Councilors warn audits are blocking state grant spending for museum, urge action

Councilors and staff in Ruidoso Downs spent substantial time Thursday describing how incomplete audits and state rules are delaying use of state-allocated funds for municipal projects, including museum rehabilitation and equipment purchases.

One councilor said the city has roughly $750,000 allocated for the museum project but cannot spend those dollars until required audits are completed. "If you don't have an audit, they will not give me the Vactor truck, the Veterans Memorial," the councilor said, adding that funds could revert to the state general fund if not used in line with statutory requirements.

Staff and councilors discussed an outstanding application for a larger grant—approximately $4,000,000—for another project and said they were engaging representatives to request flexibility from state agencies. A staff member described logistical constraints imposed by the Department of Finance that limit how and when state-allocated money can be disbursed during a declared disaster or audit deficiency.

Councilors also reviewed department reports: public works confirmed substantial completion of the Valley View Community Development Block Grant waterline project and said final payment is pending. Planning staff noted a conditional-use hearing will be scheduled next month for a proposed Circle K gas station near the plaza by the local Walmart.

Council members urged continued pressure on state officials and recommended completing outstanding audits promptly so the city can access allocated funds. Staff was asked to follow up on audit timelines and to report back at the next meeting.

The council’s discussion identified next steps but did not produce a binding directive to reallocate funds; any fiscal or contractual actions will require separate formal action in a future meeting.