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LEA COUNTY
NEW MEXICO
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2022
Prepared by:
Lea County Finance Department
STATE OF NEW MEXICO
LEA COUNTY
TABLE OF CONTENTS
JUNE 30, 2022
Page
INTRODUCTORY SECTION
Table of Contents 1‐3
Letter of Transmittal 5‐11
Board of County Commissioners 12‐13
Elected Officials 14
Management 15
Organizational Chart 16
FINANCIAL SECTION
Independent Auditor’s Report 18‐21
Management’s Discussion and Analysis 22‐33
Basic Financial Statements
Government‐wide Financial Statements:
Statement of Net Position 36‐37
Statement of Activities 38‐39
Fund Financial Statements:
Balance Sheet – Governmental Funds 41‐42
Reconciliation of the Balance Sheet to the Statement
of Net Position 43
Statement of Revenues, Expenditures and Changes in Fund
Balances – Governmental Funds 44‐45
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities 46
Statement of Revenues, Expenditures and Changes in Fund
Balances – Budget (Non‐GAAP Budgetary Basis) and Actual‐
General Fund ‐ 401 47
Road Fund ‐ 402 48
Detention Facility ‐ 418 49
Statement of Net Position – Proprietary Fund 50
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Fund
51
Statement of Cash Flows – Proprietary Fund 52
Statement of Fiduciary Net Position 53
Statement of Changes in Fiduciary Net Position 54
Notes to Financial Statements 55‐93
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of the County’s Proportionate Share of the Net
Pension Liability 95
Schedule of County Contributions 96‐97
Schedule of the County’s Proportionate Share of the Net OPEB Liability 98
Schedule of County Contributions 99
Notes to Pension Required Supplementary Information 100
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STATE OF NEW MEXICO
LEA COUNTY
TABLE OF CONTENTS
JUNE 30, 2022
Page
SUPPLEMENTARY INFORMATION
Combining and Individual Fund Statements and Schedules:
Nonmajor Governmental Fund Descriptions 103‐105
Combining Balance Sheet – Nonmajor Funds 106‐112
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances – Nonmajor Funds 113‐119
Statement of Revenues, Expenditures, and Changes in Fund Balance ‐
Budget and Actual:
Farm and Range – Special Revenue Fund (403) 121
Recreation – Special Revenue Fund (404) 122
Clerk Recording & Filing – Special Revenue Fund (405) 123
Indigent Fund (406) 124
Maljimar Fire District – Special Revenue Fund (407) 125
Knowles Fire District – Special Revenue Fund (408) 126
Airport Fire – Special Revenue Fund (409) 127
Monument Fire District – Special Revenue Fund (410) 128
DWI – Special Revenue Fund (412) 129
EMPG Reimbursement – Special Revenue Fund (424) 130
Other Grants – Special Revenue Fund (431) 131
Lea County Airports – Special Revenue Fund (454) 132
County Airport – Special Revenue Fund (455) 133
Lea County Fairground – Special Revenue Fund (460) 134
Lea County Event Center – Special Revenue Fund (463) 135
Property Valuation – Special Revenue Fund (499) 136
EMS Knowles – Special Revenue Fund (604) 137
Law Enforcement Grant – Special Revenue Fund (605) 138
High Intensity Drug Trafficking Areas – Special Revenue Fund (609) 139
EMS Maljimar – Special Revenue Fund (613) 140
County Fire Marshall – Special Revenue Fund (618) 141
EMS Monument – Special Revenue Fund (621) 142
Capital Project Fund (430) 144
Water Service and Solid Waste (675) – Enterprise Fund 146
Fiduciary Funds Descriptions 148
Combining Statement of Fiduciary Net Position 149‐150
Combining Statement of Changes in Fiduciary Net Position 151‐152
SUPPORTING SCHEDULES
Schedule of Collateral Pledged by Depository for Public Funds 153
Schedule of Cash and Temporary Investment Accounts 154‐155
Schedule of Special Appropriations 156
Tax Roll Reconciliation – Changes in Property Tax Receivable 158
Treasurer’s Property Tax Schedule 159‐160
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STATE OF NEW MEXICO
LEA COUNTY
TABLE OF CONTENTS
JUNE 30, 2022
Page
SUPPORTING SCHEDULES ‐ CONTINUED
Memorandums of Understanding & Joint Powers Agreements 162‐166
STATISTICAL SECTION
Net Position by Component 169
Changes in Net Position 170‐171
Program Revenues by Function/Program 177
Revenues by Source 173
Fund Balances of Governmental Funds 174
Changes in Fund Balances of Governmental Funds 175‐176
Tax Revenue by Source 177
Gross Receipts Tax Revenue by Industry 178‐179
Direct and Overlapping Gross Receipt Tax Rates 180‐181
Gross Receipts Tax Revenue Payers by Industry 182
Assessed Value and Estimated Actual Value of Taxable Property 183
Residential Property Tax Rates 184‐185
Non‐Residential Property Tax Rates 186‐187
Principal Property Taxpayers 188
Property Tax Levies and Collections 189
Ratios of Outstanding Debt by Type 190
Direct and Overlapping Governmental Activities Debt 191
Legal Debt Margin Information 192
Pledged‐Revenue Coverage 193
Demographic and Economic Statistics 194
Principal Employers 195
Government Employees by Function/Program 196
Capital Asset Statistics by Function/Program 197
Operating Indicators by Function/Program 198‐200
COMPLIANCE SECTION
Independent Auditor’s Report on Internal Control over Financial
Reporting and on Compliance and Other Matters Based on an Audit
Of Financial Statements Performed in Accordance with Government
Auditing Standards 202‐203
Independent Auditor’s Report on Compliance for Each Major Program
and Report on Internal Control Over Compliance in Accordance with
the Uniform Guidance 204‐206
Schedule of Expenditures of Federal Awards 207
Notes to Schedules of Expenditures of Federal Awards 208
Schedule of Findings and Questioned Costs 209‐210
Prior Year Audit Findings 211
Exit Conference 212
3
Table of Contents
Introduction Section
4
Board of County Commissioners Phone (575)
396‐8602
County Manager Fax (575) 396‐
2093
100 North Main Avenue, Suite 4 leacounty@leacounty.net
Lovington, New Mexico 88260 www.leacounty.net
Letter of Transmittal
December 1, 2022
To the Chairperson of the Commission, Members of the Commission, and the Citizens of Lea County:
New Mexico state law, Section 12-6-3, NMSA 12978, mandates that the financial affairs of every New
Mexico agency be thoroughly examined and audited each year by the State Auditor, personnel of the
State Auditor’s office designated by the State Auditor, or by independent auditors approved by the State
Auditor. A completed set of financial statements presented in conformity with generally accepted
accounting principles (GAAP) and audited in accordance with generally accepted auditing standards and
rules issued by the State Auditor is due by December 1st each year for the fiscal year ending June 30th.
Pursuant to the requirement, we hereby issue the annual comprehensive financial report of Lea County,
New Mexico for the fiscal year ended June 30, 2022.
This report consists of management’s representations concerning the finances of Lea County.
Consequently, management assumes full responsibility for the completeness and reliability of the
information presented in this report. To provide a reasonable basis for making these representations,
management of Lea County has established a comprehensive internal control framework that is designed
both to protect government’s assets from loss, theft, or misuse and to compile sufficient reliable
information for the preparation of Lea County’s financial statements in conformity with GAAP.
Because the cost of internal controls should not outweigh their benefits, Lea County’s comprehensive
framework of internal controls has been designed to provide reasonable rather than absolute assurance
that the financial statements will be free from material misstatement. As management, we assert that, to
the best of our knowledge and belief, this financial report is complete and reliable in all material aspects.
Lea County’s financial statements have been audited by Patella, Brown & Hill, L.L.P., as approved by
the State Auditor. The goal of the independent audit was to provide reasonable assurance that the
financial statements of Lea County for the fiscal year ended June 30, 2022 are free of material
misstatement. The independent audit involved examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements; assessing the accounting principles used and
significant estimates made by management; and evaluating the overall financial statement presentation.
The independent auditor concluded, based upon the audit, that there was reasonable basis for rendering
an unmodified (or clean), opinion that Lea County’s financial statements for the fiscal year ended June
30, 2022 are fairly presented in conformity with GAAP. The independent auditor’s report is presented
as the first component of the financial section of this report and can be found on page 18 to 21 of the
financial statements.
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The independent audit of the financial statements of Lea County was part of a broader, federally
mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards
governing Single Audit engagements require the independent auditor to report not only on the fair
presentation of the financial statements, but also on the audited government’s internal controls and
compliance with legal requirements, with special emphasis on internal control and legal requirements
involving the administration of federal awards. The reports are available with the “Single Audit
Reports” section of this report starting on page 204.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany
the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This
letter of transmittal, designed to complement MD&A, starting on page 22, and can be found
immediately following the independent auditor’s report.
PROFILE OF LEA COUNTY
Lea County was created from Eddy and Chaves Counties in 1917 and named for Captain Joseph
Calloway Lea, just five years after New Mexico was admitted to the Union as a state. The County is
located in the Southeast corner of New Mexico and borders the state of Texas on the south and east
borders. Lea County is part of the Permian Basin, the largest oil and gas producing basin in the United
States and one of the largest in the world. Lea County is currently the #1 oil producing County in the
United States having reached that position in December 2019. The County has a land area of
approximately 4,400 square miles and a population of 74,455 based upon the outcome of the 2020
Census. The population increased by 15% from the 2010 Census count of 64,727. The land ownership
is distributed as follows: Private ownership 52%, State Government 31%, and Federal Government
17%. The County is home to five municipalities: Lovington (the County seat), Eunice, Hobbs, Jal and
Tatum.
New Mexico state law, Section 7-37-7 B (1), NMSA 1978, sets the maximum property tax rate a County
may charge for general operating purposes at eleven dollars eighty-five cents ($11.85) for each one
thousand dollars ($1,000) of net taxable value of both residential and non-residential property allocated
to the County. Net taxable value is determined to be one third (1/3) of the assessed value of the
property. The County rate for FY 22 was seven dollars one and one hundred cents ($7.011) for residential
and ten dollars sixty cents ($10.60) for non-residential property. The County may also implement
certain county local option gross receipts taxes (GRT), some requiring voter approval. The County
gross receipt tax rate as of June 30, 2022 is 5.375%, which is comprised of the state rate of 5.000% and
the local county options of .375%. The local county options consist of two 1/8 County wide increments
and a 1/8 County only (outside municipalities) increment. One of the 1/8 County wide increments is
dedicated to fund the County Indigent program. The other two increments are allocated to the General
Fund. Lea County is currently tied with one other New Mexico county for the lowest GRT rate. The tax
is imposed on sales of both services and intangibles.
Lea County operates under the Commission, County Manager form of government. Policy making and
legislative authority are vested in the County Commission consisting of the Commission Chairperson
and four other Commission members serving five districts. The County Commission is responsible for,
among other things, passing ordinances, adopting the annual budget, appointing committees, serving as
the Board of Finance and the Indigent Board, and hiring the County Manager. The County Manager is
responsible for carrying out the policies and ordinances of the County Commission and overseeing the
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day-to-day operations of the County, coordinating with the Commission and Department Directors as
well as the other County Elected Officials (Assessor, Clerk, Probate Judge, Sheriff and Treasurer). All
County elected officials are elected on a staggering basis to serve four-year terms.
Lea County offers a full range of services, including fire protection, through three volunteer fire stations
and one Airport Fire Facility at Lea Regional Airport. Staffing includes a County Fire Marshal along
with two paid firefighters and forty-one volunteers. The County is currently in the construction phase of
an additional fire station and has plans to add another one by the end of FY 24. The County also
provides for the enjoyment and protection of its citizens through the Sheriff’s Office, Road Department,
Environmental Services, DWI/Misdemeanor Compliance, and Detention Center. Lea County provides
commercial jet service to Houston and Denver in partnership with the City of Hobbs and the Economic
Development Corporation of Lea County. The Lea County Event Center and the Lea County
Fairgrounds provide many entertainment options for citizens. The annual Lea County Fair & Rodeo is
recognized as one of the top fairs in New Mexico. In addition, the County Assessor, Clerk, Probate
Judge and Treasurer provide document recording, property tax assessments, tax collections and probate
services.
Lea County is the fiscal agent for three separate legal entities, the Lea County Solid Waste Authority,
Lea County Communications Authority and the Lea County Water Users Association. Each of these
entities has a board who is responsible for the oversight of the entity.
The annual budget serves as the foundation for Lea County’s financial planning and control. The
County Commission is required to annually approve and submit an interim budget by June 1st and a final
approved budget by July 31st to the New Mexico Department of Finance and Administration (DFA) for
their review and approval. The legal level of budgetary control is defined at the fund level, the lowest
level of which the County’s Management may not reallocate resources or make over expenditures
without the approval of the Commission. The appropriated budget is prepared by fund and department.
All budget adjustments between line items must be approved by the County Commission. All budget
increases and transfers between funds must also be approved by the DFA. The Commission also
annually approves the five-year Infrastructure Capital Improvement Plan (ICIP). The capital
improvement process entails input from County staff, citizens, social organizations and the community
and is submitted to the County Commission for discussion and approval at a regularly scheduled
meeting. Both short-term and long-term capital infrastructure needs are identified and prioritized based
on existing health and safety hazards, requirement by law, regulation or court mandate, whether it is
critical to structural integrity, impact on the operating budget, and scheduling. Potential sources of
funding are identified for each project. The County’s approved ICIP is then incorporated into the State
of New Mexico’s capital planning process. The Commission also updates and monitors the Strategic
Plan which outlines goals and accomplishments for each department.
FACTORS AFFECTING FINANCIAL CONDITION
Local Economy: Lea County is located in the Permian Basin, which is one of the most prolific oil & gas
producing basins in the world. As a result, Lea County became the number one (#1) oil producing
County in the United States in December 2019 and has held the title each month since. Although the oil
industry is highly cyclical and subject to wide swings it is the main driver for economic activity in the
region. When oil prices are strong the area is “booming” and when they collapse it is a “bust”. Retail,
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food service, hospitality, construction, etc. are all dependent upon the activity in the oil industry.
The oil and gas industry is the major contributor to Lea County’s revenue base in most years. The
County receives revenue from an Oil & Gas Production Revenue Tax that can vary sharply depending
on whether the County is in a boom or bust period. For example, Oil & Gas Production Revenue went
from $19,597,346 in FY 16 to a record $136,145,643 in FY 22, an increase of 595%. Although oil &
gas production in the County has continued to increase, the major factor impacting oil & gas revenue in
FY 22 was the rapid increase in oil & gas prices during the year. The price increases were mainly due to
increased demand coming out of the pandemic and policies from the new administration that has
impacted production in the United States. The Russia invasion of Ukraine and the world response to
that has also contributed to price increases. The County also receives Oil & Gas Equipment Taxes that
are based upon the value of oilfield equipment used in Lea County. Property taxes make up the other
major source of revenue but are more stable in nature due to state tax statutes. Gross Receipt Taxes
(GRT) has become another major source of revenue. GRT revenue is driven by the drilling rig count
and the County has seen record drilling activity over the past year. It is also subject to volatility and is
susceptible to the boom or bust cycle.
In order to lessen dependency on the oil industry, the County has worked diligently to diversify the
economy and has become a factor in the nuclear energy industry. In 2010, Urenco USA, opened a
uranium enrichment facility that employs more than 230 near Eunice, New Mexico. Currently, the
Eddy-Lea Energy Alliance, an organization composed of Eddy County, Lea County, the City of Hobbs
and the City of Carlsbad, has signed an agreement with Holtec International to build an interim nuclear
waste storage facility near the Eddy and Lea County lines subject to federal licensing approval. It is
expected that the license will be issued sometime in early 2023. The current state and federal
administrations continue to focus on climate change and eliminating fossil fuels which results in policies
that are highly detrimental to the future of the oil & gas industry. Lea County will continue to monitor
future legislation in order to assess the impact to the budget.
The service industry in Lea County was severely impacted by the COVID-19 pandemic and oil price
crash back in 2021 but has rebounded back to record retail sales. New businesses have opened and
many other are planned. Some of the recent additions include a Hotworx, T-Mobile Store and Dunkin
Donuts in Hobbs, a new Lea County State Bank Drive-in facility and Estacado Credit Union in Eunice.
There are also four new boutiques, a Cricket Wireless, nail salon, real estate agency and insurance
agency that have opened up in Lovington. Jal has seen the renovation and expansion of the local
Allsup’s Convenience Store. Effective June 29, 2021, the State of New Mexico approved the use of
cannabis for legal consumption. Entrepreneurs were allowed to start selling cannabis products through
retail stores beginning April 1, 2022. Several cannabis stores have opened up in Hobbs, Jal, Lovington
and Tatum. Sales have been strong early on and with the County bordering Texas sales are only
expected to increase over time.
There are numerous projects under construction in 2022 and beyond. Covenant Hospital is currently
completing construction on a new 109,794 square-foot, 60 bed hospital in Hobbs. The opening is
planned for September 2022. The total cost of the project is expected to be $62 million. Once open, the
facility will employ between 200-250 and include a full range of healthcare services. Hobbs Municipal
Schools has opened a new $46 million Career Technical Education Center located at Hobbs High
School. The Center provides a variety of technical training programs for area students. In conjunction
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with Lea County, Nor-Lea Hospital has completed construction on a project to expand their medical
clinic located in Hobbs. Hilton is nearing completion of a new Home2 Suites in Hobbs.
There are also numerous projects in the planning stages for 2022 and beyond. Louth Callan Renewables
has signed an agreement with the City of Lovington to construct a 300 megawatt solar installation on
land in the city’s industrial park. Construction is expected to begin by the 4th quarter of 2023.
Lovington will also see several new businesses in the future with the construction of a hotel, car wash
and retail clothing store. New businesses with plans to open stores in Hobbs during FY 23 include
Marshalls, Ross Dress for Less, PetSmart, Boot Barn, Famous Footwear, Popeye’s, and a new indoor
trampoline park.
There are also several housing sub-divisions under development that will add more than 1,000 new
homes along with the completion of the Sky View Apartments and an expansion of the Sorrento
Apartments.
Lea County has completed the expansion of the terminal building, and parking lot and rebuilt the aprons
at Lea Regional Airport that will enable the County to provide increased air service to Houston and
Denver. In FY 23, the County will begin a project to lengthen the main runway at Lea Regional Airport
in order to serve the larger commuter jets that are being placed into service.
As FY 22 comes to an end, the future looks bright for Lea County. Oil and gas production continues to
be strong in spite of the constant attacks by the state and federal administrations. This has created many
opportunities for Lea County residents and those looking to relocate here. However, the County remains
cautious due to the extreme volatility of the oil and gas industry. History shows that it is not if, but
when, a downturn will occur and the County has put itself in a strong position to withstand those
pressures.
Financial Planning: The County is currently updating the five-year strategic plan that outlines both
short-term and long-term goals. The plan was approved by the Commission in April 2016 and is
scheduled to be updated during FY 23. The plan is a result of discussions with elected officials,
department directors, local leaders and citizens on how the County can best address the needs of the
citizens. A copy of the strategic plan can be obtained on the County website at www.leacounty.net or
from the County Manager.
Due to the volatility of revenue sources associated with the oil and gas industry, Lea County prepares a
five-year General Fund financial forecast based upon current conditions along with future revenue and
expenditures assumptions. This allows County officials to evaluate the long-term impact of those
assumptions and guide them in making better informed budget decisions. The County Commission is
required by the State to annually prepare a five-year Infrastructure Capital Improvement Plan (ICIP)
prioritizing capital projects and identifying potential funding sources. The top five ICIP projects
approved for the 2024-2028 ICIP cycle include:
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Project Projected Project Cost Funded to Date Amount to Fund
Lea County Courthouse
Remodel $40,000,000 $30,000,000 $10,000,000
Detention Center
Renovation Project $28,500,000 $12,000,000 $16,500,000
Knowles Road
Reconstruction $1,870,000 $510,000 $1,360,000
Event Center
Infrastructure $20,513,000 $10,750,000 $9,943,000
Technology
Infrastructure $3,500,000 $600,000 $2,900,000
Cash Management: The state DFA requires New Mexico counties to maintain a cash balance in the
General Fund of at least 3/12th (25%) of the General Fund’s budgeted expenditures and a 1/12th
(8.3334%) reserve for county road funds in order to maintain adequate cash flow until the next
significant property tax collection. Effective July 1, 2022, the County has enacted a local option to
establish a local General Fund reserve of one year of General Fund’s budgeted expenditures plus one
year of budgeted transfers for operations. The County also directed that funds in excess of the required
and local reserves be transferred to the Capital Projects and reserved for future capital needs. At June
30, 2022, the County had required reserves of $12,721,834 and $2,615,794 for the General Fund and
Road Fund, respectively. The County also has $85,975,390 reserved for local option General Fund
reserves and $76,296,696 reserved for capital. Based upon on the ending General Fund balance at June
30, 2022 of $109,357,804, the County had funds available in excess of required and local reserves of
$10,660,580. The County Commission elected to establish these local reserves to protect against sudden
swings in revenue caused by price changes in the oil industry as was seen in late FY 20 and early FY 21.
Awards and Acknowledgments: Lea County received the Government Finance Officers Association
(GFOA) Distinguished Budget Presentation award for the FY 21 Program Budget. Entities that receive
the Distinguished Budget award are considered those who have prepared the highest quality budget
documents. This is the 7th year that the County has received the GFOA budget award.
A Certificate of Achievement is valid for a period of one year only. Lea County believes that our
current budget continues to meet the Distinguished Budget Presentation award program’s requirements
and we are submitting the budget to the GFOA to determine its eligibility for another certificate.
Lea County received the Audit & Accountability Award Mid-Size Counties for FY 20. The award is
given annually by the New Mexico Office of State Auditor and the New Mexico Association of
Counties. This marks the third consecutive year that the County has received the award.
Lea County is submitting this Comprehensive Annual Financial Report for consideration of the GFOA’s
Certificate of Achievement for Excellence in Financial Reporting for the year ended June 30, 2022. To
be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently
organized comprehensive annual financial report. This report must satisfy both generally accepted
accounting principles and applicable legal requirements. This is the third year that Lea County has
sought this GFOA award.
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We would like to express our appreciation to each member of the Finance Department, Assessor’s
Department and Treasurer’s office that assisted and contributed to the preparation of this report. This
final report would not have been possible without their dedication and professionalism. We also extend
our appreciation to the County Commission for their continued support in maintaining the highest
standards making it possible to meet the needs of Lea County’s citizens and visitors.
Mike Gallagher, ICMA-CM Chip Low, CPA CGMA
County Manager Finance Director
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Table of Contents
Board of Commissioners
12
Table of Contents
13
Table of Contents
Elected Officials
Management
14
Table of Contents
15
Lea County Organizational Chart
Citizens of Lea County
Lea County
Treasurer
Lea County
Sheriff
Lea County
Assessor
Lea County
Manager
Lea County
Probate Judge
Lea County
Clerk
Appointed
Boards &
Committees
Lea County
Bureau of
Elections
Lea County
Board of County
Commissioners
Lea County
Drug Task
Force
Assistant
County
Manager
DWI
Program
Detention
Human
Resources
Legal Finance
Public Works
Department
Emergency Mgmt. &
Environmental
Services
Fire Depts.
Facilities
Department
Water
Service
Farm &
Range
Airports
Road
Department
Planning
Department
Trust &
Agency
Events
EMS
Other
Grants
Floodplain
Code
Enforcement
Solid Waste
Public
Information
Community
Engagement
Information
Technology
Community
Centers
Misdemeanor
Compliance
DWI
Treatment
Fairgrounds
Event
Center
Capital
Projects
Monument
Fire Dept.
Zip Franklin
Jal Airport
Lea Regional
Airport Fire
Dept.
Knowles Fire
Dept.
Maljamar
Fire Dept.
Fire Marshal
Knowles
EMS
Monument
EMS
Maljamar
EMS
LCCA
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16 Table of Contents
Financial Section
17
INDEPENDENT AUDITOR’S REPORT
To Brian S. Colón, Esq.
New Mexico State Auditor
The County Commission
Lea County
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business‐type activities, each
major fund, and the aggregate remaining fund information, and the budgetary comparisons for the
general fund and major special revenue funds of Lea County, New Mexico (“County”), as of and for the
year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise
the County’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements present fairly, in all material respects, the
respective financial position of the governmental activities, the business‐type activities, each major fund,
and the aggregate remaining fund information of the County as of June 30, 2022, and the respective
changes in financial position and, where applicable, cash flows thereof and the respective budgetary
comparisons for the general fund and major special revenue funds for the year then ended in accordance
with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements
section of our report. We are required to be independent of the County and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
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Responsibilities of Management for the Financial Statements
The County’s management is responsible for the preparation and fair presentation of the financial
statements in accordance with accounting principles generally accepted in the United States of America,
and for the design, implementation, and maintenance of internal control relevant to the preparation and
fair presentation of financial statements that are free from material misstatement, whether due to fraud
or error.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the County’s ability to continue
as a going concern for one year after the date that the financial statements are available to be issued.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a
material misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control. Misstatements are considered material
if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment
made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the County’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control–related
matters that we identified during the audit.
19
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis on pages 22‐33, Schedules of the County’s Proportionate Share of the Net Pension
Liability and Net OPEB Liability, and the Schedules of the County’s Contributions, on pages 95‐100 be
presented to supplement the basic financial statements. Such information is the responsibility of
management and, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient evidence
to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the County’s basic financial statements. The combining and individual nonmajor fund financial
statements and schedules, introductory section, and statistical section, as listed in the table of contents,
are presented for purposes of additional analysis and are not a required part of the basic financial
statements. The Schedule of Expenditures of Federal awards as required by Title 2 U.S. Code of Federal
Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards, the financial data schedules, as required by 2.2.2 NMAC is also
presented for purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements, the Schedule of Expenditures of
Federal awards, the financial data schedules as required by 2.2.2 NMAC as noted in the table of contents
are the responsibility of management and were derived from and relates directly to the underlying
accounting and other records used to prepare the basic financial statements. Such information has been
subjected to the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the combining and individual nonmajor fund
financial statements and the Schedule of Expenditures of Federal awards as required by 2.2.2 NMAC as
noted in the table of is fairly stated, in all material respects, in relation to the basic financial statements
as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any
assurance on them.
20
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November 30,
2022 on our consideration of the County’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is solely to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of internal control over financial reporting or on compliance. That report is an integral part
of an audit performed in accordance with Government Auditing Standards in considering the County’s
internal control over financial reporting and compliance.
Pattillo, Brown & Hill, L.L.P.
Albuquerque, New Mexico
November 30, 2022
21
Lea County, New Mexico
Management Discussion and Analysis
June 30, 2022
As management of Lea County, we offer readers of Lea County’s financial statements this narrative overview and
analysis of the financial activities of Lea County for the fiscal year ended June 30, 2022. We encourage readers to
consider the information presented here in conjunction with additional information that we have furnished in our
letter of transmittal, which can be found at the beginning of this report.
Financial Highlights
The assets and deferred outflows of Lea County exceeded its liabilities and deferred inflows at the close of
the most recent fiscal year by $516,889,891 (net position). Of this amount, $67,378,044 was reported as
unrestricted net position.
Total net position increased by $153,349,242 due to the increase in revenue generated from increased
activity in the oil and gas industry. The County has a history of conservative budgeting which recognizes
the volatility of oil and gas revenue and the need for strong cash reserves.
Total expenditures increased by $15,689,145 from the prior year due to the rebounding economy after
the COVID pandemic. The County also increased employee pay across the board and increased the
amount of services provided during the year. The County did not issue any new debt during the fiscal
years and continues to be debt free.
As of the close of the current fiscal year, Lea County’s governmental funds reported combined ending
fund balances of $318,109,020, increasing $146,727,534 from the prior year. Approximately 35.5% of this
total fund balance amount, $112,794,112, is available for spending at the government’s discretion
(unrestricted fund balance).
At the end of the current fiscal year, unrestricted fund balance for the General Fund was $112,795,315, or
more than 3x total general fund expenditures.
The County saw record revenues in the fiscal year due to increased oil and gas production and the
increases in oil and gas prices due to the current political and economic climate and the war in the
Ukraine.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to Lea County’s basic financial statements. Lea
County’s basic financial statements consist of three components: 1) government‐wide financial statements, 2) fund
financial statements, and 3) notes to the financial statements. This report also contains required and other
supplementary information in addition to the basic financial statements themselves.
22
Lea County, New Mexico
Management Discussion and Analysis
June 30, 2022
Government‐Wide Financial Statements
The government‐wide financial statements are designed to provide readers with a broad overview of Lea County’s
finances, in a manner similar to private sector businesses. These statements consist of the Statement of Net
Position and the Statement of Activities.
The Statement of Net Position presents information on all of Lea County’s assets and deferred outflows, liabilities
and deferred inflows, with the difference between the two reported as net position. Over time, the increases or
decreases in net position may serve as a useful indicator of whether the financial position of Lea County is
improving or deteriorating.
The Statement of Activities presents information showing how the County’s net position changed during the most
recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of related cash flows. Thus, revenues and expenses are reported in this statement for
some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused
vacation leave).
Both of the government‐wide financial statements distinguish functions of Lea County that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that are
intended to recover all or a significant portion of their costs through user fees and charges (business‐type
activities). The governmental activities of Lea County include general government, public safety, public works,
health and welfare, culture and recreation, and environmental. Lea County has a water service system to provide
water to industrial sites located in the County. During the current fiscal year, there were no businesses that were
purchasing water from the County.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated
for specific activities or objectives. Lea County, lie other state local governments, uses fund accounting to ensure
and demonstrate compliance with finance‐related legal requirements. All of the funds of Lea County can be
divided into three categories: governmental funds, proprietary funds and fiduciary funds. The County has one
proprietary fund.
Governmental Funds
Governmental Funds are used to account for essentially the same functions reported as governmental activities in
the government‐wide financial statements. However, unlike the government‐wide financial statements,
governmental fund financial statements focus on near‐term inflows and outflows of spendable resources, as well as
on balances of spendable resources available at the end of the fiscal year. Such information may be useful in
evaluating a government’s near‐term financing requirements.
Because of the focus of governmental funds is narrower than that of the government‐wide financial statements, it
is useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government‐wide financial statements. By doing so, readers may better understand
the long‐term impact of the government’s near‐term financing decisions. Both the governmental fund balance
23
Lea County, New Mexico
Management Discussion and Analysis
June 30, 2022
sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a
reconciliation to facilitate this comparison between governmental funds and governmental activities.
Lea County maintains 40 individual governmental funds. Information is presented separately in the governmental
fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund
balances for the General Fund, Road Fund, Detention Facility and Capital Projects Fund, all of which are considered
major funds. Governmental fund balances are classified as non‐spendable, restricted, committed, assigned, or
unassigned. Data from the remaining governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these non‐major funds is provided in the form of combining statements elsewhere
in this report.
Lea County adopts an annual appropriated budget for all of its governmental funds. Budgetary comparison
statements have been provided for the governmental to demonstrate budget compliance.
Proprietary and Internal Service Funds
Proprietary funds are used to report the same functions presented as business‐type activities in the government‐
wide financial statements. Internal service funds are an accounting device used to accumulate and allocate costs
internally among various functions. Lea County had proprietary fund at the end of the current fiscal year.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary
funds are not reflected in the government‐wide financial statement because the resources of those funds are not
available to support Lea County’s own programs. The accounting used for fiduciary funds is much like that used for
proprietary funds. Lea County uses a fiduciary fund mainly to distribute property taxes, including oil and gas
equipment and production taxes, collected on behalf of municipalities, schools, college and
conservancy/irrigation/water districts.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the
government‐wide and fund financial statements.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents combining and
individual fund statements and schedules that further support the information in the financial statements.
24
Lea County, New Mexico
Management Discussion and Analysis
June 30, 2022
Government‐Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the
case of Lea County, total assets and deferred outflows exceeded liabilities and deferred inflows by $516,889,891 at
the close of the most current fiscal year. Below is a chart indicating the net position changes over the past five
fiscal year.
In FY 22, 47.2% of Lea County’s net position reflects its investment in capital assets (e.g. land, buildings, machinery,
equipment, and infrastructure) less any related debt used to acquire those assets that is still outstanding (net of
unspent proceeds). Lea County uses these capital assets to provide services to citizens; consequently, these assets
are not available for future spending. The amount over the net position is due to the required reporting of the
County’s proportion of net pension and OPEB liabilities totaling $56,413,298 at June 30, 2022. Although Lea
County’s investment in its capital assets is reported net of related debt, it should be noted that the resources
needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be
used to liquidate these liabilities. It should be also noted that Lea County has no outstanding debt at June 30,
2022.
25
Lea County, New Mexico
Management Discussion and Analysis
June 30, 2022
An additional portion of Lea County’s Net Position, $205,314,908, represents resources that are subject to external
restrictions on how they may be used (restricted net position). The remaining balance of $68,003,305 represents
unrestricted net position.
Net position increased by $153,974,503, an increase of 42.35% from the prior year fiscal year. This is greater than
the prior two fiscal years when the increase in net position was 18.18% and 13.91%, respectively. The large
increase in net position over prior years is due increased oil and gas production in the County along with higher oil
and gas prices resulting from the war in the Ukraine and the efforts by the current state and federal administration
to curb oil and gas production. Although revenue is increasing, the County has maintained a commitment to
conservative budget management due to the extreme volatility of the oil and gas economy.
FY 22 FY 21 FY 22 FY 21 FY 22 FY 21
Cash & Cash Equivalents 284,287,576$ 153,603,782$ 340,536$ 341,191$ 284,628,112$ 153,944,973$
Investments 17,778,862 11,673,024 ‐ ‐ 17,778,862 11,673,024
Receivables 25,894,693 10,584,939 ‐ ‐ 25,894,693 10,584,939
Capital Assets 243,943,212 237,343,176 2,923,009 2,923,009 246,866,221 240,266,185
Total Assets 571,904,343 413,204,921 3,263,545 3,264,200 575,167,888 416,469,121
Deferred Outflows ‐ Pension Related 5,156,275 15,307,242 ‐ 5,156,275 15,307,242
Deferred Outflows ‐ OPEB Related 4,339,990 5,284,088 ‐ 4,339,990 5,284,088
Total Deferred Outflows 9,496,265 20,591,330 ‐ ‐ 9,496,265 20,591,330
Current Liabilities 7,135,533 4,887,109 ‐ 7,135,533 4,887,109
Long‐Term Liabilities 38,582,769 61,583,898 ‐ 38,582,769 61,583,898
Total Liabilities 45,718,302 66,471,007 ‐ ‐ 45,718,302 66,471,007
Deferred Inflows ‐ Pension Related 10,899,068 350,270 ‐ 10,899,068 350,270
Deferred Inflows ‐ OPEB Related 7,883,729 6,698,525 ‐ 7,883,729 6,698,525
Leases 2,647,902 ‐ ‐ 2,647,902 ‐
Total Deferred Inflows 21,430,699 7,048,795 ‐ ‐ 21,430,699 7,048,795
Net Investment in Capital Assets 241,273,930 237,343,176 2,923,009 2,923,009 244,196,939 240,266,185
Restricted Assets 205,314,908 21,846,168 ‐ ‐ 205,314,908 21,846,168
Unrestricted Assets 67,662,769 101,087,105 340,536 341,191 68,003,305 101,428,296
Total Net Position 514,251,607$ 360,276,449$ 3,263,545$ 3,264,200$ 517,515,152$ 363,540,649$
Governmental Activities Business Activities Total
Lea County's Net Position
26
Lea County, New Mexico
Management Discussion and Analysis
June 30, 2022
Governmental and Business‐Type Activities
The following table provides a summary of the County’s operations for the year ended June 30, 2022.
Governmental activities increased Lea County’s net position by $153,975,158. Key elements of this increase are as
follows:
Revenues: Revenues in FY 22 increased from FY 21 by 92.71%.
Property taxes increased by 18.27% to $31,329,152. This is due to increased property tax values and
more investment by oil and gas producers in production and transportation facilities.
Oil & Gas Production and Equipment Tax revenue increased by 129% to $144,442,740. Oil and gas
production has continued to increase over the past year which contributed to the increase. However, the
major impact on revenue was the increase in oil and natural gas sale prices. In FY 21, the average sale
price of oil and gas was $39.23/bbl. and $3.02/mcf. For FY 22, the average for oil was $76.04/bbl. and
$6.34/mcf. That is an increase in average price of 93.8% for oil and 109% for natural gas. Lea County
continues to be the #1 oil producing County in the United States.
Lea County's Changes in Net Position
Governmental Activities Business Activities Total
FY 22 FY 21 FY 22 FY 21 FY 22 FY 21
Revenues:
Program Revenues
Charges for Services 5,037,247$ 3,560,104$ ‐$ ‐$ 5,037,247$ 3,560,104$
Operating Grants & Contributions 11,041,880 5,874,933 ‐ ‐ 11,041,880 5,874,933
Capital Grants & Contributions 1,679,398 3,262,918 ‐ ‐ 1,679,398 3,262,918
General Revenues
Property Taxes 31,329,152 26,487,711 ‐ ‐ 31,329,152 26,487,711
Oil & Gas Taxes 144,442,740 63,106,009 ‐ ‐ 144,442,740 63,106,009
Gross Receipt Taxes 32,039,356 15,504,127 ‐ ‐ 32,039,356 15,504,127
Gas/Motor Vehicle Taxes 289,994 297,959 ‐ ‐ 289,994 297,959
Sale of Capital Assets ‐ ‐ ‐ ‐ ‐ ‐
Payments in Lieu of Taxes 3,037,836 3,024,065 ‐ ‐ 3,037,836 3,024,065
Investment Earnings 6,427,747 521,104 ‐ ‐ 6,427,747 521,104
Miscellaneous 1,077,319 1,032,146 ‐ ‐ 1,077,319 1,032,146
Total Revenues 236,402,669 122,671,076 ‐ ‐ 236,402,669 122,671,076
Expenses
General Government 27,145,290 21,522,923 ‐ ‐ 27,145,290 21,522,923
Public Safety 29,911,753 24,644,412 ‐ ‐ 29,911,753 24,644,412
Culture & Recreation 4,333,082 1,930,907 ‐ ‐ 4,333,082 1,930,907
Health & Welfare 9,224,566 10,992,138 ‐ ‐ 9,224,566 10,992,138
Public Works 11,812,820 7,648,641 ‐ ‐ 11,812,820 7,648,641
Capital Outlay ‐ ‐ ‐ ‐ ‐ ‐
Business Type Activities ‐ ‐ 655 ‐ 655 ‐
82,427,511 66,739,021 655 ‐ 82,428,166 66,739,021
Change in Net Position 153,975,158 55,932,055 (655) ‐ 153,974,503 55,932,055
Net Position Beginning 360,276,449 304,344,394 3,264,200 3,264,200 363,540,649 307,608,594
Net Position Ending 514,251,607$ 360,276,449$ 3,263,545$ 3,264,200$ 517,515,152$ 363,540,649$
27
Lea County, New Mexico
Management Discussion and Analysis
June 30, 2022
Gross Receipts Tax Revenue (GRT) increased by $16,535,229 to $32,039,356, an increase of nearly 107%.
GRT revenue in Lea County is driven by the average daily oil rig count which increased from an average of
27.5 rigs daily in FY 21 to almost 51 rigs during FY 22. This is an increase of 84%.
Payments in Lieu of Taxes (PILT) – PILTs are composed of two types, federal and local. The federal
government owns approximately 31% of the land in Lea County and has agreed to pay an annual PILT.
