ROSWELL NEW MEXICO
AGENDA ITEM ABSTRACT
AGENDA ITEM ABSTRACT
1.
Special Council Meeting
- Meeting Date:
- 03/28/2025
COMMITTEE:
N/A
CONTACT:
Hessel Yntema
CHAIR:
Mayor Pro Tem
ACTION REQUESTED:
Hold a public hearing and approve emergency Ordinance 25-02: An Ordinance Adopting a Municipal Flood Recovery Gross Receipts Tax (GRT). (Halvorson/Yntema)
BACKGROUND:
Initiated by: Legal
Following the flooding of October 2024, the City had approximately $260,000,000.00 in damages. The City lacks sufficient funds to fund its recovery efforts. In the 2025 legislative session, SB 31 and SB 383 created a $150,000,000.00 revolving loan at 0% interest and created a 3/8th cent tax to fund funding for recovery efforts, respectively. This proposed GRT increase can be used exclusively for funding flood recover bonds. The new GRT automatically sunsets when the debt is retired.
Following the flooding of October 2024, the City had approximately $260,000,000.00 in damages. The City lacks sufficient funds to fund its recovery efforts. In the 2025 legislative session, SB 31 and SB 383 created a $150,000,000.00 revolving loan at 0% interest and created a 3/8th cent tax to fund funding for recovery efforts, respectively. This proposed GRT increase can be used exclusively for funding flood recover bonds. The new GRT automatically sunsets when the debt is retired.
- GRT in NM ranges from 4.875% to 9.425%. Roswell is currently at 7.8958 and would increase to 8.27%
- GRT will remain below the municipalities of: Bosque Farms, Taos, Taos Ski Valley, Red River, Los Lunas, Questa, Espanola, Truth or Consequences, Deming, Vaughn, and Santa Rosa.
- GRT will remain at rates similar to: Silver City, Tijeras, Sunland park, Las Cruces, Grants, Ruidoso, Gallup, Alamogordo, Tucumcari, Cuba, Santa Fe, Las Vegas, Farmington, Aztec, Bloomfield, and Belen.
FINANCIAL CONSIDERATION
NA – Loans and Bonds are to be negotiated with new GRT as collateral.
LEGAL REVIEW:
Legally sufficient
BOARD AND COMMITTEE ACTION:
N/A
STAFF RECOMMENDATION:
Staff supports this action.