Title
Discussion on Potential Uses of the Gross Receipts Tax (GRT) Settlement Funds
Body
At the September 21, 2021 work session, Council approved the mediation settlement with the State regarding disputed administrative handling of some prior year GRT adjustments. In October 2021, the County received the settlement funds as indicated in attachment A.
After approving the settlement, Council indicated that they would like to discuss possible uses of the settlement funds. That is the purpose of this item. It will be focused primarily upon the general fund portion in the amount of $9,999,712.
These funds are currently unrestricted. Staff's primary input at this point in time is to advise that since this is a one-time revenue, it's use should be focused on one-time uses, rather than recurring expenses. This would follow the general guidance of the County's financial policies.
There are a wide variety of options for potential uses of these funds. The following list is not intended to be exhaustive, but rather to just get the discussion started. Depending upon what consensus appears to be forming about Council's policy on the use of these funds, staff may have further recommendations about appropriate accounting methodologies.
Potential uses could include, but are not limited to:
1. General funding for the County's Capital Improvements Projects (CIP) Fund
2. Designating the use for certain types of CIP projects (e.g. economic development projects that enhance our small business environment, and/or address commercial vacancies, and/or addresses housing needs)
3. Specifying the use for a specific project or specific set of projects
4. An allocation to the Regional Projects Fund
5. Capital and other short-term needs that may be identified by the Los Alamos County Health Council's (CHC) upcoming Comprehensive Health Plan (see CHC letter as attachment B)
6. A combination of these, or other ideas
This item is for general discussion. Staff is seeking feedback from Council and an indication if there appears to be any consensus regarding use(s) of the settlement funds. Based upon the results of this discussion, staff could return to Council with a follow-up action item.
Attachments
A - TRD Settlement Distribution Schedule
B - CHC letter