NM city faces $5M payment due to tax changes

Posted at: 11/03/2013 12:08 PM
By: Mike Anderson, KOB Eyewitness News 4

NM city faces $5M payment due to tax changes
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FARMINGTON, N.M. (AP) - Farmington City Manager Rob Mayes says some hard financial choices are ahead for the city.
Mayes tells The Daily Times  that Farmington will have to find $5 million or make cuts from services such as street maintenance and firefighter response once the state lifts its "hold harmless" clause, which has funded cities and counties in lieu of tax money they previously received from food and medicine.
He says Farmington will begin paying the state in 2015.
Mayes doesn't think raising taxes will be necessary during the next budget process, but he says the city needs to think of something.
This fiscal year, the city trimmed $3 million in programs and used $3.5 million from cash reserves to deal with a deficit. The city's revenues are also about 10 percent less than in 2009.
Information from: The Daily Times, http://www.daily-times.com

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