Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance topic
No spam. Unsubscribe anytime.
City manager flags May GRT spike, says $4.1M county infrastructure grant is coming
Summary
City Manager reported a May GRT of $1,532,192.10 and said a suspected $287,000 construction-sector overpayment is under review; he also announced a $4.1 million reimbursable county grant for roads, water, sewer and fire projects that must be spent in two years.
The Lovington City Commission heard from the city manager on July 27 about a sharp increase in May gross receipts tax (GRT) receipts and an incoming county infrastructure grant. "The GRT number for May, which was reported this month, was $1,532,192.10," the city manager said, adding staff is investigating a potentially erroneous $287,000 construction-sector filing with New Mexico Taxation and Revenue.
The manager said retail accounted for a large share of the month’s collections and cautioned the commission against assuming one source was solely responsible. He also announced that Lea County awarded the city a $4.1 million infrastructure grant to be used on roads, water, sewer and fire items, noting the funds are reimbursable and must be expended within two years. "Two important factors about this grant is that it is on a reimbursement basis for qualifying projects, and the funds must be expended in 2 years," he said.
Staff said it will return with a recommended project list and an action item at a future meeting to accept the funds and create an ICIP-style priority list. The presentation included a plan for meeting with department heads and coordinating grant spending to avoid a future budget “cliff” if the $287,000 is later adjusted by state tax authorities.
