1/22/09
Despite declines in 2008 property and gross receipts tax revenues, Rio Arriba County revenues were up overall last year, with year-end revenues increasing 21 percent over those seen in 2007, County documents show.
“Up to Dec. 30, we have received $3,356,810 more than this time last year,” County Comptroller Mary Louise Martinez said.
Most of that increase is due to a $3.1 million jump in last year’s oil and gas revenues, Martinez said — 49.9 percent over the 2007 numbers. Oil and gas revenues, which represent 58 percent of the County budget, remained stronger than 2007 even as the economy began to slip last fall. For each quarter of 2008, revenues exceeded those seen in 2007, County records show.
Total year-end revenue for 2007 totalled about $12.7 million, compared with about $16.1 million for 2008, records show.
Strong oil and gas revenues more than made up for a $14,747 (2 percent) decline in gross receipts tax revenues and $87,033 (3 percent) decrease in property tax revenues between 2007 and 2008. Despite a County moratorium on new gas and oil drilling that is set to last into February, Martinez expects County revenues to remain strong in 2009.
“I expect to exceed our budgeted revenue projections by the end of (this fiscal year),” Martinez said.
But County Manager Lorenzo Valdez and Assistant Manager Tomas Campos are concerned about gas and oil revenues. Both said they are anticipating declines in the second half of 2009, and Valdez strongly implied that a hiring freeze may become necessary.
“It’s a question of how much decline,” Valdez said. “We have a cash balance that can carry us for a year or maybe two. Not more. We’re not recommending any expansion in County work force. We cut capital projects first, then equipment and travel. Personnel is the last thing we cut.”
Campos noted that for the current fiscal year, the County’s oil and gas revenues are even better than expected.
“They’re still pumping like crazy,” Campos said. “But we do anticipate it going down.”
Martinez said that she always projects oil and gas revenues very conservatively to accommodate any drops in revenues. She said County oil and gas revenues are based on production rather than market prices, but that higher gas prices for much of last year sparked increased production, and hence, revenues. She cautioned that dropping natural gas prices can impact county revenues if they force gas producers to cease pumping and cap wells.
When oil and natural gas prices drive up production and County revenues, Martinez said the extra money is only used for capital projects — one-time expenditures, in case production drops down again later on.
Other revenue streams that saw declines in 2008 included mill levy tax revenues (down from $143,641 in 2007 to $137,812), sheriff’s fees (down $1,126 from $6,554 to $5,428) and animal licenses (down from $310 to $154).