The other type of PILT comprises payments due from companies that have agreed to a payment in lieu of
taxes in order to invest in Lea County. PILTs received in 2022 are in line with those received in 2021.
Grant funding increased due to the receipt of American Rescue Plan funding in the amount of $6.9 million.
Other revenue increased by $7,428,959, an increase of 145%. This was due mainly to an increase in
investment income of $5,906,643 which resulted from higher returns and an increase in funds available
for investment.
FY 22 was a record year for revenues in Lea County. The County is highly dependent on the oil and gas industry for
economic vitality and the past fiscal year has been nothing short of amazing.
Expenses: Expenses in FY 22 increased by 23.5% from the prior fiscal year.
During the COVID‐19 pandemic the County had made 10‐20% cuts in operations and froze all open
positions. With the pandemic ending and revenue streams returning to normal and increasing the County
was able to open up all frozen position and increase budgeted spending back to pre‐COVID levels.
The County increased all staff pay during FY 22 by up to 15% is some cases. This was to address market
issues in pay.
Lea County has over 1,200 miles of county roads with more than 700 miles paved. The County continually
works to maintain these roads and increase the amount of paved roadways each year. The increase in
public works expenses is mainly due to work performed on county roads.
Due to the volatility of the oil and gas industry, Lea County continues to budget on a conservative basis. The oil
and gas industry is subject to world‐wide geo‐political pressures that the County has no control over. History has
shown that the industry can turn negative and collapse with little warning. Therefore, the County has set aside
considerable reserves to protect against those potential downturns.
Business‐Type Activities had no operating revenue and only $665 in expenses in the current year. Lea County has
developing an industrial park and has installed a water system to provide water to potential tenants. There were
no business purchasing water from Lea County during the current fiscal year. The current net position includes
$2,923,009 of net capital investment in water system infrastructure.
28
Lea County, New Mexico
Management Discussion and Analysis
June 30, 2022
Financial Analysis of the Government’s Funds
As noted earlier, Lea County uses fund accounting to ensure and demonstrate compliance with finance‐related
legal requirements.
Governmental Funds
The focus of Lea County’s governmental funds is to provide information on near‐term inflows, outflows and
balances of spendable resources. Such information is useful in assessing Lea County’s financing requirements. In
particular, unrestricted fund balance (consisting of committed, assigned, and unassigned balances) may serve as a
useful measure of a government’s net resources available for spending at the end of the fiscal year.
At the end of the current fiscal year, Lea County’s governmental funds reported combined ending fund balances of
$318,109,020, and increase of $147,352,795 in comparison with the prior year’s fund balance. The increase is
attributable to the much higher than anticipated sale prices for oil and gas along with the increasing county
production. Due to the conservative management view, the County did not increase expenditure budgets by the
same percentage as revenue increases.
Approximately 35% of this total amount, or $112,795,315 constitutes unrestricted fund balance which is available
for spending at the government’s discretion. The remainder of fund balance is restricted to indicate that it is not
available for new spending because it has already been restricted for the following purposes: General Fund
($12,721,834), Road Fund ($23,857,210), Capital Projects ($109,843,959), Detention Center ($12,357,485) and
other purposes ($46,534,420). A detailed listing of governmental fund balances by classification in accordance
with GASB 54 can be found in Note 1 – Summary of Significant Accounting Policies.
The General Fund is the chief operating fund of Lea County. At the end of the current fiscal year, the unrestricted
fund balance of the General Fund was $112,795,315, while the total fund balance reached $125,517,149. As a
measure of the General Fund’s liquidity, it may be useful to compare both unrestricted and total fund balance to
total fund expenditures. Unrestricted fund balance represents more than 3 times the total of General Fund
expenditures.
The fund balance of the General Fund decreased by $30,935,174 from the prior fiscal year. This decrease in the
General Fund is due to the County committing more than $100,000,000 to future capital projects and transferring
the money to the respective funds.
Major Funds
Other key governmental‐type fund (major funds), other than the General Fund, include the Road Fund, Detention
Facility and the Capital Projects Fund.
The Road Fund accounts for all of the revenues and expenditures of the County Road Department. Lea County
maintains over 1,200 miles of roadways of which more than 700 are paved. The County receives funding from the
state to help offset the cost of road maintenance. During FY 22, Lea County invested more than $12.2 million in
reconstructing and maintaining roadways throughout the County.
The Detention Fund accounts for all of the costs of housing detainees being held for court appearances or serving
short‐term sentences. Lea County also has agreements with other Counties and municipalities to house their
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Lea County, New Mexico
Management Discussion and Analysis
June 30, 2022
prisoners as needed on a per diem basis. The Detention Center also has an agreement with US Marshal’s Office to
house federal inmates on a temporary basis for a per diem charge. During FY 22, the Detention Center had an
operating deficit of $9,359,637 that was covered by transfers from the General Fund. The County is required by
state statute to provide these services at the County’s cost.
The Capital Projects Fund accounts for all of the capital expenditures of the County that are not associated with
other funding sources or special revenue funds. Total expenditures for FY 22 were $7,409,281. Expenditures in
the current year included $2.6 million for expansion of a County medical clinic, $1.2 million for the completion of a
new judicial complex and more than $1.0 million for new vehicles.
General Fund Budgetary Highlights
During the fiscal year, the County Commission approved adjustments to the County’s budget. The Finance
Department strives to complete budget adjustments on an as needed basis to help keep the budget up‐to‐date
and maintain services to the County. The General Fund’s final amended budget $140,080,840 more than the
original estimates and the expenditures budget was $6,736,029 more than the original expenditure budget. The
main budgetary highlights can be summarized as follows:
At the end of the fiscal year, the County Commission approved a plan to reserve one year of budgeted
General Fund expenditures plus one year of General Fund transfers for operations. This amount was in
addition to the state required 25% General Fund budget reserve requirement. Amounts beyond this were
designated by the Commission as reserved for future capital and transferred to the Road Fund
($15,650,000), Detention Facility ($5,480,000), Capital Projects Fund ($81,458,677), Airports ($6,845,350),
Event Center ($9,395,000), Fairgrounds ($2,572,000) and other funds ($40,000). The total transfers of
$121,441,027 required that the County make a revenue budget adjustment of $132,177,949 to maintain
compliance with state budget rules. The remaining increase of $7,902,891 compares with the
expenditure increase of $6,736,029.
General Fund expenditures were $7,067,677 less than budgeted (16.07%). Historical data indicates that
the County normally spends approximately 85% of budgeted expenditures. The current year variance is in
line with prior year averages. Expenditures for payroll were also in line with historical averages.
Capital Asset and Debt Administration
Capital Assets
Lea County’s investment in capital assets for its governmental activities as June 30, 2022 amounts to $246,866,221
(net of depreciation) as compared to $240,266,185 in the prior fiscal year. This investment in capital assets
included land, buildings and improvements, machinery and equipment, roads, bridges and construction in
progress. The County also has $2,850,540 (net of depreciation) in a water system that is accounted for in business‐
type activities.
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Lea County, New Mexico
Management Discussion and Analysis
June 30, 2022
Major capital asset projects completed during the current fiscal year includes the following:
Expand the Dal Paso Medical Clinic in conjunction with Nor‐Lea Hospital District in the amount of
$2,600,000.
Finishing work on the new Lea County Judicial Complex at a cost of $1,252,834.
Expansion of the Lea Regional Airport Terminal (TSA improvements) at a cost of $443,859.
The County also started several projects that were still under construction at June 30, 2022. Those projects
include:
Marathon Road reconstruction at a cost of $4,727,728.
Kansas Road reconstruction at a cost of $2,661,012.
Widen and overlay Stanolind Road at a cost of $1,262,662.
Battle Axe Road widening project at a cost of $1,631,061.
Construction of Knowles Fire Station #2 at a cost of $969,551.
Event Center renovations at a cost of $1,148,183.
Lea Regional Airport Runway extension project at a cost of $1,926,220.
Additional information on Lea County’s capital assets can be found in Note 10 – Changes in Capital Assets.
FY 22 FY 21 FY 22 FY 21 FY 22 FY 21
Buildings 101,310,209$ 99,177,493$ ‐$ ‐$ 101,310,209$ 99,177,493$
Infrastructure 97,716,908 99,097,858 ‐ ‐ 97,716,908 99,097,858
Land 9,519,443 9,519,442 ‐ ‐ 9,519,443 9,519,442
Machinery & Equipment 8,089,652 8,540,950 ‐ ‐ 8,089,652 8,540,950
Other Improvements 4,861,753 4,818,092 ‐ ‐ 4,861,753 4,818,092
Vehicles 6,068,626 6,821,723 ‐ ‐ 6,068,626 6,821,723
Water Rights ‐ ‐ 575,000 575,000 575,000 575,000
Construction in Progress 16,376,621 9,367,618 2,348,009 2,348,009 18,724,630 11,715,627
243,943,212$ 237,343,176$ 2,923,009$ 2,923,009$ 246,866,221$ 240,266,185$
Governmental Activities Business Activities Total
Lea County's Capital Assets (net of depreciation)
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Lea County, New Mexico
Management Discussion and Analysis
June 30, 2022
Long‐Term Debt
Lea County had no outstanding debt during the FY 22 fiscal year and no plans to issue any debt in the foreseeable
future.
More information concerning outstanding debt and compensated absences can be found in Note 11.
Credit Ratings
At the time of retirement in December 2019, Lea County’s Series 2013 Refunding Bonds were rated A1 by
Moody’s.
Debt Limitations
New Mexico state statutes limit the amount a county may issue in general obligation bonds to 4% of the total
assessed value of the property within the County. Lea County’s total assessed value at the close of the current
fiscal year was $7,334,490,186. Thus, Lea County’s legal debt limit is $293.38 million. Lea County has no general
obligation bonds outstanding at the close of the current fiscal year.
Economic Factors and Next Year’s Budget and Tax Rates
The price of oil and gas in FY 22 coupled with record oil and gas production pushed Lea County revenues
to record levels. However, the oil and gas industry is controlled by factors that are beyond the control of
Lea County and are subject to potentially extreme volatility. Therefore, the County continues to maintain
a conservative long‐term view when planning and budgeting.
The implemented property tax rate continues to be $10.60 per thousand dollars of valuation.
The gross receipt tax rate for the County is currently 5.375%. 5.00% goes to the state and the remaining
.375% stays in Lea County. The County shares the lowest gross receipt tax rate in the state with one other
County.
The County increased the overall revenue budget for FY 23. However, the County continues to be
conservative in revenue budgeting due to the volatility of the oil and gas industry. During the COVID‐19
pandemic, the County saw an 83% decrease in monthly revenue over the course of 3 months before it
began to rebound.
The County Commission approved the addition of 23 new positions for the FY 23 fiscal year. No salary
increases were approved due to salary adjustments that were made during the FY 22 fiscal year.
The County continues to maintain the same level of benefits as in prior years. The County Commission did
approve a plan where the County would increase the amount of employee share of PERA contributions
paid by the County from 50% to 75%.
32
Lea County, New Mexico
Management Discussion and Analysis
June 30, 2022
The County has obligated $8.2 million of the American Recovery Plan funding to renovate the Detention
Center to improvement health and living conditions. The remaining $5.5 million has been committed to a
County Road renovation project.
Requests for Information
This financial report is designed to provide a general overview of Lea County’s finances for all those with an
interest in the government’s finances. Questions concerning any of the information provided in this report or
requests for additional financial information should be addressed to the Lea County Finance Director, 100 N. Main
Ave, Lovington, NM 88260.
33
30 Table of Contents
Basic Financial Statements
34
31 Table of Contents
Government‐Wide Financial Statements
35
STATE OF NEW MEXICO
LEA COUNTY
STATEMENT OF NET POSITION
Governmental Business‐type
Activities Activities Total
ASSETS
Current:
Cash and cash equivalents $ 284,287,576 340,536 284,628,112
Investments 17,778,862 ‐ 17,778,862
Property tax receivables 520,831 ‐ 520,831
Due from other governments 20,006,504 ‐ 20,006,504
Other receivables 2,719,456 ‐ 2,719,456
Leases receivable ‐ current 119,309 ‐ 119,309
Total current assets 325,432,538 340,536 325,773,074
Noncurrent assets:
Leases receivable 2,528,592 ‐ 2,528,592
Capital assets, net accumulated depreciation 243,943,212 2,923,009 246,866,221
Total noncurrent assets 246,471,804 2,923,009 249,394,813
Total assets 571,904,342 3,263,545 575,167,887
DEFERRED OUTFLOWS
Pension related 5,156,275 ‐ 5,156,275
OPEB related 4,339,990 ‐ 4,339,990
Total deferred outflows 9,496,265 ‐ 9,496,265
Total assets and deferred outflows $ 581,400,607 3,263,545 584,664,152
June 30, 2022
Primary Government
See Notes to Financial Statements
36
STATE OF NEW MEXICO
LEA COUNTY
STATEMENT OF NET POSITION
Governmental Business‐type
Activities Activities Total
LIABILITIES
Current liabilities:
Accounts payable $ 1,661,242 ‐ 1,661,242
Accrued payroll liabilities 2,487,586 ‐ 2,487,586
Unearned revenue 2,669,282 ‐ 2,669,282
Current portion of compensated absences 317,423 ‐ 317,423
Total current liabilities 7,135,533 ‐ 7,135,533
Noncurrent liabilities:
Long term portion of compensated absences 952,268 ‐ 952,268
Net pension liability 25,350,916 ‐ 25,350,916
Net OPEB liability 12,279,585 ‐ 12,279,585
Total noncurrent liabilities 38,582,769 ‐ 38,582,769
Total liabilities 45,718,302 ‐ 45,718,302
DEFERRED INFLOWS
Pension related 10,899,068 ‐ 10,899,068
OBEP related 7,883,729 ‐ 7,883,729
Leases 2,647,901 ‐ 2,647,901
Total deferred inflows 21,430,698 ‐ 21,430,698
NET POSITION
Net investment in capital assets 241,273,930 2,923,009 244,196,939
Restricted for:
Special revenues 205,314,908 ‐ 205,314,908
Debt Service ‐ ‐ ‐
Unrestricted 67,662,769 340,536 68,003,305
Total net position 514,251,607 3,263,545 517,515,152
Total liabilities, deferred inflows, and net position $581,400,607 3,263,545 584,664,152
June 30, 2022
Primary Government
37
STATE OF NEW MEXICO
LEA COUNTY
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2022
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary government:
Governmental activities:
General government $ 27,145,290 2,257,652 543,453 ‐
Public safety 29,911,753 2,446,918 9,547,342 ‐
Culture and recreation 4,333,082 225,633 ‐ ‐
Health and welfare 9,224,566 ‐ ‐ ‐
Public works 11,812,820 107,044 951,085 1,679,398
Interest relating to long‐term debt ‐ ‐ ‐ ‐
Total Governmental Activities 82,427,511 5,037,247 11,041,880 1,679,398
Business‐type Activities:
Water service proprietary fund 655 ‐ ‐ ‐
Total Business‐type Activities 655 ‐ ‐ ‐
$ 82,428,166 5,037,247 11,041,880 1,679,398
General Revenues:
Property taxes
Payment in lieu of taxes
Investment earnings
Miscellaneous
Special item ‐ gain (loss) on disposal of assets
Transfers
Total general revenues
Transfers to agency funds
Change in net position
Net position ‐ beginning as previously stated
Net position ‐ ending
Program Revenues
See Notes to Financial Statements
38
Governmental Business‐type
Activities Activities Total
(24,344,185) ‐ (24,344,185)
(17,917,493) ‐ (17,917,493)
(4,107,449) ‐ (4,107,449)
(9,224,566) ‐ (9,224,566)
(9,075,293) ‐ (9,075,293)
‐ ‐ ‐
(64,668,986) ‐ (64,668,986)
‐ (655) (655)
‐ (655) (655)
(64,668,986) (655) (64,669,641)
207,811,248 ‐ 207,811,248
3,037,836 ‐ 3,037,836
6,427,747 ‐ 6,427,747
1,367,313 ‐ 1,367,313
‐
‐ ‐ ‐
218,644,144 ‐ 218,644,144
‐ ‐ ‐
153,975,158 (655) 153,974,503
360,276,449 3,264,200 363,540,649
$ 514,251,607 3,263,545 517,515,152
Net (Expenses) Revenues and
Changes in Net Position
Primary Government
39
34 Table of Contents
Fund Financial Statements:
40
STATE OF NEW MEXICO
LEA COUNTY
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2022
General Road Detention
Fund Fund Facility
401 402 418
ASSETS
Current:
Cash and temporary investments $ 91,679,087 24,036,240 13,010,049
Investments 17,678,717 ‐ ‐
Receivables
Property taxes receivable 520,831 ‐ ‐
Receivable from other governments 18,159,327 168,938 161,722
Due from other funds ‐ ‐ ‐
Leases receivable 2,617,712 ‐ ‐
Other receivables 2,392,923 ‐ 5,943
Total current assets $ 133,048,597 24,205,178 13,177,714
LIABILITIES AND FUND BALANCE
Current liabilities:
Accounts payable $ 437,246 148,156 148,353
Accrued payroll liabilities 1,421,109 199,812 671,876
Interest payable ‐ ‐ ‐
Due to other funds ‐ ‐ ‐
Unearned revenues 2,669,282 ‐ ‐
Total current liabilities 4,527,637 347,968 820,229
DEFERRED INFLOWS
Unavailable revenue 386,099 ‐ ‐
Leases 2,617,712 ‐ ‐
Total deferred inflows 3,003,811 ‐ ‐
FUND BALANCE (DEFICIT)
Nonspendable:
Restricted 12,721,834 23,857,210 12,357,485
Unassigned 112,795,315 ‐ ‐
Total fund balance (deficit)125,517,149 23,857,210 12,357,485
Total liabilities, deferred inflows,
and fund balance (deficit)$ 133,048,597 24,205,178 13,177,714
See Notes to Financial Statements
41
Capital Nonmajor Total
Projects Governmental Governmental
430 Funds Funds
110,308,399 45,253,801 284,287,576
‐ 100,145 17,778,862
‐ ‐ 520,831
‐ 1,516,517 20,006,504
‐ ‐ ‐
‐ 30,189 2,647,901
‐ 320,590 2,719,456
110,308,399 47,221,242 327,961,130
464,440 463,047 1,661,242
‐ 194,789 2,487,586
‐ ‐ ‐
‐ ‐ ‐
‐ ‐ 2,669,282
464,440 657,836 6,818,110
‐ ‐ 386,099
‐ 30,189 2,647,901
‐ 30,189 3,034,000
109,843,959 46,534,420 205,314,908
‐ (1,203) 112,794,112
109,843,959 46,533,217 318,109,020
110,308,399 47,221,242 327,961,130
42
STATE OF NEW MEXICO
LEA COUNTY
GOVERNMENTAL FUNDS
RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION
JUNE 30, 2022
Amounts reported for governmental activities in the statement of
net position are different because:
Fund balances ‐ total governmental funds $ 318,109,020
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds.243,943,212
Defined benefit pension and OPEB plan deferred outflows are not financial
resources and, therefore, are not reported in the funds.9,496,265
Other long‐term assets are not available to pay for current‐period
expenditures and therefore, are deferred in the funds:
Property taxes 386,099
Long‐term liabilities, are not due in the current period and,
therefore, are not reported in the funds
Net pension liability (25,350,916)
Net OPEB liability (12,279,585)
Compensated absences (1,269,691)
Defined benefit pension and OPEB plan deferred inflows are not due and
payable in the current period and, therefore, are not reported in the funds.(18,782,797)
Total net position $ 514,251,607
See Notes to Financial Statements
43
STATE OF NEW MEXICO
LEA COUNTY
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICIT)
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
General Road Detention
Fund Fund Facility
401 402 418
Revenues:
Property, sales, and miscellaneous
taxes $ 196,055,002 ‐ ‐
Payment in lieu of taxes 3,037,836 ‐ ‐
Licenses and permits 67,699 ‐ ‐
Intergovernmental:
Federal 19,050 ‐ ‐
State 524,403 1,679,398 139,194
Charges for services 599,060 ‐ 2,116,773
Investment earnings 6,316,390 ‐ ‐
Miscellaneous 1,136,153 ‐ 109
Total revenues 207,755,593 1,679,398 2,256,076
Expenditures:
Current
General government 21,591,439 ‐ ‐
Public safety 13,421,204 ‐ 11,679,698
Culture and recreation ‐ ‐ ‐
Health and welfare 1,297,097 ‐ ‐
Public works ‐ 7,035,008 ‐
Capital outlay ‐ 5,262,153 1,108,789
Total expenditures 36,309,740 12,297,161 12,788,487
Excess (deficiency) of revenues
over expenditures 171,445,853 (10,617,763) (10,532,411)
Other financing sources (uses):
Transfers in ‐ 30,000,000 21,780,000
Transfers out (202,381,027) ‐ ‐
Total other financing sources (uses)(202,381,027) 30,000,000 21,780,000
Net change in fund balances (30,935,174) 19,382,237 11,247,589
Fund balances (deficit)‐ beginning of year 156,452,323 4,474,973 1,109,896
Fund balances (deficit) ‐ end of year $ 125,517,149 23,857,210 12,357,485
See Notes to Financial Statements
44
Capital Nonmajor Total
Projects Governmental Governmental
430 Funds Funds
‐ 11,841,636 207,896,638
‐ ‐ 3,037,836
‐ 192,642 260,341
‐ 8,447,200 8,466,250
‐ 1,912,033 4,255,028
‐ 2,321,414 5,037,247
‐ 10 6,316,400
‐ 101,334 1,237,596
‐ 24,816,269 236,507,336
‐ 599,088 22,190,527
‐ 3,414,222 28,515,124
‐ 4,333,082 4,333,082
‐ 7,952,808 9,249,905
‐ 600,132 7,635,140
7,633,055 3,226,766 17,230,763
7,633,055 20,126,098 89,154,541
(7,633,055) 4,690,171 147,352,795
116,958,677 34,042,350 202,781,027
‐ (400,000) (202,781,027)
116,958,677 33,642,350 ‐
109,325,622 38,332,521 147,352,795
518,337 8,200,696 170,756,225
109,843,959 46,533,217 318,109,020
45
STATE OF NEW MEXICO
LEA COUNTY
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL
FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2022
Amounts reported for governmental activities in the statement of activities
are different because:
Net change in fund balances ‐ total governmental funds $ 147,352,795
Net pension expense (1,233,934)
Net OBEP expense 1,599,030
Governmental funds report capital outlays as expenditures. However, in
the statement of activities the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense:
Capital expenditures 17,263,244
Depreciation expense (10,643,931)
Loss on disposal of capital assets (19,277)
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenue in the funds:
Change in unearned revenue related to the property taxes receivable (85,390)
Increase in accrued compensated absences (257,379)
Change in net position $ 153,975,158
46
STATE OF NEW MEXICO
LEA COUNTY
GENERAL FUND (401)
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES‐BUDGET (NON‐GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget‐
Actual Positive
Original Final Amounts (Negative)
Revenues
Property, sales, and miscellaneous
taxes $ 49,207,253 185,046,961 180,629,210 (4,417,751)
Payment in lieu of taxes 2,900,000 2,900,000 3,037,836 137,836
Licenses and permits 48,770 48,770 67,699 18,929
Intergovernmental:
Federal 13,495 13,495 19,050 5,555
State and local 165,687 165,687 524,403 358,716
Charges for services 370,138 370,138 599,060 228,922
Investment earnings 261,146 6,102,278 6,316,390 214,112
Miscellaneous 334,289 334,289 3,805,435 3,471,146
Total revenues 53,300,778 194,981,618 194,999,083 17,465
Expenditures
Current
General government 20,699,272 27,855,522 22,174,483 5,681,039
Public safety 13,946,132 14,659,202 13,421,204 1,237,998
Health and welfare 1,229,925 1,445,737 1,297,097 148,640
Total expenditures 35,875,329 43,960,461 36,892,784 7,067,677
Excess (deficiency) of revenues
over expenditures 17,425,449 151,021,157 158,106,299 7,085,142
Other financing sources (uses):
Transfers in ‐ 400,000 ‐ (400,000)
Transfers out 76,400,000 201,981,027 (202,381,027) (404,362,054)
Total other financing sources (uses)76,400,000 202,381,027 (202,381,027) (404,762,054)
Net changes in fund balances $ 93,825,449 353,402,184 (44,274,728) (397,676,912)
Reconciliation to GAAP basis:
Adjustments to revenues 12,756,510
Adjustments to expenditures 583,044
Net Change in Fund Balances (GAAP Basis)$ (30,935,174)
Budgeted Amounts
See Notes to Financial Statements
47
STATE OF NEW MEXICO
LEA COUNTY
ROAD FUND (402)
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES‐BUDGET (NON‐GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget‐
Actual Positive
Original Final Amounts (Negative)
Revenues
Property, sales, and miscellaneous
taxes $‐ ‐ ‐ ‐
Intergovernmental
Federal ‐ ‐ ‐ ‐
State 1,931,070 1,931,070 1,618,311 (312,759)
Miscellaneous ‐ ‐ ‐ ‐
Total revenues 1,931,070 1,931,070 1,618,311 (312,759)
Expenditures
Current
Public works 8,183,943 9,172,536 6,435,008 2,737,528
Capital outlay 7,951,810 9,334,551 5,862,153 3,472,398
Total expenditures 16,135,753 18,507,087 12,297,161 6,209,926
Excess (deficiency) of revenues
over expenditures (14,204,683) (16,576,017) (10,678,850) 5,897,167
Other financing sources (uses):
Transfers in 14,000,000 30,000,000 30,000,000 ‐
Transfers out ‐ ‐ ‐ ‐
Total other financing sources (uses)14,000,000 30,000,000 30,000,000 ‐
Net changes in fund balances $ (204,683) 13,423,983 19,321,150 5,897,167
Reconciliation to GAAP basis:
Adjustments to revenues 61,087
Adjustments to expenditures ‐
Net Change in Fund Balances (GAAP Basis)$ 19,382,237
Budgeted Amounts
See Notes to Financial Statements
48
STATE OF NEW MEXICO
LEA COUNTY
DETENTION FACILITY ‐ SPECIAL REVENUE FUND (418)
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES‐BUDGET (NON‐GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget‐
Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental:
Federal $‐ ‐ ‐ ‐
State 1,150,000 1,150,000 139,194 (1,010,806)
Charges for services 1,783,212 1,783,212 2,109,524 326,312
Miscellaneous 500 500 109 (391)
Total revenues 2,933,712 2,933,712 2,248,827 (684,885)
Expenditures
Current
General government ‐ ‐ ‐ ‐
Public safety 10,592,923 13,301,178 11,608,464 1,692,714
Culture and recreation ‐ ‐ ‐ ‐
Health and welfare ‐ ‐ ‐ ‐
Public works ‐ ‐ ‐ ‐
Capital outlay 6,600,000 6,600,000 1,108,789 5,491,211
Debt service
Principal ‐ ‐ ‐ ‐
Interest ‐ ‐ ‐ ‐
Total expenditures 17,192,923 19,901,178 12,717,253 7,183,925
Excess (deficiency) of revenues
over expenditures (14,259,211) (16,967,466) (10,468,426) 6,499,040
Other financing sources (uses):
Transfers in 14,500,000 21,780,000 21,780,000 ‐
Transfers out ‐ ‐ ‐ ‐
Total other financing sources (uses)14,500,000 21,780,000 21,780,000 ‐
Prior year cash balance budgeted 1,184,777 1,184,777 ‐ (1,184,777)
Net changes in fund balances $ 1,425,566 5,997,311 11,311,574 5,314,263
Reconciliation to GAAP basis:
Adjustments to revenues 7,249
Adjustments to expenditures (71,234)
Net Change in Fund Balances (GAAP Basis)$ 11,247,589
Budgeted Amounts
See Notes to Financial Statements
49
STATE OF NEW MEXICO
LEA COUNTY
STATEMENT OF NET POSITION ‐ PROPRIETARY FUND
June 30, 2022
Water Service
Enterprise Fund (675)
ASSETS
Current Assets
Cash and cash equivalents $340,536
Total current assets 340,536
Noncurrent Assets
Capital assets:
Land and improvements, not being depreciated 575,000
Construction in progess, not being depreciated 2,348,009
Total noncurrent assets 2,923,009
Total assets 3,263,545
LIABILITIES
Current Liabilities
Accounts payable ‐
Other liabilities ‐
Total liabilities ‐
NET POSITION
Net investment in capital assets 2,923,009
Unrestricted 340,536
Total net position $3,263,545
See Notes to Financial Statements
50
STATE OF NEW MEXICO
LEA COUNTY
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND
NET POSITION ‐ PROPRIETARY FUND
Year Ended June 30, 2022
Water Service
Enterprise Fund (675)
Operating Revenues
Charges for services $‐
Total operating revenues ‐
Operating Expenses
Operating expenses 655
Total operating expenses 655
(Loss) income before contributions and transfers (655)
Transfers
Transfers, out ‐
Change in net position (655)
Net position, beginning of year 3,264,200
Net position, end of year $3,263,545
51
STATE OF NEW MEXICO
LEA COUNTY
STATEMENT OF CASH FLOWS ‐ PROPRIETARY FUNDS
Year Ended June 30, 2022
Water Service
Enterprise Fund (675)
Cash Flows From Operating Activities
Cash received from customers and others $‐
Cash paid for goods and services (655)
Net cash provided by operating activities (655)
Cash Flows From Non‐Capital Financing
Activities Operating transfers, net ‐
Net cash used by non‐capital financing activities ‐
Net (decrease) increase in cash and cash equivalents (655)
Cash and restricted cash and cash equivalents, beginning of year 341,191
Cash and restricted cash and cash equivalents, end of year $340,536
Reconciliation of Operating (Loss) Income to Net
Cash Provided by Operating Activities
Operating (loss) income $(655)
Adjustments to operating (loss) income to
net cash provided by operating activities:
Change in assets and liabilities:
Capital assets ‐
Accounts payable ‐
Net cash provided by operating activities $(655)
See Notes to Financial Statements
52
STATE OF NEW MEXICO
LEA COUNTY
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
June 30, 2022
Custodial Funds
ASSETS
Cash and cash equivalents $ 36,529,146
Property taxes receivable 1,324,255
Total assets $ 37,853,401
NET POSITION
Net position $ 37,853,401
Total net position $ 37,853,401
See Notes to Financial Statements
53
STATE OF NEW MEXICO
LEA COUNTY
STATEMENT OF CHANGES IN FIDUCIARY NET POSITIONS
FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
Custodial Funds
Additions
Taxes collected on behalf of taxing entities $ 192,777,989
Bonds received 8,310
Inmate funds received 124,706
Communication fees 4,989,592
Solid wate fees 3,844,800
County clerk fees 621,672
Total additions 202,367,069
Deletions
Taxes disbursed to taxing entities 185,075,171
Bonds refunded 50,170
Inmate disbursements 148,858
Operational expenses 6,625,297
Total deletions 191,899,496
Net increase (decrease) in
fiduciary net position 10,467,573
Net positions, beginning 27,385,828
Net positions, ending $ 37,853,401
See Notes to Financial Statements
54
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Lea County (the County), New Mexico was created in accordance with Section 40‐3‐1 NMSA 1978
Compilation on September 25, 1916. The powers of the County are exercised by an elected Board of
County Commissioners. During general elections in the State of New Mexico, a County Treasurer, County
Clerk, Probate Judge, County Sheriff, County Assessor, and County Commissioners are elected. The
County is operated by a County Manager, who is appointed by the County Commissioners.
The County assesses, collects, and distributes all property taxes, records property, and legal documents,
provides law enforcement services, health and social services, culture and recreation, tourist promotion
and maintains County roads.
This summary of significant accounting policies of the County is presented to assist in the understanding
of the County’s financial statements. The financial statements and notes are the representation of the
County’s management who is responsible for their integrity and objectivity. The financial statements of
the County have been prepared in conformity with accounting principles generally accepted in the
United States of America (GAAP) as applied to government units. The Governmental Accounting
Standards Board (GASB) is the accepted standard‐setting body for establishing governmental accounting
and financial reporting principles. The more significant of the government’s accounting policies are
described below.
In evaluating how to define the government, for financial reporting purposes, management has
considered all potential component units. The decision to include a potential component unit in the
reporting entity was made by applying the criteria set forth in generally accepted accounting principles
(GAAP).
The basic (but not the only) criteria for including a potential component unit within the reporting entity
is the governing body’s ability to exercise financial accountability. The most significant manifestation of
this ability is financial interdependency. Other manifestations of the ability to exercise oversight
responsibility include, but are not limited to, the selection of governing authority, the designation of
management, the ability to significantly influence operations, and accountability for fiscal matters. A
second criterion used in evaluating potential component units is the scope of public service. Application
of this criterion involves considering whether the activity benefits the government and/or its citizens, or
whether the activity is conducted within the geographic boundaries of the government and is generally
available to its citizens. A third criterion used to evaluate potential component units for inclusion or
exclusion from the reporting entity is the existence of special financing relationships, regardless of
whether the government is able to exercise oversight responsibilities.
Lea County Fair Board
The Lea County Fair Board is appointed by the Lea County Commissioners. The Lea County
Commissioners provide facilities for the annual fair and rodeo and the finances required over and above
the resources provided by the fair and rodeo. The operations of the fairgrounds are incorporated into
the general fund of the County and reported therein. The County does not have any component units.
55
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Government‐wide and fund financial statements
The government‐wide financial statements include the statement of net position and the statement of
activities. Government‐wide statements report, except for County fiduciary funds, information on all of
the activities of the County. The effect of interfund transfers and other internal activity has been
removed from the government‐wide statements but continues to be reflected on the fund statements.
Governmental Activities are supported mainly by taxes and intergovernmental revenues and are
reported separately from the business‐type activities, which are supported by fees and charges for
services provided.
The statement of activities reflects the degree to which the direct expenses of a given function or
segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function. Program revenues include 1) charges to customers or applicants who purchase, use or
directly benefit from goods, services or privileges provided by a given function and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular
function or segment. Taxes and other items not properly included in program revenues are reported as
general revenues.
Separate fund financial statements are provided for governmental funds, proprietary funds and fiduciary
funds even though the latter are excluded from the government‐wide financial statements. The General
Fund meets the criteria as a major governmental fund. Each major fund is reported in separate columns
in the fund financial statements. Non‐major funds include other Special Revenue, Capital Projects, Debt
Service and Permanent funds. The combined amounts for these funds are reflected in a single column in
the fund Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balances.
Detailed statements for non‐major funds are presented within Combining and Individual Fund
Statements and Schedules.
Measurement focus, basis of accounting, and financial statement presentation
The government‐wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting. This measurement focus is also used for the fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred,
regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year
for which they are levied. Major revenue types, which have been accrued, are revenue from the
investments, intergovernmental revenue, and charges for services. Grants are recognized as revenue
when all applicable eligibility requirements imposed by the provider are met. Derived tax revenues are
recognized when the underlying exchange transaction takes place.
Revenues are classified as program revenues and general revenues. Program revenues include 1)
charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and
contributions, and 3) capital grants and contributions. General revenues include all taxes, and grants
not restricted to specific programs and investment earnings.
56
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Measurement focus, basis of accounting, and financial statement presentation (Continued)
Governmental fund‐level financial statements are reported using current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as
they are both measurable and available. Revenues are considered available when they are collectible
within the current period or soon enough thereafter to pay liabilities of the current period.
Measurable and available revenues include revenues expected to be received within 60 days after the
fiscal year ends. Receivables which are measurable but not collectible within 60 days after the end of
the fiscal period are reported as unearned revenue. Those revenues susceptible to accrual include
interest revenues, franchise taxes, gross receipts taxes, charges for services, and grants from other
governments.
Expenditures generally are recorded when a fund liability is incurred; however, debt service
expenditures, as well as expenditures related to compensated absences and claims and judgments, are
recorded only when the liability has matured and payment is due.
Indirect expenses of the County are not allocated among functional activities on the statement of
activities on the government‐wide presentation. Instead, depreciation and other indirect expenses are
reported as a part of general government, and interest on long‐term debt is reported as a separate line
item.
The County reports decreases in net assets that relate to future periods as deferred outflows of
resources in a separate section of its government‐wide and proprietary funds statements of net
position. The County reports deferred inflows of resources in the government wide financial
statements for inflows received, but not recognized as revenue until future years subject to time
restrictions. In the governmental funds, the County recognizes deferred inflows of resources for
property taxes and time restricted grants that are not considered available.
The government reports the following major governmental funds:
The General Fund (401) is the general operating fund of the County and is always classified as a major
fund. The General Fund is used to account for all financial resources except those required to be
accounted for in another fund. Major revenue sources include property taxes, charges for services,
intergovernmental revenues, and investment of idle funds. Primary expenditures are for general
administration, public safety, judicial, public welfare, health services and capital acquisition.
The Road Fund (402) is used to account for funds used to maintain County roads, included but not
limited to administration, operation, maintenance, and capital outlay. Authorized by sections 6‐623, 7‐
1‐6‐19, 67‐3‐82.2, and Chapter 113, Laws of 1992, NMSA.
The Detention Facility Fund (418) is used to account for the revenues and expenditures related to the
operation of the Lea County Detention Center. This fund is authorized by Resolution No. 14‐JUL‐030R
57
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Measurement focus, basis of accounting, and financial statement presentation (Continued)
The Capital Projects Fund (430) is used to account for the funds committed by the County Commission
for capital improvement projects to benefit Lea County. This fund is authorized by Resolution No. 14‐
JUL‐30R.
Other fund types include proprietary funds and fiduciary funds, which are considered as non‐major
funds. Non‐major funds include special revenue funds, capital projects funds, debt service funds and
permanent funds.
Proprietary funds ‐ The focus of proprietary fund measurement is upon determination of operating
income, changes in net position, financial position, and cash flows. The generally accepted accounting
principles applicable are those similar to businesses in the private sector. The County reports the
following proprietary fund types:
The Water Service Enterprise Fund (675) is used to account for provision of water and sewer services
for which a fee is charged to external users for goods. The activity reported in this fund is reported as
business‐type activity in the government‐wide financial statements.
Proprietary funds distinguish operating revenues and expenses from non‐operating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of
the Water Service Enterprise fund includes charges to customers for sales and services. Operating
expenses for the enterprise fund include the cost of sales and services, administrative expenses, and
depreciation of capital assets. All revenues and expenses not meeting this definition are reported as
non‐operating revenues and expenses.
Fiduciary funds ‐ Fiduciary fund level financial statements include fiduciary funds, which are classified
into private purpose trust and agency funds. The County has only agency funds which are used to
account for assets held by the County as an agent for individuals, private organizations, other
governments, and other funds. Agency funds do not involve a formal trust agreement. Agency funds
are custodial in nature (assets equal liabilities) and do not involve measurement of results of
operations.
Fiduciary funds are presented on an economic resources measurement focus and the accrual basis of
accounting, similar to the government‐ wide financial statements.
Budgetary Information
Budgets are adopted on the cash basis, which is not in accordance with accounting principles generally
accepted in the United States of America. Annual appropriated budgets are adopted for the general,
58
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Budgetary Information (Continued)
special revenue, capital projects, debt service, permanent funds, and proprietary funds. All annual
appropriations lapse at the fiscal year‐end.
The County Manager is responsible for preparing the budget from requests submitted by department
directors. The preliminary budget is submitted to a budget committee for approval and then the
comprehensive budget package is brought before the County Commissioners for approval by
resolution.
The proposed budget is then submitted by June 1 to the New Mexico Department of Finance and
Administration Local Government Division (DFA) for approval. DFA certifies a preliminary budget by
July 1 with final certification of the budget by the first Monday of September. The expenditure section
of the budget, once adopted, is legally binding.
