Los Alamos Council Signals Tax Increase Amid Revenue Uncertainty

County Council Chair Theresa Cull opened the Jan. 5 State of the County by saying, "The past year has been one of challenges and uncertainty due mostly to changes in the federal government." Her review catalogued a year of fiscal strain, infrastructure moves and efforts to expand housing and broadband as officials adjust to a changing revenue picture.

Fiscal stewardship dominated the discussion. Gross receipts taxes account for 72 percent of the County’s budget, and the Laboratory remains the single largest revenue source. After years of growth, Cull reported the Laboratory budget has leveled and the County projected a 14 percent decrease in GRT revenues for FY25. To shore up revenue and continue planned projects, Council voted to raise the gross receipts tax rate by 5/8 percent, effective July 1, 2026. Council also approved conservative FY27 budget guidance asking departments to keep flat budgets where possible, to allow only essential inflationary increases, and to implement a 10 percent reduction in non-labor budget categories.

The review outlined major capital and development actions that will affect residents. Council approved a $40 million bond to fund a Community Broadband project intended to deliver an open-access fiber network for homes, businesses, schools and emergency services. The County also authorized a grant to San Ildefonso Pueblo for a middle mile fiber optic line aimed at reducing communications outages after four disruptions during the year.

Housing advances were notable. Approvals included 87 deed-restricted affordable studio apartments on Ninth Street, a mixed-use project on 20th Street expected to add roughly 285 market-rate housing units and 25,000 square feet of retail, and a purchase, sale and development agreement with Servitas for 380 affordable and market-rate homes on the A8-A parcel along DP Road. The Hill apartments, a 149-unit market-rate complex, began leasing in November.

Local business support arrived via a Council-established Working Group, an action plan tied to the Local Business Coalition, adoption of Small Retail LEDA tools, and the East Downtown Los Alamos Metropolitan Redevelopment Area Plan to focus reinvestment.

Cull acknowledged communication gaps between government and some residents, noting efforts to expand public input on major projects such as the Brewer Arena and to apply lessons learned from recent infrastructure projects. She closed her remarks with a reflective summary: "2025 was a year of uncertainty. There were issues and challenges to address. But through the efforts of staff and volunteers, The State of the County continues to progress."

For Los Alamos residents, the combined impact means a modest tax increase that will affect household and business costs alongside investments intended to improve connectivity, housing supply and local commerce. Council’s fiscal choices and the pace of the listed projects will determine whether those investments offset revenue pressures and maintain services in the year ahead.