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Jemez Springs finance director flags $181,520 in outstanding bills and possible $160,000 payroll tax liability
Summary
Finance Director Jim Cox reported outstanding liabilities of $181,520.40 and told the Council an IRS notice suggests payroll taxes dating to 2020 may not have been remitted, with a preliminary estimate of up to $160,000; councilors discussed remedies while also noting incoming GRO funds, an insurance reimbursement, and vehicle sale revenue.
Finance Consultant and Finance Director Jim Cox told the Jemez Springs Village Council on Aug. 20 that outstanding liabilities totaled $181,520.40 and that an IRS notice indicates certain payroll taxes dating to 2020 may not have been properly remitted.
Cox said the outstanding liabilities included roughly $68,000 owed to vendors, $108,000 owed to insurance vendors and $5,000 expected to be paid from the Law Enforcement Protection Fund once those funds are disbursed to the Village. Regarding payroll taxes, he described QuickBooks filing problems and the existence of three separate QuickBooks company files using the same Employer Identification Number, and estimated—provisionally—that the Village’s liability could be as much as $160,000 pending IRS review.
Cox outlined steps to fix payroll filing and monitoring procedures and said he would work with the Village’s payroll provider to resolve the QuickBooks issues. He also noted several positive developments: a $160,000 award of GRO funds administered through the Mid‑Regional Council of Governments, a $47,500 reimbursement from the New Mexico Self‑Insurance Fund related to library mold remediation, and about $45,000 expected from the sale of a surplus police vehicle. The Council added that monthly budget‑to‑actual reports are now provided to department heads to improve oversight.
Earlier in the meeting, Mayor Nealeigh described discovery of an unauthorized toner enrollment tied to an apparent fraudulent solicitation; the copier lease with Pacific Office Automation was renegotiated and the new contract is projected to save roughly $1,000 per year. The Finance Board convened during the meeting to review financial matters and adjourned after Mr. Cox’s report.
A separate finance motion to grant property owner Stephen Anderson a $2,507 sewer credit failed on a 4–0 vote; the Mayor agreed to further investigate the account history and Mr. Anderson said he may file an IPRA request.
