Chief Financial Officer Helen Perraglio
By KIRSTEN LASKEY
Los Alamos Daily Post
kirsten@ladailypost.com
Los Alamos County had developed its budget for FY2021 and was ready to present it to County Council for discussion and approval. Then the COVID-19 pandemic happened.
Despite the uncertainties the coronavirus has caused, Budget and Performance Manager Karen Kendall said the budget is still strong.
“It was prepared pre-pandemic,” she said. “The County’s reserves are very healthy; we have in the general fund $14 million above the unassigned 20 percent of the revenues’ target. We were conservative in our budget preparation and budget forecast and met Council’s goals. We are also presenting budget options for Council’s consideration.”
Budget and Performance Manager Karen Kendall
Chief Financial Officer Helen Perraglio added that the significant piece of the budget related to COVID-19 are for expenditures that are currently unforeseen. These could be for personal protection equipment or technology that isn’t already included in the budget, she said.
“It’s pretty standard,” Perraglio said. “We have already calculated the effect of GRT (gross receipt tax), which is our biggest source of income.”
Adjustments were made to the County’s budget due to the pandemic.
For instance, Kendall said the County’s projected gross receipt tax was reduced by $1.5 million for both FY2020 and FY2021. According to the Citizens’ Guide for the new budget, the projected total amount for GRT for FY2020 is $57 million and the proposed total GRT for FY2021 is $60 million.
Additionally, she said the County’s expenditure budget was increased by $350,000, which was for the capital appropriation the County received from the state.
It is reported in the Citizen’s Guide that the overall County proposed FY2021 expenditures is $226.9 million.
Also, Kendall said in the County’s budget options there is a $500,000 placeholder for Los Alamos’ share of a claim for financial reimbursement with FEMA.
As for revenue, it is stated in the guide that the overall County revenues are $231.9 million as compared to FY2020 adopted revenues of $202.9 million.
Kendall said other key points in the FY2021 budget guidance is a 3 percent salary increase for County employees, and a 10 percent increase for medical premiums. She added that other expenditures are flat except for increases due to contractual obligations.
When asked what makes up the variance in expenditures year over year, she pointed out that the Department of Public Utilities’ (DPU) budget is higher for a couple of reasons.
First, it accounts for the $13.8 million for the new wastewater treatment plant in White Rock. Kendall said the state did approve a loan for the project. Additionally, DPU budgeted $8.6 million for water utilities improvement projects. These projects also received some financial assistance through grants, she said. In total, Kendall said DPU’s budget increased $21.9 million.
The Fire Department’s budget also increased for FY2021. Kendall said its budget rose $1.1 million, which is due to the cooperative agreement between the County and Los Alamos National Laboratory.
The budget hearings are scheduled to be held at 6 p.m. April 20, 21, 27 and 28 in Council Chambers. The format will be similar to the Council meeting on March 31 and April 7.
Public in-person attendance will not be allowed and there will be minimal County staff in attendance to present proposed budget items.
Councilors will participate using the Zoom conference platform.
The public can watch the budget views by going to http://losalamos.legistar.com/Calendar.aspx. Additionally, the hearings will be broadcasted on PAC8.
They can submit comments two ways:
Send by U.S. mail to County Manager Harry Burgess, 1000 Central Ave. Ste 350, Los Alamos, NM 87544
Email comments to lacmanager@lacnm.us in advance and include the words “Public Comment” in the subject line.
