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STATE OF THE VILLAGE
The overall State of the Village is one of resilience, strength, and optimism. This has never been more evident than in the days and weeks that followed the devastating McBride Fire. This community stepped up to help our fellow residents that were affected by the disaster, and the donations and assistance that we received from around our great state was nothing short of amazing.
In 2022, Gross Receipts Taxes and Lodger’s Taxes both showed a healthy increase. Cannabis sales came to the community and are now adding to the bottom line. The cash balance in the Ruidoso Wastewater Treatment Plant Enterprise Fund (RWWTP) was successfully used to eliminate debt service payments on the Series 2013 GO Refunding Bonds and the Series 2013 Wastewater Refunding Revenue Bonds. This resulted in lower utility bills for all VOR utility customers.
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It is essential that this community continues to come together and work toward common goals so the Village can thrive and be successful. This includes working to find funding to support improvements to transportation, workforce housing, broadband, water and wastewater infrastructure, and outdoor recreation amenities.
Financial Sustainability
» The Village began FY 2023 with a cash balance of $72,663,018 and projected revenues at $53,600,371, which amounts to $126,263,389 of available cash to spend. Expenditures were cut based on previous year’s usage and ended up at $101,669,602.
» All capital outlay totaled $61,538,231, yielding $40,131,371 for operations.
» Ending cash balance for FY 2022 is projected at $24,593,787.
» The VOR completed their 2021 audit in a timely manner and is currently under review by the New Mexico State Auditor’s Office (SAO).
» The overall financial health of the Village of Ruidoso remains strong and both governmental and proprietary funds reported increases to net position.
» As of June 30, 2022, the Village’s governmental funds reported combined fund balances of $26,884,821, an increase of $3,478,500 in comparison with the prior year.
LODGER’S TAX
» Lodger’s Tax receipts also exceeded prior year amounts in April (March sales) and continued growing at a rate of 22.23% over CY 2021.
» In FY 2023, the Lodger’s Tax Board projected revenues at a $2.3 million level and as of December 2022, taxes collected are 36% from meeting budgeted levels.
» As revenues exceed expenditures, the fund’s net position remains strong and continues to grow.
» The outlook for 2023 is a continued upward trend.
Gross Receipts Tax
» While most municipalities lost Gross Receipts Taxes (GRT) as COVID-19 suffocated many municipality economies and caused them to lose Gross Receipts Taxes (GRT), the Village experienced growth.
» GRT taxes have increased from short-term rentals, tourist activity, and Village construction projects.
» The Village experienced a growth rate of 13.9% from CY 2019 to CY 2021.
» CY 2021 April distribution (February sales) surpassed CY 2020 levels and continued to grow.
» Beginning July 1, 2022, cannabis businesses started remitting GRT monthly (GRT taxes assessed on sales plus a 12% Excise Tax).
» The Village and the County receive 33.33% of the tax.
» Each month’s distribution has averaged $27,909 and projected FY 2023 funds will add $300,000 toward General Fund Expenditures.
Capital Projects
» With a population of 8,062, Ruidoso currently has Capital Projects underway that would be expected from a town four times its size.
» The Village currently has 67 projects between the design and construction phases. Below are some of the projects that have been completed or are in progress:
» Alto Treatment Plant Rehabilitation – In Progress
» FEMA Restoration of the Sewer Line – In Progress
» Village Hall Addition – Completed
» Magistrate Court Building – In Progress
» Horton Complex Remodel – In Progress
» Cree Meadows Trail – Completed
» FEMA Bridge Replacement – In Progress
Community Development
» The highest priority Community Development project for 2022 was to provide housing for those families that were displaced by the McBride Fire.
» Eighteen manufactured homes were purchased using donations, grants, and local funds.
» This housing development is located at 1114 Mechem Drive and has been named Mechem Meadows.
» These homes will be held permanently in the Village of Ruidoso Housing Trust Fund as long-term rentals.
» The Village of Ruidoso and Mesa Apartments, LLC will continue to work together to reapply for the 9% tax credits from the New Mexico Mortgage Finance Authority.
» If the tax credits are awarded, up to 70 apartments will be developed at 1104 Mechem Drive.
