Housing last in town budget
Town of Taos prioritizes airport, water maintenance and well projects
The Taos News has broken down the data from the 2021-’22 Town of Taos budget in order to get a better picture of exactly how the Town plans to spend the funds at its disposal.
Looking at those numbers confirms what many critics of town spending have claimed in the past: The airport is the Town’s top financial priority, whereas affordable housing is set to receive the least amount of money from the budget of any major funding category.
Where does town money come from?
Town of Taos Finance Director, Marietta Fambro (who is also a candidate for town council in this year’s municipal election), explained that money “requested” in the budget doesn’t mean town residents are paying for any given service.
When breaking down the sources of income for the town’s most recent budget, 68 percent of total funds come from grants and bonds (such as the EDA CARES grant financing the extension of water and sewer lines to the Taos Regional Airport); 14 percent of the budget is made up of municipal gross-receipts-taxes (GRTs)— essentially taxpayer dollars; nine percent comes from “charges for service”—or airport, recreation, code, water and sewer fees; eight percent comes from the state; and one percent of the budget sourcing is listed as “miscellaneous.”
The total requested amount for the 2021-’22 budget is $66,153,246, while the total “budgeted expenditures” for the year are at $83,039,998. The difference, Fambro explained, comes from money that has carried over from previous year’s unspent balances. She said there is always more allocated in the budget than is spent. For example, she said they budgeted for road maintenance for the past two years, yet none of the money was spent yet due to the pandemic, which caused delays related to construction supply shortages and a lack of workers.
Grants and bonds proceeds are up 27.8 percent from 2021 to 2022 and up 1,596.3 percent between 2020 and 2021, most of which
comes from requested grants to expand various infrastructure related to the Taos Regional Airport ($6.8 million of the approximately $20 million is for the maintenance of the runway, taxiways and general operating maintenance and the remainder is to expand infrastructure).
The town also has a number of funds it uses to operate various departments and aspects of town management. These include the General Fund, which pays for police, fire, administration, public works, facilities and recreation; the Special Revenues Fund, which runs the gamut from fire protection to lodger’s tax; the Capital Project Fund, which includes affordable housing and airport funding; and Enterprise Fund, covering water, solid waste and the Taos Regional Landfill.
Airport spending
While it has often been argued that the town is spending $20 million dollars at the airport while spending just $75,000 on affordable housing, the large difference is a bit misleading. While the 2022 budget does request $20,743,315 for its “Airport Construction Fund,” much of that money came from federal or state grants, explained Fambro.
The amount of money spent by the town can be broken down into a more digestible format when comparing the amount of money the town spent matching the grants in order to receive them. Many grants, such as the EDA CARES Act grant used to extend water and sewer lines to the airport, require a municipality put up a certain “match.” In the case of the EDA grant, the town was required to match $500,000.
In the 2021-’22 fiscal year, the town leveraged $17,359,569 in grant funding for the airport with $3,383,746 in local taxpayer dollars. As Fambro pointed out, much of the airport budget comes as rollover money from previous years, with $10,199,982 in the fund as of the fiscal year 2020-’21 budget. A total of $180,510 was also requested to manage the airport’s day-to-day functioning.
TOTAL AMOUNT OF TOWN MONEY REQUESTED FOR 2022: $3,383,746 TOTAL BUDGET AMOUNT: $20,743,315
Affordable housing spending
Affordable housing has become a renewed concern during the pandemic, with rental prices going up as much as 18 percent in major cities like Albuquerque. In Taos, rent prices are 85 percent higher than other areas with “fair market rent” according to rentdata.org, with the “fair market value” of a two-bedroom house or apartment listed as $920.
The town’s budget request for 2022 contains a total of $75,000 for affordable housing—in particular, the money is allocated to be spent on a housing consultant and legal aid to help the town plan their next moves in the housing arena. This money is located in the 1994 GRT Revenue Bond Acquisition Fund.
While the 2022 budget contains just $75,000 for affordable housing, there is a separate amount of money in the fund from prior years containing $457,424. Fambro explained the money is available and ready to be spent once a decision is made by the town on how to allocate the money.
TOTAL AMOUNT OF TOWN MONEY REQUESTED FOR 2022: $75,000
TOTAL BUDGET AMOUNT: $75,000
Recycling and landfill spending
After closing the Taos Recycling Center on Bertha Street in September, the board has since promised to reopen the center using a fund of approximately $60,000 from former town recycling fees. This money comes from the previous year’s recycling fees in the Solid Waste Fund.
Meanwhile, the town requested a total of $2,356,317 in the most recent budget for landfill-related improvements and operating expenses. Much of the money ($1,114,314, which comes from an anticipated loan) is set to go to fund the purchase of a scraper, a grader and a mulcher.
None of the money in the budget requested for the landfill comes directly from the town. Rather, the money comes from loans, grants, and the Taos Regional Landfill Board’s tipping fees.
TOTAL AMOUNT OF TOWN MONEY REQUESTED FOR 2022: None
TOTAL BUDGET AMOUNT: $2,356,317
Water spending
For fiscal year 2022, the town requested a total of $16,483,783 for well management associated with the Abeyta settlement. None of this comes from the town’s coffers. Town money was requested, however, for the replacement of water and sewer lines, the expansion of the treatment plant (including the newly installed solar array) and the replacement of a town well.
TOTAL AMOUNT OF TOWN MONEY REQUESTED FOR 2022: $1,150,215 TOTAL BUDGET AMOUNT: $16,483,783
Road maintenance spending
Money to repair and upgrade road conditions throughout the town come from several different funds. This includes a Street Department Fund within the General Funds category, the Municipal Road Gasoline Tax Fund (which comes from the town and state’s tax on gasoline), and a line item in the budget for contractual spending on larger road repairs not fixable by the town’s public works.
Within the gasoline tax fund, the town requested that $6,736,000 of the 2022 budget be put towards the maintenance of town roads such as Ranchitos Road, Weimer Road, and Camino del Medio. The funding for road maintenance came from various sources, with some coming from the New Mexico Department of Transportation’s Municipal Arterial Program fund. TOTAL AMOUNT OF TOWN MONEY REQUESTED FOR 2022: $1,145,569 TOTAL BUDGET AMOUNT: $6,736,000
Parks and facilities spending
The town’s maintenance of parks and restrooms has also been in question throughout the pandemic. When looking into the numbers, the town requested a total of $2,108,528 be put toward park maintenance and town facility improvements.
Money in the budget is allocated for Kit Carson Park electrical upgrades ($135,000); stage repair and maintenance ($80,000, but the money is expected to be reimbursed from an insurance claim); Youth & Family Center HVAC repair ($110,000); and phase one of a new gymnasium ($35,000), among others.
The budget has $915,788 allocated toward parks and facilities from the previous year’s budget, along with $152,499 from the same year in the Capital Improvement Fund set aside from “park improvements.”
TOTAL AMOUNT OF TOWN MONEY REQUESTED FOR 2022: $1,112,750 TOTAL BUDGET AMOUNT: $2,108,538
Employee salary spending
To be clear, all of the fund totals previously mentioned contain money for personnel salary, overtime pay, retirement and insurance. However, to break it down a bit further, we have added up the total amount requested in the budget for personnel in 2022.
Throughout all departments, the town requested $10,226,786. Most of the money ($8,609,435) to pay personnel comes from the General Fund, of which 49 percent ($5,839,945) goes to cover wages and 23 percent goes toward employee benefits ($2,769,491). GENERAL FUND: $8,609,435
OTHER DEPARTMENTS: $1,657,351