Increases or decreases in the budget of a fund or transfers of appropriations between funds must be
presented to the County Commission for approval by resolution and must subsequently have DFA
approval. Amendments made to the original budget are included in the budgetary comparison
statements of this report, which reflect actual to budget. Budgets and amendments to the budgets for
all funds are adopted in a legally permissible manner. The legal level of budgetary control is the fund
level.
These funds do not have legally adopted budgets:
Paving Districts – 416 Revolving Loan Fund – 421
Jal CDBG Wastewater ‐ 433
Cash and Cash Equivalents
Cash and cash equivalents in the financial statements, including the statement of cash flows presented
for proprietary funds, includes amounts on demand deposits, as well as short‐term investments
with a maturity date within twelve months of the date acquired by the County.
In accordance with Section 6‐10‐17, NMSA, 1978 Compilation, the County is required to collateralize an
amount equal to one‐half of the public money in excess of insured funds at each financial institution.
Deposits in overnight repurchase agreements are required to be covered by pledged collateral equal to
102% of the deposit. All of the County's depositories were in compliance with collateral requirements.
Receivables and Payables
Accounts receivable from other governments include amounts due from grantors for approved grants
for specific programs and reimbursements for services performed by the County. Program grants are
59
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Receivables and Payables (Continued)
recorded as receivables and revenues at the time eligibility requirements established by the provider
have been met.
Reimbursements for services performed are recorded as receivables and revenues when they are
earned in the government‐wide statements. Included are fines and costs assessed by court action and
billable services for certain contracts. Revenues received in advance of the costs being incurred are
recorded as unearned revenue in the fund statements. Receivables are shown net of an allowance for
uncollectible amounts.
Lending or borrowing between funds is reflected as "due to or due from" (current portion) or
"advances to/from other funds" (non‐current). Advances between funds, as reported in the fund
financial statements, are offset by a fund balance reserve account in applicable governmental funds to
indicate that they are not available for appropriation and are not expendable available financial
resources. Interfund activity reflected in "due to or due from" is eliminated on the government‐wide
statements.
Advances to Other Funds
Non‐current portions of long‐term interfund loan receivables are reported as advances and are offset
equally by a fund balance reserve account, which indicates that they do not constitute expendable
available financial resources and, therefore, are not available for appropriation.
Inventories
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government‐wide and fund financial statements and in the fund financial
statements are offset by a reservation of fund balance which indicates they do not represent "available
spendable resources." Immaterial amounts of inventory are not recorded by the County. Inventory
items are expensed when purchased.
Capital Assets
Capital assets, which include land, buildings and improvements, equipment, software and
infrastructure assets are reported in the government‐wide financial statements. Capital assets such as
equipment are defined, per Section 12‐6‐10 NMSA 1978, as assets with a cost of $5,000 or more.
Infrastructure assets include County‐owned roads and bridges. Information technology equipment,
including software, is capitalized in accordance with NMAC 2.20.1.9 C (5).
60
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Capital Assets (Continued)
Capital assets are recorded at historical costs if purchased or constructed. Donated capital assets are
recorded at estimated acquisition value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets lives are not capitalized. Capital assets are depreciated using the straight line method
over the following estimated useful lives:
Assets Years
Infrastructure 50
Buildings 25‐40
Landfill 25
Roads 25
Equipment and Furniture 5‐15
Vehicles 5‐15
Computer Hardware 5
The County has retroactively reported all major general infrastructure assets in accordance with GASB
34.
Compensated Absences
A liability for unused vacation and sick time for all full‐time employees is calculated and reported in the
government‐wide statements. For financial reporting, the following criteria must be met to be
considered as compensated absences:
1) Leave or compensation is attributable to services already rendered
2) Leave or compensation is not contingent on a specific event (such as illness)
Per GASB Interpretation No. 6, liabilities for compensated absences are recognized in the fund
statements to the extent the liabilities have matured (i.e., are due for payment). Compensated
absences are accrued in the government‐wide statements.
The County's permanent, full‐time employees accrue 3.75 hours of vacation per pay period (biweekly)
from date of employment to five years of service, 4.75 hours per pay period from 6 years to 10 years of
service, 5.75 hours per pay period from 11 years to 15 years of service, and 6.75 hours per pay period
for 16 or greater years of continuous employment. Upon termination from County employment, an
employee shall be entitled to payment of up to 240 hours of accrued but unused hours of vacation.
61
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Compensated Absences (Continued)
The County's permanent, full‐time employees accrue sick leave at the rate of eight 3.75 hours per pay
period (biweekly) from date of employment to 10 years of service and 4.75 hours per pay period for 11
or greater years of continuous employment. Sick leave is paid to current employees if the employees
are absent from work due to illness, injury or other situations requiring medical attention. An
employee who terminates employment of the County shall receive no compensation for accrued sick
leave. Amounts of accrued vacation leave are accrued in the government‐wide financial statements.
Long‐Term Debt
In the government‐wide financial statements, long‐term debt and other long‐term obligations are
reported as liabilities under the governmental activities statement of net position. On new bond issues,
bond premiums and discounts are deferred and amortized over the life of the bonds. Bonds payable
are reported net of the applicable bond premium or discount.
In the fund financial statement, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as
other financing sources. Premiums received on debt issuances are reported as other financing sources
while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service expenditures.
Net Position
Net position includes net investment in capital assets; restricted net position; and unrestricted net
position. Net investment in capital assets, consist of capital assets, net of accumulated depreciation
and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are
attributable to the acquisition, construction, or improvement of those assets.
Restricted net position are balances with constraints placed on their use that are either externally
imposed by creditors, grantors, contributors, or the laws or regulations of other governments; or
imposed by law through constitutional provisions or enabling legislation. A further classification of
restricted net position exists for those balances included in permanent endowments or permanent
fund principal amounts. These net balances are classified as either expendable or nonexpendable.
Nonexpendable net position includes those that are required to be retained in perpetuity. Unrestricted
net position consists of net balances that do not meet the definition of "restricted" or "invested in
capital assets."
Interfund Transactions
Quasi‐external transactions are accounted for as revenues, expenditures, or expenses. Transactions
that constitute reimbursements to a fund, for expenditures initially made from it that are properly
62
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Interfund Transactions (Continued)
applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of
expenditures in the fund that is reimbursed. All other interfund transactions, except quasi‐external
transactions and reimbursements, are reported as transfers. Non‐recurring and non‐routine permanent
transfers of equity are reported as residual equity transfers. All other interfund transfers are reported
as operating transfers.
Estimates
In preparing financial statements in conformity with accounting principles generally accepted in the
United States of America, management is required to make estimates and assumptions that affect the
reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the
date of the financial statements and revenues and expenses during the reporting period. Actual results
could differ from those estimates.
Restricted Assets
Restricted assets are assets which have third‐party limitations on their use. When both restricted and
unrestricted resources are available for use, it is the government's policy to use restricted resources
first, then unrestricted resources as they are needed.
Investments
State statutes authorize the investment of County funds in a wide variety of instruments including
certificates of deposit and other similar obligations, state investment pool, money market accounts,
and United States Government obligations. All invested funds of the County properly followed State
investment requirements as of June 30, 2022.
Fund Balance Classification
The governmental fund financial statements present fund balances based on classifications that
comprise a hierarchy that is based primarily on the extent to which the County is bound to honor
constraints on the specific purposes for which amounts in the respective governmental funds can be
spent. The classifications used in the governmental fund financial statements are as follows:
1. Non‐spendable Fund Balance: Non spendable fund balance shall mean the portion of the gross
fund balance that is not expendable (such as inventories or fixed assets) or is legally marked for
a specific use.
2. Restricted Fund Balance: Restricted fund balance shall include amounts constrained to a specific
purpose by the provider, such as a grantor.
63
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Fund Balance Classification (Continued)
3. Committed Fund Balance: Committed fund balance shall mean that portion of the fund balance
that is constrained to a specific purpose by the Lea County Board of Commissioners.
4. Assigned Fund Balance: Assigned fund balance shall mean that portion of the fund balance that
is spendable or available for appropriation but has been tentatively earmarked for some
specific purpose by the Lea County Manager or designee. Such assignment may change and
may never be budgeted or may result in expenditures in future periods of time.
5. Unassigned Fund Balance: Unassigned fund balance shall include amounts available for any
legal purpose. The unassigned fund balance shall be the difference between the total fund
balance and the total of the non‐spendable fund balance, restricted fund balance, committed
fund balance and assigned fund balance.
Lea County would typically use restricted fund balances first, followed by committed resources, and
then assigned resources, as appropriate opportunities arise, but reserves the right to selectively spend
unassigned resources first to defer the use of these other classified funds.
Deferred Inflows and Outflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of
resources, represents a consumption of net position or fund balance that applies to a future period(s)
and thus, will not be recognized as an outflow of resources (expense/expenditure) until then. The
County has one item that qualifies for reporting in this category on the government‐wide statement of
net position. It is the County's contributions subsequent to the measurement date of the collective net
pension liability and before the end of the employer's reporting period. This will be recognized as a
reduction of the net pension liability in the year ended June 30, 2022.
In addition to liabilities, the statement of financial position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of resources,
represents an acquisition of net position or fund balance that applies to a future period(s) and so will
not be recognized as an inflow of resources (revenue) until that time. The County has four items, of
which one item, deferred property taxes, arises only under a modified accrual basis of accounting that
qualifies for reporting in this category. Accordingly, the item, deferred property taxes, is reported only in
the governmental funds balance sheet. Grants restricted by time are reported in the government‐wide
statement of net position and in the governmental fund’s financial statements. Net difference between
projected and actual investment earnings on pension plan investments and the change of assumptions
related to the pension plan are also deferred inflows. These amounts will be amortized and recognized
in future years.
64
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows
of resources related to pensions, and pension expense, information about the fiduciary net position of
the Public Employees Retirement Association (PERA) and additions to/deductions from PERA’s fiduciary
net position have been determined on the same basis as they are reported by PERA. For this purpose,
benefit payments (including refunds of employee contributions) are recognized when due and payable
in accordance with the benefit terms. Investments are reported at fair value.
Postemployment Benefits Other Than Pensions (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of
resources related to OPEB, and OPEB expense, information about the fiduciary net position of the New
Mexico Retiree Health Care Authority (NMRHCA) and additions to and deductions from NMRHCA’s
fiduciary net position have been determined on the same basis as they are reported by NMRHCA. For
this purpose, NMRHCA recognizes benefit payments when due and payable in accordance with the
benefit terms. Investments are reported at fair value.
NOTE 2. CASH AND CASH EQUIVALENTS
The County utilizes pooled accounts for their funds. The general, special revenue and agency funds are
all in one account and the capital projects and debt service funds are in their own accounts. Separate
accounts also exist for the county clerk, probate clerk, inmate trust, and detention bond, related funds.
Deposits of funds may be made in interest or non‐interest‐bearing checking accounts in one or more
banks or savings and loan associations within the geographical boundaries of the County. Deposits
may be made to the extent that they are insured by an agency of the United States or by collateral
deposited as security or by bond given by the financial institution.
The rate of interest in non‐demand interest‐bearing accounts shall be set by the State Board of Finance,
but in no case shall the rate of interest be less than one hundred percent of the asked price on United
States treasury bills of the same maturity on the day of deposit.
Excess funds may be temporarily invested in securities which are issued by the State or by the
United States Government, or by their departments or agencies, and which are either direct obligations
of the State or the United States or are backed by the full faith and credit of those governments.
Statutes require collateral pledged for deposits in excess of the federal deposit insurance to be
delivered, or a joint safekeeping receipt be issued, to the County for at least one‐half of the amount on
deposit with the institution. The types of collateral allowed are limited to direct obligations of the
United States Government and all bonds issued by any agency, County, or political subdivision of the
State of New Mexico.
65
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 2. CASH AND CASH EQUIVALENTS (CONTINUED)
According to the Federal Deposit Insurance Authority, public unit deposits are funds owned by the
County. Time deposits, savings deposits, and interest‐bearing accounts of a public unit in an institution
in the same state will be insured up to $250,000 in aggregate.
At June 30, 2022, the carrying amount of the County's unrestricted deposits were $326,413,252
excluding cash held as fiduciary of $36,529,146. Total cash and cash equivalents balance per the
financial institutions of $36,761,866 consisted of demand deposits, repurchase agreements and
certificates of deposit and $302,580,103 are money markets held by a brokerage firm. Of the demand
deposits and certificates of deposit, $1,514,796 was covered by federal depository insurance and
$33,305,503 was covered by collateral held in joint safekeeping by a third party. Money market
accounts of $302,580,103 were held at a brokerage firm and are covered by the Securities Investor
Protection Corporation (SIPC) up to $500,000.
Lea
County
State Bank
First
American
Bank
Pioneer
Bank
Wells
Fargo
Bank
Western
Commerce
Bank
Total
Deposits in Bank
Cash deposits $ 185,580 ‐ ‐ 4,941,997 12,447 5,140,024
Repurchase agreements ‐ ‐ ‐ 12,928,717 12,928,717
CDs 9,343,125 3,000,000 2,000,000 ‐ 4,350,000 18,693,125
Total amounts on deposit 9,528,705 3,000,000 2,000,000 17,870,714 4,362,447 36,761,866
Less: FDIC insurance (252,349) (250,000) (250,000) (500,000) (262,447) (1,514,796)
Total uninsured public
funds
9,276,356
2,750,000 1,750,000 17,370,714 4,100,000 35,247,070
Collateral requirement –
50%
4,638,178
1,375,000 875,000 2,470,999 2,050,000 11,409,177
Collateral requirement –
102%
‐
‐ ‐ 13,187,291 ‐ 13,187,291
Total required
collateralization
$ 4,638,178
1,375,000 875,000 15,658,290 2,050,000 24,596,468
Amount collateralized $ 9,276,356 2,750,000 1,357,837 17,370,714 2,550,596 33,305,503
Total amounts on deposit at financial institutions $ 36,761,866
Less: Repurchase (12,928,717)
Money market held at brokerage firm 302,580,103
Total amounts on deposit 326,413,252
Less reconciling items (5,256,994)
Plus petty cash 1,000
$ 321,157,258
66
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 2. CASH AND CASH EQUIVALENTS (CONTINUED)
Total cash and cash equivalents per Statement of:
Financial Position $ 284,628,112
Custodial Funds 36,529,146
$ 321,157,258
Custodial Credit Risk – In the case of deposits, this is the risk that in the event of a bank failure, the
County's deposits may not be returned to them. The County does not have a deposit policy for
custodial credit risk. As of June 30, 2022, $9,974,816 of the County's bank balance of $31,757,780 was
exposed to custodial credit risk because it was uninsured and uncollateralized with securities held by
the pledging financial institution's trust department or agent. As of June 30, 2022, $156,402,751 of the
County’s money market held by a brokerage firm was exposed to custodial credit risk because it was
uninsured and uncollateralized.
NOTE 3. INVESTMENTS
New Mexico State Statutes authorize the County to invest in direct obligations of the United States or
securities that are backed by the full faith and credit of the United States Government or agencies
guaranteed by the U.S. Government. The County does not have an additional investment policy that
further limits its investments. State statute also authorizes the County to invest in bonds or negotiable
securities of the U. S., the State of New Mexico, or any county, municipality or school County which has
a taxable valuation of real property for the last preceding year of at least one million dollars and has not
defaulted in the payment of any interest or sinking fund obligation or failed to meet any bonds at
maturity at any time within five years last preceding. The County does not have an additional
investment policy that further limits its investments. At June 30, 2022, Lea County had long‐term
investments with Moreton Capital Markets, and Lea County State Bank of $4,750,000 and $100,145
respectively. The $4,850,145 in investments approximates the fair value.
Custodial Credit Risk – In the case of investments, this is the risk that in the event of a market failure,
the County's investments may not be returned to them. The County does not have a deposit policy
for custodial credit risk. As of June 30, 2022, $4,850,145 of the County investment balance was
exposed to custodial credit risk because it was uninsured and collateralized with securities held by the
pledging financial institution's trust department or agent, but not in the County's name.
Interest Rate Risk – The County does not have a formal investment policy that limits investment
maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.
Credit Quality Risk – State law limits investment in commercial paper, corporate bonds, and mutual
bond funds to the top two ratings issued by nationally recognized statistical rating organizations. The
County has no investment policy that would further limit its investment choices.
Concentration of Credit Risk – Concentration of credit risk is the risk of loss attributable to the
magnitude of the County’s investment in a single issuer. A total of 99% of the investment balance is held
at Moreton Capital Markets.
67
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 3. INVESTMENTS (CONTINUED)
GASB Statement No. 72 requires investment to be presented at fair value. This statement provides the
framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the
inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to
unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and
the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value
hierarchy under GASB Statement No. 72 are described as follows:
Basis of Fair Value Measurement –
Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical
assets or liabilities in active markets that the plan has the ability to access.
Level 2
Quoted prices in markets that are not considered to be active or financial instruments
without quoted market prices, but for which all significant inputs are observable,
either directly or indirectly.
Level 3
Inputs to the valuation methodology are unobservable and significant to the fair
value measurement.
The following table sets forth by level, within the fair value hierarchy, the County’s assets held at fair
value as of June 30, 2022:
Investment Assets at Fair Value as of June 30, 2022
Level 1 Level 2 Level 3 Total
Investment in
Morton Capital $
4,750,000 ‐ ‐ 4,750,000
W.F. repurchase agreement 12,928,717 ‐ ‐ 12,928,717
Lea County State Bank 100,145 ‐ ‐ 100,145
Total Assets at fair value $
17,778,862 ‐ ‐ 17,778,862
The County utilized the market approach to value its investments. GASB Statement No. 72 defines the
market approach as using market prices and other information obtained from market transactions with
similar or identical assets or liabilities.
NOTE 4. PROPERTY TAXES
Property taxes are levied on November 1 based on the assessed value of property as listed on the
previous January 1 and are due in two payments, November 10th and April 10th. The taxes become
delinquent in December of the year in which the tax bill was prepared and mailed, and in May of the
following year. Fund financial statements are kept on a modified accrual basis of accounting. Hence,
68
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 4. PROPERTY TAXES (CONTINUED)
accounting principles generally accepted in the United States of America require recognition of property
taxes when they are considered both measurable and available for the fund financial statements.
Therefore, the delinquent property taxes are not recorded as revenue in the fund financial statements
until they become both "measurable" and "available" to finance expenditures of the fiscal period.
Government‐wide financial statements are kept on a full accrual basis of accounting. Hence, accounting
principles generally accepted in the United States of America require recognition of property taxes when
the taxes are levied. The delinquent property taxes are recorded as revenue in the government‐wide
financial statements in the period of levy.
NOTE 5. OTHER RECEIVABLES
Other receivables at June 30, 2022 are considered to be fully collectible and are composed as follows:
Governmental
Activities
Other Receivables:
Fees $ 328,896
Refunds 722
Misc. 2,389,838
Totals $ 2,719,456
NOTE 6. DUE FROM OTHER GOVERNMENTS
The amounts due from other governments at June 30, 2022 are considered to be fully collectible and are
composed of the following:
Governmental
Activities
Gross Receipts Tax $ 19,228,023
Motor Vehicle Tax 192,186
Gas Tax 27,295
Grants Receivable 387,705
Other 9,573
Detention Facility Fees 161,722
Totals $ 20,006,504
69
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 7. DUE TO/FROM OTHER FUNDS AND TRANSFERS
Due to/from other funds consists of monies which were transferred between governmental funds to
support the Lea County Event Center and fund activities. The County expects these amounts to be
repaid.
There were no individual fund interfund receivables and payable balances at June 30, 2022.
NOTE 7. DUE TO/FROM OTHER FUNDS AND TRANSFERS (CONTINUED)
The due to and due from balances and transfers were made as a result of the County utilizing pooled
cash and related expenses being made in one fund and paid from another. In addition, some revenues,
such as gross receipts taxes, are recognized in one fund and transferred to other funds to pay for
expenditures.
Transfers for the year ended June 30, 2022 were as follows:
Transfers Out:
General Fund – 401:
To Road Fund ‐ 402 $ 30,000,000
To Farm & Range Fund ‐ 403 125,000
To Recreation Fund – 404 200,000
To Indigent Fund ‐ 406 4,500,000
To Airport Fund ‐ 409 375,000
To DWI Fund ‐ 412 65,000
To Detention Fund ‐ 418 21,780,000
To Capital Projects Fund ‐ 430 116,958,677
To Lea Regional Airport Fund – 454 8,195,850
To County Airports ‐ 455 2,449,500
To Fairgrounds – 460 5,022,000
To Lea County Event Center ‐ 463 13,110,000
Total Transfers Out 202,781,027
70
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 7. DUE TO/FROM OTHER FUNDS AND TRANSFERS (CONTINUED)
NOTE 8. RISK OF LOSS
The County is exposed to various risks of loss related to torts; theft of, or damage to and destruction of
assets; errors and omission; injuries to employees; and natural disasters.
Lea County Board of Commissioners is insured with OneBeacon’s Insurance carrier Atlantic
Specialty Insurance Company. Atlantic Specialty Insurance Company has an AM Best rating of A XI as
reaffirmed August 13, 2014. Daniels Insurance Agency Inc. acts as a Broker in secure coverage for Lea
Transfers In:
Road Fund ‐ 402
From General Fund ‐ 401 (30,000,000)
Recreation Fund ‐ 404
From General Fund ‐ 401 (200,000)
Indigent Fund ‐ 406
From General Fund ‐ 401 (4,500,000)
Detention Fund ‐ 418
From General Fund‐ 401 (21,780,000)
Farm and Range Fund ‐ 403
From General Fund‐ 401 (125,000)
Airport Fire Fund – 409
From General Fund ‐ 401 (375,000)
DWI Fund ‐ 412
From General Fund ‐ 401 (65,000)
Lea Regional Airport Fund‐ 454
From General Fund ‐ 401 (8,195,850)
County Airports Fund ‐ 455
From General Fund ‐ 401 (2,449,500)
Fairgrounds Airport ‐ 460
From General Fund – 401 (5,022,000)
Lea County Event Center Fund ‐ 463
From General Fund ‐ 401 (13,110,000)
Capital Projects Fund ‐ 430
From General Fund ‐ 401 (116,958,677)
Total Transfers In 202,781,027
Total Governmental Activities Transfers $ ‐
71
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 8. RISK OF LOSS (CONTINUED)
County as directed through a Request for Proposal, which was awarded in June 2011. The County
insures itself against losses such as General Liability, Employment Practices Liability, Public Official
Liability, Law Enforcement Liability and Excess Liability limits. Those limits generally start at $1,050,000
per occurrence with a $5,000,000 excess limit. The Commissioners also insure owned assets for physical
damages losses such as Property, Autos, Machinery and Equipment.
The County participates in the New Mexico County Insurance Authority Workers Compensation Pool.
The pool is self‐insured for workers' compensation claims up to $300,000. Above that amount, the pool
maintains an Excess Employers' Reinsurance Policy.
Insurance settlements have not exceeded insurance coverage for any of the past five fiscal years.
NOTE 9. ENCUMBRANCES
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is
not employed as an extension of formal budgetary integration in the General Fund, Special Revenue
Funds, Capital Projects Funds, Debt Service Funds and Permanent Funds.
72
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 10. CHANGES IN CAPITAL ASSETS
Balance
June 30,
2021
Additions
Deletions
Transfers
Balance
June 30,
2022
Capital Assets, not depreciated:
Land $ 9,519,443 ‐ ‐ ‐ 9,519,443
Construction in progress 9,367,619 10,254,458 ‐ (3,245,456) 16,376,621
Total not depreciated 18,887,062 10,254,458 ‐ (3,245,456) 25,896,064
Capital Assets, depreciated:
Buildings 135,884,104 4,307,769 ‐ 793,039 140,984,912
Other Improvements 8,081,484 324,977 ‐ ‐ 8,406,461
Furniture and Equipment 24,068,975 1,145,683 (17,590) 22,255 25,219,323
Infrastructure 129,060,303 284,295 ‐ 2,430,162 131,774,760
Vehicles 17,975,841 946,062 (302,279) ‐ 18,619,624
Total depreciated 315,070,707 7,008,786 (319,869) 3,245,456 325,005,080
Total Capital Assets 333,957,769 17,263,244 (319,869) ‐ 350,901,144
Accumulated Depreciation:
Buildings 36,706,609 2,968,094 ‐ ‐ 39,674,703
Other Improvements 3,263,392 281,316 ‐ ‐ 3,544,708
Furniture and Equipment 15,528,029 1,617,473 (15,831) ‐ 17,129,671
Infrastructure 29,962,445 4,095,407 ‐ ‐ 34,057,852
Vehicles 11,154,118 1,681,641 (284,761) ‐ 12,550,998
Total depreciation 96,614,593 10,643,931 (300,592) ‐ 106,957,932
Total Capital Assets $ 237,343,176 6,619,313 (19,277) ‐ 243,943,212
Depreciation expense for the year ended June 30, 2022 was charged to the
following functions and funds:
General Government $ 4,809,167
Health and Welfare 18,181
Public Works 4,181,473
Public Safety 1,635,110
Total depreciation expense: governmental activities $ 10,643,931
73
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 10. CHANGES IN CAPITAL ASSETS (CONTINUED)
Balance
June 30,
2021 Additions Deletions
Balance
June 30,
2022
Capital Assets Used in Business‐type Activities:
Capital Assets, not depreciated:
Land $ 575,000 ‐ ‐575,000
Construction in progress 2,348,009 ‐ ‐2,348,009
Total not depreciated $ 2,923,009 ‐ ‐2,923,009
In accordance with GASB 34, depreciation policies were adopted to include useful lives and classification
by function.
NOTE 11. LONG‐TERM DEBT
Long‐term liability for the year ended June 30, 2022 was as follows:
June 30,
2021 Additions Deletions
June 30,
2022
Due Within
One Year
Compensated Absences $ 1,012,312 1,303,517 (1,046,138) 1,269,691 317,423
Total Long‐Term Debt $ 1,012,312 1,303,517 (1,046,138) 1,269,691 317,423
Compensated Absence: Employees of the County are able to accrue a limited amount of vacation during
the year. The compensated absences liability increased $257,379 from the prior year. The General Fund
is typically used for liquidation of compensated absences.
NOTE 12. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION
Plan description. The Public Employees Retirement Fund is a cost‐sharing, multiple employer defined
benefit pension plan. This fund has six divisions of members, including State General, State Police/Audit
Correction Officers, Municipal General, Municipal Police/Detention Officers, Municipal Fire, and State
Legislative Divisions, and offers 24 different types of coverage within the PERA plan. All assets
accumulated may be used to pay benefits, including refunds of member contributions, to any of the plan
members or beneficiaries, as defined by the terms of this plan. Certain coverage plans are only
applicable to a specific division. Eligibility for membership in the PERA fund is set forth in the Public
Employees Retirement Act (Chapter 10, Article 11, NMSA 1978). Except as provided for in the Volunteer
Firefighters Retirement Act (10‐11A‐1 to 10‐11A‐7, NMSA 1978), the Judicial Retirement Act (10‐12B‐1
to 10‐12B‐19, NMSA 1978), the Magistrate Retirement Act (10‐12C‐1 to 10‐12C‐18, NMSA), and the
Educational Retirement Act (Chapter 22, Article 11, NMSA 1978), each employee and elected official of
every affiliated public employer is required to be a member in the PERA Fund, unless specifically
excluded.
74
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 12. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (CONTINUED)
Benefits provided. Benefits are generally available at age 65 with five or benefits are generally available
at age 65 with five or more years of service or after 25 years of service regardless of age for TIER I
members. Provisions also exist for retirement between ages 60 and 65, with varying amounts of service
required. Certain police and fire members may retire at any age with 20 or more years of service for Tier
I members. Generally, the amount of retirement pension is based on final average salary, which is
defined under Tier I as the average of salary for the 36 consecutive months of credited service producing
the larges average; credited service; and the pension factor of the applicable coverage plan. Monthly
benefits vary depending upon the plan under which the member qualifies, ranging from 2% to 3.5% of
the member’s final average salary per year of service. The maximum benefit that can be paid to a retiree
may not exceed a range of 60% to 90% of the final average salary, depending on the division. Benefits
for duty and non‐duty death and disability and for post‐retirement survivors’ annuities are also
available.
TIER II. The retirement age and service credit requirements for normal retirement for PERA state and
municipal general members hired increased effective July 1, 2013 with the passage of Senate Bill 27 in
the 2013 Legislative Session. Under the new requirements (Tier II), general members are eligible to
retire at any age if the member has at least eight years of service credit and the sum of the member’s
age and service credit equals at least 85 or at age 67 with 8 or more years of service credit. General
members hired on or before June 30, 2013 (Tier I) remain eligible to retire at any age with 25 or more
years of service credit. Under Tier II, police and firefighters in Plans 3, 4, and 5 are eligible to retire at
any age with 25 or more years of service credit. State police and adult correctional officers, peace
officers and municipal juvenile detention officers will remain in 25‐year retirement plans, however,
service credit will no longer be enhanced by 20%. All public safety members in Tier II may retire at age
60 with 6 or more years of service credit. Generally, under Tier II pension factors were reduced by .5%,
employee contributions increased 1.5 percent and effective July 1, 2014 employer contributions were
raised .05 percent. The computation of final average salary increased as the average of salary for 60
consecutive months.
75
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 12. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (CONTINUED)
Contributions. See PERA’s compressive annual financial report for contribution provided description.
PERA Contribution Rates and Pension Factors in effect during FY21
Coverage Plan
Employee Contribution
Percentage
Employer
Contribution
Percentage
Pension Factor per year
of Service
Pension
Maximum
as a
Percentage
of the Final
Average
Salary
Annual
Salary less
than
$20,000
Annual
Salary
greater than
$20,000
TIER 1
TIER 2
STATE PLAN
State Plan 3 7.42% 9.42% 17.74% 3.0% 2.5% 90%
MUNICIPAL PLANS 1 - 4
Municipal Plan 1
(plan open to new employers)
7.0%
8.5%
7.65%
2.0%
2.0%
90%
Municipal Plan 2
(plan open to new employers) 9.15% 10.65% 9.8% 2.5% 2.0% 90%
Municipal Plan 3
(plan closed to new employers 6/95) 13.15% 14.65% 9.8% 3.0% 2.5% 90%
Municipal Plan 4
(plan closed to new employers 6/00) 15.65% 17.15% 12.3% 3.0% 2.5% 90%
MUNICIPAL POLICE PLANS 1 – 5
Municipal Police Plan 1 7.0% 8.5% 10.65% 2.0% 2.0% 90%
Municipal Police Plan 2 7.0% 8.5% 15.65% 2.5% 2.0% 90%
Municipal Police Plan 3 7.0% 8.5% 19.15% 2.5% 2.0% 90%
Municipal Police Plan 4 12.35% 13.85% 19.15% 3.0% 2.5% 90%
Municipal Police Plan 5 16.3% 17.8% 19.15% 3.5% 3.0% 90%
MUNICIPAL FIRE PLANS 1 - 5
Municipal Fire Plan 1 8.0% 9.5% 11.65% 2.0% 2.0% 90%
Municipal Fire Plan 2 8.0% 9.5% 18.15% 2.5% 2.0% 90%
Municipal Fire Plan 3 8.0% 9.5% 21.90% 2.5% 2.0% 90%
Municipal Fire Plan 4 12.8% 14.3% 21.90% 3.0% 2.5% 90%
Municipal Fire Plan 5 16.2% 17.7% 21.90% 3.5% 3.0% 90%
MUNICIPAL DETENTION OFFICER PLAN 1
Municipal Detention Officer Plan 1 16.65% 18.15% 17.05% 3.0% 3.0% 90%
STATE POLICE AND ADULT CORRECTIONAL OFFICER PLANS, ETC.
State Police and Adult Correctional
Officer Plan 1 7.6% 9.1% 25.50% 3.0% 3.0% 90%
State Plan 3 - Peace Officer 7.42% 8.92% 17.24% 3.0% 3.0% 90%
Juvenile Correctional Officer Plan 2 4.78% 6.28% 26.37% 3.0% 3.0% 90%
76
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 12. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (CONTINUED)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions. At June 30, 2022, the County reported a liability of $25,350,916 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2021, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of June 30, 2020. The total pension liability was rolled‐forward from the valuation
date to the plan year ending June 30, 2021 using generally accepted actuarial principles. Therefore, the
employer’s portion was established as of the measurement date of June 30, 2020. There were no
significant events or changes in benefit provision that required an adjustment to the roll‐forward
liabilities as of June 30, 2021. The County’s proportion of the net pension liability was based on a
projection of the County’s long‐term share of contributions to the pension plan relative to the projected
contributions of all participating entities, actuarially determined.
PERA Fund Municipal General Division. At June 30, 2021, the County’s proportion was 1.241258%,
which was a decrease of 0.066442%, from its proportion measured as of June 30, 2020.
For the year ended June 30, 2022, the County recognized pension expense of $1,154,325. At June 30,
2022, the County reported deferred outflows of resources and deferred inflows or resources related to
pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual
experience $ 348,132
47,880
Changes in assumptions 4,598 ‐
Net difference between projected and actual
earnings on pension plan investments
‐ 5,746,969
Changes in proportion and differences between
County’s contributions and proportionate share of
contributions
118,570 984,170
County’s contributions subsequent to the
measurement date
1,437,354 ‐
Total $ 1,908,654 6,779,019
77
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 12. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (CONTINUED)
$1,437,354 reported as deferred outflows of resources related to pensions resulting from the County’s
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to pensions will be recognized in pension expense as follows:
$ (1,080,940)
(1,416,273)
(1,451,887)
(2,358,619
‐
Year ended June 30:
2022
2023
2024
2025
2026
Thereafter ‐
PERA Fund Municipal Police Division. At June 30, 2021, the County’s proportion was 2.19778%, which
was an increase of 0.05868%, from its proportion measured as of June 30, 2020.
For the year ended June 30, 2022, the County recognized pension expense of $2,561,816. At June 30,
2022, the County reported deferred outflows of resources and deferred inflows or resources related to
pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual
experience $ 859,293 ‐
Changes in assumptions 4,426 ‐
Net difference between projected and actual
earnings on pension plan investments ‐ 4,120,049
Changes in proportion and differences between
County’s contributions and proportionate share of
contributions 1,339,049 ‐
County’s contributions subsequent to the
measurement date 1,044,853 ‐
Total $ 3,247,621 4,120,049
78
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 12. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (CONTINUED)
$1,044,853 reported as deferred outflows of resources related to pensions resulting from the County’s
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to pensions will be recognized in pension expense as follows:
$ 541,932
(48,343)
(730,543)
(1,680,203)
‐
Year ended June 30:
2022
2023
2024
2025
2026
Thereafter ‐
Actuarial assumptions. The total pension liability in the June 30, 2020 actuarial valuation was
determined using the following significant actuarial assumptions, applied to all periods included in the
measurement:
Actuarial valuation date June 30, 2020
Actuarial cost method Entry age normal
Amortization period Level Percentage of Pay
Asset valuation method Solved for based on statutory rates
Actuarial assumptions
Investment rate of return 7.25% annual rate, net of investment expense
Projected benefit payment 100 years
Payroll growth 3.00%
Projected salary increases 3.25% to 13.50% annual rate
Includes inflation at 2.50%
2.75% all other years
Mortality assumption The mortality assumptions are based on the
RPD‐2014 Blue Collar mortality table with
female ages set forward one year. Future
improvement in mortality rates is assumed
using 60% of the MP‐2017 projection scale
generationally. For non‐public safety groups,
25% of in‐service deaths are assumed to be
duty related and 35% are assumed to be duty‐
related for public safety groups.
Experience study dates July 1, 2008 to June 30, 2017 (demographic)
and July 1, 2010 through June 20, 2017
(economic)
79
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 12. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (CONTINUED)
The total pension liability, net pension liability, and certain sensitivity information are based on an
actuarial valuation performed as of June 30, 2020. The total pension liability was rolled‐forward from
the valuation date to the plan year ended June 30, 2021. These assumptions were adopted by the Board
use in the June 30, 2020 actuarial valuation.
The long‐term expected rate of return on pension plan investments was determined using a building‐
block method in which best‐estimate ranges of expected future real rates of return (expected returns,
net of pension plan investment expense and inflation) are developed for each major asset class. These
ranges are combined to produce the long‐term expected rate of return by weighting the expected future
real rates of return by the target asset allocation percentage and by adding expected inflation. The
target allocation and best estimates of arithmetic real rates of return for each major asset class are
summarized in the following table:
Asset Class Target Allocation
Long‐Term Expected
Real Rate of Return
Global Equity 35.50% 5.90%
Risk Reduction & Mitigation 19.50% 1.00%
Credit Oriented Fixed Income 15.00% 4.20%
Real Assets 20.00% 6.00%
Multi‐Risk Allocation 10.00% 6.40%
Total 100.0%
Discount rate. A single discount rate of 7.25% was used to measure the total pension liability as of June
30, 2021. This single discount rate was based on a long‐term expected rate of return on pension plan
investments of 7.25%, compounded annually, net of expense. Based on the stated assumptions and the
projection of cash flows, the plan’s fiduciary net position and future contributions were projected to be
available to finance all projected future benefit payments of current plan members. Therefore, the long‐
term expected rate of return on pension plan investments was applied to all period of projected benefit
payments to determine the total pension liability.
The projections of cash flows used to determine this single discount rate assumed that plan member
and employer contributions will be made at the current statutory levels.
Sensitivity of the County's proportionate share of the net pension liability to changes in the discount
rate. The following presents the County's proportionate share of the net pension liability calculated
using the discount rate of 7.25 percent, as well as what the County’s proportionate share of the net
pension liability would be if it were calculated using a discount rate that is 1‐percentage‐point lower
(6.25 percent) or 1‐percentage‐point higher (8.25 percent) than the current rate:
80
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 12. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (CONTINUED)
Municipal General Division
1%
Decrease
(6.25%)
Current
Discount
Rate
(7.25%)
1%
Increase
(8.25%)
County’s proportionate share of the net
pension liability $ 25,085,737 13,984,847 4,776,332
Municipal Police Division
1%
Decrease
(6.25%)
Current
Discount
Rate
(7.25%)
1%
Increase
(8.25%)
County’s proportionate share of the net
pension liability $ 19,898,936 11,366,069 4,383,353
Pension plan fiduciary net position. Detailed information about the pension plan's fiduciary net position
is available in the separately issued PERA’s financial reports.
Payables to the pension plan: At June 30, 2022 the County had no outstanding contributions to the
pension plan and therefore, had no payables reported as of June 30, 2022.
Pension plan fiduciary net position: Detailed information about the pension plan’s fiduciary net
position is available in the separately issued PERA financial report. The report is available on PERA’s
website at www.nmpera.org.
NOTE 13. POST‐EMPLOYMENT BENEFITS – STATE RETIREE HEALTH CARE PLAN
Plan Description ‐ Employees for the County are provided with OPEB through the Retiree Health Care
Fund (the Fund) ‐ a cost‐sharing multiple‐employer defined benefit OPEB plan administered by the New
Mexico Retiree Health Care Authority (NMRHCA). NMRHCA was formed February 13, 1990, under the
New Mexico Retiree Health Care Act (the Act) of New Mexico Statues Annotated, as amended (NMSA
1978), to administer the Fund under Section 10‐7C‐1‐19 NMSA 1978. The Fund was created to provide
comprehensive group health insurance coverage for individuals (and their spouses, dependents and
surviving spouses) who have retired or will retire from public service in New Mexico.
