Council adopts FY 2025 budget totaling $377 million

Published on May 03, 2024

The Los Alamos County Council has passed the Fiscal Year 2025 budget for the county government, totaling $377,473,225, with a 6-1 vote; Councilor David Reagor was the lone dissenting vote. The approved budget incorporates financial documents and projections, including the

• Long-range financial projection,
• Equipment replacement schedule,
• Recurring grants schedule,
• Summary of pension fund and administrative costs,
• Schedule of appropriations for salary adjustments,
• Department of Public Utilities' schedule of funds, and
• Continuation of appropriations from the FY 2024 budget into FY 2025.

Budget hearings were held over the course of three days – April 22 and 23 and concluded on April 29. County Manager Anne Laurent and Administrative Services Director Helen Perraglio began the hearings by explaining that the county's present financial health is strong. Although capital expenditures were approximately $7 million higher than anticipated in the FY 2024 budget, this increase was offset by higher-than-expected revenues generated from gross receipts taxes, which exceeded projections by approximately $10 million. This left the unassigned fund balance and reserves at roughly $12 million higher than budgeted. In presenting the proposed overall FY25 budget, they noted a net decrease of 6.21 full-time equivalents (FTEs) and that projected gross receipts tax revenue across all funds will be $10 million higher, although they warn that this dollar amount has plateaued.  Further, while there is a $3.5 million increase in expenditures in the FY25 general fund, they indicate that it is in line with council budget guidance. 

Following the presentation by Laurent and Perraglio, elected officials and county department directors each presented their budgets with councilors delving into the details. Each budget was tentatively approved with some proposed budget options set aside to the “parking lot,” a term to indicate that these items will be discussed and considered after councilors have had an opportunity to understand the full scope of the FY25 budget.

On day three, April 29, councilors approved the budget and included an allocation of $4.59 million for all the “parking lot” budget options. These encompassed the inventory and master planning of county-owned historic properties, enhanced funding for regional technical support for Progress Through Partnering, implementation of recommendations from the pending climate action plan, installation of electric vehicle charging stations, and the creation of six FTE positions. These additional employees will support sustainable projects; boards and commissions; diversity, equity, and inclusion initiatives; employee relations; and police and grant management. 

Also included in the budget was the long-range financial projection which assumes that the council will adopt a quarter-cent increase in the gross receipts tax in Fiscal Year 2027. This adjustment compensates for an anticipated revenue decline due to a manufacturing exemption that will apply to the Los Alamos National Laboratory's pit production activities.  This financial projection also assumes that future fiscal year expenditures will need to be reduced to maintain the 20% target for the unassigned fund balance to ensure continued fiscal stability and resilience. The County Council remains committed to prudent fiscal management and strategic investments that enhance the quality of life for all residents and establish a sustainable foundation for the county's future.  The final adopted budget will be uploaded to the county’s Finance and Budget