Los Alamos County FY2027 Budget Hearing Staff Dry Run, April 22, 2026

This April 22, 2026, session was a staff dry-run and preparation meeting for the Los Alamos County Fiscal Year 2027 budget hearings. No agenda or minutes were available, so this summary is based entirely on the raw transcript. Participants rehearsed the budget overview, general fund and GRT revenue projections, proposed FY27 budget changes, the capital improvement program, reserve-target policy, and hearing logistics. No formal votes or public testimony occurred during this preparation session.

Budget Overview and General Fund Results

• Staff walked through budget book pages 62-63. FY25 actual GRT revenue came in at $80.7 million, about $17.5 million below FY24. The transcript cites FY24 GRT revenue as $98.2 million in one place and $91.2 million in another; this discrepancy was not reconciled.
• FY25 ending fund balance was $93.4 million, carried into FY26 as the beginning balance.
• FY26 projected GRT revenue is $83.7 million, about $3.4 million below the FY26 adopted level of $87.2 million.
• FY26 projected ending fund balance is $70.4 million, representing an operating shortfall of about $23 million. Presenters said the County would dip into reserves but would remain within target reserve ranges.

FY27 Proposed Budget Changes

• From FY26 adopted to FY27 proposed, participants discussed an overall net expenditure decrease of $18.7 million.
• Budget guidance included a 1% salary structure adjustment, merit-based adjustments up to 3%, union salary adjustments under collective bargaining agreements, and allowances for higher insurance and goods/services costs. Departments were asked to reduce discretionary spending to offset increases and aim for a flat budget.
• There is an overall net decrease of one full-time equivalent position in the fire fund, reflecting an FY26 overfill for anticipated staffing changes; FY27 is back in line with the cooperative agreement.
• Revenue is projected to increase by $2.2 million countywide, due mainly to a new GRT increment taking effect July 1, 2026, partly offset by lower projected utility revenue from reduced wholesale sales.
• The net expenditure decrease includes:
  • $9.9 million increase from budget guidance.
  • $1.6 million decrease in the debt service fund related to deferral of a $35 million debt issuance for capital projects; staff also referred to planning a $35 million loan in fall 2026.
  • $13.7 million decrease in capital improvements from delaying projects.
  • $14.0 million decrease in utilities funds from deferred or delayed capital projects.
  • $0.6 million decrease in ARPA funding; ARPA funds must be fully spent by December 31, 2026, and only about $100,000 of the original $3.8 million remains to be spent.
  • $1.4 million increase in the fire fund under the Department of Energy agreement.
  • $0.1 million decrease in the airport fund due to reduced capital projects.

GRT Revenue Trends and FY27 Projection

• A historical chart showed budgeted GRT tracking closely to actuals from about FY2016-FY2021; FY2022-FY2024 brought revenues above budget and built a healthy fund balance; FY2025 and FY2026 reversed, with budgeted amounts above actual receipts and reserves drawn down. FY2027 is projected to get back on track with the new GRT increment.
• Countywide FY2027 GRT revenue is projected at about $113 million. Staff noted the countywide number is larger than the general fund GRT amount because portions of the increment are directed to other funds and earmarks.

Financial Policy and Reserve Target

• Staff proposed increasing the target reserve from 20% to 25% of budgeted revenues in the redlined financial policy attachment.
• Rationale included GRT volatility, two years of revenues coming in below projections, the planned $35 million debt issuance, and the need to keep supporting essential services and contracted obligations if revenues are volatile.
• Participants voiced support for the higher target while asking for humble framing, emphasizing that it provides flexibility and a buffer between 20% and 25%, rather than a lock-in or an unnecessary surplus.
• Presenters noted the council's GRT increase was intended to support priorities such as affordable housing and economic development; no allocations are proposed this year because GRT revenues have come in below budget for two years. Future unexpected revenues could be discussed at budget hearings for one-time initiatives and council strategic priorities, including affordable housing and sustainability.
• The long-range projection was described as showing the FY27 proposed budget operating at a surplus and ending about $9 million over the new 25% reserve target. The 10-year projection includes a 3% inflation factor for baseline categories and transfers to CIP and other funds.

Capital Improvement Program and Hearing Logistics

• Staff planned to add a CIP title slide and present capital improvement program highlights, including an example tied to fire station 4 planning.
• A possible sustainability line item was discussed; staff indicated it would sit in the County Manager's Office and be finalized through the summary-of-changes process.
• The parking-lot process was rehearsed: department items needing more information or changes would be set aside, tentative motions would be taken after each department presentation, and final actions would follow parking-lot review and a summary of changes.
• Staff confirmed public comment would be taken at the beginning of each hearing session, before the presentations.

Key Outcomes

• This was a rehearsal, not a formal voting meeting; no votes were taken.
• The group decided on presentation logistics, including reordering slides, using the live budget spreadsheet for pages 62-63, pausing for questions after the general fund overview, introducing staff before department presentations, and using a CIP slide before the non-departmental presentation.
• Staff planned to incorporate any parking-lot changes into the long-range financial projection and to update the final budget total accordingly.
• The session ended with continued preparation planned before the FY2027 budget hearings.