NMRHCA is an independent agency of the State of New Mexico. The funds administered by NMRHCA
are considered part of the State of New Mexico financial reporting entity and are OPEB trust funds of
the State of New Mexico. NMRHCA’s financial information is included with the financial presentation of
the State of New Mexico.
Benefits provided – The Fund is a multiple employer cost sharing defined benefit healthcare plan that
provides eligible retirees (including terminated employees who have accumulated benefits but are not
yet receiving them), their spouses, dependents and surviving spouses and dependents with health
insurance and prescription drug benefits consisting of a plan, or optional plans of benefits, that can be
contributions to the Fund and by co‐payments or out‐of‐pocket payments of eligible retirees.
81
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 13. POST‐EMPLOYMENT BENEFITS – STATE RETIREE HEALTH CARE PLAN
(CONTINUED)
Employees covered by benefit terms – At June 30, 2021, the Fund’s measurement date, the following
employees were covered by the benefit terms:
Plan membership
Current retirees and surviving spouses 53,092
Inactive and eligible for deferred benefit 11,754
Current active members 92,484
157,330
Active membership
State general 18,691
State police and corrections 1,919
Municipal general 20,357
Municipal police 1,573
Municipal fire 756
Educational Retirement Board 49,188
92,484
Contributions – Employer and employee contributions to the Fund total 3% for non‐enhanced
retirement plans and 3.75% of enhanced retirement plans of each participating employee’s salary as
required by Section 10‐7C‐15 NMSA 1978. The contributions are established by statue and are not
based on an actuarial calculation. All employer and employee contributions are non‐refundable under
any circumstance, including termination of the employer’s participation in the Fund. Contributions to
the Fund from the County were $594,599 for the year ended June 30, 2021.
OPEB Liabilities, OPEB Expense, Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB ‐ At June 30, 2022, the County reported a liability of $12,279,585 for its proportionate
share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2021, and the total
OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June
30, 2021. The County’s proportion of the net OPEB liability was based on actual contributions provided
to the Fund for the year ending June 30, 2021. At June 30, 2021, the County’s proportion was 0.37320
percent.
For the year ended June 30, 2022, the County recognized OPEB income of $1,082,860. At June 30, 2022
the County reported deferred outflows of resources and deferred inflows of resources related to OPEB
from the following sources:
82
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 13. POST‐EMPLOYMENT BENEFITS – STATE RETIREE HEALTH CARE PLAN
(CONTINUED)
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual experience $ 179,544 1,958,338
Changes in assumptions 2,458,487 4,439,505
Changes in proportion 1,305,560 1,133,902
Net difference between projected and actual earnings on
OPEB plan investments ‐ 351,984
Employer contributions subsequent to the measurement
date 396,399 ‐
Total $ 4,339,990 7,883,729
Deferred outflows of resources totaling $396,399 represent County contributions to the Fund made
subsequent to the measurement date and will be recognized as a reduction of net OPEB liability in the
year ending June 30, 2022. Other amounts reported as deferred outflows of resources and deferred
inflows of resources will be recognized in OPEB expense as follows:
Year ended June 30:
2023 $ (1,509,865)
2024 (872,262)
2025 (593,783)
2026 (388,853)
2027 (575,375)
Total $ (3,940,138)
Actuarial assumptions. The total OPEB liability was determined by an actuarial valuation as of June 30,
2021, using the following actuarial assumptions:
Valuation date June 30, 2021
Actuarial cost method Entry age normal, level percent of pay, calculated on individual
employee basis
Asset valuation method Market value of assets
Inflation 2.30% for ERB members; 2.50% for PERA members
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STATE OF NEW MEXICO
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 13. POST‐EMPLOYMENT BENEFITS – STATE RETIREE HEALTH CARE PLAN
(CONTINUED)
Projected payroll increases 3.25% to 13.00%, based on years of service, including inflation
Investment rate of return 7.00%, net of OPEB plan investment expense and margin for adverse
deviation including inflation
Health care cost trend rate 8% graded down to 4.5% over 14 years for Non‐Medicare medical plan
costs and 7.5% graded down to 4.5% over 12 years for Medicare
medical plan costs
Mortality ERB members: 2020 GRS Southwest Region Teacher Mortality Table,
set back one year (and scaled at 95% for males). Generational mortality
improvements in accordance with the Ultimate MP scales are projected
from the year 2020. PERA members: Headcount‐Weighted RP‐2014
Blue Collar Annuitant Mortality, set forward one year for females,
projected generationally with Scale MP‐2017 times 60%.
Rate of Return – The long‐term expected rate of return on OPEB plan investments was determined
using a building‐block method in which the expected future real rates of return (net of investment fees
and inflation) are developed for each major asset class. These returns are combined to produce the
long‐term expected rate of return by weighting the expected future real rates of return by the target
asset allocation percentage, adding expected inflation, and subtracting expected investment expenses
and a risk margin. The target allocation and projected arithmetic real rates of return for each major
asset class, after deducting inflation, but before investment expenses, used in the derivation of the long‐
term expected investment rate of return assumptions.
The best estimates for the long‐term expected rate of return is summarized as follows:
Asset Class
Long‐Term
Rate of Return
U.S. core fixed income 0.4%
U.S. equity – large cap 6.6
Non U.S. – emerging markets 9.2
Non U.S. – developed equities 7.3
Private equity 10.6
Credit and structured finance 3.1
Real estate 3.7
Absolute return 2.5
U.S. equity – small/mid cap 6.6
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STATE OF NEW MEXICO
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 13. POST‐EMPLOYMENT BENEFITS – STATE RETIREE HEALTH CARE PLAN
(CONTINUED)
Discount Rate – The discount rate used to measure the Fund’s total OPEB liability is 3.62% as of June 30,
2021. The projection of cash flows used to determine the discount rate assumed that employer
contributions will be made at rates proportional to the actuary determined contribution rates. For this
purpose, employer contributions that are intended to fund benefits of current plan members and their
beneficiaries are included. Projected employer contributions that are intended to fund the service costs
for future plan members and their beneficiaries are not included. Based on those assumptions, the
Fund’s fiduciary net position was projected to be available to make all projected future benefit
payments for current plan members through the fiscal year ending June 30, 2052. Thus, the 7.00%
discount rate was used to calculate the net OPEB liability through 2052. The index rate for 20‐year, tax
exempt general obligation municipal bonds with an average rating of AA/Aa or higher was used beyond
2052, resulting in a blended discount rate of 3.62%.
Sensitivity of the net OPEB liability to changes in the discount rate and healthcare cost trend rates.
The following presents the net OPEB liability of the County, as well as what the County’s net OPEB
liability would be if it were calculated using a discount rate that is 1‐percentage‐point lower (2.62
percent) or 1‐percentage‐pont higher (4.62 percent) than the current discount rate:
1% Decrease
(2.62%)
Current
Discount Rate
(3.62%)
1% Increase
(4.62%)
$ 15,429,012 12,279,585 9,829,677
The following presents the net OPEB liability of the County, as well as what the County’s net OPEB
liability would be if it were calculated using healthcare cost trend rates that are 1‐percentage‐point
lower or 1‐percentage‐point higher than the current healthcare cost trend rates:
1% Decrease
Current Trend
Rates 1% Increase
$ 9,876,743 12,279,585 14,214,595
OPEB plan fiduciary net position. Detailed information about the OPEB plan’s fiduciary net position is
available in NMRHCA’s audited financial statements for the year ended June 30, 2021.
Payables changes in the net OPEB liability. At June 30, 2022, the County did not accrue any payables
for OPEB.
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STATE OF NEW MEXICO
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 14. DEFERRED COMPENSATION PLAN
The State of New Mexico offers state, local government, and school County employees a deferred
compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available
to all State employees and those local government and school County employees whose employers have
elected participation in the plan, permits participants to defer a portion of their salary until future years.
The deferred compensation is not available to employees until termination, retirement, death, or
unforeseeable emergency.
All amounts of compensation deferred under the plan, all property and rights purchased with those
amounts and all income attributable to those amounts, property or rights are (until paid or made
available to the employee or other beneficiary) held in trust for the participants in the plan.
There are employees that are making contributions to the Deferred Compensation Plan. Neither the
County nor the State of New Mexico made any contributions to the Deferred Compensation Plan. All
contributions withheld from participant's wages by the County have been paid to the New Mexico
Employees' Retirement Association, which administers the plan.
NOTE 15. CONTINGENT LIABILITIES
Grants and Agreements ‐ Amounts received or receivable from grant agencies and others are
subject to audit and adjustment, principally by the federal and state government. Any disallowed
claims, including amounts already collected, may constitute a liability of the applicable funds. The
amount, if any, of expenditures which may be disallowed by the grantor and others cannot be
determined at this time although the County expects such amounts, if any, to be immaterial.
Economic Development Agreement ‐ Lea County entered into an economic development agreement
dated October 19, 2010, with the Economic Development Corporation of Lea County, Inc. (EDC)
to unconditionally guaranty on behalf of EDC any and all amounts that EDC may be required to pay to
the Air Carrier pursuant to the revenue guaranty or other provisions of the Air Services Contract, and
subject to the limitation that the first $250,000 due to Air Carrier under revenue guarantee provisions
during the first twelve month period of Air Service shall not be guaranteed by the County.
The County has provided EDC with an irrevocable standby letter of credit for $900,000 as guaranty for
performance of this agreement and stand by letter of credit will remain in effect for the term of the Air
Services Contract. No amounts were charged against the letter of credit during fiscal year 2022.
Lea County contributed $627,651 to EDC under the above described agreement for the fiscal year ended June 30,
2022.
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STATE OF NEW MEXICO
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 16. CONDUIT DEBT OBLIGATION
The County Issued Industrial Revenue Bonds (IRBs) totaling $4,111,000,000 for projects as follows:
LES ‐ the County issued $4,000,000,000 in IRBs to provide funds to finance the acquisition,
construction, and installation of an expansion to the national enrichment facility project. Final maturity
date of the bonds is January 22, 2034. The bonds are secured by a security agreement and a collateral
pledge of the Lease to the Purchaser.
Intrepid Potash‐New Mexico LLC ‐ the County issued $40,000,000 in IRBs to provide funds to finance
the acquisition and construction of an industrial revenue bond manufacturing and processing facility to
be used by Intrepid Potash‐New Mexico. Final maturity date of the bonds is February 1, 2032. The
bonds are secured by all tangible personal property located in Lea County, New Mexico used in
connection with manufacturing and processing of potash including but not necessarily limited to all the
costs of which are financed or reimbursed with the proceeds of the Lea County, New Mexico,
Taxable Industrial Revenue Bond.
Wildcat Wind LLC ‐ the County issued $51,000,000 in IRBs in connection with a Wind Energy Generating
Facility. Final maturity date of the bonds is March 1, 2032. The bonds are secured by all tangible
personal property located in Lea County, New Mexico used in connection with wind generation of
electricity but not necessarily limited to all personal property installed or located at the Project Site for
use as part of the Project.
Jut Demonstration Inc. ‐ the County issued $20,000,000 in IRBs to provide funds to finance the
acquisition, construction, and installation of an industrial development project. Final maturity date of
the bonds is March 20, 2032. The bonds are secured by all the Debtor's right, title, and interest in and to
the Project Property and the Lease and Purchase Agreement.
The County has no liability for the IRBs in the event of default by the borrowers. Accordingly, the bonds
are not reported as liabilities in the County's financial statements.
NOTE 17. TAX ABATEMENTS
The County enters into property tax abatement agreements with local businesses under the County
Industrial Revenue Bond Act, Chapter 4, Article 59 NMSA 1978 as amended and Article VIII, Section 3 of
the State Constitution and NMSA 1978, Section 7‐36‐3. The County Industrial Revenue Bond Act
authorizes counties to acquire, own, lease or sell projects for the purpose of promoting industry and
trade by inducing manufacturing, industrial and commercial enterprises to locate or expand in the state.
For the fiscal year ended June 30, 2022, the County abated property taxes under the County Industrial
Revenue Bond Act including the following tax abatement agreements:
DCP Midstream, LP was granted an 80% Ad Valorem Property Tax Exemption, to construct facilities to
process natural gas. The amount of the exemption will be an 80% reduction off the tax due that would
have been applicable for each tax year. The abatement of property taxes for fiscal year 2022 was
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STATE OF NEW MEXICO
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 17. TAX ABATEMENTS (CONTINUED)
$159,029 with a $447,180 PILT due to the County. Lea County is the only entity that is foregoing revenue
under this agreement.
Wildcat Wind LLC was granted a 30% Ad Valorem Property Tax Exemption, to construct wind power
generating facilities. The amount of the exemption will be a 30% reduction off the tax due that would
have been applicable for each tax year. The abatement of property taxes for fiscal year 2022 was $‐0‐
with a $253,386 PILT due to the County. Lea County is the only entity that is foregoing revenue under
this agreement.
Sun Edison was granted a 33.3% Ad Valorem Property Tax Exemption, to construct facilities to generate
electric power. The amount of the exemption will be a 33.3% reduction off the tax due that would have
been applicable for each tax year. The abatement of property taxes for fiscal year 2022 was $84,655
with a $745,535 PILT due to the County. Lea County is the only entity that is foregoing revenue under
this agreement.
Middle Daisy was granted a 100% Ad Valorem Property Tax Exemption, to construct a solar panel plant.
The amount of the exemption will be a 100% reduction off the tax due that would have been applicable
for each tax year. The abatement of property taxes for fiscal year 2022 was $21,223 with a $38,484 PILT
due to the County. Lea County is the only entity that is foregoing revenue under this agreement.
AEM Wind, LLC was granted a PILT in an amount equal to 30% of the total property tax due, to construct
wind power generating facilities. The amount of the exemption will be a 30% reduction off the tax due
that would have been applicable for each tax year. The abatement of property taxes for fiscal year 2022
was $77,329 with a $417,765 PILT due to the County. Lea County is the only entity that is foregoing
revenue under this agreement.
Louisiana Energy Services, LLC was granted a 80% Ad Valorem Property Tax Exemption to construct
additional improvements to existing structures for the enrichment of uranium to be used to generate
electricity. The amount of the exemption will be an 80% reduction off the tax due that would have been
applicable for each tax year. The abatement of property taxes for fiscal year 2022 was $37,429 with a
$88,664 PILT due to the County. Lea County is the only entity that is foregoing revenue under this
agreement.
NOTE 18. JOINT POWERS AGREEMENTS
The County entered into a joint powers agreement with all municipalities in Lea County for the Lea
County Water Users Association (Association) on September 23, 1997. The agreement automatically
renews for an additional two years unless terminated by the Executive Board. The purpose of the
agreement is to enact a water management plan for the citizens of Lea County. The County is
designated the fiscal agent of the Association and is responsible for 45.8% of the proposed funding
needed for the Association. The County remitted $1,274 to the Association in the fiscal year ended June
30, 2022.
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STATE OF NEW MEXICO
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 18. JOINT POWERS AGREEMENTS (CONTINUED)
The County along with the City of Hobbs formed a joint powers agreement regarding the cleanup and
Land Office. The purpose of the agreement is to allocate financial responsibility of the costs to be
incurred in connection with cleanup. The County's responsibility is to contract with the Lea County
Solid Waste Authority, as necessary, for the services of hauling trash and debris.
Costs involved in the project are to be allocated, with the County responsible for paying 25%. The
County must also invoice the party responsible for the illegal disposal, Occidental/Permian Limited
Partnership ("Oxy"), for another 25% of the disposal costs. Expenditures for the County are not to
exceed $15,000 without prior written consent of all parties involved. The agreement became effective
November 17, 2003, and either party to the agreement can terminate participation by providing thirty
days written notice.
The County also established a joint powers agreement with the Hobbs Municipal School County, City of
Hobbs, New Mexico Junior College, City of Lovington, Eunice Municipal School County, Tatum Municipal
School County and Jal Municipal School County for the purpose of enabling the parties involved to
benefit from substantial savings in the procurement of similar services, construction, or tangible
personal property. The agreement became effective November 17, 2003, and any party to the
agreement can terminate participation by providing thirty days written notice. Any of the participating
agencies may act as the Lead Agency whereby that agency shall contact the remaining participating
agencies to determine if they are willing to participate in a bid or proposal for quote to be prepared by
the Lead Agency.
On July 22, 2021, the County entered into a joint power’s agreement with the Southeastern New Mexico
Economic Development County/COG. The purpose of the agreement is to facilitate economic
development in the region through planning, development, legislative, and strategizing services. The
agreement is indefinite in term. The County contributed $29,500 for the year ended June 30, 2022
The County established a joint powers agreement with the Eddy‐Lea Energy Alliance on July 29, 2006.
The goal of this agreement is to evaluate a site for use by the Global Nuclear Energy Partnership and the
United States Department of Energy. This is hoped to bring new, higher‐wage jobs to the area and
strengthen the economic base of the region. The agreement is perpetual but may be terminated with
the written consent of all voting members. The agreement shall terminate at the discretion of the
contracting parties. The County remitted $25,000 to the Alliance for the year ended June 30, 2022.
The County established a joint powers agreement with the City of Hobbs on January 4, 2010, revised
6/2/2017, to further the public interest and protect the safety, health and welfare of the people of
Hobbs, New Mexico and Lea County, New Mexico and to define the role of the City and County in
establishing a joint Emergency Communications Center, namely, the joint management and operations
of an emergency communications County. The County contributed $2,908,698 for the year ended June
30, 2022.
On May 30, 2013, the County established a joint planning agreement with the Commissioner of
Public Lands of the State of New Mexico to explore opportunities to jointly plan or master plan state
trust lands within the County boundaries but outside of any extra zoning jurisdiction in the
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STATE OF NEW MEXICO
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 18. JOINT POWERS AGREEMENTS (CONTINUED)
County. Planning objectives and prioritization of planning efforts will be identified by a joint planning
committee appointed by the Commissioner and the County. The right to terminate this agreement
resides with the County and the Commissioner.
On April 28, 2016, the County established a joint powers agreement with the Lea County
Communication Authority, City of Hobbs, City of Lovington, City of Jal, City of Eunice, and the City of
Tatum to operate and maintain a P25 800 MHz radio system to more effectively and efficiently provide
radio and communication services. The agreement will remain in effect, subject to written amendments,
until terminated by a party.
NOTE 19. RECENT ACCOUNTING PRONOUNCEMENTS
In June 2017, GASB issued Statement No. 87, Leases, to be implemented for fiscal years beginning after
June 15, 2021. The objective of this Statement is to better meet the information needs of financial
statement users by improving accounting and financial reporting for leases by governments. This
Statement requires recognitions of certain lease assets and liabilities for leases that previously were
classified as operating leases. The County implemented this statement.
In June 2018, the GASB issued Statement No. 89, Accounting for Interest Cost Incurred before the end of
a Construction Period. The new effective date is for reporting periods beginning after December 15,
2020. Statement 89 establishes accounting requirements for interest cost incurred before the end of a
construction period. This Statement requires that interest cost incurred before the end of a construction
period be recognized as an expense in the period in which the cost is incurred for financial statements
prepared using the economic resources measurement focus. The implementation of this Statement had
no effect on the County’s financial statements.
In January 2020, the GASB issued Statement No. 92, Omnibus 2020. The new effective date is for
reporting periods beginning after June 15, 2021. Statement No. 92. The objectives of this statement are
to enhance comparability in accounting and financial reporting and to improve the consistency of
authoritative literature by addressing practice issues. Topics include: 1)effective date of Statement No
87, Leases, and implementation guide No 2019‐3, Leases, for interim financial reports; 2)Reporting of
intra‐entity transfers of assets between a primary government employer and a component unit defined
benefit pension plan or defined benefit OPEB plan; 3) The applicability of Statements No 73, Accounting
and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB
Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68, as amended, and
No 74, Financial Reporting for OPEB Plans other Than Pension Plans, as amended, to reporting assets
accumulated for postemployment benefits; 4) The applicability of certain requirements of Statement No
87, Fiduciary Activities, to postemployment benefit arrangements; 5) Measurement of liabilities (and
assets, if any) related to asset retirement obligations (AROs) in a government acquisition; 6) Reporting
by public entity risk pools for amounts that are recoverable from reinsurers or excess insurers. The
County implemented this Statement.
90
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 19. RECENT ACCOUNTING PRONOUNCEMENTS (CONTINUED)
In March 2020, the GASB issued Statement No. 93, Replacement of Interbank Offered Rates. The new
effective date is for reporting periods beginning after June 15, 2021. Statement No. 93 addresses
accounting and financial reporting implications that result from the replacement of an IBOR (interbank
offered rate) such as the LIBOR (London Interbank Offered Rate). The implementation of this Statement
had no effect on the County’s financial statements.
In October 2021, the GASB issued Statement No. 98, The Annual Comprehensive Financial Report. The
new effective date is for reporting periods beginning after June 15, 2021. Statement No. 98 establishes
the term annual comprehensive financial report and its acronym ACFR. That new term and acronym
replace instances of comprehensive annual financial report and its acronym in generally accepted
accounting principles for state and local governments. This Statement was developed in response to
concerns raised by stakeholders that the common pronunciation of the acronym for comprehensive
annual financial report sounds like a profoundly objectionable racial slur. The County implemented this
Statement.
NOTE 20. NEW ACCOUNTING PRONOUNCEMENTS
The following GASB pronouncements have been issued, but are not yet effective at June 30, 2022.
GASB Statement No. 91, Conduit Debt Obligations
GASB Statement No. 94, Public‐Private and Public‐Public Partnerships and Availability Payment
Arrangements
GASB Statement No. 96, Subscription‐Based Information Technology Arrangements
GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for
Internal Revenue Code Section 457 Deferred Compensation Plans
GASB Statement No. 99, Omnibus 2022
GASB Statement No. 100, Accounting Changes and Error Corrections‐an amendment of GASB Statement
No. 62
GASB Statement No. 101, Compensated Absences
The County will implement the new GASB pronouncements in the fiscal year no later than the required
effective date. The City believes that the above listed new GASB pronouncements will not have a
significant financial impact to the County or in issuing its financial statements.
91
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 21. SUBSEQUENT EVENTS
The entity has evaluated subsequent events through November 30, 2022, the date which the
financial statements were available to be issued. As of the report date, November 30, 2022, no
subsequent events were identified by management other than the item listed below.
The County entered into an agreement whereby they were included as a beneficiary in the national
opioid settlement. Under the settlement, the County will receive one lump sum payment and eighteen
smaller payments annually.
NOTE 22 – COVID‐19
In early March 2020, the COVID‐19 virus was declared a global pandemic, and it continues to cause
market fluctuations. Business continuity and financial markets, including supply chains and consumer
demand across a broad range of industries and countries, could be severely impacted for months or
more, as governments and their citizens take significant and unprecedented measures to mitigate the
consequences of the pandemic. Management is carefully monitoring the situation and evaluating its
options during this time.
NOTE 23 – LEASES
With the implementation of GASB 87, Leases, the County has leases that are to be recognized for the
governmental funds. The County is the lessor with the following leases:
Term
Interest
Rate
Land 3 years 4.3%
Office space 3 years 4.3%
Airport hangers 3 years 4.3%
Building 25 years 4.3%
The leases for the land, office space and airport hangers have fixed rents while the building has a 7.5%
rent increase at the completion of each successive fifth anniversary. The County has used it’s
incremental borrowing rate to value the leases. In the current year the County recognized deferred
inflows of $121,530 and interest income of $111,347.
92
STATE OF NEW MEXICO
LEA COUNTY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 23 – LEASES (CONTINUED)
The annual lease requirements are as follows:
June 30,
Principal
Payments
Interest
Payments Total
2023 $ 119,309 112,122 231,431
2024 110,975 109,711 220,686
2025 100,371 107,684 208,055
2026 96,749 105,735 202,484
2027 96,030 103,735 199,765
2028‐2032 479,972 478,839 958,811
2033‐2037 479,972 391,638 871,610
2038‐2042 479,972 268,420 748,392
2043‐2047 479,971 99,429 579,400
2048 204,580 ‐ 204,580
$ 2,647,901 1,777,313 4,425,214
93
50 Table of Contents
Required Supplementary Information
94
STATE OF NEW MEXICO
LEA COUNTY
SCHEDULE OF THE COUNTY'S PROPORATIONATE SHARE OF THE NET PENSION LIABILITY
JUNE 30, 2022
Fiscal Year 2021 2020 2019 2018 2017 2016 2015
Measurement Date 2020 2019 2018 2017 2016 2015 2014
County's Proportion of the Net Pension Liability (Asset)2.21% 3.45% 3.00% 3.00% 2.79% 2.77% 2.56%
County's Proportionate Share of Net Pension Liability
(Asset)$25,351 44,817 37,120 32,318 25,634 31,279 18,881
County's Covered Payroll $16,999 17,392 17,392 15,100 15,259 14,613 13,436
County's Proportionate Share of the Net Pension Liability
(Asset) as a Percentage of Its Covered Payroll 149.13% 257.69% 213.43% 214.03% 167.99% 214.05% 140.53%
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability 77.25% 66.36% 70.52% 71.13% 73.74% 69.18% 76.99%
*Governmental Accounting Standards Board Statement 68 requires ten years of historical information be presented; however, until a full 10‐year trend is compiled, the statement only
requires presentation of information for those years that information is available. Complete information for the County is not available prior to fiscal year 2015, the year the statement's
requiremnts became effective.
Pension Liability
For Last 10 Fiscal Years*
(Dollars in Thousands)
30‐Jun
95
STATE OF NEW MEXICO
LEA COUNTY
SCHEDULE OF COUNTY CONTRIBUTIONS
JUNE 30, 2022
2022 2021 2020 2019 2018 2017 2016 2015
$ 1,437 1,160 1,208 1,076 1,115 1,679 2,319 1,456
1,437 1,160 1,866 1,676 1,736 1,679 2,319 1,456
Contribution Deficiency (Excess)*$‐ ‐ (658) (600) (621) ‐ ‐ ‐
*Governmental Accounting Standards Board Statement 68 requires ten years of historical information be presented; however, until a full 10‐year trend is compiled, the statement only
requires presentation of information for those years that information is available. Complete information for the County is not available prior to fiscal year 2015, the year the statement's
requiremnts became effective.
Last Ten Fiscal Years*
(Dollars in Thousands)
Contractually Required Contribution
Contributions in Relation to the Contractually
Required Contribution
General Division
96
STATE OF NEW MEXICO
LEA COUNTY
SCHEDULE OF COUNTY CONTRIBUTIONS
JUNE 30, 2022
2022 2021 2020 2019 2018 2017 2016 2015
$ 1,045 990 966 725 678 795 1,609 957
1,045 1,249 1,220 918 859 795 1,609 957
Contribution Deficiency (Excess)*$‐ (259) (254) (193) (181) ‐ ‐ ‐
Last Ten Fiscal Years*
(Dollars in Thousands)
Contractually Required Contribution
Contributions in Relation to the Contractually
Required Contribution
*Governmental Accounting Standards Board Statement 68 requires ten years of historical information be presented; however, until a full 10‐year trend is compiled, the statement only requires
presentation of information for those years that information is available. Complete information for the County is not available prior to fiscal year 2015, the year the statement's requiremnts
became effective.
Police Dision
97
STATE OF NEW MEXICO
LEA COUNTY
SCHEDULE OF THE COUNTY'S PROPORTIONATE SHARE OF THE NET OPEB LIABILITY
June 30, 2022
Fiscal Year 2021 2020 2019 2018
Measurement Date 2020 2019 2018 2017
County's Proportion of the Net OPEB liability (Asset)37.32000% 0.38124% 0.40493% 0.35257%
County's Proportionate Share of Net OPEB Liability (Asset)$ 12,279,585 16,007,917 13,129,405 15,977,320
County's Covered Payroll $ 17,220,358 16,386,139 16,897,440 14,686,823
County's Proportionate Share of the Net OPEB Liability (Asset) as a
Percentage of Its Covered Payroll 71.31%97.69% 77.70% 108.79%
Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 25.39% 16.50% 18.92% 11.34%
*This schedule is presented to illustrate the requirement to show information for 10 years. However,
until a full 10‐year trend is compiled, the County will present information for available years.
30‐Jun
New Mexico Retiree Health Care Authority
For Last 10 Fiscal Years*
(Dollars in Thousands)
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STATE OF NEW MEXICO
LEA COUNTY
SCHEDULE OF COUNTY CONTRIBUTIONS
June 30, 2022
2022 2021 2020 2019 2018
Contractually Required Contribution $ 396,399 540,275 524,206 557,200 1,119,575
Contributions in Relation to the Contractually Required Contribution 396,399 540,275 524,206 550,397 561,902
Contribution Deficiency (Excess)$‐ ‐ ‐ 6,803 557,673
Employer's covered payroll $ 19,819,950 16,717,323 16,386,139 16,897,440 15,299,052
Contributions as a percentage of covered payroll 2.00% 3.23% 3.20% 3.26% 3.80%
New Mexico Retiree Health Care Authority
Last Ten Fiscal Years*
(Dollar Amounts in Thousands)
*This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10‐year trend is compiled, the County will present information for
available years.
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STATE OF NEW MEXICO
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NOTES TO PENSION AND OPEB REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2022
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
Changes of Benefit Terms ‐ The PERA and COLA and retirement eligibility benefits changes in recent
years are described in Note 1 of the PERA’s ACFR. That report is available at
https://www.nmpera.org/financial‐overview/.
Assumption ‐ The Public Employees Retirement Association (PERA) of New Mexico Annual Actuarial
Valuation Report as of June 30, 2020, is available at http://www.nmpera.org/
Retiree Health Care Authority (RHCA). In the June 30, 2021 actuarial valuation and the total OPEB liability
measured as of June 30, 2021, changes in assumptions include adjustments resulting from an increase in
the discount rate from 2.86% to 3.62%.
100
56 Table of Contents
Supplementary Information
101
58 Table of Contents
Nonmajor Governmental Funds
102
STATE OF NEW MEXICO
LEA COUNTY
NONMAJOR GOVERNMENTAL FUND DESCRIPTIONS
JUNE 30, 2022
SPECIAL REVENUE FUNDS
Farm and Range Fund (403) ‐ To account for funds collected under the Taylor Grazing Act for
the control of animals specified in Section 6‐11‐6 NMSA 1978.
Community Centers (404) ‐ To account for revenues from cigarette tax restricted for the
maintenance of County parks as specified in Section 7‐12‐15 NMSA 1978.
Clerk’s Recording & Filing (405) ‐ To account for equipment recording fees that shall be expensed for
rent, purchase lease, or lease‐purchase equipment associated with recording, filing, maintaining or
reproducing documents in the County Clerk's office. The fund is authorized by Section 14‐8‐12.2,
NMSA 1978.
Indigent Fund (406) To account for the payment of indigent hospital costs. Financing is provided by
gross receipts tax and is restricted to indigent claims as authorized by Section 27‐5‐5, NMSA 1978 and
County policy.
Maljamar Fire Department (407) ‐ To account for the operations of the County's fire departments.
Financing is provided by the State Fire Protection Fund and is restricted to fire protection use as
authorized by Section A‐53‐4, NMSA 1978.
Knowles Fire Department (408) ‐ To account for the operations of the County's fire departments.
Financing is provided by the State Fire Protection Fund and is restricted to fire protection use as
authorized by Section A‐53‐4, NMSA 1978.
Airport Fire Department (409) ‐ To account for the operations of the County's fire departments.
Financing is provided by the State Fire Protection Fund and is restricted to fire protection use as
authorized by Section A‐53‐4, NMSA 1978.
Monument Fire Department (410) ‐ To account for the operations of the County's fire
departments. Financing is provided by the State Fire Protection Fund and is restricted to fire
protection use as authorized by Section A‐53‐4, NMSA 1978.
DWI Grant (412) ‐ To account for funds received from the state of New Mexico to be spent on the DWI
program. The fund is authorized by Sections 11‐6A‐1 through 11‐6A‐6, NMSA 1978.
Paving Countys (416) – To account for funds expended in engineering and construction of pavement
on Piedras Drive, Baggett Drive and Sandcastle Subdivision. The County chose the Petition Method 4‐
55A‐3(2) to create the County. The fund was authorized by Section 4‐55A‐1 to 4‐55A‐43, NMSA 1978.
Revolving Loan Fund (421) ‐ To account for the loan funds received under the 1986 Community
Development Block Grant Program (CDBG) #86‐C‐NR‐I‐04‐GA‐091.
103
STATE OF NEW MEXICO
LEA COUNTY
NONMAJOR GOVERNMENTAL FUND DESCRIPTIONS
JUNE 30, 2022
SPECIAL REVENUE FUNDS (CONTINUED)
EMPG Reimbursement (424) – To account for salary reimbursement for the 2015 Emergency
Management Performance Grant Program issued by the NM Department of Homeland Security and
Emergency Management. The grant was used to support activities essential to the ability of states,
territories, and urban areas to prepare for, prevent and respond to terrorist attacks and other all‐
hazards events. 2015 Federal Grant No. EMW‐2015‐EP‐00066‐S01 CDFA No. 97.042.
Other Grants (431) ‐To account for grants and grant expenditures that are subject to tracking
requirements and authorized by various grant agreements.
Jal CDBG Wastewater (433) ‐ To account for revenues and expenditures under the Community Block
Development Grant #86‐C‐NR‐1‐04‐GA‐091.
Lea Region Airport (454) ‐ is used to account for revenues and expenses related to the operation of the
Lea County Region Airport as per 49 CFR Section 18 – Uniform Administrative Requirements for Grants
and Cooperative Agreements to State and Local Governments.
County Airport Fund (455) ‐ is used to account for revenues and expenses related to the operation of
the County Airports as per 49 CFR Section 18 – Uniform Administrative Requirements for Grants and
Cooperative Agreements to State and Local Governments.
Lea County Fairgrounds Fund (460) ‐ was established by resolution to account for revenues and
expenses related to the operation of the County’s fairgrounds.
Event Center (463) – Special revenue fund established by resolution to account for revenues and
expenses related to the operation of the Event Center.
Property Valuation Fund (499) ‐ To account for revenues provided by 2 percent of the property taxes
received by the County to be used for appraisal programs presented by the County Assessor and
approved by the majority of the County Commissioners. The fund is authorized by Section 7‐38‐38.1
NMSA 1978.
EMS Knowles (604) ‐ To account for funds received from the state of New Mexico to be spent on
emergency medical services equipment and operations for the Emergency Medical Services
Departments as authorized by 24A‐1.
Law Enforcement Protection Grant (605) ‐ To account for the state funds received for law
enforcement training and equipment as specified in Section 29‐13‐1, NMSA 1978.
Lea County Drug Task Force (HIDTA) (609) ‐ Special revenue fund established by resolution to
account for revenues and expenditures related to education and local enforcement of the drug
program. This program is financed with federal grants aiming to ameliorate High Intensity Drug
Trafficking Areas.
104
STATE OF NEW MEXICO
LEA COUNTY
NONMAJOR GOVERNMENTAL FUND DESCRIPTIONS
JUNE 30, 2022
SPECIAL REVENUE FUNDS (CONTINUED)
EMS Maljamar (613) ‐ To account for funds received from the state of New Mexico to be spent on
emergency medical services equipment and operations for the Emergency Medical Services
Departments as authorized by 24A‐1.
County Fire Marshall (618) ‐ To account for the revenue and expenses of the Office of the County
Fire Marshal established per Lea County Resolution 11‐JUN026R and funded by the New Mexico
State Fire Marshal's Office.
EMS Monument (621) ‐ To account for funds received from the state of New Mexico to be spent on
emergency medical services equipment and operations for the Emergency Medical Services
Departments as authorized by 24A‐1.
