Lovington commission presses ahead with interim budget amid concerns over raises and GRT assumptions

The Lovington City Commission moved forward with submitting an interim budget this spring after a lengthy debate about revenue assumptions and employee pay. Finance staff said they had balanced the budget for submission to the Department of Finance and Administration (DFA) and warned that changing figures at the last minute risked procedural problems; commissioners pressed for more time to consider changes and for quarterly reviews in future years.

“...we're under the gun,” the finance presenter said, explaining the DFA crosswalk between municipal and state charts of accounts and the need to produce a 0-balance budget for initial operating authority. Several commissioners expressed frustration with the pace and the compressed review window. One commissioner said staff could provide more frequent updates so the commission need not scramble at year-end. Another warned that dipping into cash reserves to add positions or raises was a choice the commission must make consciously.

Discussion addressed assumptions behind gross receipts tax (GRT) projections, with staff noting that March GRT receipts were unusually strong and that the budget used a conservative GRT number. Commissioners asked about options for adding overtime or additional positions later via budget adjustment requests (BARs) and suggested scheduling earlier or more frequent budget workshops next year. The finance presenter recommended finalizing numbers in July and using the September BAR process to amend the budget if necessary.

The commission did not take a final vote to change the submission but agreed to pursue clearer mid-year reporting and to consider a more proactive schedule for subsequent budget cycles.