Revenue Down In Tijeras, Moriarty PDF Print E-mail
Written by Lee Ross   
Thursday, 09 April 2009 08:28
The effects of the recession are not always simple.

That is certainly true for gross receipts taxes — the money paid, in part, to local governments when goods or services are sold. Locally, the towns of Mountainair, Edgewood and Estancia are actually taking in more money this year than last year, it seems. At the same time, gross receipts revenue in Moriarty and Tijeras has dropped.

The village of Tijeras has about a 10 percent decrease in gross receipts money coming in, from around $130,000 this time last year to $118,000 this year, according to Clerk/Treasurer Daniel Abram. He also pointed out that, for Tijeras, gross receipts taxes account for only around 9 percent of the money coming in to the village.

So far this year there has been $830,000 for capital projects, the bulk of the money coming into the village. Other sources include Small Cities Assistance money, property taxes, business licenses, zoning permits and other sources.

Still, Abram said, as the village creates a budget for the coming fiscal year it will have to keep in mind the effects of the recession.

"We're going to take a hard look at it," he said.

The city of Moriarty will also take a hard look at the hit the town has taken in gross receipts taxes, said Mayor Adan Encinias, who said he is optimistic things will turn around.

For the current fiscal year, which started in July 2008, the city has taken in about $1.34 million. Last year, revenues from gross receipts totaled about $1.84 million, which means, to stay even with last year, the town has to make about $500,000 in just a few months, Encinias said. He said he's expecting the town to be about $100,000 short of that mark.

Meanwhile, oil and gas revenues are also down about $100,000 and lodger's taxes are also down, he said.

While Encinias said he is confident that the city will continue to provide services to residents, he pointed out that about 60 percent of the town budget is used to cover payroll, he said.

"The only devastating part is if I had to lay off a person if I couldn't make payroll," he said.

But that may not have to happen. He encouraged people to do their shopping locally until business, which tends to drive the city's revenues, picks up.

That could happen soon, Encinias said, adding that he is hopeful that new businesses will come to the city.

He said there could be a new call center to replace what was Moriarty's largest private employer, The Connection, which shut its doors in December. Encinias is also anticipating revenue from the construction of a performing arts center at Moriarty High School and there may also be a racetrack being built soon, he said.

"I feel optimistic that something will happen soon," he said. "It's premature to say we're forecasting next year's numbers."

Meanwhile, other municipalities are enjoying the effects of new developments that are already on the ground.

According to Kathy Anglin, treasurer for Mountainair, her town is seeing an increase due, primarily, to the High Lonesome Wind Ranch, which has been in construction for about a year.

"It's been really nice, we've had those wind tower people over here for a while," she said.

Comparing the amounts received from July 2008 to February 2009 and the same time period one year before from state, municipal and infrastructure sources, the amounts have gone up significantly. State taxes went from $91,223 last year to $116,923 this year, while municipal gross receipts saw a similar increase, going from $90,567 to $113,417.

Mountainair also received $231,000 from the Small Cities Assistance Fund this year, up from $129,000 last year, Anglin said.

"We thought that was cut down," she said. "I hope they don't want it back."

Edgewood has also seen an increase in gross receipts taxes due to a development, in this case a large retail business, according to Mayor Robert Stearley.

"Edgewood is kind of unique because of Wal-Mart," he said. "It tends to attract shoppers from other areas … we haven't seen the effect of the economic downturn."

That increase is in spite of a decline in construction in Edgewood compared to last year, according to town Clerk/Treasurer Estefanie Muller.

Based on the figures from last year, gross receipts revenues were projected at around $225,000 per month in Edgewood, she said. Instead, the average for the last nine months has been about $298,036 per month.

"We have a cushion so far," she said, adding that there is some concern about the lack of construction money. "Now we're starting to watch … now there could be decreases."

Estancia's gross receipts income from July 2008 to this January were about $429,874, according to figures taken from the state's tax and revenue Web site. For the same period a year prior, the town took in about $393,074.

Estancia town clerk Tammy Meyer refused to give out requested information and required a request to inspect public records before giving out information. The town is not legally required to honor the request to inspect the records, sent to the town on Monday, until April 20.

Mayor Ted Barela said that, while the town's budget is essentially flat, town officials are not anticipating any layoffs or reduction in town services. He attributed the increase, in part at least, to people choosing to shop locally. He said that could have started when gas prices were on the rise last year.

"It really helps the entire community, that's a direct reflection of that," he said. "Buying locally is vital, it really is vital, to the life of small communities."