105
STATE OF NEW MEXICO
LEA COUNTY
COMBINING BALANCE SHEET
NONMAJOR FUNDS
Farm and Community Clerk's Recording
Range Centers & Filing
ASSETS 403 404 405
Current assets:
Cash and cash equivalents $ 39,795 189,036 366,399
Investments ‐ ‐ ‐
Receivables
Receivable from other governments ‐ ‐ ‐
Leases receivable ‐ ‐ ‐
Other receivables ‐ ‐ 34,557
Total current assets $ 39,795 189,036 400,956
LIABILITIES, DEFERRED INFLOWS,
AND FUND BALANCES
Current liabilities:
Accounts payable $‐ 1,481 1,342
Accrued payroll liabilities ‐ ‐ ‐
Total current liabilities ‐ 1,481 1,342
Deferred inflows:
Leases ‐ ‐ ‐
Total deferred inflows ‐ ‐ ‐
Fund balances (deficit)
Nonspendable ‐ ‐ ‐
Restricted 39,795 187,555 399,614
Unassigned ‐ ‐ ‐
Total fund balance (deficit)39,795 187,555 399,614
Total liabilities, deferred inflows,
and fund balance (deficit)$ 39,795 189,036 400,956
JUNE 30, 2022
106
Indigent Malijmar Fire Knowles Fire Airport Monument Fire
Fund District District Fire District
406 407 408 409 410
8,032,872 261,158 197,732 224,475 113,080
‐ ‐ ‐ ‐ ‐
1,173,113 ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
9,205,985 261,158 197,732 224,475 113,080
2,000 3,421 11,705 4,652 1,117
‐ ‐ ‐ 9,034 ‐
2,000 3,421 11,705 13,686 1,117
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
9,203,985 257,737 186,027 210,789 111,963
‐ ‐ ‐ ‐ ‐
9,203,985 257,737 186,027 210,789 111,963
9,205,985 261,158 197,732 224,475 113,080
107
STATE OF NEW MEXICO
LEA COUNTY
COMBINING BALANCE SHEET - Continued
NONMAJOR FUNDS
JUNE 30, 2022
Revolving
Paving Loan
DWI Districts Fund
ASSETS 412 416 421
Current assets:
Cash and cash equivalents $ 463,313 2,538 960
Investments ‐ ‐ 100,145
Receivables
Receivable from other governments 164,559 ‐ ‐
Leases receivable ‐ ‐ ‐
Other receivables 230,170 ‐ ‐
Total current assets $ 858,042 2,538 101,105
LIABILITIES, DEFERRED INFLOWS,
AND FUND BALANCES
Current liabilities:
Accounts payable $‐ ‐ ‐
Accrued payroll liabilities 97,276 ‐ ‐
Total current liabilities 97,276 ‐ ‐
Deferred inflows:
Leases ‐ ‐ ‐
Total deferred inflows ‐ ‐ ‐
Fund balances (deficit)
Nonspendable ‐ ‐ ‐
Restricted 760,766 2,538 101,105
Unassigned ‐ ‐
Total fund balance (deficit)760,766 2,538 101,105
Total liabilities, deferred inflows,
and fund balance (deficit)$ 858,042 2,538 101,105
108
EMPG Other Jal CDBG Lea Region County
Reimbursement Grants Wastewater Airport Airports
424 431 433 454 455
16,562 406,789 21,882 9,176,666 2,086,280
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ 8,479 1,997
‐ ‐ ‐ 30,189 ‐
‐ ‐ ‐ 47,498 ‐
16,562 406,789 21,882 9,262,832 2,088,277
‐ ‐ ‐ 31,928 848
1,050 ‐ ‐ 14,267 3,786
1,050 ‐ ‐ 46,195 4,634
‐ ‐ ‐ 30,189 ‐
‐ ‐ ‐ 30,189 ‐
‐ ‐ ‐ ‐ ‐
15,512 406,789 21,882 9,186,448 2,083,643
‐ ‐ ‐ ‐ ‐
15,512 406,789 21,882 9,186,448 2,083,643
16,562 406,789 21,882 9,262,832 2,088,277
109
STATE OF NEW MEXICO
LEA COUNTY
COMBINING BALANCE SHEET - Continued
NONMAJOR FUNDS
JUNE 30, 2022
Property
Lea County Lea County Valuation
Fairgrounds Event Center Fund
ASSETS 460 463 499
Current assets:
Cash and cash equivalents $ 3,707,653 11,158,386 1,495,102
Investments ‐ ‐ ‐
Receivables
Receivable from other governments ‐ ‐ ‐
Leases receivable ‐ ‐ ‐
Other receivables 2,398 5,967 ‐
Total current assets $ 3,710,051 11,164,353 1,495,102
LIABILITIES, DEFERRED INFLOWS,
AND FUND BALANCES
Current liabilities:
Accounts payable $107,024 84,409 11,273
Accrued payroll liabilities 47,910 16,582 4,884
Total current liabilities 154,934 100,991 16,157
Deferred inflows:
Leases ‐ ‐ ‐
Total deferred inflows ‐ ‐ ‐
Fund balances (deficit)
Nonspendable ‐ ‐ ‐
Restricted 3,555,117 11,063,362 1,478,945
Unassigned ‐ ‐ ‐
Total fund balance (deficit)3,555,117 11,063,362 1,478,945
Total liabilities, deferred inflows,
and fund balance (deficit)$ 3,710,051 11,164,353 1,495,102
110
Law
Enforcement High Intensity
EMS Protection Drug Trafficking EMS County Fire
Knowles Grant Areas Funds Maljamar Marshall
604 605 609 613 618
26,938 ‐ 7,148,627 6,994 109,547
‐ ‐ ‐ ‐ ‐
‐ ‐ 168,369 ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
26,938 ‐ 7,316,996 6,994 109,547
‐ 1,203 200,350 ‐ 294
‐ ‐ ‐ ‐ ‐
‐ 1,203 200,350 ‐ 294
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
26,938 ‐ 7,116,646 6,994 109,253
‐ (1,203) ‐ ‐ ‐
26,938 (1,203) 7,116,646 6,994 109,253
26,938 ‐ 7,316,996 6,994 109,547
111
STATE OF NEW MEXICO
LEA COUNTY
COMBINING BALANCE SHEET - Continued
NONMAJOR FUNDS
JUNE 30, 2022
EMS Total
Monument Non‐Major
ASSETS 621 Funds
Current assets:
Cash and cash equivalents $1,017 45,253,801
Investments ‐ 100,145
Receivables
Receivable from other governments ‐ 1,516,517
Leases receivable ‐ 30,189
Other receivables ‐ 320,590
Total current assets $1,017 47,221,242
LIABILITIES, DEFERRED INFLOWS,
AND FUND BALANCES
Current liabilities:
Accounts payable $‐ 463,047
Accrued payroll liabilities ‐ 194,789
Total current liabilities ‐ 657,836
Deferred inflows:
Leases ‐ 30,189
Total deferred inflows ‐ 30,189
Fund balances (deficit)
Nonspendable ‐ ‐
Restricted 1,017 46,534,420
Unassigned ‐ (1,203)
Total fund balance (deficit)1,017 46,533,217
Total liabilities, deferred inflows,
and fund balance (deficit)$1,017 47,221,242
112
STATE OF NEW MEXICO
LEA COUNTY
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES (DEFICIT)
NONMAJOR FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
Farm and Community Clerk's Recording
Range Centers & Filing
Revenues 403 404 405
Property, sales, and miscellaneous
taxes $‐ ‐ ‐
Licenses and permits ‐ ‐ 192,642
Intergovernmental:
Federal 13,119 ‐ ‐
State ‐ ‐ ‐
Charges for services ‐ ‐ ‐
Investment earnings ‐ ‐ ‐
Miscellaneous ‐ ‐ ‐
Total revenues 13,119 ‐ 192,642
Expenditures
Current
General government ‐ ‐ 26,532
Public safety 121,160 ‐ ‐
Culture and recreation ‐ 15,925 ‐
Health and welfare ‐ ‐ ‐
Public works ‐ ‐ ‐
Capital outlay ‐ ‐ ‐
Total expenditures 121,160 15,925 26,532
Excess (deficiency) of revenues
over expenditures (108,041) (15,925) 166,110
Other financing sources (uses):
Transfers in 125,000 200,000 ‐
Transfers out ‐ ‐ ‐
Total other financing sources (uses)125,000 200,000 ‐
Net changes in fund balances 16,959 184,075 166,110
Fund balances (deficit) ‐ beginning of year 22,836 3,480 233,504
Fund balances (deficit) ‐ end of year $ 39,795 187,555 399,614
113
Indigent Malijmar Knowles Fire Monument Fire
Fund Fire District District Airport Fire District
406 407 408 409 410
11,841,636 ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ 80,927 85,422 ‐ 89,918
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
11,841,636 80,927 85,422 ‐ 89,918
‐ ‐ ‐ ‐ ‐
‐ 67,537 64,235 206,402 113,469
‐ ‐ ‐ ‐ ‐
7,952,808 ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
7,952,808 67,537 64,235 206,402 113,469
3,888,828 13,390 21,187 (206,402) (23,551)
4,500,000 ‐ ‐ 375,000 ‐
‐ ‐ ‐ ‐ ‐
4,500,000 ‐ ‐ 375,000 ‐
8,388,828 13,390 21,187 168,598 (23,551)
815,157 244,347 164,840 42,191 135,514
9,203,985 257,737 186,027 210,789 111,963
114
STATE OF NEW MEXICO
LEA COUNTY
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES (DEFICIT) - Continued
NONMAJOR FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
Revolving
Paving Loan
DWI Districts Fund
Revenues 412 416 421
Property, sales, and miscellaneous
taxes $‐ ‐ ‐
Licenses and permits ‐ ‐ ‐
Intergovernmental:
Federal ‐ ‐ ‐
State 971,009 ‐ ‐
Charges for services 330,145 ‐ ‐
Investment earnings ‐ ‐ ‐
Miscellaneous 3,412 ‐ ‐
Total revenues 1,304,566 ‐ ‐
Expenditures
Current
General government ‐ ‐ ‐
Public safety 1,172,870 ‐ ‐
Culture and recreation ‐ ‐ ‐
Health and welfare ‐ ‐ ‐
Public works ‐ ‐ ‐
Capital outlay ‐ ‐ ‐
Total expenditures 1,172,870 ‐ ‐
Excess (deficiency) of revenues
over expenditures 131,696 ‐ ‐
Other financing sources (uses):
Transfers in 65,000 ‐ ‐
Transfers out ‐ ‐ ‐
Total other financing sources (uses)65,000 ‐ ‐
Net changes in fund balances 196,696 ‐ ‐
Fund balances (deficit) ‐ beginning of year 564,070 2,538 101,105
Fund balances (deficit) ‐ end of year $ 760,766 2,538 101,105
115
Revolving
EMPG Other Jal CDBG Lea Region County
Reimbursement Grants Wastewater Airport Airports
424 431 433 454 455
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ 12,570
‐ 119,569 ‐ 377,705 32,661
‐ ‐ ‐ 107,044 ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ 119,569 ‐ 484,749 45,231
‐ 5,530 ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ 431,558 168,574
‐ ‐ ‐ 1,398,061 312,846
‐ 5,530 ‐ 1,829,619 481,420
‐ 114,039 ‐ (1,344,870) (436,189)
‐ ‐ ‐ 8,195,850 2,449,500
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ 8,195,850 2,449,500
‐ 114,039 ‐ 6,850,980 2,013,311
15,512 292,750 21,882 2,335,468 70,332
15,512 406,789 21,882 9,186,448 2,083,643
116
STATE OF NEW MEXICO
LEA COUNTY
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES (DEFICIT) - Continued
NONMAJOR FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
Property
Lea County Lea County Valuation
Fairgrounds Event Center Fund
Revenues 460 463 499
Property, sales, and miscellaneous
taxes $‐ ‐ ‐
Licenses and permits ‐ ‐ ‐
Intergovernmental:
Federal ‐ ‐ ‐
State ‐ ‐ ‐
Charges for services 876,025 225,633 782,567
Investment earnings ‐ ‐ ‐
Miscellaneous 71,003 ‐ ‐
Total revenues 947,028 225,633 782,567
Expenditures
Current
General government ‐ ‐ 567,026
Public safety ‐ ‐ ‐
Culture and recreation 2,869,709 1,447,448 ‐
Health and welfare ‐ ‐ ‐
Public works ‐ ‐ ‐
Capital outlay 123,854 1,331,039 ‐
Total expenditures 2,993,563 2,778,487 567,026
Excess (deficiency) of revenues
over expenditures (2,046,535) (2,552,854) 215,541
Other financing sources (uses):
Transfers in 5,022,000 13,110,000 ‐
Transfers out (400,000) ‐ ‐
Total other financing sources (uses)4,622,000 13,110,000 ‐
Net changes in fund balances 2,575,465 10,557,146 215,541
Fund balances (deficit) ‐ beginning of year 979,652 506,216 1,263,404
Fund balances (deficit) ‐ end of year $ 3,555,117 11,063,362 1,478,945
117
Enforcement High Intensity
EMS Protection Drug Trafficking EMS County Fire
Knowles Grant Areas Funds Maljamar Marshall
604 605 609 613 618
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ 8,421,511 ‐ ‐
5,000 64,400 ‐ ‐ 85,422
‐ ‐ ‐ ‐ ‐
‐ ‐ 10 ‐ ‐
‐ ‐ 26,919 ‐ ‐
5,000 64,400 8,448,440 ‐ 85,422
‐ ‐ ‐ ‐ ‐
2,805 67,521 1,535,400 ‐ 62,823
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ 60,966 ‐ ‐
2,805 67,521 1,596,366 ‐ 62,823
2,195 (3,121) 6,852,074 ‐ 22,599
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
2,195 (3,121) 6,852,074 ‐ 22,599
24,743 1,918 264,572 6,994 86,654
26,938 (1,203) 7,116,646 6,994 109,253
118
STATE OF NEW MEXICO
LEA COUNTY
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES (DEFICIT) - Continued
NONMAJOR FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
EMS Total
Monument Non‐Major
Revenues 621 Funds
Property, sales, and miscellaneous
taxes $‐ 11,841,636
Licenses and permits ‐ 192,642
Intergovernmental:
Federal ‐ 8,447,200
State ‐ 1,912,033
Charges for services ‐ 2,321,414
Investment earnings ‐ 10
Miscellaneous ‐ 101,334
Total revenues ‐ 24,816,269
Expenditures
Current
General government ‐ 599,088
Public safety ‐ 3,414,222
Culture and recreation ‐ 4,333,082
Health and welfare ‐ 7,952,808
Public works ‐ 600,132
Capital outlay ‐ 3,226,766
Total expenditures ‐ 20,126,098
Excess (deficiency) of revenues
over expenditures ‐ 4,690,171
Other financing sources (uses):
Transfers in ‐ 34,042,350
Transfers out ‐ (400,000)
Total other financing sources (uses)‐ 33,642,350
Net changes in fund balances ‐ 38,332,521
Fund balances (deficit) ‐ beginning of year 1,017 8,200,696
Fund balances (deficit) ‐ end of year $1,017 46,533,217
119
62 Table of Contents
Special Revenue Funds Descriptions
120
STATE OF NEW MEXICO
LEA COUNTY
FARM AND RANGE ‐ SPECIAL REVENUE FUND (403)
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES‐BUDGET (NON‐GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget‐
Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental:
Federal $ 20,000 20,000 13,119 (6,881)
State ‐ ‐ ‐ ‐
Total revenues 20,000 20,000 13,119 (6,881)
Expenditures
Current
General government ‐ ‐ ‐ ‐
Public safety 121,161 121,161 121,160 1
Total expenditures 121,161 121,161 121,160 1
Excess (deficiency) of revenues
over expenditures (101,161) (101,161) (108,041) (6,880)
Other financing sources (uses):
Transfers in 125,000 125,000 125,000 ‐
Transfers out ‐ ‐ ‐ ‐
Total other financing sources (uses)125,000 125,000 125,000 ‐
Prior year cash balance budgeted ‐ ‐
Net changes in fund balances $ 23,839 23,839 16,959 (6,880)
Reconciliation to GAAP basis:
Adjustments to revenues ‐
Adjustments to expenditures ‐
Net Change in Fund Balances (GAAP Basis)$ 16,959
Budgeted Amounts
121
STATE OF NEW MEXICO
LEA COUNTY
COMMUNITY CENTERS‐ SPECIAL REVENUE FUND (404)
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES‐BUDGET (NON‐GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget‐
Actual Positive
Original Final Amounts (Negative)
Revenues
Property, sales, and miscellaneous
taxes $‐ ‐ ‐ ‐
Payment in lieu of taxes ‐ ‐ ‐
Licenses and permits ‐ ‐ ‐ ‐
Intergovernmental:
Federal ‐ ‐ ‐ ‐
State ‐ ‐ ‐ ‐
Charges for services ‐ ‐ ‐ ‐
Investment earnings ‐ ‐ ‐ ‐
Miscellaneous ‐ ‐ ‐ ‐
Total revenues ‐ ‐ ‐ ‐
Expenditures
Current
Culture and recreation 76,670 76,670 15,925 60,745
Capital outlay 100,000 100,000 ‐ 100,000
Total expenditures 176,670 176,670 15,925 160,745
Excess (deficiency) of revenues
over expenditures (176,670) (176,670) (15,925) 160,745
Other financing sources (uses):
Transfers in 200,000 200,000 200,000 ‐
Transfers out ‐ ‐ ‐ ‐
Total other financing sources (uses)200,000 200,000 200,000 ‐
Prior year cash balance budgeted ‐ ‐
Net changes in fund balances $ 23,330 23,330 184,075 160,745
Reconciliation to GAAP basis:
Adjustments to revenues ‐
Adjustments to expenditures ‐
Net Change in Fund Balances (GAAP Basis)$ 184,075
Budgeted Amounts
122
STATE OF NEW MEXICO
LEA COUNTY
CLERK RECORDING & FILING ‐ SPECIAL REVENUE FUND (405)
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES‐BUDGET (NON‐GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget‐
Actual Positive
Original Final Amounts (Negative)
Revenues
Licenses and permits $ 100,000 100,000 176,635 76,635
Total revenues 100,000 100,000 176,635 76,635
Expenditures
Current
General government 148,368 148,368 25,731 122,637
Total expenditures 148,368 148,368 25,731 122,637
Excess (deficiency) of revenues
over expenditures (48,368) (48,368) 150,904 199,272
Other financing sources (uses):
Transfers in ‐ ‐ ‐ ‐
Transfers out ‐ ‐ ‐ ‐
Total other financing sources (uses)‐ ‐ ‐ ‐
Prior year cash balance budgeted 215,495 215,495
Net changes in fund balances $ 167,127 167,127 150,904 (16,223)
Reconciliation to GAAP basis:
Adjustments to revenues 16,007
Adjustments to expenditures (801)
Net Change in Fund Balances (GAAP Basis)$ 166,110
Budgeted Amounts
123
STATE OF NEW MEXICO
LEA COUNTY
INDIGENT FUND (406)
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES‐BUDGET (NON‐GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget‐
Actual Positive
Original Final Amounts (Negative)
Revenues
Property, sales, and miscellaneous
taxes $ 4,650,072 4,650,072 11,662,260 7,012,188
Miscellaneous 500 500 ‐ (500)
Total revenues 4,650,572 4,650,572 11,662,260 7,011,688
Expenditures
Current
Health and welfare 7,678,000 10,637,342 6,552,051 4,085,291
Total expenditures 7,678,000 10,637,342 6,552,051 4,085,291
Excess (deficiency) of revenues
over expenditures (3,027,428) (5,986,770) 5,110,209 11,096,979
Other financing sources (uses):
Transfers in 4,500,000 4,500,000 4,500,000 ‐
Transfers out ‐ ‐ ‐ ‐
Total other financing sources (uses)4,500,000 4,500,000 4,500,000 ‐
Prior year cash required to balance budget 1,554,191 1,554,191 ‐ (1,554,191)
Net changes in fund balances $ 3,026,763 67,421 9,610,209 9,542,788
Reconciliation to GAAP basis:
Adjustments to revenues 179,376
Adjustments to expenditures (1,400,757)
Net Change in Fund Balances (GAAP Basis)$ 8,388,828
Budgeted Amounts
See Notes to Financial Statements
124
STATE OF NEW MEXICO
LEA COUNTY
MALJIMAR FIRE DISTRICT ‐ SPECIAL REVENUE FUND (407)
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES‐BUDGET (NON‐GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget‐
Actual Positive
Original Final Amounts (Negative)
Revenues
State $ 75,062 75,062 80,927 5,865
Total revenues 75,062 75,062 80,927 5,865
Expenditures
Current
Public safety 80,454 80,454 68,701 11,753
Total expenditures 80,454 80,454 68,701 11,753
Excess (deficiency) of revenues
over expenditures (5,392) (5,392) 12,226 17,618
Other financing sources (uses):
Transfers in ‐ ‐ ‐ ‐
Transfers out ‐ ‐ ‐ ‐
Total other financing sources (uses)‐ ‐ ‐ ‐
Prior year cash required to balance budget 248,932 248,932
Net changes in fund balances $ 243,540 243,540 12,226 (231,314)
Reconciliation to GAAP basis:
Adjustments to revenues ‐
Adjustments to expenditures 1,164
Net Change in Fund Balances (GAAP Basis)$ 13,390
Budgeted Amounts
125
STATE OF NEW MEXICO
LEA COUNTY
KNOWLES FIRE DISTRICT‐ SPECIAL REVENUE FUND (408)
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES‐BUDGET (NON‐GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget‐
Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental:
Federal $‐ ‐ ‐ ‐
State 79,232 79,232 85,422 6,190
Total revenues 79,232 79,232 85,422 6,190
Expenditures
Current
Public safety 84,924 85,324 53,355 31,969
Total expenditures 84,924 85,324 53,355 31,969
Excess (deficiency) of revenues
over expenditures (5,692) (6,092) 32,067 38,159
Other financing sources (uses):
Transfers in ‐ ‐ ‐ ‐
Transfers out ‐ ‐ ‐ ‐
Total other financing sources (uses)‐ ‐ ‐ ‐
Prior year cash balance budgeted 165,665 165,665
Net changes in fund balances $(5,692) (6,092) 32,067 38,159
Reconciliation to GAAP basis:
Adjustments to revenues ‐
Adjustments to expenditures (10,880)
Net Change in Fund Balances (GAAP Basis)$ 21,187
See Notes to Financial Statements
Budgeted Amounts
126
STATE OF NEW MEXICO
LEA COUNTY
AIRPORT FIRE ‐ SPECIAL REVENUE FUND (409)
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES‐BUDGET (NON‐GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget‐
Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental:$
Federal ‐ ‐ ‐ ‐
State ‐ ‐ ‐ ‐
Total revenues ‐ ‐ ‐ ‐
Expenditures
Current
Public safety 356,909 358,100 204,805 153,295
Total expenditures 356,909 358,100 204,805 153,295
Excess (deficiency) of revenues
over expenditures (356,909) (358,100) (204,805) 153,295
Other financing sources (uses):
Transfers in 375,000 375,000 375,000 ‐
Transfers out ‐ ‐ ‐ ‐
Total other financing sources (uses)375,000 375,000 375,000 ‐
Prior year cash balance budgeted 47,348 47,348
Net changes in fund balances $ 65,439 64,248 170,195 105,947
Reconciliation to GAAP basis:
Adjustments to revenues ‐
Adjustments to expenditures (1,597)
Net Change in Fund Balances (GAAP Basis)$ 168,598
See Notes to Financial Statements
Budgeted Amounts
127
STATE OF NEW MEXICO
LEA COUNTY
MONUMENT FIRE DISTRICT ‐ SPECIAL REVENUE FUND (410)
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES‐BUDGET (NON‐GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget‐
Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental:
Federal $‐ ‐ ‐ ‐
State 83,401 83,401 89,918 6,517
Total revenues 83,401 83,401 89,918 6,517
Expenditures
Current
Public safety 139,393 139,793 117,806 21,987
Total expenditures 139,393 139,793 117,806 21,987
Excess (deficiency) of revenues
over expenditures (55,992) (56,392) (27,888) 28,504
Other financing sources (uses):
Transfers in ‐ ‐ ‐ ‐
Transfers out ‐ ‐ ‐ ‐
Total other financing sources (uses)‐ ‐ ‐ ‐
Prior year cash balance budgeted ‐ ‐
Net changes in fund balances $ (55,992) (56,392) (27,888) 28,504
Reconciliation to GAAP basis:
Adjustments to revenues ‐
Adjustments to expenditures 4,337
Net Change in Fund Balances (GAAP Basis)$ (23,551)
See Notes to Financial Statements
Budgeted Amounts
128
STATE OF NEW MEXICO
LEA COUNTY
DWI ‐ SPECIAL REVENUE FUND (412)
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES‐BUDGET (NON‐GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget‐
Actual Positive
Original Final Amounts (Negative)
Revenues
Property, sales, and miscellaneous
taxes ‐ ‐ ‐ ‐
Payment in lieu of taxes ‐ ‐ ‐
Licenses and permits ‐ ‐ ‐ ‐
Intergovernmental:$
Federal ‐ ‐ ‐ ‐
State 622,222 667,625 875,853 208,228
Charges for services ‐ ‐ 330,145 330,145
Investment earnings ‐ ‐ ‐ ‐
Miscellaneous ‐ ‐ 3,412 3,412
Total revenues 622,222 667,625 1,209,410 541,785
Expenditures
Current
General government ‐ ‐ ‐ ‐
Public safety 1,045,599 1,255,693 1,177,174 78,519
Total expenditures 1,045,599 1,255,693 1,177,174 78,519
Excess (deficiency) of revenues
over expenditures (423,377) (588,068) 32,236 620,304
Other financing sources (uses):
Transfers in ‐ ‐ 65,000 65,000
Transfers out ‐ ‐ ‐ ‐
Total other financing sources (uses)‐ ‐ 65,000 65,000
Prior year cash balance budgeted 179,564 179,564
Net changes in fund balances $ (243,813) (408,504) 97,236 505,740
Reconciliation to GAAP basis:
Adjustments to revenues 95,156
Adjustments to expenditures 4,304
Net Change in Fund Balances (GAAP Basis)$ 196,696
See Notes to Financial Statements
Budgeted Amounts
129
STATE OF NEW MEXICO
LEA COUNTY
EMPG REIMBURSEMENT ‐ SPECIAL REVENUE FUND (424)
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES‐BUDGET (NON‐GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget‐
Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental:$
Federal ‐ ‐ ‐ ‐
State 50,731 ‐ ‐ ‐
Charges for services ‐ ‐ ‐ ‐
Investment earnings ‐ ‐ ‐ ‐
Miscellaneous ‐ ‐ ‐ ‐
Total revenues 50,731 ‐ ‐ ‐
Expenditures
Current
Public safety 40,306 ‐ ‐ ‐
Total expenditures 40,306 ‐ ‐ ‐
Excess (deficiency) of revenues
over expenditures 10,425 ‐ ‐ ‐
Other financing sources (uses):
Transfers in ‐ ‐ ‐ ‐
Transfers out ‐ ‐ ‐ ‐
Total other financing sources (uses)‐ ‐ ‐ ‐
Net changes in fund balances $ 10,425 ‐ ‐ ‐
Reconciliation to GAAP basis:
Adjustments to revenues ‐
Adjustments to expenditures ‐
Net Change in Fund Balances (GAAP Basis)$‐
See Notes to Financial Statements
Budgeted Amounts
130
STATE OF NEW MEXICO
LEA COUNTY
OTHER GRANTS ‐ SPECIAL REVENUE FUND (431)
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES‐BUDGET (NON‐GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget‐
Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental:
Federal $‐ ‐ ‐ ‐
State 182,500 182,500 127,231 (55,269)
Total revenues 182,500 182,500 127,231 (55,269)
Expenditures
Current
General government 205,403 205,403 6,360 199,043
Total expenditures 205,403 205,403 6,360 199,043
Excess (deficiency) of revenues
over expenditures (22,903) (22,903) 120,871 143,774
Other financing sources (uses):
Transfers in ‐ ‐ ‐ ‐
Transfers out ‐ ‐ ‐ ‐
Total other financing sources (uses)‐ ‐ ‐ ‐
Prior year cash balance budgeted 285,918 285,918
Net changes in fund balances $ 263,015 263,015 120,871 (142,144)
Reconciliation to GAAP basis:
Adjustments to revenues (7,662)
Adjustments to expenditures 830
Net Change in Fund Balances (GAAP Basis)$ 114,039
See Notes to Financial Statements
Budgeted Amounts
131
STATE OF NEW MEXICO
LEA COUNTY
LEA COUNTY AIRPORTS ‐ SPECIAL REVENUE FUND (454)
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES‐BUDGET (NON‐GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget‐
Actual Positive
Original Final Amounts (Negative)
Revenues
Property, sales, and miscellaneous
taxes $‐ ‐ ‐ ‐
Intergovernmental:
Federal 1,400,875 1,228,125 ‐ (1,228,125)
State 4,542,912 4,227,375 989,751 (3,237,624)
Charges for services 129,200 129,200 107,044 (22,156)
Total revenues 6,072,987 5,584,700 1,096,795 (4,487,905)
Expenditures
Current
Public works 590,542 466,659 431,558 35,101
Capital outlay 8,162,000 8,360,681 1,412,486 6,948,195
Total expenditures 8,752,542 8,827,340 1,844,044 6,983,296
Excess (deficiency) of revenues
over expenditures (2,679,555) (3,242,640) (747,249) 2,495,391
Other financing sources (uses):
Transfers in 2,000,000 8,195,850 8,195,850 ‐
Transfers out ‐ ‐ ‐ ‐
Total other financing sources (uses)2,000,000 8,195,850 8,195,850 ‐
Prior year cash balance budgeted 1,697,876 1,697,876
Net changes in fund balances $ 1,018,321 6,651,086 7,448,601 797,515
Reconciliation to GAAP basis:
Adjustments to revenues (612,046)
Adjustments to expenditures 14,425
Net Change in Fund Balances (GAAP Basis)$6,850,980
Budgeted Amounts
132
STATE OF NEW MEXICO
LEA COUNTY
COUNTY AIRPORTS ‐ SPECIAL REVENUE FUND (455)
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES‐BUDGET (NON‐GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget‐
Actual Positive
Original Final Amounts (Negative)
Revenues
Property, sales, and miscellaneous
taxes $‐ ‐ ‐ ‐
Payment in lieu of taxes ‐ ‐ ‐
Licenses and permits ‐ ‐ ‐ ‐
Intergovernmental:
Federal 15,000 15,000 12,570 (2,430)
State 20,000 20,000 32,661 12,661
Total revenues 35,000 35,000 45,231 10,231
Expenditures
Current
Public works 133,113 114,555 168,574 (54,019)
Capital outlay 1,026,667 1,026,667 312,846 713,821
Total expenditures 1,159,780 1,141,222 481,420 659,802
Excess (deficiency) of revenues
over expenditures (1,124,780) (1,106,222) (436,189) 670,033
Other financing sources (uses):
Transfers in 1,000,000 1,385,834 2,449,500 1,063,666
Transfers out ‐ ‐ ‐ ‐
Total other financing sources (uses)1,000,000 1,385,834 2,449,500 1,063,666
Net changes in fund balances $ (124,780) 279,612 2,013,311 1,733,699
Reconciliation to GAAP basis:
Adjustments to revenues ‐
Adjustments to expenditures ‐
Net Change in Fund Balances (GAAP Basis)$2,013,311
See Notes to Financial Statements
Budgeted Amounts
133
STATE OF NEW MEXICO
LEA COUNTY
LEA COUNTY FAIRGROUNDS ‐ SPECIAL REVENUE FUND (460)
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES‐BUDGET (NON‐GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget‐
Actual Positive
Original Final Amounts (Negative)
Revenues
Property, sales, and miscellaneous
taxes $‐ ‐ ‐ ‐
Intergovernmental:
Federal ‐ ‐ ‐ ‐
State 80,000 80,000 ‐ (80,000)
Charges for services 1,055,400 1,055,400 873,627 (181,773)
Miscellaneous 106,000 106,000 71,003 (34,997)
Total revenues 1,241,400 1,241,400 944,630 (296,770)
Expenditures
Current
Culture and recreation 2,928,322 3,100,111 2,866,952 233,159
Health and welfare ‐ ‐ ‐ ‐
Public works ‐ ‐ ‐ ‐
Capital outlay 557,500 607,500 123,854 483,646
Total expenditures 3,485,822 3,707,611 2,990,806 716,805
Excess (deficiency) of revenues
over expenditures (2,244,422) (2,466,211) (2,046,176) 420,035
Other financing sources (uses):
Transfers in 1,000,000 3,822,000 5,022,000 1,200,000
Transfers out ‐ ‐ (400,000) (400,000)
Total other financing sources (uses)1,000,000 3,822,000 4,622,000 800,000
Prior year cash balance budgeted ‐ ‐
Net changes in fund balances $ (1,244,422) 1,355,789 2,575,824 1,220,035
Reconciliation to GAAP basis:
Adjustments to revenues 2,398
Adjustments to expenditures (2,757)
Net Change in Fund Balances (GAAP Basis)$ 2,575,465
Budgeted Amounts
See Notes to Financial Statements
134
STATE OF NEW MEXICO
LEA COUNTY
LEA COUNTY EVENT CENTER ‐ SPECIAL REVENUE FUND (463)
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES‐BUDGET (NON‐GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget‐
Actual Positive
Original Final Amounts (Negative)
Revenues
Charges for services $ 228,700 228,700 219,841 (8,859)
Investment earnings ‐ ‐ ‐ ‐
Miscellaneous ‐ ‐ ‐ ‐
Total revenues 228,700 228,700 219,841 (8,859)
Expenditures
Current
Culture and recreation ‐ 1,616,005 1,394,081 221,924
Capital outlay ‐ 2,557,000 1,331,039 1,225,961
Total expenditures ‐ 4,173,005 2,725,120 1,447,885
Excess (deficiency) of revenues
over expenditures 228,700 (3,944,305) (2,505,279) 1,439,026
Other financing sources (uses):
Transfers in 2,000,000 13,110,000 13,110,000 ‐
Transfers out ‐ ‐ ‐ ‐
Total other financing sources (uses)2,000,000 13,110,000 13,110,000 ‐
Prior year cash balance budgeted ‐ ‐
Net changes in fund balances $ 2,228,700 9,165,695 10,604,721 1,439,026
Reconciliation to GAAP basis:
Adjustments to revenues 5,792
Adjustments to expenditures (53,367)
Net Change in Fund Balances (GAAP Basis)$ 10,557,146
See Notes to Financial Statements
Budgeted Amounts
135
STATE OF NEW MEXICO
LEA COUNTY
PROPERTY VALUATION ‐ SPECIAL REVENUE FUND (499)
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES‐BUDGET (NON‐GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget‐
Actual Positive
Original Final Amounts (Negative)
Revenues
Charges for services $ 626,827 626,827 782,567 155,740
Investment earnings ‐ ‐ ‐ ‐
Miscellaneous ‐ ‐ ‐ ‐
Total revenues 626,827 626,827 782,567 155,740
Expenditures
Current
General government 871,732 886,310 556,351 329,959
Total expenditures 871,732 886,310 556,351 329,959
Excess (deficiency) of revenues
over expenditures (244,905) (259,483) 226,216 485,699
Other financing sources (uses):
Transfers in ‐ ‐ ‐ ‐
Transfers out ‐ ‐ ‐ ‐
Total other financing sources (uses)‐ ‐ ‐ ‐
Prior year cash balance budgeted 1,267,394 1,267,394
Net changes in fund balances $ 1,022,489 1,007,911 226,216 (781,695)
Reconciliation to GAAP basis:
Adjustments to revenues ‐
Adjustments to expenditures (10,675)
Net Change in Fund Balances (GAAP Basis)$ 215,541
See Notes to Financial Statements
Budgeted Amounts
136
STATE OF NEW MEXICO
LEA COUNTY
EMS KNOWLES ‐ SPECIAL REVENUE FUND (604)
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES‐BUDGET (NON‐GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget‐
Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental:
Federal $‐ ‐ ‐ ‐
State 5,000 5,000 5,000 ‐
Total revenues 5,000 5,000 5,000 ‐
Expenditures
Current
Public safety 5,000 5,000 2,805 2,195
Total expenditures 5,000 5,000 2,805 2,195
Excess (deficiency) of revenues
over expenditures ‐ ‐ 2,195 2,195
Other financing sources (uses):
Transfers in ‐ ‐ ‐ ‐
Transfers out ‐ ‐ ‐ ‐
Total other financing sources (uses)‐ ‐ ‐ ‐
Net changes in fund balances $‐ ‐ 2,195 2,195
Reconciliation to GAAP basis:
Adjustments to revenues ‐
Adjustments to expenditures ‐
Net Change in Fund Balances (GAAP Basis)$ 2,195
See Notes to Financial Statements
Budgeted Amounts
137
STATE OF NEW MEXICO
LEA COUNTY
LAW ENFORCEMENT GRANT ‐ SPECIAL REVENUE FUND (605)
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES‐BUDGET (NON‐GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget‐
Actual Positive
Original Final Amounts (Negative)
Revenues
Federal $‐ ‐ ‐ ‐
State 65,000 64,400 64,400 ‐
Charges for services ‐ ‐ ‐ ‐
Investment earnings ‐ ‐ ‐ ‐
Miscellaneous ‐ ‐ ‐ ‐
Total revenues 65,000 64,400 64,400 ‐
Expenditures
Current
General government ‐ ‐ ‐ ‐
Public safety 65,000 66,318 66,318 ‐
Culture and recreation ‐ ‐ ‐ ‐
Health and welfare ‐ ‐ ‐ ‐
Public works ‐ ‐ ‐ ‐
Capital outlay ‐ ‐ ‐ ‐
Debt service
Principal ‐ ‐ ‐ ‐
Interest ‐ ‐ ‐ ‐
Total expenditures 65,000 66,318 66,318 ‐
Excess (deficiency) of revenues
over expenditures ‐ (1,918) (1,918) ‐
Other financing sources (uses):
Transfers in ‐ ‐ ‐ ‐
Transfers out ‐ ‐ ‐ ‐
Total other financing sources (uses)‐ ‐ ‐ ‐
Prior year cash balance budgeted ‐ ‐
Net changes in fund balances $‐ (1,918) (1,918) ‐
Reconciliation to GAAP basis:
Adjustments to revenues ‐
Adjustments to expenditures (1,203)
Net Change in Fund Balances (GAAP Basis)$ (3,121)
See Notes to Financial Statements
Budgeted Amounts
138
STATE OF NEW MEXICO
LEA COUNTY
HIGH INTENSITY DRUG TRAFFICKING AREAS ‐ SPECIAL REVENUE FUND (609)
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES‐BUDGET (NON‐GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget‐
Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental:
Federal $ 1,486,709 8,744,860 8,440,509 (304,351)
State ‐ ‐ ‐ ‐
Miscellaneous ‐ 17,128 26,919 9,791
Total revenues 1,486,709 8,761,988 8,467,438 (294,550)
Expenditures
Current
Public safety 1,461,243 1,832,682 1,463,475 369,207
Culture and recreation ‐ ‐ ‐ ‐
Health and welfare ‐ ‐ ‐ ‐
Public works ‐ ‐ ‐ ‐
Capital outlay ‐ 6,902,257 60,966 6,841,291
Debt service
Principal ‐ ‐ ‐ ‐
Interest ‐ ‐ ‐ ‐
Total expenditures 1,461,243 8,734,939 1,524,441 7,210,498
Excess (deficiency) of revenues
over expenditures 25,466 27,049 6,942,997 6,915,948
Other financing sources (uses):
Transfers in ‐ ‐ ‐ ‐
Transfers out ‐ ‐ ‐ ‐
Total other financing sources (uses)‐ ‐ ‐ ‐
Prior year cash balance budgeted 27,085 27,085
Net changes in fund balances $ 52,551 27,085 6,942,997 6,915,912
Reconciliation to GAAP basis:
Adjustments to revenues (18,998)
Adjustments to expenditures (71,925)
Net Change in Fund Balances (GAAP Basis)$ 6,852,074
See Notes to Financial Statements
Budgeted Amounts
139
STATE OF NEW MEXICO
LEA COUNTY
EMS MALIJAMAR ‐ SPECIAL REVENUE FUND (613)
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES‐BUDGET (NON‐GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget‐
Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental:
Federal $‐ ‐ ‐ ‐
State ‐ ‐ ‐ ‐
Total revenues ‐ ‐ ‐ ‐
Expenditures
Current
Public safety 6,993 6,993 ‐ 6,993
Total expenditures 6,993 6,993 ‐ 6,993
Excess (deficiency) of revenues
over expenditures (6,993) (6,993) ‐ 6,993
Other financing sources (uses):
Transfers in ‐ ‐ ‐ ‐
Transfers out ‐ ‐ ‐ ‐
Total other financing sources (uses)‐ ‐ ‐ ‐
Prior year cash balance budgeted 6,994 6,994
Net changes in fund balances $1 1 ‐ (1)
Reconciliation to GAAP basis:
Adjustments to revenues ‐
Adjustments to expenditures ‐
Net Change in Fund Balances (GAAP Basis)$‐
See Notes to Financial Statements
Budgeted Amounts
140
STATE OF NEW MEXICO
LEA COUNTY
COUNTY FIRE MARSHALL ‐ SPECIAL REVENUE FUND (618)
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES‐BUDGET (NON‐GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget‐
Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental:
Federal $‐ ‐ ‐ ‐
State 79,232 79,232 85,422 6,190
Total revenues 79,232 79,232 85,422 6,190
Expenditures
Current
Public safety 79,232 79,232 63,723 15,509
Capital outlay ‐ ‐ ‐ ‐
Total expenditures 79,232 79,232 63,723 15,509
Excess (deficiency) of revenues
over expenditures ‐ ‐ 21,699 21,699
Other financing sources (uses):
Transfers in ‐ ‐ ‐ ‐
Transfers out ‐ ‐ ‐ ‐
Total other financing sources (uses)‐ ‐ ‐ ‐
Prior year cash balance budgeted ‐ ‐
Net changes in fund balances $‐ ‐ 21,699 21,699
Reconciliation to GAAP basis:
Adjustments to revenues ‐
Adjustments to expenditures 900
Net Change in Fund Balances (GAAP Basis)$22,599
See Notes to Financial Statements
Budgeted Amounts
141
STATE OF NEW MEXICO
LEA COUNTY
EMS MONUMENT ‐ SPECIAL REVENUE FUND (621)
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES‐BUDGET (NON‐GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget‐
Actual Positive
Original Final Amounts (Negative)
Revenues
Federal $‐ ‐ ‐ ‐
State 5,000 5,000 ‐ (5,000)
Charges for services ‐ ‐ ‐ ‐
Investment earnings ‐ ‐ ‐ ‐
Miscellaneous ‐ ‐ ‐ ‐
Total revenues 5,000 5,000 ‐ (5,000)
Expenditures
Current
Public safety 5,000 5,000 ‐ 5,000
Total expenditures 5,000 5,000 ‐ 5,000
Excess (deficiency) of revenues
over expenditures ‐ ‐ ‐ ‐
Other financing sources (uses):
Transfers in ‐ ‐ ‐ ‐
Transfers out ‐ ‐ ‐ ‐
Total other financing sources (uses)‐ ‐ ‐ ‐
Net changes in fund balances $‐ ‐ ‐ ‐
Reconciliation to GAAP basis:
Adjustments to revenues ‐
Adjustments to expenditures ‐
Net Change in Fund Balances (GAAP Basis)$‐
See Notes to Financial Statements
Budgeted Amounts
142
Capital
Projects
Fund
143
STATE OF NEW MEXICO
LEA COUNTY
CAPITAL PROJECTS FUND (430)
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES‐BUDGET (NON‐GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget‐
Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental:
Federal $‐ ‐ ‐ ‐
State 3,163,000 3,163,000 ‐ (3,163,000)
Total revenues 3,163,000 3,163,000 ‐ (3,163,000)
Expenditures
Current
Capital outlay 37,065,285 37,105,285 7,409,281 29,696,004
Total expenditures 37,065,285 37,105,285 7,409,281 29,696,004
Excess (deficiency) of revenues
over expenditures (33,902,285) (33,942,285) (7,409,281) 26,533,004
Other financing sources (uses):
Transfers in 35,500,000 116,958,677 116,958,677 ‐
Transfers out ‐ ‐ ‐ ‐
Total other financing sources (uses)35,500,000 116,958,677 116,958,677 ‐
Prior year cash balance budgeted 759,003 759,003
Net changes in fund balances $ 2,356,718 83,775,395 109,549,396 25,774,001
Reconciliation to GAAP basis:
Adjustments to revenues ‐
Adjustments to expenditures 223,774)(
Net Change in Fund Balances (GAAP Basis)$ 109,325,622
Budgeted Amounts
144
Enterprise
Funds
145
STATE OF NEW MEXICO
LEA COUNTY
WATER SERVICE AND SOLID WASTE (675) ‐ ENTERPRISE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES‐BUDGET (NON‐GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget‐
Actual Positive
Original Final Amounts (Negative)
OPERATING REVENUES
Charges for services $‐ ‐ ‐ ‐
Investment earnings ‐ ‐ ‐
Miscellaneous ‐ ‐ ‐ ‐
Total operating revenues ‐ ‐ ‐ ‐
OPERATING EXPENSES
Operating expenses 148,434 148,434 655 147,779
Total operatng expenditures 148,434 148,434 655 147,779
Operating income (loss)(148,434) (148,434) (655) 147,779
NONOPERATING REVENUENS (EXPENSES):
Capital outlay ‐ ‐ ‐ ‐
Total nonoperating revenues (expenses)‐ ‐ ‐ ‐
Income (loss) before transfers
Transfers in ‐ ‐ ‐ ‐
Transfers out ‐ ‐ ‐ ‐
Total other financing sources (uses)‐ ‐ ‐ ‐
Prior year cash balance budgeted 341,191 341,191 ‐ (341,191)
Change in net position $ 192,757 192,757 (655) (193,412)
Budgeted Amounts
146
Supporting
Schedules
147
STATE OF NEW MEXICO
LEA COUNTY
FIDUCIARY FUNDS DESCRIPTIONS
JUNE 30, 2022
FIDUCIARY FUNDS
Custodial Funds – To account for the collection and payment of property taxes and special fees to
other governmental agencies. These funds are purely custodial and do not involve measurement of
results of operations.
