
