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Las Cruces City Council Moves Forward With GRT Tax Bonds

http://youtu.be/EpZ2hhd95co

In 2013, Las Cruces City Council approved a 3/8th’s of 1 percent Hold Harmless GRT Tax Increase. The Council is now trying to determine the best way to use the funds.

While, Hold Harmless payments are being phased out by the state, Las Cruces is projecting an increase in available funds from the GRT tax revenue after the budget is balanced.

Las Cruces City Council is voting on a proposal to sell up to $28.5 million in GRT tax based bonds for infrastructure and economic development projects. Councilor Greg Smith says this will help them prepare for the future.

“We’re taking what is considered sort of an early bump in this Hold Harmless GRT,” Smith said. “And trying to invest it in a way that will help us be ahead of the game, or at least not to far behind the game, when that increase is no longer able to keep up with where we would have with the payments that were coming from the state.”

Council Nathan Small says it’s important to make sure the funds are invested properly.

“If the city does nothing then this gap appears and only widens over time,” Small said. “And that could lead to some very, very tough choices.”

Small says by using the bonded funds to complete necessary infrastructure and facility projects, city infrastructure can be maintained on a regular schedule saving money in the future.

“If we stick to that approach,” Small said. “Making sure that these are maintenance needs, making sure that we are taking care of what would be a larger future cost and solving that more efficiently and ultimately with better fiscal prudence by doing it sooner rather than later, I think we’re going in the right direction.”

Councilor Smith says by using some of the funds for economic development projects it could help create an overall increase in GRT funds.

“We feel very strongly that if we take care of some of these infrastructure issues and facility issues,” Smith said. “That’s one expense that we know we are going to have to pay. If we pay it now then we are getting better advantage for our dollars. And then if we invest wisely in economic development activities then those things will help us be ahead of the game.”

The City Council is scheduled to take a final vote on bonding the Hold Harmless GRT tax funds on September 8th.
 

Samantha Sonner was a multimedia reporter for KRWG- TV/FM.