148
STATE OF NEW MEXICO
LEA COUNTY
COMBINING STATEMENT OF FIDUCIARY NET POSITION
CUSTODIAL FUNDS
County County Detention
Clerk's Probate Inmate
Office Judge's Office Trust
ASSETS
Current assets:
Cash and cash equivalents $42,883 540 23,819
Receivables
Property tax receivable ‐ ‐ ‐
Total assets $42,883 540 23,819
NET POSITION
Restricted for:
Individuals, organizations or other governments 42,883 540 23,819
Total net position $42,883 540 23,819
JUNE 30, 2022
149
County Lea County County Lea County Lea County
Treasurer's Office Water Users Treasurer's Communications Solid Waste Total
Suspense Association Office Authority Authority Custodial
478 635 800 808 810 & 811 Fund
1,295,485 20,668 16,763,205 1,491,500 16,891,046 36,529,146
‐ ‐ 1,324,255 ‐ ‐ 1,324,255
1,295,485 20,668 18,087,460 1,491,500 16,891,046 37,853,401
1,295,485 20,668 18,087,460 1,491,500 16,891,046 37,853,401
1,295,485 20,668 18,087,460 1,491,500 16,891,046 37,853,401
150
STATE OF NEW MEXICO
LEA COUNTY
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
CUSTODIAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
County County Detention
Clerk's Probate Inmate
Office Judge's Office Trust
Additions
Taxes collected on behalf of taxing entities $‐ ‐ ‐
Bonds received ‐ 8,310 ‐
Inmate funds received ‐ ‐ 124,706
Communication fees ‐ ‐ ‐
Solid wate fees ‐ ‐ ‐
Treasurer fees ‐ ‐ ‐
County clerk fees 621,672 ‐ ‐
Total additions 621,672 8,310 124,706
Deletions
Taxes disbursed to taxing entities ‐ ‐ ‐
Bonds refunded ‐ 8,070 ‐
Inmate disbursements ‐ ‐ 148,858
Operational expenses 627,060 ‐ ‐
Total deletions 627,060 8,070 148,858
Net increase (decrease) in cutodial net position (5,388) 240 (24,152)
Net position ‐ beginning 48,271 300 47,971
Net position ‐ ending $42,883 540 23,819
151
County Lea County County Lea County Lea County
Treasurer's Office Water Users Treasurer's Communications Solid Waste Total
Suspense Association Office Authority Authority Custodial
478 635 800 808 810 & 811 Fund
‐ ‐ 192,777,989 ‐ ‐ 192,777,989
‐ ‐ ‐ ‐ ‐ 8,310
‐ ‐ ‐ ‐ ‐ 124,706
‐ ‐ ‐ 4,989,592 ‐ 4,989,592
‐ ‐ ‐ ‐ 3,844,800 3,844,800
‐ ‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐ 621,672
‐ ‐ 192,777,989 4,989,592 3,844,800 202,367,069
‐ ‐ 185,075,171 ‐ ‐ 185,075,171
42,100 ‐ ‐ ‐ ‐ 50,170
‐ ‐ ‐ ‐ ‐ 148,858
‐ 1,237 ‐ 3,941,331 2,055,669 6,625,297
42,100 1,237 185,075,171 3,941,331 2,055,669 191,899,496
(42,100) (1,237) 7,702,818 1,048,261 1,789,131 10,467,573
1,337,585 21,905 10,384,642 443,239 15,101,915 27,385,828
1,295,485 20,668 18,087,460 1,491,500 16,891,046 37,853,401
152
STATE OF NEW MEXICO
LEA COUNTY
SCHEDULE OF COLLATERAL PLEDGED BY DEPOSITORY FOR PUBLIC FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
Lea County State
Bank
First American
Bank Pioneer Bank Wells Fargo Bank
Western
Commerce Bank Total
Deposits in Bank or Savings and Loan
Cash deposits $ 185,580 ‐ ‐ 4,941,997 12,447 5,140,024
Repurchase agreement ‐ ‐ ‐ 12,928,717 ‐ 12,928,717
Certificates of deposits 9,343,125 3,000,000 2,000,000 ‐ 4,350,000 18,693,125
Total amounts on deposit 9,528,705 3,000,000 2,000,000 17,870,714 4,362,447 36,761,866
Less: FDIC insurance (252,349) (250,000) (250,000) (500,000) (262,447) (1,514,796)
Total uninsured public funds:9,276,356 2,750,000 1,750,000 17,370,714 4,100,000 35,247,070
Collateral requirement ‐ 50% 4,638,178 1,375,000 875,000 2,470,999 2,050,000 11,409,177
Collateral requirement ‐ 102% ‐ ‐ ‐ 13,187,291 ‐ 13,187,291
Total required collateralization $4,638,178 1,375,000 875,000 15,658,290 2,050,000 24,596,468
Type of security and
security number CUSIP Number Maturity Date
2 ALAMOGORDO NM 4% 011446GX3 8/1/2033 $ 608,803 608,803
2 RIO RANCHO NM PSD 1.375%767171SF9 8/1/2032 796,200 796,200
2 GRANTS & CIBOLA NM 2.5% 388240HC0 10/1/2023 246,823 246,823
2 ALBUQUERQUE/BERNALILLO 013493KZ23 7/1/1946 1,759,653 1,759,653
2 LAS CRUCES NM 5.0% 517462FU6 8/1/2026 341,958 341,958
2 NEW MEXICO ST FIN AUTH 5 64711RMP8 6/15/2030 1,011,384 1,011,384
2 NEW MEXICO ST REV 2.875%647201KM2 7/1/2045 1,621,074 1,621,074
2 USTN 3.125 9128285M8 11/15/2028/4,950,780 4,950,780
2 NEW MEXICO MILITARY 4.0%647183BR2 6/1/2027 882,845 882,845
1 FHL MTG CORP 3133BA3Q2 5/1/2052 1,544,150 1,544,150
1 CLOVIS NM MUN SD 001 189414JB2 8/1/2025 900,000 900,000
1 FN MA2232 31418BPS9 4/1/2035 2,750,000 2,750,000
1 DONA ANA CNTY NM GO BD 257579DE9 9/1/2032 470,000 470,000
1 LOS LUNAS NM SD #1 545562QY9 7/15/2024 800,000 800,000
1 G2 AQ0028 36189MA57 10/20/2045 1,316,659 1,316,659
1 GNMA I 736974 3620AQXB4 2/15/2025 1,000,000 1,000,000
3 FN‐30 FM2036 3140X5R47 1/1/2050 13,187,289 13,187,289
3 FMAC FEPC 3.00%3133A1F23 1/1/2050 656,311 656,311
3 FMAC FEPC 4.00%3133B9AJ3 4/1/2052 300,001 300,001
3 FNMA FNMS 3.50% 3140FDA8 12/1/2046 5,299,802 5,299,802
3 FNMA FNMS 2.50% 3140HBWV6 10/1/2049 930,727 930,727
3 FNMA FNMS 3.00% 3140K9W47 2/1/2050 1,168,657 1,168,657
3 GNMA G2SF 3.50% 36179TSG1 2/20/2048 215,789 215,789
1 FEDERAL HOME LN MTG COR 3128HDY52 7/1/2032 9,911 9,911
1 FEDERAL HOME LN MTG COR 3128JRNE2 9/1/2035 25,649 25,649
1 FEDERAL HOME LN MTG COR 31295N6D5 9/1/2035 23,717 23,717
1 FEDERAL HOM ELN MTG COR 3132D6AB6 5/1/2036 393,777 393,777
1 FEDERAL HOME LN MTG COR 3132D6BD1 1/1/2037 87,190 87,190
1 FEDERAL HOME LN MTG COR 31349S4E0 7/1/2034 157,194 157,194
1 FEDERAL HOME LN MTG COR 31349SF32 12/1/2033 124,941 124,941
1 FEDERAL HOME LN MTG COR 31349UDH8 11/1/2034 8,786 8,786
1 FEDERAL HOME LN MTG COR 31349UEU8 11/1/2034 47,802 47,802
1 FEDERAL HOME LN MTG COR 31349UHD3 1/1/2035 10,233 10,233
1 FEDERAL NAT MTG ASSN 3138ASYU0 10/1/2026 113,896 113,896
1 FEDERAL NAT MTG ASSN 31390NZV7 7/1/2032 20,194 20,194
1 FEDERAL NAT MTG ASSN 31403VWN5 1/1/2034 14,035 14,035
1 FEDERAL NAT MTG ASSN 31406BQD5 1/1/2035 40,944 40,944
1 FEDERAL NAT MTG ASSN 31408ALJ7 12/1/2035 22,032 22,032
1 FEDERAL NAT MTG ASSN 3140E8NP9 2/1/2031 41,274 41,274
1 FEDERAL NAT MTG ASSN 3140X84P9 1/1/2031 160,856 160,856
1 FEDERAL NAT MTG ASSN 31412BWG3 9/1/2036 34,862 34,862
1 GOVT NAT MTG ASSN II POO 36225CTU0 12/20/2031 20,544 20,544
1 SBAP Series 2016‐20D 83162CXS7 4/1/2036 420,468 420,468
1 FHLMC #G05256 3128M7E51 3/1/2039 40,325 40,325
1 FNMA #705683 31401D6U0 10/1/2033 8,224 8,224
1 FNMA #BM3720 3140J8D26 12/1/2030 596,387 596,387
1 FNMA #B51918 3140LCDY4 5/1/2031 1,041,267 1,041,267
1 FNM #888407 31410GAG8 9/1/2036 41,983 41,983
1 FNMA #AC2952 31417MH63 9/1/2039 111,227 111,227
1 FNMA #MA0819 31417Y4D6 7/1/2041 55,798 55,798
1 FNMA #MA1515 31418AVH8 8/1/2043 234,917 234,917
$12,219,520 8,780,809 1,357,837 21,758,576 2,550,596 46,667,338
Total under (over) pledged: (7,581,342) (7,405,809) (482,837) (6,100,286) (500,596) (22,070,870)
Name and Location of Safe keeper: 1 Federal Home Loan Bank 2 The Independent Bankers Bank 3 BNY Mellon
Dallas, TX Dallas, TX New York, NY
Totals:
Pledged Collateral
See Notes to Financial Statements
153
STATE OF NEW MEXICO
LEA COUNTY
SCHEDULE OF CASH AND TEMPORARY INVESTMENT ACCOUNTS
First Pioneer Western Moreton
Lea County American Savings Wells Commerce Capital
Account Type Account Name State Bank Bank Bank Fargo Bank Markets Totals
Cash and Cash
Equivalents
Checking (A)Lea County Treasurer $ 131,190 131,190
Checking (A)Lea County Escrow Account 52,581 52,581
Checking (A)Lea County Treasurer EFTPS 1,809 1,809
CD (B)Lea County Treasurer 1,000,000 1,000,000
CD (B)Lea County Treasurer 1,000,000 1,000,000
CD (B)Lea County Treasurer 1,000,000 1,000,000
CD (B)Lea County Treasurer 2,000,000 2,000,000
CD (B)Lea County Treasurer 2,000,000 2,000,000
CD (B)Lea County Treasurer 1,000,000 1,000,000
CD (B)Lea County Treasurer 1,000,000 1,000,000
CD (B)Lea County Treasurer 1,000,000 2,000,000 3,000,000
CD (B)Lea County Treasurer 1,443,125 850,000 2,293,125
CD (B)Lea County Treasurer 900,000 1,000,000 1,900,000
CD (B)Lea County Treasurer 500,000 500,000
CD (B)Lea County Treasurer 1,000,000 1,000,000
CD (B)Lea County Treasurer 1,000,000 1,000,000
Checking (A)Lea County Treasurer 3,608,062 3,608,062
Savings (B)Lea County Treasurer 1,295,485 1,295,485
Checking (A)Detention 38,450 38,450
Checking (A)LCDTF ‐ Justice Forfeiture Fund 12,447 12,447
Money Market (B) Lea County Treasurer 70,042,687 70,042,687
Money Market (B) Lea County Treasurer 232,537,416 232,537,416
Total on Deposit 9,528,705 3,000,000 2,000,000 4,941,997 4,362,447 302,580,103 326,413,252
Reconciling Items 27,643 ‐ ‐ (5,283,898) (750) 11 (5,256,994)
Total Reconciled Cash and Cash Equivalents $ 9,556,348 3,000,000 2,000,000 (341,901) 4,361,697 302,580,114 321,156,258
Petty Cash 1,000
Total Cash June 30, 2022 321,157,258
Less: Agency Funds (36,529,146)
Combined Cash Balance Sheet Total June 30, 2022 $ 284,628,112
JUNE 30, 2022
154
STATE OF NEW MEXICO
LEA COUNTY
SCHEDULE OF CASH AND TEMPORARY INVESTMENT ACCOUNTS
JUNE 30, 2022
First Pioneer Western Moreton
Lea County American Savings Wells Commerce Capital
Account Type Account Name State Bank Bank Bank Fargo Bank Markets Totals
Investments
Treasury Strip Lea County Treasurer $ 100,145 ‐ ‐ ‐ ‐ ‐ 100,145
Repurchase Agreement
Lea County Treasurer Escrow
Account ‐ ‐ ‐ 12,928,717 ‐ ‐ 12,928,717
CD Lea County Treasurer ‐ ‐ 4,750,000 4,750,000
$ 100,145 ‐ ‐ 12,928,717 ‐ 4,750,000 17,778,862
(A)Non‐interest bearing
(B) Interest bearing
155
STATE OF NEW MEXICO
LEA COUNTY
SCHEDULE OF SPECIAL APPROPRIATIONS
Appropriation Original Appropriation Expended as of Outstanding
Number Description Appropriation Expiration June 30, 2022 Encumbrances Unencumbered
D3047
Lea County Knowles Fire Department
Station Construction $ 200,000 6/30/2023 $ 2,000 ‐ 198,000
D3052 Lea County Courthouse Renovation 1,000,000 6/30/2023 ‐ ‐ 1,000,000
E2595 Lea County Courthouse Renovation 963,000 6/30/2024 ‐ ‐ 963,000
F2782 Lea County Courthouse Renovation 1,000,000 6/30/2025 ‐ ‐ 1,000,000
F2783 Lea County Detention Center Addition 1,000,000 6/30/2025 ‐ ‐ 1,000,000
G2880 Lea County Courthouse Renovation 900,000 6/30/2026 ‐ ‐ 900,000
$ 2,000 ‐ 5,061,000
JUNE 30, 2022
156
Lea County is located in the
Southeast corner of New Mexico
and borders the state
of Texas on the
south and east
borders. Lea County
is part of the
Permian Basin
157
STATE OF NEW MEXICO
LEA COUNTY
TAX ROLL RECONCILIATION ‐ CHANGES IN PROPERTY TAXES RECEIVABLE
FOR THE YEAR ENDED JUNE 30, 2022
Property taxes receivable, beginning of year $ 1,940,104
Changes to tax roll:
Net tax charges to treasurer for tax year 2021 93,678,650
Decrease in net tax charges 2012‐2020 (253,663)
Adjustments:
Less roll‐off of 2011 taxes on ten year schedule ‐
Net increase/(decrease) of taxes receivable ‐
Unknown increase in receivable (3,771)
Total receivable prior to collections 95,361,320
Collections for fiscal year ended June 30, 2022 (93,516,234)
Property taxes receivable at June 30, 2022 $ 1,845,086
Property taxes are reported as follows
Governmental funds:
County portion $ 520,831
Agency portion 1,324,255
Total property taxes receivable $ 1,845,086
Property taxes receivable by years:
2012‐2020 $ 481,252
2021 1,363,834
$ 1,845,086
158
STATE OF NEW MEXICO
LEA COUNTY
TREASURERS PROPERTY TAX SCHEDULE
June 30, 2022
Property Collected Distributed Undistr. County
Taxes In Current Collected In Current Distributed At Year Receivable
Levied Year To‐Date Year To‐Date End At Year‐End
LEA COUNTY:
Operations
2012 ‐ 2020 $ 158,350,538 3,790,427 158,212,367 4,563,926 158,190,118 22,249 138,171
2021 28,582,879 28,200,218 28,200,219 27,970,333 27,970,323 229,896 382,661
Total 186,933,417 31,990,645 186,412,586 32,534,259 186,160,441 252,145 520,831
CITY OF LOVINGTION
2012 ‐ 2020 3,716,594 29,506 3,698,799 41,697 3,693,800 5,000 17,795
2021 494,389 467,363 467,363 454,706 454,706 12,656 27,026
Total 4,210,983 496,869 4,166,162 496,403 4,148,506 17,656 44,821
CITY OF EUNICE
2012 ‐ 2020 1,617,801 9,668 1,615,172 19,524 1,614,809 363 2,629
2021 218,708 209,900 209,900 206,198 206,198 3,702 8,808
Total 1,836,509 219,568 1,825,072 225,722 1,821,007 4,065 11,437
CITY OF HOBBS
2012 ‐ 2020 23,672,556 105,250 23,645,599 174,877 23,642,011 3,587 26,957
2021 3,082,945 2,985,115 2,985,115 2,935,871 2,935,871 49,245 97,830
Total 26,755,501 3,090,365 26,630,714 3,110,748 26,577,882 52,832 124,787
CITY OF JAL
2012 ‐ 2020 1,556,475 7,047 1,554,585 202,953 1,554,323 263 1,890
2021 189,726 178,086 178,086 174,238 174,238 3,847 11,640
Total 1,746,201 185,133 1,732,671 377,191 1,728,561 4,110 13,530
TOWN OF TATUM
2012 ‐ 2020 250,590 1,492 250,398 2,286 250,157 241 192
2021 26,139 24,801 24,809 23,857 23,857 952 1,330
Total 276,729 26,293 275,207 26,143 274,014 1,193 1,522
NEW MEXICO JUNIOR COLLEGE
2012 ‐ 2020 76,756,782 1,814,402 76,689,107 2,188,762 76,678,015 11,092 67,675
2021 13,811,953 13,621,081 13,621,081 13,507,198 13,507,198 113,883 190,872
Total 90,568,735 15,435,483 90,310,188 15,695,960 90,185,213 124,975 258,547
NOR LEA
2012 ‐ 2020 15,463,687 63,894 15,439,980 194,432 15,434,370 5,610 23,707
2021 2,713,069 2,671,233 2,671,233 2,645,104 2,645,104 26,129 41,836
Total 18,176,756 2,735,127 18,111,213 2,839,536 18,079,474 31,739 65,543
.
JAL HOSPITAL
2012 ‐ 2020 7,805,937 26,115 7,804,755 80,027 7,804,628 127 1,182
2021 2,259,072 2,250,429 2,250,429 2,237,793 2,237,793 12,636 8,643
Total 10,065,009 2,276,544 10,055,184 2,317,820 10,042,421 12,763 9,825
EUNICE HOSPITAL
2012 ‐ 2020 2,899,815 30,242 2,898,032 45,863 2,897,896 136 1,783
2021 649,966 645,914 645,914 643,840 643,840 2,074 4,052
Total 3,549,781 676,156 3,543,946 689,703 3,541,736 2,210 5,835
159
STATE OF NEW MEXICO
LEA COUNTY
TREASURERS PROPERTY TAX SCHEDULE (CONTINUED)
June 30, 2022
Property Collected Distributed Undistr. County
Taxes In Current Collected In Current Distributed At Year Receivable
Levied Year To‐Date Year To‐Date End At Year‐End
STATE OF NEW MEXICO
2012 ‐ 2020 23,530,622 500,271 23,509,038 611,876 23,505,366 3,671 21,584
2021 4,103,611 4,038,854 4,038,854 3,997,399 3,997,399 41,456 64,757
Total 27,634,233 4,539,125 27,547,892 4,609,275 27,502,765 45,127 86,341
LOVINGTON SCHOOL
2012 ‐ 2020 32,608,095 176,083 32,541,276 259,076 32,525,849 15,427 66,819
2021 4,900,108 4,788,037 4,788,037 4,720,743 4,720,743 67,294 112,071
Total 37,508,203 4,964,120 37,329,313 4,979,819 37,246,592 82,721 178,890
EUNICE SCHOOL
2012 ‐ 2020 17,569,058 190,892 17,558,059 284,724 17,557,236 822 10,999
2021 2,747,532 2,730,601 2,730,601 2,721,923 2,721,923 8,679 16,931
Total 20,316,590 2,921,493 20,288,660 3,006,647 20,279,159 9,501 27,930
HOBBS SCHOOLS
2012 ‐ 2020 91,012,585 3,423,110 90,920,383 3,656,737 90,907,678 12,704 92,202
2021 13,596,380 13,236,349 13,236,349 13,060,600 13,060,600 175,750 360,031
Total 104,608,965 16,659,459 104,156,732 16,717,337 103,968,278 188,454 452,233
JAL SCHOOLS
2012 ‐ 2020 14,222,552 53,168 14,220,177 163,084 14,219,924 253 2,375
2021 4,612,014 4,594,530 4,594,530 4,568,782 4,568,782 25,748 17,484
Total 18,834,566 4,647,698 18,814,707 4,731,866 18,788,706 26,001 19,859
TATUM SCHOOLS
2012 ‐ 2020 5,417,069 5,591 5,415,925 190,024 5,415,409 516 1,144
2021 1,853,057 1,848,286 1,848,286 1,843,514 1,843,514 4,772 4,771
Total 7,270,126 1,853,877 7,264,211 2,033,538 7,258,923 5,288 5,915
NONRENDERED
2012 ‐ 2020 194,333 1,688 194,308 2,194 194,308 ‐ 25
2021 16,897 15,522 15,522 15,480 15,480 42 1,375
Total 211,230 17,210 209,830 17,674 209,788 42 1,400
1% ASSESSOR
2012 ‐ 2020 4,040,144 84,978 4,036,019 104,292 4,035,301 718 4,125
2021 707,370 695,654 695,654 688,938 688,938 6,715 11,716
Total 4,747,512 780,631 4,731,671 793,230 4,724,239 7,432 15,841
TOTALS
2012 ‐ 2020 480,685,233 10,313,824 480,203,979 12,786,354 480,121,198 82,779 481,252
2021 84,565,815 83,201,973 83,201,982 82,416,517 82,416,507 785,476 1,363,834
GRAND TOTAL $ 565,251,048 93,515,797 563,405,961 95,202,871 562,537,705 868,255 1,845,086
Presumed paid after ten years per Section 7‐38‐81(C) NMSA 1978
160
Lea County has completed the expan-
sion of the terminal building, and
parking lot and rebuilt the aprons
at Lea Regional Airport that
will enable the County to
provide increased air ser-
vice to Houston and
Denver.
161
LEA COUNTY, NEW MEXICO
MEMORANDUMS OF UNDERSTANDING & JOINT POWERS AGREEMENTS
FOR THE YEAR ENDED JUNE 30, 2022
Participants with Lea
County
Party
Responsible for
Operations
Description of
Agreement
Dates of Agreement
(Approval by DFA)
Total
Amount of
Project
County
Portion
County
Contribution
FY2022
Audit
Responsibility
Fiscal Agent Government reporting
revenues &
expenditures
City of Hobbs
City of Lovington
City of Eunice
City of Jal
Town of Tatum
Lea County Created the Lea
County Solid Waste
Authority to provide
landfill and waste
management services
for the Citizens of Lea
County.
04/18/1995
Automatic Renewal
Unknown N/A Dumping Fees Lea County Lea County Lea County
City of Hobbs
City of Lovington
City of Eunice
City of Jal
Town of Tatum
Lea County Created the Lea
County Water User’s
Association to enact a
water management
plan for the Citizens of
Lea County
09/23/1997
Automatic Renewal
Unknown 45.8% of
funding
$1,274 Lea County Lea County Lea County
City of Hobbs Both Parties Cleanup and disposal
of trash illegally
dumped
11/17/2003 Unknown 25% not to
exceed
$15,000
without prior
consent
None Both Parties Both Parties Both Parties
Hobbs Municipal Schools
City of Hobbs
New Mexico Junior College
City of Lovington
Eunice Municipal Schools
Tatum Municipal Schools
Jal Municipal Schools
All Parties Cooperative
Purchasing
11/17/2003 Unknown N/A None All Parties All Parties All Parties
New Mexico Counties Both Parties Facilitate regional
economic
development
07/22/2021 Unknown N/A $29,500 Both Parties Both Parties Both Parties
City of Hobbs
City of Carlsbad
County of Eddy
Appointed
Board
Created the Eddy Lea
Energy Alliance to
promote nuclear
energy development
in Eddy and Lea
Counties.
07/29/2006
Termination at the
discretion of the
contracting parties
Unknown 25% of
expenditures
$25,000 Appointed
Board
Lea County Lea County
City of Hobbs Lea County Created the Lea
County
Communications
Authority to provide
911 emergency
services for Lea
County
01/04/2010; revised
06/02/2017
Indefinite terms
Unknown 50% of
operating
and capital
expenses
$2,908,698 Lea County Lea County Lea County
162
LEA COUNTY, NEW MEXICO
MEMORANDUMS OF UNDERSTANDING & JOINT POWERS AGREEMENTS
FOR THE YEAR ENDED JUNE 30, 2022
Participants with Lea
County
Party
Responsible for
Operations
Description of
Agreement
Dates of Agreement
(Approval by DFA)
Total
Amount of
Project
County
Portion
County
Contribution
FY2022
Audit
Responsibility
Fiscal Agent Government reporting
revenues &
expenditures
Commissioner of Public
Lands
Both Parties Jointly plan or master
plan state trust lands
within the County
outside of any extra
zoning jurisdiction
05/30/2013 Unknown N/A N/A Both Parties Both Parties Both Parties
Lea County
Communications Authority
City of Hobbs
City of Lovington
City of Jal
City of Eunice
Town of Tatum
All Parties Operate and maintain
a P25 800MHz radio
system
04/18/2016 Unknown County
owned
radios
N/A All Parties All Parties All Parties
INTERGOVERNMENTAL
AGREEMENTS
Children’s Court
5th Judicial District D.A.
Public Defender
Lea County Sheriff
Lovington School District
All Parties Establish the Lea
County Juvenile
Justice Continuum
02/01/2013 Unknown N/A N/A All Parties All Parties All Parties
United States Marshals
Service Fugitive Task Force
Both Parties Joint effort to
investigate and
apprehend local, state
and federal fugitives
08/13/2020 Unknown N/A N/A Both Parties Both Parties Both Parties
Department of Energy
Waste Isolation Pilot Plant
Both Parties Interface and
coordination
responsibilities for
emergency response
05/26/2022 Unknown N/A N/A All Parties All Parties All Parties
NMSU Agricultural &
Home Extension
NMSU County Extension
Services
04/28/2022
Annual Renewal
$108,242 100% $81,182 Both Parties Both Parties Both Parties
163
LEA COUNTY, NEW MEXICO
MEMORANDUMS OF UNDERSTANDING & JOINT POWERS AGREEMENTS
FOR THE YEAR ENDED JUNE 30, 2022
Participants with Lea
County
Party
Responsible for
Operations
Description of
Agreement
Dates of Agreement
(Approval by DFA)
Total
Amount of
Project
County
Portion
County
Contribution
FY2022
Audit
Responsibility
Fiscal Agent Government reporting
revenues &
expenditures
USDA Soil & Water
Conservation
USDA Soil & Water
Conservation
04/28/2022
Annual Renewal
$65,000 $65,000 $65,000 Both Parties Both Parties Both Parties
USDA USDA Wildlife Control 04/28/2022
Annual Renewal
$58,500 $58,500 $56,160 Both Parties Both Parties Both Parties
City of Eunice Eunice Waste Hauling
Assistance
05/20/2021
Annual Renewal
Unknown $72,000 $72,000 Both Parties Both Parties Both Parties
City of Jal Jal Waste Hauling
Assistance
05/20/2021
Annual Renewal
Unknown $72,000 $72,000 Both Parties Both Parties Both Parties
City of Lovington Lovington Waste Hauling
Assistance
05/20/2021
Annual Renewal
Unknown $72,000 $72,000
`
Both Parties Both Parties Both Parties
Town of Tatum Tatum Waste Hauling
Assistance
05/20/2021
Annual Renewal
Unknown $72,000 $72,000 Both Parties Both Parties Both Parties
City of Eunice Eunice Assistance for Fire,
Ambulance and other
services
05/20/2021
Annual Renewal
$125,000 $125,000 $125,000 Both Parties Both Parties Both Parties
City of Hobbs Hobbs Assistance for Fire,
Ambulance and other
services
05/20/2021
Annual Renewal
$625,000 $625,000 $625,000 Both Parties Both Parties Both Parties
City of Jal Jal Assistance for Fire,
Ambulance and other
services
05/20/2021
Annual Renewal
$112,500 $112,500 $112,500 Both Parties Both Parties Both Parties
City of Lovington Lovington Assistance for Fire,
Ambulance and other
services
05/20/2021
Annual Renewal
$300,000 $300,000 $300,000 Both Parties Both Parties Both Parties
164
LEA COUNTY, NEW MEXICO
MEMORANDUMS OF UNDERSTANDING & JOINT POWERS AGREEMENTS
FOR THE YEAR ENDED JUNE 30, 2022
Participants with Lea
County
Party
Responsible for
Operations
Description of
Agreement
Dates of Agreement
(Approval by DFA)
Total
Amount of
Project
County
Portion
County
Contribution
FY2022
Audit
Responsibility
Fiscal Agent Government reporting
revenues &
expenditures
City of Hobbs
City of Lovington
City of Eunice
City of Jal
Town of Tatum
Lea County Created the Lea
County Solid Waste
Authority to provide
landfill and waste
management services
for the Citizens of Lea
County.
04/18/1995
Automatic Renewal
Unknown N/A Dumping Fees Lea County Lea County Lea County
City of Hobbs
City of Lovington
City of Eunice
City of Jal
Town of Tatum
Lea County Created the Lea
County Water User’s
Association to enact a
water management
plan for the Citizens of
Lea County
09/23/1997
Automatic Renewal
Unknown 45.8% of
funding
$1,274 Lea County Lea County Lea County
City of Hobbs Both Parties Cleanup and disposal
of trash illegally
dumped
11/17/2003 Unknown 25% not to
exceed
$15,000
without prior
consent
None Both Parties Both Parties Both Parties
Hobbs Municipal Schools
City of Hobbs
New Mexico Junior College
City of Lovington
Eunice Municipal Schools
Tatum Municipal Schools
Jal Municipal Schools
All Parties Cooperative
Purchasing
11/17/2003 Unknown N/A None All Parties All Parties All Parties
New Mexico Counties Both Parties Facilitate regional
economic
development
07/22/2021 Unknown N/A $29,500 Both Parties Both Parties Both Parties
City of Hobbs
City of Carlsbad
County of Eddy
Appointed
Board
Created the Eddy Lea
Energy Alliance to
promote nuclear
energy development
in Eddy and Lea
Counties.
07/29/2006
Termination at the
discretion of the
contracting parties
Unknown 25% of
expenditures
$25,000 Appointed
Board
Lea County Lea County
City of Hobbs Lea County Created the Lea
County
Communications
Authority to provide
911 emergency
services for Lea
County
01/04/2010; revised
06/02/2017
Indefinite terms
Unknown 50% of
operating
and capital
expenses
$2,908,698 Lea County Lea County Lea County
165
LEA COUNTY, NEW MEXICO
MEMORANDUMS OF UNDERSTANDING & JOINT POWERS AGREEMENTS
FOR THE YEAR ENDED JUNE 30, 2022
Participants with Lea
County
Party
Responsible for
Operations
Description of
Agreement
Dates of Agreement
(Approval by DFA)
Total
Amount of
Project
County
Portion
County
Contribution
FY2022
Audit
Responsibility
Fiscal Agent Government reporting
revenues &
expenditures
City of Eunice Lea County 911 Dispatch services
/ include entity on
CAD System
11/18/2021 $400,000 $400,000 Lea County Lea County Lea County
City of Jal Lea County 911 Dispatch services
/ include entity on
CAD System
11/18/2021 $163,000 $163,000 Lea County Lea County Lea County
City of Lovington Lea County 911 Dispatch services
/ include entity on
CAD System/ MDT for
patrol units
11/18/2021 $603,000 $603,000 Lea County Lea County Lea County
Town of Tatum Lea County 911 Dispatch services
/ include entity on
CAD System
11/18/2021 $0.00 $0.00 Lea County Lea County Lea County
City of Hobbs Lea County Construct and Provide
Municipal Water to
Lea County Regional
Airport
03/31/2022 Unknown $600,000 TBA Both Parties Both Parties Both Parties
City of Hobbs City of Hobbs Develop and Construct
a Veteran’s Memorial
07/10/2021 Unknown $300,000 $300,000 Both Parties Both Parties Both Parties
Lovington Mainstreet Lovington
Mainstreet
Fiscal Agent for
Gateway and
Wayfinding Project
04/22/2021 Unknown $90,000 $0.00 Both Parties Both Parties Both Parties
Southeastern New Mexico
Council of Governments
Both Parties Facilitate regional
economic
development
07/22/2021 Unknown N/A $8,000 Both Parties Both Parties Both Parties
City of Hobbs Both Parties Jag Grant: to prevent
and control crime and
to improve the justice
system.
09/02/2021 $20,035 $8,014 $8,014 Both Parties Both Parties Both Parties
166
Statistical
Section
167
Statistical Section
This part of Lea County’s comprehensive annual financial report presents detailed information as a context for
understanding what the information in the financial statements, note disclosures, and required supplementary
information says about the County’s overall financial health.
Contents
Financial Trends
These schedules contain trend information to help the reader understand how the County’s financial performance
and well‐being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the County’s most significant local revenue sources,
property taxes and gross receipts taxes.
Debt Capacity
These schedules present information to help the reader assess the affordability of the County’s current levels of
outstanding debt and the County’s ability to issue additional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment
within which the County’s financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the
County’s financial report relates to the services the County provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual
financial reports for the relevant year. The County implemented GASB 34 in 2003; schedules presenting
government‐wide information include information beginning in that year.
