New Mexico – The state is returning $1.1 million to the city of Bloomfield for nearly five years of erroneous payments.
The northwest New Mexico city was underpaid for years by the state under a program which compensates cities for untaxed grocery items sold within city limits.
The problem was found and fixed.
City Manager Keith Johnson said a significant portion of the returned cash should be set aside.
The money arrives at a time when Bloomfield was considering roughly $400,000 in potential budget cuts.
Information from: The Daily Times, http://www.daily-times.com
Copyright 2009 The Associated Press.