GRANTS, NM – The Grants City Council has approved a budget for the fiscal year 2025 with an expected revenue of $11.3 million and planned expenses totaling $10.4 million. City officials said this budget focuses on key priorities, including the introduction of new enterprise funds, employee retention, and significant investments in infrastructure.
The general fund, which is the primary source of funding for the city’s operations, is expected to generate $11.3 million in revenue. This revenue comes from sources which includes taxes, fees, and other income sources the city collects to fund its services and projects like grants, and other awards.
The budget outlines $10.4 million in expenditures, which cover a range of city services and initiatives. Here’s how the money will be allocated: Employee Salaries and Benefits
According to City Finance Director Victor Villalobos, the city is making sure their staff is a cornerstone of the budget.
A three percent salary increase for all city employees is included in the new budget.
The city will continue to cover 90 percent of health and medical insurance premiums for employees and their families, costing about $1.3 million.
New short-term and long-term disability insurance plans, fully funded by the city, are also included.
City councilors heard the cost of health and medical insurance for employees is about $1.3 million annually. Retirement costs for city employees are around $900,000.
Mayor Erik Garcia highlighted the importance of retaining the city's high level of employee benefits, specifically noting the continuation of the city’s health insurance plan as its incentive for employee re- tention and morale boosting.
New Enterprise Funds Recent political and infrastructure changes in the City of Grants caused a county-wide political crises when the private company Superior Ambulance up and left the community because they were unhappy with local politics. This has caused the local governments of Cibola to reevaluate how they provide EMS services.
A major highlight of the FY25 budget is the introduction of two new enterprise funds.
Ambulance Fund: The city has established a new ambulance service, with projected revenues of $1.3 million and expenses of $1.4 million. To cover the anticipated shortfall, $90,000 will be transferred from the general fund. Despite this, the city notes that the new service will still cost less than the $120,000 previously paid to a private ambulance provider.
GRT Tax Fund: A new Gross Receipts Tax (GRT) will be implemented on January 1, aimed at supporting EMS and infrastructure projects. Detailed projections for this fund will be developed later in the fiscal year.
The budget includes a line item for a Mental Health Council which would be established in the City of Grants, the budget shows that this project has not incurred any expenses or has any money in its account. Councilor Beverly Michael raised a question regarding the budget allocations, for the Mental Health Council, noting that the expenses and income were showing zero across the board. Villalobos explained that this was due to the absence of an award letter at the time the budget was finalized. Villalobos said that once the city receives more information, they would bring it to the council for a budget adjustment.
Infrastructure Investments: Mayor Garcia acknowledged the support the city has received from state legislators, particularly in securing funding for large projects like the USDA-funded ladder truck. He noted that this support was a testament to the confidence that state officials have in the city’s leadership and vision for the community.
$1.1 million is allocated for a USDA-funded ladder truck for the fire department, with an expected city match of $300,000.
$275,000 is allocated for a new ambulance.
$75,000 is earmarked for recreation center improvements.
$100,000 is set aside for domestic violence center construction.
$200,000 will be invested in domestic violence services.
Additional funds are allocated for new public works equipment, including tractors, trailers, and park maintenance tools.
Council members praised the budget for its comprehensive approach. Councilor George Garcia acknowledged the hard work that went into its preparation. Councilor Fred Rodarte noted that the budget presentation was informative, making complex financial data easier to understand.
However, not all feedback was positive. Councilor Zack Gutierrez raised concerns about ongoing deficits at the city’s golf course, urging the council to find a sustainable solution to the financial drain. The need for strategic planning to address these kinds of issues was echoed by several council members.
With the FY25 budget approved, the Grants City Council is now focused on executing its plans. The council also approved the fourth-quarter financial report, which shows that the city is on solid financial footing despite a challenging economic environment.