168
LEA COUNTY NEW MEXICO SCHEDULE 1
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Net Investment in Capital
Assets 116,773,950 118,112,044 127,194,161 150,473,595 164,111,476 187,147,314 206,937,499 227,250,929 237,343,176 241,273,930
Restricted 71,283 108,223 179,612 21,613,202 17,732,761 27,255,699 26,154,219 29,971,111 21,846,168 200,135,340
Restricted Permanent Fund 1,353,125 1,353,125 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Unrestricted (deficit) 75,233,579 90,401,359 84,066,992 39,247,861 42,239,673 12,367,459 33,675,899 47,122,354 101,087,105 72,842,337
193,431,937 209,974,751 211,440,765 211,334,658 224,083,910 226,770,472 266,767,617 304,344,394 360,276,449 514,251,607
Net Investment in Capital
Assets ‐ ‐ 2,637,508 2,923,009 2,923,009 2,923,009 2,923,009 2,923,009 2,923,009 2,923,009
Unrestricted Assets 719,913 2,304,844 1,770,065 1,462,606 354,786 354,707 343,121 341,191 341,191 340,536
719,913 2,304,844 4,407,573 4,385,615 3,277,795 3,277,716 3,266,130 3,264,200 3,264,200 3,263,545
194,151,850 212,279,595 215,848,338 215,720,273 227,361,705 230,048,188 270,033,747 307,608,594 363,540,649 517,515,152
Information gathered from the Statement of Net Postion
Primary Government
Governmental Activities
Net Position
Business‐Type Activities
yp
Postion
Total Net Position
169
LEA COUNTY NEW MEXICO SCHEDULE 2
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
24,129,806 27,111,830 35,499,112 21,252,934 22,302,652 18,549,274 18,712,334 25,135,132 21,522,923 27,145,290
15,488,604 16,100,559 8,112,584 17,992,983 20,597,132 23,505,422 25,235,684 30,084,368 24,644,412 29,911,753
4,978,268 6,102,803 4,533,268 2,047,566 2,230,950 3,150,253 3,349,472 3,397,402 1,930,907 4,333,082
5,294,354 4,985,881 4,704,778 10,410,992 7,211,055 7,217,969 10,911,550 14,520,642 10,992,138 9,224,566
729,718 722,667 1,742,184 8,197,010 6,890,108 8,083,337 8,514,005 7,787,998 7,648,641 11,812,820
‐ ‐ ‐ ‐ 27,749 ‐ 792,526 ‐ ‐ ‐
‐ ‐ ‐ 457,731 100,229 ‐ ‐ ‐ ‐ ‐
638,723 196,131 181,498 179,217 150,001 134,901 120,481 150,424 ‐ ‐
51,259,473 55,219,871 54,773,424 60,538,433 59,509,876 60,641,156 67,636,052 81,075,966 66,739,021 82,427,511
‐ 93,947 17,773 21,958 56,254 79 11,586 1,930 ‐ 655
51,259,473 55,313,818 54,791,197 60,560,391 59,566,130 60,641,235 67,647,638 81,077,896 66,739,021 82,428,166
General Government 9,611,227 9,949,777 8,981,833 3,442,798 1,059,635 1,075,282 2,101,053 2,154,996 1,775,195 2,257,652
Public Safety 5,191 ‐ 1,718 306,116 2,358,188 2,238,491 2,261,738 1,449,685 1,706,730 2,446,918
Culture and Recreation 182,336 ‐ ‐ ‐ 1,068,836 315,002 185,369 9,939 225,633
Health and Welfare ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Public Works 438,798 ‐ 212,121 ‐ ‐ 178,652 209,276 186,036 68,240 107,044
2,941,790 2,772,014 3,825,193 4,783,811 5,855,562 6,577,695 5,315,545 5,883,342 5,874,933 11,041,880
904,578 268,122 2,560,754 1,916,522 7,431,152 280,647 425,880 1,732,322 3,262,918 1,679,398
13,901,584 13,172,249 15,581,619 10,449,247 16,704,537 11,419,603 10,628,494 11,591,750 12,697,955 17,758,525
1,413 7,878 4,501 ‐ ‐ ‐ ‐ ‐ ‐ ‐
475,000 25,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
476,413 32,878 4,501 ‐ ‐ ‐ ‐ ‐ ‐ ‐
(36,881,476) (42,108,691) (39,205,077) (50,111,144) (42,861,593) (49,221,632) (57,019,144) (69,486,146) (54,041,066) (64,669,641)
Operating Grants and
Expenses
Governmental Activities:
Total Governmental Activities
Business‐Type Activities
Net (Expense)/Revenue
Capital Outlay
Loss on Dispostion of Assets
Interest on Long‐Term Debt
Captial Grants and
Total Governmental Activities
Business‐Type Activities:
Charges for Services
Operating Grants and
Water Service Proprietary
Water Service Proprietary
Total Governmental & Business‐
Program Revenues (see
Governmental Activities:
Charges for Services:
General Government
Public Safety
Culture and Recreation
Health and Welfare
Public Works
170
LEA COUNTY NEW MEXICO SCHEDULE 2
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Property Taxes 12,301,844 13,286,760 14,360,743 15,978,645 16,462,835 17,776,009 18,634,296 21,546,626 26,487,711 31,329,152
Gross Receipts Taxes 13,583,359 15,488,554 18,093,847 10,070,902 10,103,026 15,154,566 22,534,132 23,048,517 15,504,127 32,039,356
Gas/Motor Vehicle
Taxes 325,180 308,043 348,811 311,359 359,764 370,488 369,900 263,467 297,959 289,994
Franchise Taxes ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Oil & Gas Taxes 23,038,185 31,072,987 27,438,261 19,597,346 23,101,563 33,731,130 48,706,163 56,997,759 63,106,009 144,442,740
Cigarette Taxes ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ 3,267,767 3,640,614 3,056,061 4,056,216 3,026,191 3,024,065 3,037,836
‐ ‐ ‐ 217,366 40,763 123,055 1,947,898 1,508,323 521,104 6,427,747
(94,534) (270,616) 226,535 ‐ 854,460 ‐ ‐ ‐ ‐ ‐
366,479 418,383 445,446 539,694 ‐ 675,316 756,098 670,110 1,032,146 1,077,319
49,520,513 60,304,111 60,913,643 49,983,079 54,563,025 70,886,625 97,004,703 107,060,993 109,973,121 218,644,144
‐ ‐ ‐ ‐ 60,000 ‐ ‐ ‐ ‐
12,639,037 18,195,420 21,708,566 (128,065) 11,641,432 21,664,993 39,985,559 37,574,847 55,932,055 153,974,503
Note (1) Breakout not available for 2011‐2015
Information Gathered from the Statement of Activities
Total Government Activities
Transfers to Agency Funds
Changes in Net Position
Governmental Activities
General Revenues and Other
Governmental Activities:
Taxes (see Schedule 4)
Payments in Lieu of Taxes
Investment Earnings (Note
Sa le of Capital Assets
Misc ellaneous
171
LEA COUNTY NEW MEXICO SCHEDULE 3
PROGRAM REVENUES BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
9,922,039 12,678,627 12,030,389 11,729,746 4,895,047 2,365,026 1,717,817 2,765,006 2,765,337 2,650,844 2,801,105
839,428 714,047 942,386 861,799 2,677,705 4,807,925 4,819,210 4,763,116 3,933,371 4,283,320 11,994,260
15,254 14,516 11,526 12,311 15,970 ‐ 1,068,836 415,002 185,369 9,939 225,633
10,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
612,495 819,574 495,991 3,326,574 3,171,884 9,891,350 4,184,228 3,055,270 4,707,673 5,753,852 2,737,527
‐ ‐ ‐ ‐ ‐ ‐ ‐
11,399,216 14,226,764 13,480,292 15,930,430 10,760,606 17,064,301 11,790,091 10,998,394 11,591,750 12,697,955 17,758,525
‐ 476,413 32,878 4,501 ‐ ‐ ‐ ‐ ‐ ‐ ‐
11,399,216 14,703,177 13,513,170 15,934,931 10,760,606 17,064,301 11,790,091 10,998,394 11,591,750 12,697,955 17,758,525
Function/Program
Primary Government Governmental
Activities:
General Government
Function/Program
Business‐Type Activities
Total Program Revenues By
Information Gathered from the Statement of Activities
Public Safety
Culture and Recreation
Health and Welfare
Public Works
Capital Outlay
Total Governmental Activities
172
LEA COUNTY NEW MEXICO SCHEDULE 4
TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Fiscal Year Property Tax Oil & Gas Tax
Gross Receipts
Tax
Payments in Lieu
of Taxes (1) Total Taxes
2013 12,301,844 23,038,185 13,583,359 ‐ 48,923,388
2014 13,286,760 31,072,987 15,488,554 ‐ 59,848,301
2015 14,360,743 27,438,261 18,093,847 ‐ 59,892,851
2016 15,978,645 19,597,346 10,070,902 3,267,767 48,914,660
2017 16,462,835 23,101,563 10,103,026 3,640,614 53,308,038
2018 17,776,009 33,731,130 15,154,566 3,056,061 69,717,766
2019 18,634,296 48,706,163 22,534,132 4,056,216 93,930,807
2020 21,546,626 56,997,759 23,048,517 3,026,191 104,619,093
2021 26,487,711 63,106,009 15,504,127 3,026,191 108,124,038
2022 31,329,152 144,442,740 32,039,356 3,037,836 210,849,084
Percent Change
2013‐2022 154.67% 526.97% 135.87%330.98%
Information gathered from the Statement of Activities
(1)Breakout not available 2012‐2015
0
50000000
100000000
150000000
200000000
250000000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
TAX REVENUES BY SOURCE
(Accural)
173
LEA COUNTY NEW MEXICO SCHEDULE 5
GOVERNMENTAL FUND BALANCES
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
‐ ‐
‐ 7,978,590 7,103,211 7,840,991 9,029,359 9,029,359 9,029,359 12,721,834
4,384,110 7,375,396 5,935,164 ‐ ‐ ‐ ‐
36,408,451 43,947,978 43,674,931 42,517,258 59,179,974 ‐ ‐ ‐ ‐
18,755,869 22,639,868 22,499,207 12,899,246 2,251,878 52,511,554 76,296,265 94,925,623 147,422,964 112,795,315
59,548,430 73,963,242 72,109,302 63,395,094 68,535,063 60,352,545 85,325,624 103,954,982 156,452,323 125,517,149
1,353,125 1,353,125 ‐ ‐ ‐ ‐
15,170,328 16,471,419 20,328,831 13,634,612 10,629,550 19,414,708 17,124,860 20,941,752 14,303,902 192,593,074
615,394 536,552 9,454,399 ‐ ‐ ‐ ‐ ‐ ‐
‐ ‐ 264,196 1,140,059 ‐ ‐ ‐ ‐ ‐
(203) ‐ (138,124) (312,181) (21,290) (129,787) ‐ ‐ ‐ (1,203)
17,138,644 18,361,096 29,909,302 14,462,490 10,608,260 19,284,921 17,124,860 20,941,752 14,303,902 192,591,871
76,687,074 92,324,338 102,018,604 77,857,584 79,143,323 79,637,466 102,450,484 124,896,734 170,756,225 318,109,020
Total All Other Governmental Funds
Total Governmental Funds Funds Balance
Information gathered from the Balance Sheets ‐ Governmental Funds. (Major Funds Balance Sheet)
PRIMARY GOVERNMENT:
General Fund
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total General Fund
All Other Governmental Funds
Nonspendable
Restricted
Committed
Assigned
Unassigned
174
LEA COUNTY NEW MEXICO SCHEDULE 6
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
47,866,522 58,808,460 58,888,922 45,644,492 49,463,435 66,580,156 89,964,428 101,439,287 105,224,873 207,896,638
‐ ‐ ‐ 3,267,767 3,640,614 3,056,061 4,056,216 3,026,191 3,024,065 3,037,836
646,441 708,096 963,352 143,733 359,680 340,286 187,393 179,831 222,169 260,341
4,147,118 2,813,181 5,414,092 2,684,440 7,709,001 3,353,010 1,845,488 2,886,352 2,807,328 8,466,250
1,233,767 1,767,863 2,171,512 4,015,893 5,577,713 3,505,332 3,895,937 4,729,312 6,330,523 4,255,028
3,676,149 3,304,851 3,357,304 4,060,273 3,777,587 4,931,749 5,256,969 3,976,086 3,560,104 5,037,247
427,108 515,110 538,025 217,366 40,763 123,055 1,947,898 1,508,323 521,104 6,316,400
5,901,743 6,154,182 4,919,276 395,961 541,034 753,745 865,668 940,138 1,222,662 1,237,596
63,898,848 74,071,743 76,252,483 60,429,925 71,109,827 82,643,394 108,019,997 118,685,520 122,912,828 236,507,336
Expenditures
20,402,829 21,388,999 28,235,434 19,137,935 18,704,689 14,663,575 13,985,500 20,203,716 17,395,758 22,190,527
13,746,029 14,168,805 6,101,169 17,522,978 17,911,214 21,285,001 22,362,144 25,194,804 23,102,900 28,515,124
4,402,910 5,293,398 4,193,046 2,039,046 2,222,430 3,150,253 3,338,776 3,379,221 1,912,726 4,333,082
5,621,812 4,930,881 8,894,430 10,417,007 6,928,601 6,996,124 10,621,975 13,900,835 11,015,148 9,249,905
7,854,671 5,288,394 11,115,280 6,270,880 4,849,178 5,893,882 5,842,449 4,307,717 3,916,197 7,635,140
5,747,609 6,186,871 5,026,360 28,331,517 19,328,257 29,289,204 28,180,654 24,217,513 19,710,608 17,230,763
1,965,000 680,000 695,000 737,060 720,000 735,000 755,000 4,875,000 ‐ ‐
622,673 196,131 181,498 166,582 151,285 136,212 120,481 160,464 ‐ ‐
60,363,533 58,133,479 64,442,217 84,623,005 70,815,654 82,149,251 85,206,979 96,239,270 77,053,337 89,154,541
3,535,315 15,938,264 11,810,266 (24,193,080) 294,173 494,143 22,813,018 22,446,250 45,859,491 147,352,795
Federal
Revenues
Property, Sales and Miscellaneous
Taxes
Payment in Lieu of Taxes
Licenses and Permits
Intergovernmental:
State
Charges for Services
Investment Earnings
Miscellaneous
Total Revenue
Over (Under) Expenditures
General Government
Public Safety
Culture and Recreation
Health and Welfare
Public Works
Capital Outlay
Debt Service
Principal
Interest
Total Expenditures
Excess of Revenues
175
LEA COUNTY NEW MEXICO SCHEDULE 6
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
10,000,000 32,060 ‐ ‐ ‐ ‐
Bond Premium (discount) ‐ ‐ ‐ ‐
(10,000,000) ‐ ‐ ‐ ‐
10,413,209 6,028,448 16,844,078 48,400,654 26,958,598 47,720,888 39,479,029 35,322,705 37,920,934 202,781,027
(10,656,709) (6,329,448) (18,960,078) (48,400,654) (25,967,032) (47,720,888) (39,479,029) (35,322,705) (37,920,934) (202,781,027)
(243,500) (301,000) (2,116,000) 32,060 991,566 ‐ ‐ ‐ ‐ ‐
3,291,815 15,637,264 9,694,266 (24,161,020) 1,285,739 494,143 22,813,018 22,446,250 45,859,491 147,352,795
Other Financing Sources (Uses)
B onds/debt issued/pro ceeds of
refunding
Payment to Refunding Bond
Escrow Agent
Transfers In
Transfers Out
Total Other Financing Sources
(Uses)
Net Changes in Fund Balances
(1) The capital outlay listed above is adjusted in the government ‐wide statement of activities for the following variances: donated assets, depreciation expense, gain or loss on disposal
(2) The debt service as a percentage of non‐capital e xpenditures formula for fiscal years 2006‐2011 was updated to reflect only the capitalized capital outlay reported in the
Information gathered from the Statements of Revenues, Expenditures and Changes in Fund Balances ‐ Governmental Fund. (Statement of Revenue/Expenditures)
176
LEA COUNTY NEW MEXICO SCHEDULE 7
TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Fiscal Year Property Tax
Gross Receipts
Tax
Gas/Motor
Vehicle Tax Oil & Gas Tax Total Taxes
2013 12,238,175 13,583,359 325,180 23,038,185 49,184,899
2014 13,360,897 15,488,554 308,043 31,072,987 60,230,481
2015 14,009,757 18,093,847 348,811 27,438,261 59,890,676
2016 15,976,244 10,070,902 311,359 19,597,346 45,955,851
2017 16,258,846 10,103,026 359,764 23,101,563 49,823,199
2018 17,694,460 15,154,566 370,488 33,731,130 66,950,644
2019 18,724,133 22,534,132 369,900 48,706,163 90,334,328
2020 21,546,626 23,048,517 263,467 56,997,759 101,856,369
2021 26,487,711 15,504,127 297,959 63,106,009 105,395,806
2022 31,329,152 32,039,356 289,994 144,442,740 208,101,242
Percent Change
2013‐2022 156.00% 135.87%‐10.82% 526.97% 323.10%
Statement of Revenue, Expenditures and Changes in Fund Balance without accrual adjustment
Information gathered from the A‐501 ‐ Government Fund Trial Balance ‐ Account Sub‐Group Summary Tab
0
50000000
100000000
150000000
200000000
250000000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
TAX REVENUE BY SOURCE
(Modified Accrual)
Series1 Series2 Series3 Series4 Series5
177
LEA COUNTY NEW MEXICO SCHEDULE 8
GROSS RECEIPTS TAX REVENUE BY INDUSTRY
LAST TEN FISCAL YEARS
Matched Taxable Gross Receipts for the County by Major Industrial Classifications
Fiscal Year Ending 06/30 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Agriculture, Forestry,
Fishing and Hunting 4,397,523$ 7,368,247$ 7,304,153$ 10,236,174$ 13,559,567$ 14,651,530$ 10,302,683$ 8,790,974$ 8,406,158$ 3,859,607$
Mining and Oil and Gas
Extraction 1,325,500,930 1,584,510,770 1,972,342,583 940,421,594 968,344,203 1,717,141,243 2,628,114,774 2,468,561,866 1,766,950,941 3,499,020,194
Utilities 184,184,706 219,986,388 244,685,038 224,098,373 230,210,905 253,629,078 294,993,221 299,472,832 299,547,087 400,774,562
Construction 443,247,948 566,486,057 919,665,762 577,075,203 528,528,008 612,267,891 871,358,415 945,814,821 535,870,548 844,851,690
Manufacturing 309,216,417 410,409,294 397,346,079 174,188,366 101,127,401 166,852,469 241,972,706 228,877,718 248,509,220 682,775,164
Wholesale Trade 318,498,845 335,742,058 347,979,198 211,069,590 241,231,793 366,952,809 435,458,394 377,837,008 287,964,582 844,220,130
Retail Trade 679,351,375 683,958,893 731,090,746 562,251,501 526,291,129 771,162,209 944,612,144 926,500,773 695,529,045 1,035,247,952
Transportation and
Warehousing 161,159,604 190,160,254 218,724,193 130,938,060 99,629,396 149,217,454 245,353,436 205,718,036 160,636,745 395,872,864
Information and
Cultural Ind ustries 75,701,931 88,321,730 92,424,867 87,938,635 87,222,985 89,018,114 95,942,518 104,583,465 55,490,374 71,017,580
Finance and Insurance 7,516,098 7,634,163 8,103,089 7,460,754 7,818,890 8,032,460 8,711,663 9,175,962 9,276,796 12,752,053
Real Estate and Rental
and Leasing 79,284,473 93,996,093 109,635,803 74,975,037 84,410,619 156,036,199 200,140,813 189,502,779 158,187,127 304,670,019
Professional, Scientific
and Technical Services 122,397,607 132,237,309 148,527,368 100,869,094 111,859,960 121,093,051 163,248,677 169,563,034 136,701,540 304,425,460
Admin and Support,
Waste Mgt and Remed 73,285,471 51,437,518 58,450,816 46,061,550 51,009,557 89,822,974 101,116,857 111,901,879 91,852,643 123,061,368
Educational Services 208,885 533,771 583,800 712,847 755,160 1,046,745 1,110,320 1,000,714 1,106,173 1,983,311
Health Care and Social
Assistance 69,440,341 65,686,208 73,852,181 17,600,472 65,580,278 75,166,530 83,205,587 72,922,677 86,576,860 105,797,924
Arts, Entertainment
and Recreation 5,450,461 5,661,597 12,206,135 7,595,475 8,018,476 8,963,359 8,024,025 4,965,875 3,826,093 8,977,621
Accommodation and
Food Services 124,619,807 131,331,067 156,190,917 123,729,727 123,159,563 161,701,766 194,453,199 163,645,831 141,348,524 172,157,673
Other Services (except
Public Admin)405,261,064 404,352,485 426,269,468 268,407,961 241,278,839 333,885,089 428,813,321 403,627,843 278,236,270 401,170,497
Public Administration 2,200,362 36,665 75,937 138,365 85,513 223,197 658,399 593,894 218,923 1,069,910
Unclassified
Establishments 17,529,271 45,162,620 38,963,263 22,186,762 27,613,643 50,151,743 78,765,213 25,404,313 21,449,256 102,404,826
Total (1)4,408,453,119$ 5,025,013,188$ 5,964,421,394$ 3,587,955,540$ 3,517,735,883$ 5,147,015,910$ 7,036,356,364$ 6,718,462,295$ 4,987,684,905$ 9,316,110,405$
County Direct GRT Rate
as of 06/30 0.375% 0.375% 0.375% 0.375% 0.375% 0.375% 0.375% 0.375% 0.375% 0.375%
(1) These figures are annual totals taken from the "RP‐500 ‐ Monthly Local Government Distribution Reports by Standard Industrial Classification". These totals are for the actual business activity months in the fiscal
year which differs from the month that the tax distribution is received. Also, the State suppresses revenue information in certain categories if the release of information would compromise the confidentiality of an
individual taxpayer. Accordingly, the taxable gross receipts totals in this table will differ from those in the prior table.
Source: State of New Mexico, Taxation and Revenue Department (derived from Report RP‐500)
178
LEA COUNTY NEW MEXICO SCHEDULE 8
GROSS RECEIPTS TAX REVENUE BY INDUSTRY
LAST TEN FISCAL YEARS
1
2
3
4
5
6
7
8
9
10
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
GROSS RECEIPTS TAX REVENUE BY INDUSTRY
in Billions
Unclassified Establishments
Public Administration
Other Services (except Public Admin)
Accommodation and Food Services
Arts, Entertainment and Recreation
Health Care and Social Assistance
Educational Services
Admin and Support, Waste Mgt and Remed
Professional, Scientific and Technical Services
Real Estate and Rental and Leasing
Finance and Insurance
Information and Cultural Industries
Transportation and Warehousing
Retail Trade
Wholesale Trade
Manufacturing
Construction
Utilities
Mining and Oil and Gas Extraction
Agriculture, Forestry, Fishing and Hunting
Fiscal Year Ending 06/30
179
LEA COUNTY NEW MEXICO SCHEDULE 9
DIRECT AND OVERLAPPING GROSS RECEIPT TAX RATES
LAST TEN FISCAL YEARS
LEA COUNTY
(06‐006)
CITY OF HOBBS
(HOB)
Fiscal Year State GRT
County
Direct
Rate
County
Unincor‐
porated
Rate
Total LC
GRT Fiscal Year State GRT
HOB Share
of State
GRT
HOB
Direct
Rate
Lea
County
Total HOB
GRT
2013 5.1250% 0.2500% 0.1250% 5.5000%2013 3.9000% 1.2250% 1.4375% 0.2500% 6.8125%
2014 5.1250% 0.2500% 0.1250% 5.5000%2014 3.9000% 1.2250% 1.4375% 0.2500% 6.8125%
2015 5.1250% 0.2500% 0.1250% 5.5000%2015 3.9000% 1.2250% 1.4375% 0.2500% 6.8125%
2016 5.1250% 0.2500% 0.1250% 5.5000%2016 3.9000% 1.2250% 1.4375% 0.2500% 6.8125%
2017 5.1250% 0.2500% 0.1250% 5.5000%2017 3.9000% 1.2250% 1.4375% 0.2500% 6.8125%
2018 5.1250% 0.2500% 0.1250% 5.5000%2018 3.9000% 1.2250% 1.4375% 0.2500% 6.8125%
2019 5.1250% 0.2500% 0.1250% 5.5000%2019 3.9000% 1.2250% 1.4375% 0.2500% 6.8125%
2020 5.1250% 0.2500% 0.1250% 5.5000%2020 3.9000% 1.2250% 1.4375% 0.2500% 6.8125%
2021 5.1250% 0.2500% 0.1250% 5.5000%2021 3.9000% 1.2250% 1.4375% 0.2500% 6.8125%
2022 5.1250% 0.2500% 0.1250% 5.5000%2022 3.9000% 1.2250% 1.4375% 0.2500% 6.8125%
CITY OF
EUNICE (EU)
CITY OF
LOVINGTON
(LOV)
Fiscal Year State GRT
EU Share
of State
GRT
EU Direct
Rate
Lea
County
Total EU
GRT Fiscal Year State GRT
LOV Share
of State
GRT
LOV Direct
Rate
Lea
County
Total LOV
GRT
2013 3.9000% 1.2250% 1.4375% 0.2500% 6.8125%2013 3.9000% 1.2250% 1.5000% 0.2500% 6.8750%
2014 3.9000% 1.2250% 1.4375% 0.2500% 6.8125%2014 3.9000% 1.2250% 1.5000% 0.2500% 6.8750%
2015 3.9000% 1.2250% 1.4375% 0.2500% 6.8125%2015** 3.9000% 1.2250% 1.8750% 0.2500% 7.2500%
2016 3.9000% 1.2250% 1.4375% 0.2500% 6.8125%2016 3.9000% 1.2250% 1.8750% 0.2500% 7.2500%
2017* 3.9000% 1.2250% 1.9375% 0.2500% 7.3125%2017 3.9000% 1.2250% 1.8750% 0.2500% 7.2500%
2018 3.9000% 1.2250% 1.9375% 0.2500% 7.3125%2018 3.9000% 1.2250% 1.8750% 0.2500% 7.2500%
2019 3.9000% 1.2250% 1.9375% 0.2500% 7.3125%2019 3.9000% 1.2250% 1.8750% 0.2500% 7.2500%
2020 3.9000% 1.2250% 1.9375% 0.2500% 7.3125%2020 3.9000% 1.2250% 1.8750% 0.2500% 7.2500%
2021 3.9000% 1.2250% 1.9375% 0.2500% 7.3125%2021 3.9000% 1.2250% 1.8750% 0.2500% 7.2500%
2022 3.9000% 1.2250% 1.9375% 0.2500% 7.3125%2022 3.9000% 1.2250% 1.8750% 0.2500% 7.2500%
180
LEA COUNTY NEW MEXICO SCHEDULE 9 - Continued
DIRECT AND OVERLAPPING GROSS RECEIPT TAX RATES
LAST TEN FISCAL YEARS
TOWN OF JAL
(JAL)
Fiscal Year State GRT
LIP Share
of State
GRT
LIP Direct
Rate
Lea
County
Total LIP
GRT Fiscal Year State GRT
JAL Share
of State
GRT
JAL Direct
Rate
Lea
County
Total JAL
GRT
2013 3.9000% 1.2250% 0.0000% 0.3750% 5.5000%2013 3.9000% 1.2250% 1.6875% 0.2500% 7.0625%
2014 3.9000% 1.2250% 0.0000% 0.3750% 5.5000%2014 3.9000% 1.2250% 1.6875% 0.2500% 7.0625%
2015 3.9000% 1.2250% 0.0000% 0.3750% 5.5000%2015 3.9000% 1.2250% 1.6875% 0.2500% 7.0625%
2016 3.9000% 1.2250% 0.0000% 0.3750% 5.5000%2016 3.9000% 1.2250% 1.6875% 0.2500% 7.0625%
2017 3.9000% 1.2250% 0.0000% 0.3750% 5.5000%2017 3.9000% 1.2250% 1.6875% 0.2500% 7.0625%
2018 3.9000% 1.2250% 0.0000% 0.3750% 5.5000%2018*** 3.9000% 1.2250% 1.6875% 0.2500% 7.0625%
2019 3.9000% 1.2250% 0.0000% 0.3750% 5.5000%2019 3.9000% 1.2250% 2.0625% 0.2500% 7.4375%
2020 3.9000% 1.2250% 0.1250% 0.2500% 5.5000%2020 3.9000% 1.2250% 2.0625% 0.2500% 7.4375%
2021 3.9000% 1.2250% 0.1250% 0.2500% 5.5000%2021 3.9000% 1.2250% 2.0625% 0.2500% 7.4375%
2022 3.9000% 1.2250% 0.1250% 0.2500% 5.5000%2022 3.9000% 1.2250% 2.0625% 0.2500% 7.4375%
Fiscal Year State GRT
TAT Share
of State
GRT
TAT Direct
Rate
Lea
County
Total TAT
GRT
2013 3.9000% 1.2250% 1.4375% 0.2500% 6.8125%
2014 3.9000% 1.2250% 1.4375% 0.2500% 6.8125%
2015 3.9000% 1.2250% 1.4375% 0.2500% 6.8125%
2016 3.9000% 1.2250% 1.4375% 0.2500% 6.8125%
2017 3.9000% 1.2250% 1.4375% 0.2500% 6.8125%
2018 3.9000% 1.2250% 1.4375% 0.2500% 6.8125%
2019 3.9000% 1.2250% 1.4375% 0.2500% 6.8125%
2020 3.9000% 1.2250% 1.4375% 0.2500% 6.8125%
2021 3.9000% 1.2250% 1.4375% 0.2500% 6.8125%
2022 3.9000% 1.2250% 1.4375% 0.2500% 6.8125%
LOVINGTON INDUSTRIAL PARK (LIP)
TATUM (TAT)
*Local option taxes increase effective January 1, 2017
** Local option taxes increase effective January 1, 2015
*** Local option taxes increase effective January 1, 2018
Source: State of New Mexico Taxation and Revenue
181
LEA COUNTY NEW MEXICO SCHEDULE 10
GROSS RECEIPTS TAX REVENUE PAYERS BY INDUSTRY
CURRENT YEAR AND TEN YEARS AGO
2022 2013
Fiscal Year Ending 06/30
Number of
Filers
Percentage of Total
Filers
Matched Taxable
Gross Receipts
Percentage of
Matched Taxable
Gross Receipts
Number of
Filers
Percentage of
Total Filers
Matched Taxable
Gross Receipts
Percentage of
Matched
Taxable Gross
Receipts
Agriculture, Forestry, Fishing and Hunting $ 232 0.28% 3,859,607$ 0.04% 164 0.42% $ 4,397,523 0.10%
Mining and Oil and Gas Extraction 6,967 8.48% 3,499,020,194 37.56% 3,788 9.67% 1,325,500,930 30.07%
Utilities 458 0.56% 400,774,562 4.30% 229 0.58% 184,184,706 4.18%
Construction 4,682 5.70% 844,851,690 9.07% 3,896 9.95% 443,247,948 10.05%
Manufacturing 6,884 8.38% 682,775,164 7.33% 1,616 4.13% 309,216,417 7.01%
Wholesale Trade 8,393 10.22% 844,220,130 9.06% 2,171 5.54% 318,498,845 7.22%
Retail Trade 20,905 25.44% 1,035,247,952 11.11% 6,997 17.87% 679,351,375 15.41%
Transportation and Warehousing 3,213 3.91% 395,872,864 4.25% 1,582 4.04% 161,159,604 3.66%
Information and Cultural Industries 3,424 4.17% 71,017,580 0.76% 954 2.44% 75,701,931 1.72%
Finance and Insurance 627 0.76% 12,752,053 0.14% 327 0.84% 7,516,098 0.17%
Real Estate and Rental and Leasing 3,631 4.42% 304,670,019 3.27% 1,464 3.74% 79,284,473 1.80%
Professional, Scientific and Technical Services 5,731 6.98% 304,425,460 3.27% 2,480 6.33% 122,397,607 2.78%
Admin and Support, Waste Mgt and Remed 2,476 3.01% 123,061,368 1.32% 839 2.14% 73,285,471 1.66%
Educational Services 526 0.64% 1,983,311 0.02% 39 0.10% 208,885 0.00%
Health Care and Social Assistance 1,271 1.55% 105,797,924 1.14% 1,127 2.88% 69,440,341 1.58%
Arts, Entertainment and Recreation 238 0.29% 8,977,621 0.10% 190 0.49% 5,450,461 0.12%
Accommodation and Food Services 2,339 2.85% 172,157,673 1.85% 1,943 4.96% 124,619,807 2.83%
Other Services (except Public Admin) 8,061 9.81% 401,170,497 4.31% 8,685 22.18% 405,261,064 9.19%
Public Administration 35 0.04% 1,069,910 0.01% 28 0.07% 2,200,362 0.05%
Unclassified Establishments 2,068 2.52% 102,404,826 1.10% 639 1.63% 17,529,271 0.40%
Total (1)82,161 100.00% 9,316,110,405 100.00% 39,158 100.00% 4,408,453,119 100.00%
(1)These figures are annual totals taken from the "RP‐500 ‐ Monthly Local Government Distribution Reports by Standard Industrial Classification". These totals are for the actual business
activity months in the fiscal year which differs from the month that the tax distribution is received. Also, the State suppresses revenue information in certain categories if the release of
information would compromise the confidentiality of an individual taxpayer. Accordingly, the taxable gross receipts totals in this table will differ from those in the prior table.
Source: State of New Mexico, Taxation and Revenue Department (derived from Report RP‐500)
182
LEA COUNTY NEW MEXICO SCHEDULE 11
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Real Property Property Oil & Gas
Fiscal
Year
Ended
Residential
Property
Non‐Residential
Property Personal Property Agricultural
Mobile
Homes Production Equipment
Less: Tax‐Exempt
Property
Adjustment for
Protested Taxes
To Date
Total Taxable
Assessed Value (1)
2011 402,945,742 741,635,207 71,375,670 ** 25,491,105 1,593,608,130 317,913,833 57,633,377 3,095,336,310
2012 418,035,887 814,851,459 82,778,047 ** 28,215,197 1,880,085,224 375,736,964 59,877,860 3,539,824,918
2013 440,507,004 872,113,348 84,708,745 ** 32,069,773 1,837,287,307 360,675,113 60,694,079 3,566,667,211
2014 477,536,350 965,520,933 87,813,417 ** 36,465,393 2,237,755,897 445,096,919 60,778,728 4,189,410,181
2015 506,735,277 1,108,398,782 107,266,207 ** 40,868,018 2,540,883,533 510,216,626 60,760,888 4,753,607,555
2016 553,073,187 1,118,978,036 106,728,898 ** 44,057,893 1,624,198,949 329,322,764 61,286,686 (7,006,858) 3,708,066,183
2017 581,823,285 1,096,347,044 112,420,928 ** 44,697,013 1,509,861,815 311,304,405 60,945,473 3,595,509,017
2018 601,865,443 1,250,225,165 113,527,559 ** 44,106,001 2,357,835,690 560,642,518 60,462,816 (2,691,789) 4,865,047,771
2019 627,492,432 1,469,321,834 133,427,801 ** 45,711,133 3,926,179,876 926,353,025 60,239,468 (808,106) 7,067,438,527
2020 667,216,732 1,702,313,334 139,442,300 ** 46,759,702 4,798,856,847 1,103,535,232 59,995,809 (10,852,162) 8,387,276,176
2021 704,730,848 1,773,918,675 141,775,292 48,266,057 3,817,159,714 918,758,113 65,855,840 ‐4,262,673 7,334,490,186
2022 748,290,658 1,792,714,015 421,928,922 50,730,046 9,815,122,165 2,432,666,531 66,601,943 (5,138,883) 15,189,711,511
Fiscal
Year
Ended
June 30
Total
Residential
Direct Tax Rate
Total Non ‐Residential
Direct Tax Rate
Estimated Actual
Value
Taxable
Assessed Value
as a Percentage
of Actual Value
2011 7.844 10.600 7,762,313,601 33.30%
2012 7.733 10.600 9,295,304,234 33.30%
2013 7.734 10.600 10,630,104,859 33.30%
2014 7.580 10.600 10,710,712,345 33.30%
2015 7.318 10.600 12,580,811,354 33.30%
2016 7.119 10.600 14,275,097,763 33.30%
2017 6.947 10.600 11,135,333,883 33.30%
2018 6.916 10.600 10,797,324,375 33.30%
2019 7.041 10.600 14,609,753,066 33.30%
2020 7.110 10.600 21,223,539,120 33.30%
2021 7.099 10.600 25,187,015,544 33.30%
2022 7.011 10.600 33.30%
(1)Taxable assessed values are established by the Lea County Assessor for locally assessed property, and by the State of New Mexico Taxation and Revenue Department, Audit and Complian ce
Division (oil and gas equipment and production), and Property Tax Division (state assessed property).
Note: Total taxable assessed value is calculated as 1/3rd of estimated actual value. For additional information, refer to Note 4 ‐ Property Taxes in the Notes to the Financial Statements.
**The Personal Property ‐ Non ‐Residential Agriculture is included in the Personal Property per the Assessor's Office.
183
LEA COUNTY NEW MEXICO SCHEDULE 12
RESIDENTIAL PROPERTY TAX RATES
LAST TEN FISCAL YEARS
Fiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Direct Rate
Lea County
Operating Millage 7.580 1.360 7.119 6.947 6.916 7.041 7.110 7.099 7.011 7.055
Debt Service Millage ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Total County Millage 7.580 1.360 7.119 6.947 6.916 7.041 7.110 7.099 7.011 7.055
Overlapping Rates
City of Lovington
Operating Millage 4.199 3.998 3.853 3.709 3.699 3.733 3.800 3.759 3.719 3.740
Debt Service Millage ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Total City Millage 4.199 3.998 3.853 3.709 3.699 3.733 3.800 3.759 3.719 3.740
City of Eunice
Operating Millage 6.018 5.791 5.629 5.428 5.359 5.405 5.467 5.419 5.365 5.391
Debt Service Millage ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Total City Millage 6.018 5.791 5.629 5.428 5.359 5.405 5.467 5.419 5.365 5.391
City of Hobbs
Operating Millage 4.221 4.096 3.994 3.918 3.900 3.984 4.014 4.022 3.973 3.986
Debt Service Millage ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Total City Millage 4.221 4.096 3.994 3.918 3.900 3.984 4.014 4.022 3.973 3.986
City of Jal
Operating Millage 6.468 6.266 6.036 5.830 5.816 5.893 5.820 5.722 5.673 5.631
Debt Service Millage ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Total Town Millage 6.468 6.266 6.036 5.830 5.816 5.893 5.820 5.722 5.673 5.631
Town of Tatum
Operating Millage 3.371 3.244 3.154 3.078 3.090 3.126 3.100 3.113 3.078 3.122
Debt Service Millage ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Total School Millage 3.371 3.244 3.154 3.078 3.090 3.126 3.100 3.113 3.078 3.122
Lovington Schools
Operating Millage 0.259 0.248 0.239 0.231 0.230 0.232 0.236 0.235 0.232 0.237
Capital Improvements 3.934 3.759 3.844 3.711 3.924 3.944 4.000 3.987 3.959 4.000
Debt Service Millage 2.797 ‐ 6.804 7.248 7.205 7.205 6.351 6.413 7.220 7.220
Total School Millage 6.990 4.007 10.887 11.190 11.359 11.381 10.587 10.635 11.411 11.457
Eunice Schools
Operating Millage 0.289 0.279 0.272 0.260 0.258 0.262 0.266 0.264 0.261 0.265
Capital Improvements 3.702 3.574 3.482 8.000 7.929 8.000 8.000 3.984 3.979 4.000
Debt Service Millage 5.647 4.327 3.484 6.387 6.337 5.933 5.721 7.517 3.965 1.730
Total School Millage 9.638 8.180 7.238 14.647 14.524 14.195 13.987 11.765 8.205 5.995
Hobbs Schools
Operating Millage 0.274 0.265 0.258 0.253 0.252 0.257 0.259 0.259 0.256 0.261
Capital Improvements 5.632 5.452 6.000 5.880 5.852 5.973 6.000 6.000 6.000 6.000
Debt Service Millage 2.940 3.117 3.981 6.845 5.816 3.918 4.043 4.512 5.108 5.094
Total School Millage 8.846 8.834 10.239 12.978 11.920 10.148 10.302 10.771 11.364 11.355
184
LEA COUNTY NEW MEXICO SCHEDULE 12 - Continued
RESIDENTIAL PROPERTY TAX RATES
LAST TEN FISCAL YEARS
Jal Schools
Operating Millage 0.422 0.410 0.396 0.383 0.382 0.386 0.382 0.375 0.369 0.373
Capital Improvements 1.927 1.872 1.807 1.748 2.000 1.878 1.978 1.941 1.941 2.000
Debt Service Millage ‐ ‐ 2.642 3.619 3.626 4.724 3.624 3.625 2.402 0.600
Total School Millage 2.349 2.282 4.845 5.750 6.008 6.988 5.984 5.941 4.712 2.973
Tatum Schools
Operating Millage 0.254 0.247 0.241 0.233 0.234 0.238 0.239 0.240 0.239 0.237
Capital Improvements 2.000 1.945 1.904 1.840 1.849 1.878 2.000 2.000 2.000 1.970
Debt Service Millage 3.270 3.239 3.389 5.902 5.165 4.724 4.734 4.754 4.751 4.762
Total School Millage 5.524 5.431 5.534 7.975 7.248 6.840 6.973 6.994 6.990 6.969
New Mexico Junior
College
Operating Millage 3.862 3.729 3.628 3.540 3.524 3.588 3.623 3.618 3.573 3.595
Debt Service Millage ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Total School Millage 3.862 3.729 3.628 3.540 3.524 3.588 3.623 3.618 3.573 3.595
Nor‐Lea Hospital District
Operating Millage 4.000 3.828 4.000 3.861 4.000 4.000 4.000 3.977 4.000 4.000
Debt Service Millage ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Total School Millage 4.000 3.828 4.000 3.861 4.000 4.000 4.000 3.977 4.000 4.000
Eunice Hospital District
Operating Millage 1.933 1.866 2.000 1.917 1.900 1.930 2.000 1.984 1.963 1.971
Debt Service Millage ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Total School Millage 1.933 1.866 2.000 1.917 1.900 1.930 2.000 1.984 1.963 1.971
State of New Mexico
Operating Millage ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Debt Service Millage 1.360 1.360 1.360 1.360 1.360 1.360 1.360 1.360 1.360 1.360
Total School Millage 1.360 1.360 1.360 1.360 1.360 1.360 1.360 1.360 1.360 1.360
Note: The Lea County Commission can impose a maximum of 11.85 mills for operating purposes. The yield control formula provides
that no operating tax rate established by the Department of Finance and Administration, Department of Education and Commission on
Higher Education on residential and nonresidential property by governmental unit shall produce revenue in excess of 5% from one year
to the next solely as a consequence of property reappraisal. Taxes are collected in the following fiscal year (2021 collected in FY 22).
