Eddy County government ended the 2021 fiscal year on a strong note. Despite lack of collections of some tax revenue.
July 27 Eddy County’s Board of County Commissioners closed out the final month of the previous fiscal year that ended June 30.
Smith said Eddy County collected over $2 million in gross receipts taxes (GRT) and $3.6 million in oil and gas receipts.
She said GRT revenue collected during the 2021 fiscal year was 16 percent lower than 2020.
Smith said money transfers from two indigent fund GRT’s in March helped the County’s overall budget.
“We did come in over budget a little over $3 million for gross receipts tax. If we didn’t have those two GRT’s we would have come in real short. Probably around $170,000 under GRT, which is pretty much right on target,” she said.
Smith said since the March transfers, Eddy County finished over budget.
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“We were close but just received what we normally receive as a county,” said Eddy County Manager Allen Davis.
He said business activity and spending levels in Eddy County had not returned to pre COVID-19 pandemic levels.
“We’re grateful for the indigent monies. We need those for our safety net for our indigent that come in every month,” Davis said.
Smith said Eddy County collected 101 percent of its budgeted revenue of $182 million in June. Actual revenue was $184 million, per County financial data.
“A lot of our revenue came in over budget. Our property taxes we had budgeted over $18.4 million and we collected about $22 million in property taxes,” she said.
Smith said Eddy County’s share of federal payment in lieu of taxes (PILT) money was over $300,000.
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PILT are federal payments to local governments to help offset losses in property taxes due to the existence of nontaxable Federal lands within their boundaries, read the United States Department of Interior’s website.
“Overall, we were quite over on revenue for our general fund,” Smith said.
She said Eddy County’s expenses were under budgeted estimates.
“We only expended about 90 percent of our general fund,” Smith said.
“We ended up with a $4 million surplus for this fiscal year and considering we transferred over $42 million out of the general fund that’s a really great surplus.”
She said Eddy County ended the fourth quarter with a cash balance of $180 million.
“General funds cash balance ended up at $64 million. We started the fiscal year with $60 million,” Smith said.
Eddy County ended the 2021 fiscal year with a $4 million surplus.
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Earlier this year, commissioners approved an interim budget for the 2022 fiscal year. The budget was sent to the New Mexico Department of Finance and Administration (DFA). Commissioners approved the final budget during a special meeting July 27.
Smith said the new revenue budget had $111 million in revenues and $124 million in expenses.
General fund revenues were $74 million, and expenses were $71 million.
She said Eddy County submitted a surplus budget.
“Which means were budgeting more revenues than expenses. That’s due to those indigent GRT’s that are going into the general fund,” Smith said.
Mike Smith can be reached at 575-628-5546 or by email at MSmith@currentargus.com or @ArgusMichae on Twitter.