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The city of Alamogordo’s budget reflects a mix of conservative fiscal management and strategic investment. The city uses its general fund for day-to-day operations, while leveraging state loans and grants for infrastructure improvements. Surpluses and carryovers are often earmarked for incomplete capital projects or debt service.
The city budet is divided into 5 main catagories
General Fund: Core city operations, Police, fire, parks, admin, road, water pipe, sewer pipe and sidewalk routine maintenance
Enterprise Funds: Self-sustaining services paid for by the service receiver (budget nuetral), Water, Sewer and Landfill - paid primarily out of the water bills and landfill use fees.
Special Revenue Funds: Restricted-use revenues, Lodgers’ tax, grants (funds are designated and restricted and may not be used for projects outside of their scope).
Capital Projects Funds: Infrastructure & improvements, Sidewalks, reservoirs as designated cannot be moved from one project to another.
Debt Service Funds: Loan repayments,NMFA infrastructure bond payments dedicated money only allowed for what the bond was approved for. Example recent water improvement bonds will pay for water system improvements and roadways under the water lines being replaced.
Each fund is tracked separately, and the city must submit its budget to the New Mexico Department of Finance & Administration (DFA) for approval and oversight.
According to the preliminary budget document and City Council meeting summaries, here’s the financial snapshot:
Total Citywide Budget (All Funds):
~$96 million
(Includes carryover balances, grants, enterprise revenues, and capital projects)
General Fund Budget:
~$28.3 million
(Supports core services like police, fire, streets, and administration)
Beginning Cash Balance (All Funds):
~$56 million, revised upward to $96 million due to surpluses and carryovers
Major Allocations Include:
Budget Inflows:
The inflow structure reflects Alamogordo’s strategic use of:
Gross Receipts Tax (GRT) as a primary revenue engine
Cannabis excise funds for capital improvements
NMFA loans for infrastructure (e.g., reservoir rehab)
Interfund transfers to sustain non-revenue-generating departments like corrections and internal services
$28.3 million
(with an estimated beginning cash balance of $16 million)
Estimated Contribution: ~60–65% of general fund revenue
Dollar Amount: Approximately $17–18.4 million
Notes: This is the city’s largest revenue source. Alamogordo collects a portion of the statewide gross receipts tax (GRT), which is levied on most goods and services sold within city limits. GRT revenue is sensitive to economic activity and retail performance, thus why a strong and vibrant downtown and business climate is necessary to sustain residential services, police, fire, adminstration, water, sidewalk and road routine maintenance.
Estimated Contribution: ~10–12% of general fund revenue
Dollar Amount: Approximately $2.8–3.4 million
Notes: Property tax revenue is relatively stable year-over-year. It supports general operations and some capital improvements. Alamogordo’s mill rate is modest compared to larger municipalities.
Estimated Contribution: Less than 1% of general fund revenue
Dollar Amount: Typically around $100,000 annually
Notes: Alamogordo charges a nominal business registration fee (previously $35), though this was waived in 2023 during a system transition. These fees are not a significant revenue source but are important for regulatory tracking and civic engagement.
This breakdown shows how heavily Alamogordo relies on sales tax to fund city services—from street maintenance to community programs. Property tax provides a stable base, while business licenses serve more as a civic tool than a fiscal engine.
EXPENSES:
~6–8% of General Fund Expenditures
Dollar Range: Roughly $1.7–2.3 million out of the $28.3 million general fund
Departments Involved:
Public Works
Streets Division
Capital Outlay (for minor infrastructure upgrades)
Notes: Most major street and sidewalk projects are funded through state grants, capital outlay, or enterprise funds, not the general fund. The general fund typically covers routine maintenance, minor repairs, and matching funds for grant-backed projects.
~4–5% of General Fund Expenditures
Dollar Range: Approximately $1.1–1.4 million
Notes:
Alamogordo secured a $27 million loan from the New Mexico Finance Authority in 2025 for infrastructure upgrades, including reservoir rehabilitation and utility improvements. Debt service payments (principal + interest) are partially covered by the general fund, but also supplemented by enterprise revenues and restricted funds.
So together, roads/sidewalks and infrastructure bond payments account for roughly 10–13% of the general fund. The rest is distributed across public safety, administration, parks, and other services.
In a comparison of the City of Alamogordo's Budget management verses Otero County's budget management statistics show the city is a better manager of its money and resources. The city's elected officials have taken a more conservative approach the last 4 years.
Higher reserves and surplus: The city’s ability to carry forward large cash balances and invest in infrastructure shows fiscal strength.
Strategic debt use: NMFA loans are being used for long-term capital improvements, not to plug operational gaps.
Revenue diversification: Gross receipts tax (GRT), cannabis excise, and utility revenues create a more resilient base than the county’s reliance on property taxes and federal PILT.
Capital investment: Alamogordo is funding forward-looking projects (e.g. dispatch center, water infrastructure for the longer term), while the county often allocates surplus to corrections and emergency services.
General Fund Reserves for the City, Strong ~$28.3M revenue with significant carryover.
General Fund Reserves for Otero County, Moderate: ~$18–20M revenue, tighter margins, higher risk.
Cash Balance / Surplus for the city of Alamogordo: ~$56M starting balance, revised upward to ~$96M
Cash Balance / Surplus for Otero County: ~$12–15M (based on prior audits), risky
State Audit Findings:
City of Alamogordo Clean audits, strong internal controls!
County of Otero, Adequate (low rating) but flagged for tighter reserve management and a need for more significant controls.
Based on publicly available fiscal data, audit reports, and budget planning documents for FY 2025–2026, the City of Alamogordo and its elected leaders demonstrates stronger budgetary management and reserve discipline than Otero County.
Alamogordo enters the fiscal year with a revised total budget of approximately $96 million, bolstered by a robust cash carryover of $56 million, later adjusted upward due to surplus and unspent capital allocations. The city maintains a diversified revenue base—anchored by gross receipts tax (GRT), cannabis excise funds, and enterprise revenues—which allows it to fund core services, invest in infrastructure, and service long-term debt without compromising operational stability.
In contrast, Otero County’s budget is more constrained, with estimated total revenues around $45–50 million and a tighter reserve margin. The county relies heavily on property taxes and federal PILT (Payment in Lieu of Taxes), which are more static and vulnerable to federal policy shifts. While the county maintains lower bonded debt, its capital investment capacity is limited, and surplus funds are often absorbed by corrections and emergency services rather than forward-looking infrastructure or civic innovation.
Alamogordo’s fiscal strategy by its present city commission reflects proactive planning, transparent capital investment, strong audit controls, and resilient revenue diversification, positioning it as the more responsible and future-oriented budget manager in comparison to Otero County.