185
LEA COUNTY NEW MEXICO SCHEDULE 13
NON‐RESIDENTIAL PROPERTY TAX RATES
LAST TEN FISCAL YEARS
Fiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2021
Direct Rate
Lea County
Operating Millage 10.600 10.600 10.600 10.600 10.600 10.600 10.600 10.600 10.600 10.600
Debt Service Millage ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Total County Millage 10.600 10.600 10.600 10.600 10.600 10.600 10.600 10.600 10.600 10.600
Overlapping Rates
City of Lovington
Operating Millage 5.000 5.000 5.000 5.000 5.650 5.650 5.650 5.650 5.650 5.650
Debt Service Millage ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Total City Millage 5.000 5.000 5.000 5.000 5.650 5.650 5.650 5.650 5.650 5.650
City of Eunice
Operating Millage 7.650 7.650 7.228 7.251 7.650 7.650 7.650 7.650 7.650 7.650
Debt Service Millage ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Total City Millage 7.650 7.650 7.228 7.251 7.650 7.650 7.650 7.650 7.650 7.650
City of Hobbs
Operating Millage 5.408 5.555 5.555 5.555 5.555 5.555 5.555 5.555 5.555 5.555
Debt Service Millage ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Total City Millage 5.408 5.555 5.555 5.555 5.555 5.555 5.555 5.555 5.555 5.555
City of Jal
Operating Millage 7.650 7.650 7.650 7.639 7.650 7.650 7.650 7.650 7.650 7.650
Debt Service Millage ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Total Town Millage 7.650 7.650 7.650 7.639 7.650 7.650 7.650 7.650 7.650 7.650
Town of Tatum
Operating Millage 4.225 4.225 4.225 4.225 4.225 4.225 4.225 4.225 4.225 4.225
Debt Service Millage ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Total School Millage 4.225 4.225 4.225 4.225 4.225 4.225 4.225 4.225 4.225 4.225
Lovington Schools
Operating Millage 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500
Capital Improvements 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000
Debt Service Millage 2.797 4.179 6.804 7.248 7.205 7.205 7.212 8.030 7.220 7.220
Total School Millage 7.297 8.679 11.304 11.748 11.705 11.705 11.712 12.530 11.720 11.720
Eunice Schools
Operating Millage 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500
Capital Improvements 4.000 4.000 4.000 8.000 8.000 8.000 8.000 4.000 4.000 4.000
Debt Service Millage 5.647 4.327 3.484 6.387 6.337 5.933 5.721 7.517 3.965 1.730
Total School Millage 10.147 8.827 7.984 14.887 14.837 14.433 14.221 12.017 8.465 6.230
186
LEA COUNTY NEW MEXICO SCHEDULE 13
NON‐RESIDENTIAL PROPERTY TAX RATES
LAST TEN FISCAL YEARS
Hobbs Schools
Operating Millage 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500
Capital Improvements 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000
Debt Service Millage 2.940 3.117 3.981 6.845 5.816 3.918 4.043 4.512 5.108 5.094
Total School Millage 9.440 9.617 10.481 13.345 12.316 10.418 10.543 11.012 11.608 11.608
Jal Schools
Operating Millage 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500
Capital Improvements 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000
Debt Service Millage ‐ ‐ 2.642 3.619 3.626 4.724 3.624 3.625 3.627 0.600
Total School Millage 2.500 2.500 5.142 6.119 6.126 7.224 6.124 6.125 6.127 3.100
Tatum Schools
Operating Millage 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500
Capital Improvements 2.000 2.000 2.000 1.999 2.000 2.000 2.000 2.000 2.000 2.000
Debt Service Millage 3.270 3.239 3.389 5.902 5.165 4.724 4.734 4.754 4.751 4.762
Total School Millage 5.770 5.739 5.889 8.401 7.665 7.224 7.234 7.254 7.251 7.262
New Mexico Junior College
Operating Millage 5.000 5.000 5.000 5.000 5.000 5.000 5.000 5.000 5.000 5.000
Debt Service Millage ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Total School Millage 5.000 5.000 5.000 5.000 5.000 5.000 5.000 5.000 5.000 5.000
Nor‐Lea Hospital District
Operating Millage 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000
Debt Service Millage ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Total School Millage 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000
Eunice Hospital District
Operating Millage 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 1.948
Debt Service Millage ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Total School Millage 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 1.948
Jal Hospital District
Operating Millage 2.000 3.000 3.000 3.000 3.000 3.000
Debt Service Millage ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Total School Millage ‐ ‐ ‐ ‐ 2.000 3.000 3.000 3.000 3.000 3.000
State of New Mexico
Operating Millage 1.360 1.360 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Debt Service Millage ‐ ‐ 1.360 1.360 1.360 1.360 1.360 1.360 1.360 1.360
Total School Millage 1.360 1.360 1.360 1.360 1.360 1.360 1.360 1.360 1.360 1.360
Note: The Lea County Commission can impose a maximum of 11.85 mills for operating purposes. The yield control formula provides
that no operating tax rate established by the Department of Finance and Administration, Department of Education and Commission
on Higher Education on residential and nonresidential property by governmental unit shall produce revenue in excess of 5% from
one year to the next solely as a consequence of property reappraisal. Taxes are collected in the next fiscal year ( 2021 in FY 22).
187
LEA COUNTY NEW MEXICO SCHEDULE 14
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND TEN YEARS AGO
Taxpayer
Taxable
Assessed Value Rank
Percentage of
Total Taxable
Assessed Value
Taxable Assessed
Value Rank
Percentage of
Total Taxable
Assessed Value
Plains Oryx Permian Basin Pipeline 225,112,206$ 1 9.20% $ ‐ 0.00%
Lucid Energy Delaware 153,480,394$ 2 6.27% $ ‐ 0.00%
Kodiak Gas Services 110,723,282$ 3 4.53% $ ‐ 0.00%
Southwestern Public Service 102,196,845$ 4 4.18% $ 58,222,768 34.90%
Western Refining Conan Gathering 80,010,304$ 5 3.27% $ ‐ 0.00%
Lea Po wer Partners 51,214,362$ 6 2.09% $ 81,000,000 26.90%
Tucson Electric Power 48,245,885$ 7 1.97% $ ‐ 0.00%
Lea Partners 45,331,277$ 8 1.85% $ 129,396,166 1 11.00%
3 Bear Midstream 27,698,674$ 9 1.13%
Markwest Tornado GP LLC 22,254,860$ 10 0.91%
DCP Midstream $ 56,666,810 44.80%
El Paso Natural Gas $ 29,150,982 52.50%
Zia Natural Gas $ 21,556,922 61.80%
Versado Gas Processing $ 21,089,444 71.80%
Navajo Refining Company $ 16,128,066 81.40%
Lea County Electric Cooperative $ 10,041,117 90.90%
Chevron $ 8,769,014 10 0.70%
Mid America Pipeline $ 6,651,656 0.60%
Plains Pipeline $ 2,604,990 0.20%
Conoco Phillips $ 1,968,842 0.20%
$ 443,246,777 35.41% $ 443,246,777 37.70%
Assessor's Office
2022 2013
188
LEA COUNTY NEW MEXICO SCHEDULE 15
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Tax Year
Taxes Levied
for the Fiscal
Year (Original
Levy) Adjustments
Total Adjusted
Levy Amount
Percentage of
Original Levy
Collections
(Refunds) in
Subsequent
Years Amount
Percentage
of Adjusted
Levy
Uncollected
Taxes
2012 34,159,958.97 (292,851.96) 33,867,107.01 33,328,246.15 97.57% 535,540.43 33,863,786.58 99.99% 3,320.43
2013 37,228,570.28 (220,814.68) 37,007,755.60 36,894,160.54 99.10% 109,588.39 37,003,748.93 99.99% 4,006.67
2014 41,083,147.39 (539,365.24) 40,543,782.15 39,900,878.42 97.12% 638,250.46 40,539,128.88 99.99% 4,653.27
2015 48,682,806.85 (431,496.66) 48,251,310.19 47,689,770.71 97.96% 554,491.46 48,244,262.17 99.99% 7,048.02
2016 54,314,143.31 (755,900.78) 53,558,242.53 50,289,564.76 92.59% 3,251,950.23 53,541,514.99 99.97% 16,727.54
2017 53,376,558.43 2,401,306.12 55,777,864.55 53,254,727.74 99.77% 2,491,263.99 55,745,991.73 99.94% 31,872.82
2018 56,857,534.75 2,545,170.04 59,402,704.79 57,277,382.78 100.74% 2,087,951.58 59,365,334.36 99.94% 37,370.43
2019 64,276,962.58 4,561,082.93 68,838,045.51 61,241,553.02 95.28% 7,535,076.52 68,776,629.54 99.91% 61,415.97
2020 72,018,410.04 6,901,770.84 78,920,180.88 76,722,529.22 106.53% 1,883,892.96 78,606,422.18 99.60% 313,758.70
2021 74,339,296.29 10,226,518.45 84,565,814.74 83,201,982.15 111.92% ‐ 83,201,982.15 98.39% 1,363,832.59
Taxes are levied on a calender year basis. Therefore, taxes levied in FY 21 will be collected during the FY 22 fiscal year.
Collected within the Fiscal Year
of the Levy Total Collections to Date
189
LEA COUNTY NEW MEXICO SCHEDULE 16
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Fiscal Year
General
Obligation
Bonds
Revenue Bonds
(3)
Capital
Leases
Total Primary
Government
Percentage of
Personal
Income (1) Per Capita (1)
2012 ‐ 11,130,000 ‐ 11,130,000 0.416%168
2013 ‐ 9,165,000 ‐ 9,165,000 0.337%134
2014 ‐ 8,485,000 ‐ 8,485,000 0.301%121
2015 ‐ 7,790,000 ‐ 7,790,000 0.266%109
2016 ‐ 7,085,000 ‐ 7,085,000 0.269%101
2017 ‐ 6,365,000 ‐ 6,365,000 0.229%92
2018 ‐ 5,630,000 ‐ 5,630,000 0.171%81
2019 ‐ 4,875,000 ‐ 4,875,000 0.140%69
2020 ‐ ‐ ‐ ‐ 0.000%‐
2021 ‐ ‐ ‐ ‐ 0.000%‐
2022 ‐ ‐ ‐ ‐ 0.000%‐
Governmental Activities
(3)Presented net of original issuance discounts, premiums, and adjustments beginning in FY2013.
(2)Information not available.
(1)See Schedule 20 for personal income and population data.
Notes: Lea County retired all outstanding debt in December 2019.
‐
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Outstanding Debt
Lea County Retired all Outstanding Debt in 2019
190
LEA COUNTY NEW MEXICO SCHEDULE 17
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF JUNE 30, 2022
Governmental Unit
General Obligation
Long‐Term Debt
Outstanding
Estimated
Percentage
Applicable
Estimated Share of
Overlapping Debt
School Districts
Eunice Public Schools 13,085,000 100.00% 13,085,000
Hobbs Municipal Schools 32,460,000 100.00% 32,460,000
Jal Public Schools 19,195,000 100.00% 19,195,000
Lovington Municipal Schools 30,100,000 100.00% 30,100,000
Tatum Municipal Schools 1,185,000 100.00%1,185,000
New Mexico Junior College ‐ 100.00%‐
Cities
City of Eunice ‐ 100.00%‐
City of Hobbs ‐ 100.00%‐
City of Jal ‐ 100.00%‐
City of Lovington ‐ 100.00%‐
Town of Tatum ‐ 100.00%‐
State of New Mexico 414,365,000 3.33% 13,798,354.50
Debt Repaid With Property Taxes: County
Subtotal, Overlapping Debt 109,823,355
Lea County Direct Debt ‐
Total Direct and Overlapping Debt 109,823,355
191
LEA COUNTY NEW MEXICO SCHEDULE 18
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Tax Year
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Assessed Value of
Property $ 3,566,667,211.00 $ 4,189,410,181.00 $ 4,753,607,555.00 $ 3,708,066,183.00 $ 3,595,509,017.00 $ 4,865,047,771.00 $ 7,067,438,527.00 $ 8,387,276,177.00 $ 7,339,034,819.00 $ 7,334,490,186.00
Debt Limit, 4% of
Assessed Value 142,666,688.44 167,576,407.24 190,144,302.20 148,322,647.32 143,820,360.68 194,601,910.84 282,697,541.08 335,491,047.08 293,561,392.76 293,379,607.44
Total net debt
applicable to limit ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Legal debt margin 142,666,688.44 167,576,407.24 190,144,302.20 148,322,647.32 143,820,360.68 194,601,910.84 282,697,541.08 335,491,047.08 293,561,392.76 293,379,607.44
Total net debt
applicable to the
limit as a percentage
of debt limit 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Note: The tax year is on a calendar year basis and the fiscal ends in the next calendar year.
www.nmdfa.state.nm.us/Net_Taxable_Value.aspx
192
LEA COUNTY NEW MEXICO SCHEDULE 19
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Detention Center
1/8th of 1% $ 5,479,807 $ 6,264,599 $ 7,306,130 $ 4,293,439 $ 4,222,637 $ 6,698,266 $ 8,378,486 $ ‐ $ ‐ ‐$
Debt Service
Principal $670,000.00 $680,000.00 $695,000.00 $705,000.00 $720,000.00 $735,000.00 $755,000.00 $ ‐ $ ‐ ‐$
Interest $541,230.00 $196,131.00 $181,498.00 $166,652.00 $151,285.00 $136,212.00 $120,481.00 $ ‐ $ ‐ ‐$
Coverage (times) 4.52 7.15 8.34 4.93 4.85 7.69 9.57 ‐ ‐ ‐
Notes:
Lea County refunded the outstanding bonds during the year ended June 30, 2013 to take advantage of lower interest rates. The County elected to early retire the bonds in
December 2019 using excess pledged revenue.
Gross Receipts Tax: The gross receipts tax is a tax on persons engaged in business in New Mexico for both tangib les and services. The county portion is determined by the
County Commission.
Pledged revenue is reported from actual cash receipts. Details regarding the County's outstanding debt can be found in the notes to the financial statements.
193
LEA COUNTY NEW MEXICO SCHEDULE 20
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Year Population Personal Income (1)
Per Capita
Personal
Income Median Age
School
Enrollment
Unemployment
Rate
2012 66,326 2,683,430,000 40,350 31.6 13,399 4.60%
2013 68,613 2,721,679,000 39,615 31.8 14,025 4.50%
2014 70,165 2,847,132,000 40,242 31.5 14,637 4.30%
2015 71,476 2,912,603,000 40,911 31.8 15,324 6.30%
2016 70,249 2,627,650,000 37,544 31.8 15,441 9.30%
2017 69,046 2,770,834,000 40,171 31.7 15,158 6.50%
2018 69,543 3,274,663,000 47,230 31.7 15,361 4.10%
2019 71,070 3,521,813,000 49,039 31.8 16,234 4.10%
2020 74,455 3,391,482,000 47,215 33.4 14,905 11.20%
2021 73,004 ‐ (2) ‐ (2) ‐ 14,876 9.58%
Sources: Population, Per Capita Personal Income, Unemployment Rate and Median Age provided by the Federal Reserve Bank of
St. Louis Economic Research. Enrollment provided by the Kidscount Datacenter.
(1)Computation of per capita personal income multip lied by population.
(2)Information not available.
194
LEA COUNTY NEW MEXICO SCHEDULE 21
PRINCIPAL EMPLOYERS
CURRENT YEAR AND SEVEN YEARS AGO
Employer Product/Service
Number of
Employees* Rank
Percentage of Total
County Employment
Number of
Employees Rank
Percentage of Total
County Employment
Hobbs Municipal Schools Education 1,500 1 5.78% 1185 1 4.34%
Nor‐Lea Hospital Healthcare 595 2 2.29%437 4 1.60%
City of Hobbs City Government 560 3 2.16%473 2 1.73%
Lovington Municipal Schools Education 430 4 1.66%0.00%
Lea County County Government 402 5 1.55%315 10 1.15%
Walmart Supercenter Retail 400 6 1.54%384 8 1.41%
Watson Construction Construction 339 7 1.31%0.00%
Albertson's Market Groceries 300 8 1.16%167 17 0.61%
Newbourne Oil Company Oil & Gas 300 9 1.16%0.00%
New Mexico Junior College Education 282 10 1.09%215 13 0.79%
Ferguson Construction Company Construction 243 11 0.94%411 6 1.51%
Urenco USA Nuclear Energy 231 12 0.89%350 9 1.28%
McDonald's Restaurant Food Services 230 13 0.89%215 14 0.79%
Ingram Professional Services Oil & Gas 230 14 0.89%0.00%
Covenant Hospital Hobbs Healthcare 220 15 0.85%420 5 1.54%
GEO Group Prison Management 198 16 0.76%273 11 1.00%
Home Depot Retail 180 17 0.69%0.00%
Zia Park Casino, Racetrack and Hotel Hospitality 170 18 0.65%260 12 0.95%
Lin‐Mar Inc Healthcare 150 19 0.58%170 16 0.62%
Halliburton Energy Services Oil & Gas ‐ 0.00%469 3 1.72%
Key Energy Services Oil & Gas ‐ 0.00%387 7 1.42%
Baker Hughes Oil & Gas ‐ 0.00%183 15 0.67%
BJ Service Company Oil & Gas ‐ 0.00%164 0.60%
Totals 6,960 26.81% 6,478.00 23.73%
Total Employment Lea County Employment 25,963 27,302
20152022
Total employment obtained from the EDC of Lea County
195
LEA COUNTY NEW MEXICO SCHEDULE 22
COUNTY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Government
Commissioners 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
Executive 3.00 4.00 3.00 4.00 5.00 3.90 3.90 3.90 4.00 4.00
Information Technology 4.00 4.00 4.00 4.00 4.00 4.00 5.00 5.00 6.00 6.00
Facilities Management 12.00 12.00 12.00 12.00 12.00 13.00 17.00 15.00 17.00 17.00
County Clerk 10.00 10.00 11.00 11.00 11.00 11.00 11.00 11.00 11.00 11.00
County Assessor 12.00 12.00 12.00 13.00 13.00 13.00 13.00 13.00 13.00 13.00
County Treasurer 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00
Probate Judge 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
County Attorney 2.00 2.00 2.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00
Human Resources 2.00 2.00 2.00 2.00 2.00 2.00 3.00 3.00 3.00 3.00
Finance 5.30 6.30 6.30 6.40 7.60 9.00 9.00 9.00 9.00 9.00
Planning 2.00 2.00 3.00 2.00 2.00 2.00 1.00 1.50 1.50 1.50
Indigent Care 1.30 1.30 1.30 1.20 0.00 0.00 0.00 0.00 0.00 0.00
Public Safety
County Sheriff 59.00 59.00 59.00 69.00 69.08 80.08 80.00 89.00 89.00 89.00
Drug Task Force 3.00 3.00 3.00 3.00 1.92 1.92 2.00 3.00 3.00 3.00
DWI/Misdemeanor Compliance 7.00 8.00 10.00 11.90 11.80 12.00 12.00 13.00 15.00 15.00
Emergency Management 1.95 3.95 3.95 4.50 4.50 4.95 4.70 4.70 4.70 4.70
Detention 86.00 86.00 86.00 86.00 87.00 87.00 87.00 89.00 89.00 89.00
Environmental Services 7.95 7.95 7.95 8.50 8.50 7.55 7.80 9.80 11.70 11.70
Public Works
Road 47.50 47.50 47.50 47.50 47.50 47.50 43.50 43.50 43.50 43.50
Airports 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.00 4.00 4.00
Water Service 0.20 0.20 0.20 0.20 0.20 0.00 0.00 0.00 0.00 0.00
Quality of Life
Event Center 5.70 5.70 5.70 1.00 1.00 5.00 5.00 5.00 5.00 5.00
Equine Facility 0.00 0.00 4.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Fairgrounds 2.30 2.30 2.30 0.00 0.00 7.00 6.00 6.00 6.00 6.00
Trust & Agency
Communications Center 26.00 27.00 29.00 29.00 29.00 29.00 29.00 29.00 29.00 29.00
Solid Waste Authority 0.30 0.30 0.30 1.30 1.40 1.60 1.60 1.60 1.60 1.60
Total 317.00 323.00 332.00 336.00 336.00 359.00 359.00 372.00 379.00 379.00
196
LEA COUNTY NEW MEXICO SCHEDULE 23
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Function/Program 2016 2017 2018 2019 2020 2021 2022
General Government
Land 8,249,045 8,249,045 7,908,833 8,143,833 8,143,833 8,143,833 8,143,833
Buildings 29,354,731 28,544,467 27,608,736 26,047,954 24,797,377 64,363,291 66,308,053
Infrastructure 30,792 120,671 165,427 184,790 268,874 591,414 1,485,349
Machinery & Equipment 975,774 943,985 985,870 939,284 1,110,884 2,605,600 2,621,202
Other Improvements 224,142 2,865,011 2,985,393 2,827,043 2,685,670 2,556,608 2,440,103
Vehicles 176,307 185,654 194,239 193,618 388,021 326,594 757,324
Water Rights 575,000 575,000 575,000 575,000 575,000 575,000 575,000
39,585,791 41,483,833 40,423,498 38,911,522 37,969,659 79,162,340 82,330,864
Land 32,676 32,676 32,676 32,676 32,676 32,676 32,676
Buildings 4,576,378 4,348,520 4,112,910 3,877,301 3,641,692 2,106,169 3,230,833
Infrastructure 1,123,176 1,199,584 1,179,387 1,192,422 1,164,762 946,915 1,375,840
Machinery & Equipment 1,375,443 1,184,932 1,248,138 1,464,608 1,791,282 2,128,507 1,607,766
Other Improvements 257,075 206,022 200,912 195,801 175,376 68,948 158,888
Vehicles 2,968,995 2,868,285 3,122,771 4,156,619 4,546,403 4,254,477 3,365,120
10,333,743 9,840,019 9,896,794 10,919,427 11,352,191 9,537,691 9,771,122
Land 1,173,652 1,173,652 1,173,652 1,173,652 1,173,652 1,173,652 1,173,652
Buildings 6,330,151 8,497,316 8,587,810 8,325,588 8,063,367 15,785,642 15,598,786
Infrastructure 73,331,573 79,717,086 83,492,669 87,268,765 88,247,607 91,159,393 89,725,668
Machinery & E quipment 2,060,328 2,252,312 2,030,199 1,862,194 2,098,575 3,216,312 3,314,790
Other Improvements 1,720,085 2,455,510 2,415,293 2,265,594 2,116,598 2,069,695 2,145,135
Vehicles 1,347,861 1,254,398 1,065,014 1,362,608 1,861,610 2,205,512 1,885,600
85,963,650 95,350,274 98,764,637 102,258,401 103,561,409 115,610,207 113,843,631
Quality of Life
Land 171,146 171,146 169,282 169,282 169,282 169,282 169,282
Buildings 13,225,288 12,850,475 12,454,502 13,535,566 13,746,519 18,006,985 16,172,518
Infrastructure 2,157,545 2,133,472 2,074,569 2,146,706 5,130,022 5,315,531 5,128,924
Machinery & Equipment 372,043 321,542 271,376 265,574 301,655 590,540 547,040
Other Improvements 282,034 240,733 198,875 135,909 128,054 122,841 117,628
Vehicles 44,936 27,955 14,923 48,554 43,617 35,140 60,581
16,252,992 15,745,323 15,183,527 16,301,591 19,519,149 24,240,319 22,195,974
Construction in Progress 8,346,286 10,980,896 31,432,169 46,345,430 57,772,396 11,715,628 18,724,631
Total Capital Assets 160,482,462 173,400,345 195,700,625 214,736,371 230,174,804 240,266,185 246,866,221
Public Safety
Public Works
Note: Detailed Information not available for years before 2016.
197
LEA COUNTY NEW MEXICO SCHEDULE 24
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Property Transfers 3,397 N/A N/A N/A 2,613 3,181 3,729 2,420 2,989 2,730
Number of documents
recorded 14,258 15,472 14,127 15,667 17,978 17,110 16,374 11,937 14,926 15,957
Number of marriage licenses
issued 697 1,083 773 621 600 591 607 415 511 479
Number of registered voters 31,459 32,040 30,723 34,156 32,954 34,723 35,066 37,531 33,912 36,458
N umbe r of probates filed 205 186 155 149 183 183 236 190 251 207
Number of property tax
billed processed 34,851 34,985 35,534 35,177 36,483 36,698 36,231 36,037 37,749 38,113
Number of 2nd half notice
reminders processed 5,008 4,885 5,019 5,279 5,670 5,667 5,372 5,662 5,550 5,623
Dollars Distributed to State
& Local Entities 43,489,670 51,727,756 54,888,306 53,154,160 68,025,677 77,402,428 97,695,197 111,882,482 110,821,186 183,592,080
Number of Accounts Payable
Checks Processed 6,083 6,132 6,408 7,276 6,226 6,099 5,872 5,867 4,613 5,540
Number of Payroll Checks
Processed 8,033 8,383 8,158 7,884 8,899 8,574 8,677 9,045 7,745 8,757
Indigent Claims Pa id ($) 6,800 7,139 6,628 4,400 5,600 5,800 7,429 8,700 9,000 13,160
Number of purchase orders
processed 11,270 11,118 11,356 18,727 10,010 7,278 6,912 7,022 6,496 7,465
Number of bids & RFP's
processed 15 13 20 20 28 45 49 43 12 15
Number of applicants
processed 273 382 450 591 426 449 1,130 706 390 398
Dollar Amount of Insurance
Premiums 768,471 831,673 876,829 846,956 925,590 928,138 1,008,953 901,028 1,006,687 2,186,664
Dollar Amount of Worker's
Compensation Premiums 271,000 285,063 284,649 287,954 310,803 356,495 391,092 448,946 258,709 220,973
Function/Program
General Government
Assessor's
County Clerk
Bureau of Elections
Probate Judge
County Treasurer
Finance
Central Purchasing
Human Resources
Risk Management
198
LEA COUNTY NEW MEXICO SCHEDULE 24 - Continued
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Number of Adults Prisoners
in Custody (Average) 318 378 379 367 367 333 270 210 157 196
Number of Juveniles
Prisoners in Custody
(Average) 14 9 7 6 5 4 5 6 10 7
Number of Beds (Adults) 400 400 400 400 400 400 400 400 400 400
Number of Beds ( Juveniles) 32 32 32 32 32 32 32 32 32 32
Per Diem Rate 47 44 43 49 55 59 76 109 115 136
Inmate Worker (trustee)
hours worked 23,712 23,712 23,712 23,712 23,712 23,712 23,712 23,712 31,330 25,216
Individuals Treated ‐ Adult
Misdemeanor Compliance 547 609 825 863 728 530 564 614 665 601
Individuals Treated ‐ DWI
Treatment Facility 207 226 337 317 252 290 368 355 293 217
Arrests ‐ Adult 173 198 221 235 321 1,099 1,229 715 1,015 875
Arrests ‐ Juvenile 8 6 1 8 12 15 27 16 8 6
Citations N/A N/A N/A 1,555 2,550 3,483 3,241 2,941 4,455 5,957
Number of Exemptions 25 13 30 37 32 25 29 35 37 26
Number of Replats ‐ ‐ 1 ‐ 3 10 5 10 5 5
Number of Subdivisions 2 5 11 10 6 7 5 6 5 8
Number of New Addressess
Issued 89 337 161 96 80 158 133 171 113 87
Number of Radio Towers
Used By Lea County 14 14 14 14 14 14 14 14 14 14
Number of floodplain
permits issued 26 99 105 52 20 48 58 171 81 114
Fire Districts 8 8 8 8 8 8 8 8 8 8
Fire Stations 4 4 4 4 4 4 4 4 4 4
Volunteer Firefighters 36 41 44 42 36 32 38 33 43 43
Number of Calls Responded
To 97 104 146 162 121 165 94 84 371 427
Public Safety
Corrections/Adult & Youth
Alternative Sentencing
Sheriff
Community Development
Emergency Management
Floodplain Management
Fire Op erations
199
LEA COUNTY NEW MEXICO SCHEDULE 24 - Continued
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Number of Commercial
Enplanements (Note 2) 17,111 17,246 18,239 16,567 14,707 16,216 23,475 27,774 9,008 11,993
Total Miles of County Roads
Maintained 1,217 1,219 1,219 1,223 1,223 1,226 1,216 1,216 1,216 1,217
Miles of Caliche Roads 541 532 522 499 499 504 505 505 505 505
Miles of Paved Roads 676 686 697 724 724 723 712 712 712 713
Miles of Chip Seal
Maintenance 21 37 19 88 60 30 119 35 33 52
Miles of New Chip Seal 19 10 10 23 ‐ ‐ ‐ ‐ ‐ 1
Number of Convenience
Centers 4 4 4 4 4 4 4 4 4 5
Tons Hauled to the Landfill 86,637 98,519 106,078 94,485 95,458 104,164 117,123 95,154 102,354 91,497
Number of Citations Issued 126 197 83 151 148 155 154 233 87 83
Number of Events Held 212 357 244 209 218 231 261 85 71 92
Number of Events Held
(Note 1) 76 72 75 68 78 75 76 ‐ 14 62
Annual Attendance at Fair &
Rodeo (Note 1) 52,225 53,491 37,058 33,200 39,500 59,200 67,000 ‐ 66,000 70,000
Environmental
Public Works
Airports
Roads
Note 2 ‐ Commercial airline flights commenced in FY 12
Solid Waste
Quality of Life
Event Center
Fairgrounds
Note 1 ‐ All Events cancelled due to COVID‐19 Outbreak
200
Compliance
Section
201
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS
To Brian S. Colón, Esq.
New Mexico State Auditor
The County Commission
Lea County
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, business‐type activities, each major fund, the aggregate remaining fund information, and the
budgetary comparisons of the general fund and major special revenue funds of Lea County, New Mexico
(the “County”) as of and for the year ended June 30, 2022, and the related notes to the financial
statements, which collectively comprise the County’s basic financial statements, and have issued our
report thereon dated November 30, 2022.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the County’s internal
control over financial reporting (internal control) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of the County’s internal control.
Accordingly, we do not express an opinion on the effectiveness of the County’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe
than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting that might be material weaknesses or significant deficiencies. Given these limitations,
during our audit we did not identify any deficiencies in internal control that we consider to be material
weaknesses. However, material weaknesses may exist that have not been identified.
202
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the County’s financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on
the financial statement amounts. However, providing an opinion on compliance with those provisions was
not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Pattillo, Brown & Hill, LLP
Albuquerque, New Mexico
November 30, 2022
203
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL
PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE
REQUIRED BY THE UNIFORM GUIDANCE
To Brian S. Colón, Esq.
New Mexico State Auditor
The County Commission
Lea County
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited Lea County, New Mexico’s (the “County”) compliance with the types of compliance
requirements described in the OMB Compliance Supplement that could have a direct and material effect
on each of the County’s major federal programs for the year ended June 30, 2022. The County’s major
federal programs are identified in the summary of auditor’s results section of the accompanying schedule
of findings and questioned costs.
In our opinion, Lea County complied, in all material respects, with the compliance requirements referred
to above that could have a direct and material effect on each of its major federal programs for the year
ended June 30, 2022.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America (GAAS); the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States (Government Auditing
Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in
the Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of Lea County and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each
major federal program. Our audit does not provide a legal determination of Lea County’s compliance with
the compliance requirements referred to above.
204
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of
laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to Lea
County’s federal programs.
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an
opinion on Lea County’s compliance based on our audit. Reasonable assurance is a high level of assurance
but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with
GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material
noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is
higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Noncompliance with the compliance requirements
referred to above is considered material, if there is a substantial likelihood that, individually or in the
aggregate, it would influence the judgment made by a reasonable user of the report on compliance about
Lea County’s compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform
Guidance, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material noncompliance, whether due to fraud or error, and design
and perform audit procedures responsive to those risks. Such procedures include examining, on
a test basis, evidence regarding Lea County’s compliance with the compliance requirements
referred to above and performing such other procedures as we considered necessary in the
circumstances.
Obtain an understanding of Lea County’s internal control over compliance relevant to the audit
in order to design audit procedures that are appropriate in the circumstances and to test and
report on internal control over compliance in accordance with the Uniform Guidance, but not for
the purpose of expressing an opinion on the effectiveness of Lea County’s internal control over
compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and any significant deficiencies and material weaknesses in
internal control over compliance that we identified during the audit.
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a deficiency,
205
or a combination of deficiencies, in internal control over compliance, such that there is a reasonable
possibility that material noncompliance with a type of compliance requirement of a federal program will
not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control
over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with
a type of compliance requirement of a federal program that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control over compliance was for the limited purpose described in the
Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all
deficiencies in internal control over compliance that might be material weaknesses or significant
deficiencies in internal control over compliance. Given these limitations, during our audit we did not
identify any deficiencies in internal control over compliance that we consider to be material weaknesses,
as defined above. However, material weaknesses or significant deficiencies in internal control over
compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing
of internal control over compliance and the results of that testing based on the requirements of the
Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Pattillo, Brown, & Hill, L.L.P.
Albuquerque, New Mexico
November 30, 2022
206
STATE OF NEW MEXICO
LEA COUNTY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended June 30, 2022
Pass‐through Assistance
Grant Listing
Federal Grantor or Pass‐Through Grantor/Program Title Number Number
Executive Office of the President
High Intensity Drug Trafficking Areas Programs
High Intensity Drug Trafficking Areas Program ‐ G21SN0017A N/A 95.001 (1) $ 1,297,071
High Intensity Drug Trafficking Areas Program ‐ G20SN0017A N/A 95.001 (1) 221,978
Total Executive Office of the President 1,519,049
Department of Transportation
Airport Improvement Programs
Lea County Cares Act Airport Grant N/A 20.106 (1) 413,279
Zip Franklin Visual Guidance System Papi N/A 20.106 (1)66,058
Zip Franklin Memorial Airport Electrical Vault N/A 20.106 (1)80,055
Jal Airport Cares Act Grant N/A 20.106 (1)2,894
Al Update Airport Master Plan and Study N/A 20.106 (1)81,518
Lea Regional Airport Extended Runway N/A 20.106 (1) 162,663
Runway Vertical Visual Guidance system N/A 20.106 (1)8,122
Zip Franklin Airport Cares Act Grant N/A 20.106 (1)7,710
Zip Franklin Update Airport Master Plan and Study N/A 20.106 (1)81,976
End Driving While Impaired DWI N/A 20.608 895
Selective Traffic Enforecment Program (STEP)N/A 20.608 12,465
Total Department of Transportation 917,635
U.S. Department of the Treasury
Buckle Up (BKLUP)/Click it or Ticket (CIOT)N/A 21.027 60,966
Total U.S. Department of the Treasury 60,966
Department of Homeland Security
Lea County Hazard Mitigation Plan N/A 21.109 5,027
Total Department of Homeland Security 5,027
Institute for Intergovernmental Research (IIR)
Southwest Border Rural Law Enforcement Assistance Program N/A 16.738 147,441
Total Institute for Intergovernmental Research (IIR)147,441
Department of Interior
Passed through State of New Mexico
Taylor Grazing Act Wildlife ‐ 14 N/A 15.237 13,119
Total Department of Interior 13,119
Total Federal Financial Assistance $ 2,663,237
(1)Denotes major federal assistance program
Federal
Expenditures
207
STATE OF NEW MEXICO
LEA COUNTY
NOTE TO SUPPLEMENTAL SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
JUNE 30, 2022
NOTES TO SUPPLEMENTAL SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant
activity of the County under programs of the federal government for the year ended June 30, 2022.
The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code
of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected
portion of the operations of the county, it is not intended and does not present the financial position or
changes in net position of the County.
Summary of Significant Accounting Policies
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following the cost principles contained in the Uniform Guidance,
wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the
normal course of business to amounts reported as expenditures in prior years. The County has
elected not to use the 10‐percent de minimis indirect cost rate allowed under the Uniform
Guidance.
Subrecipients of Grant Awards
Assistance
Listing
Number Program Name
Subrecipient
Name Amount
95.001 High Intensity Drug Trafficking Areas Program City of Alamogordo $ 5,268
95.001 High Intensity Drug Trafficking Areas Program City of Jal 587
95.001 High Intensity Drug Trafficking Areas Program City of Lovington 106,890
95.001 High Intensity Drug Trafficking Areas Program Village of Ruidoso 150
95.001 High Intensity Drug Trafficking Areas Program City of Roswell 263,115
95.001 High Intensity Drug Trafficking Areas Program Eddy County 638,940
95.001 High Intensity Drug Trafficking Areas Program Otero County 10,118
95.001 High Intensity Drug Trafficking Areas Program Chaves County 809
95.001 High Intensity Drug Trafficking Areas Program Lincoln County 203,746
Total CFDA 95.001 $ 1,229,623
208
STATE OF NEW MEXICO
LEA COUNTY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2022
SECTION I – SUMMARY OF AUDITOR’S RESULTS
Financial Statements
Type of Auditor’s report issued: Unmodified
Internal control over financial reporting:
Material Weakness reported? No
Significant deficiencies reported not
considered to be material weaknesses? No
Noncompliance material to financial statements noted? No
Federal Awards
Internal control over major programs:
Material weaknesses reported? No
Significant deficiencies reported not
considered to be material weaknesses? None
Type of auditor’s report issued on
compliance for major programs Unmodified
Any audit findings disclosed that are required to be reported
in accordance with Uniform Guidance? No
Identification of major programs:
HIDTA – #95.001
Airport Improvements – #20.106
Dollar threshold used to distinguish
Between type A and type B programs: $750,000
Auditee qualified as low‐risk auditee? No
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STATE OF NEW MEXICO
LEA COUNTY
SCHEDULE OF FINDINGS AND QUUESTIONED COSTS
Year Ended June 30, 2022
SECTION II – FINDINGS – FINANCIAL STATEMENT AUDIT
None
SECTION III – FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD
PROGRAMS AUDIT
None
SECTION IV – OTHER FINDINGS, AS REQUIRED BY NEW MEXICO STATE STATUTE,
SECTION 12‐6‐5, NMSA 1978
None
210
STATE OF NEW MEXICO
LEA COUNTY
STATUS OF PRIOR YEAR FINDINGS
Year Ended June 30, 2022
STATUS OF PRIOR YEAR FINDINGS
None
211
STATE OF NEW MEXICO
LEA COUNTY
EXIT CONFERENCE
JUNE 30, 2022
EXIT CONFERENCE
An exit conference was conducted on November 30, 2022, with the following individuals:
Lea County
Chair Dean Jackson, County Commissioner
Henry C. Low, Jr., CPA, Director of Finance
Pattillo, Brown & Hill, LLP
Chris Garner, CPA
Auditor Prepared Financial Statements
Pattillo, Brown & Hill, LLP prepared the GAAP‐basis financial statements, related footnotes and supporting
schedules from the original books and records provided to them by the management of the County. The
County’s management has reviewed and approved the financial statements and related notes and they
believe that their records adequately support the financial statements, and the County accepts responsibility
for the financial statements.
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