C/S Appropriating Funds For Operating The Government Of The City Of Albuquerque For Fiscal Year 2027, Beginning July 1, 2026 And Ending June 30, 2027; Adjusting Fiscal Year 2026 Appropriations; And Appropriating Capital Funds (Grout)

CITY of ALBUQUERQUE TWENTY SEVENTH COUNCIL COUNCIL BILL NO. C/S R-26-17 ENACTMENT NO. ________________________ SPONSORED BY: Ren?e Grout RESOLUTION ..title C/S Appropriating Funds For Operating The Government Of The City Of Albuquerque For Fiscal Year 2027, Beginning July 1, 2026 And Ending June 30, 2027; Adjusting Fiscal Year 2026 Appropriations; And Appropriating Capital Funds (Grout) body APPROPRIATING FUNDS FOR OPERATING THE GOVERNMENT OF THE CITY OF ALBUQUERQUE FOR FISCAL YEAR 2027, BEGINNING JULY 1, 2026 AND ENDING JUNE 30, 2027; ADJUSTING FISCAL YEAR 2026 APPROPRIATIONS; AND APPROPRIATING CAPITAL FUNDS. WHEREAS, the Charter of the City of Albuquerque requires the Mayor to formulate the annual operating budget for the City of Albuquerque; and WHEREAS, the Charter of the City of Albuquerque requires the Council to approve or amend and approve the Mayor's budget; and WHEREAS, appropriations for the operation of the City government must be approved by the Council; and WHEREAS, the City Council identified unresolved discrepancies and reconciliation concerns within the Administration's proposed General Fund balance and recurring revenue assumptions, and desires to make adjustments to ensure the budget more accurately reflects available recurring resources and operational needs; and WHEREAS, the City Council desires to prioritize employee compensation and implementation of the recommendations identified in the Evergreen classification and compensation study, including efforts to move employee compensation toward the twenty-fifth percentile; and WHEREAS, the City Council recognizes that continued employee recruitment and retention challenges across multiple departments have impacted operational efficiency and service delivery, and therefore desires to prioritize implementation of the Evergreen classification and compensation study recommendations, including movement toward the twenty-fifth percentile and additional cost-of-living adjustments for employees; and WHEREAS, the City Council desires to prioritize core municipal services and constituent-facing operations, including public safety support services, transit operations, parks and open space maintenance, animal welfare field services, code enforcement, technology infrastructure, and senior services, to maintain service levels and protect the quality of life for Albuquerque residents; and WHEREAS, the City Council further desires to maintain a balanced budget in accordance with applicable law and sound fiscal practices. BE IT RESOLVED BY THE COUNCIL, THE GOVERNING BODY OF THE CITY OF ALBUQUERQUE: Section 1. That the amount of $73,515,000 is hereby reserved in the Operating Reserve Fund for the City of Albuquerque for Fiscal Year 2027. Section 2. That the amount of $3,700,000 is hereby reserved within the General Fund for Fiscal Year 2027 for the purpose of funding compensation adjustments necessary to bring all City of Albuquerque full-time equivalent (FTE) positions to at least the twenty-fifth percentile (25%), as identified in the most recent Evergreen classification and compensation study. Such adjustment is subject to applicable collective bargaining negotiations. Prior to the release or distribution of any reserved funds authorized pursuant to this section, the Administration shall provide to the City Council a detailed fiscal analysis identifying the projected salary costs, employee benefit costs, Public Employees Retirement Association (PERA) impacts, Federal Insurance Contributions Act (FICA) impacts, and estimated future-year recurring fiscal obligations associated with the proposed compensation adjustments. Upon execution of Collective Bargaining Agreement (CBA) contract agreements, and receipt of such fiscal analysis by the City Council, the amount is hereby unreserved and shall be distributed to the appropriate departments for the purpose of implementing these compensation adjustments by the Office of Management and Budget. Section 3. That the amount of $4,500,000 is hereby reserved for an additional one percent (1%) Cost of Living Adjustment (COLA) increase for all regular, full-time City positions except positions associated with International Association of Fire Fighters (IAFF) Local 244, which has negotiated increases for Fiscal Year 2027. The amount hereby reserved shall be unreserved, pending General Fund expenditures not exceeding the Fiscal Year 2026 revised appropriation level of $874,624,000, which includes a $2,000,000 one-time compensation, pending final General Fund expenditures. This amount shall be distributed by the Office of Management and Budget to the respective departments and programs for the purpose of implementing such compensation adjustments upon execution of applicable collective bargaining agreements. Section 4. That the following amounts are hereby appropriated to the following programs for operating City government during Fiscal Year 2027: GENERAL FUND - 110 Animal Welfare Department Animal Care Center 16,621,000 Animal HEART 21,000 Arts and Culture Department Biological Park 19,654,000 CABQ Media 1,233,000 CIP Bio Park 673,000 Community Events 5,024,000 Explora 1,539,000 Museum 4,369,000 Museum-Balloon 1,898,000 Public Arts and Urban Enhancement 727,000 Public Library 17,940,000 Strategic Support 2,155,000 Chief Administrative Office Department Chief Administrative Office 5,929,000 City Support Department Dues and Memberships 536,000 Early Retirement 4,000,000 GRT Administration Fee 5,479,000 Joint Committee on Intergovernmental Legislative Relations 327,000 Open and Ethical Elections 875,000 Transfer to Other Funds: Capital Acquisition Fund (305) 1,000,000 Operating Grants Fund (265) 4,000,000 Sales Tax Refunding D/S Fund (405) 14,473,000 Solid Waste Operating Fund (651) 711,000 Vehicle/Equipment Replacement Fund (730) 500,000 Civilian Police Oversight Department Civilian Police Oversight Agency 3,124,000 Community Safety Department Administrative Support 5,869,000 Field Response 11,841,000 Special Operations 1,928,000 Council Services Department Council Services 10,499,000 Transfer to Other Funds: Capital Acquisition Fund (305) 50,000 Economic Development Department Economic Development 3,289,000 Economic Development Investment 1,406,000 International Trade 95,000 Environmental Health Department Consumer Health 2,286,000 Environmental Services 749,000 Strategic Support 1,732,000 Urban Biology 678,000 Finance and Administrative Services Department Accounting 4,442,000 Financial Support Services 1,191,000 Office of Equity and Inclusion 2,099,000 Office of Management and Budget 2,033,000 Office of MRA 1,777,000 Purchasing 2,258,000 Strategic Support 881,000 Treasury 1,163,000 Fire Department Dispatch 7,651,000 Emergency Response/Field Op 104,726,000 Emergency Services 4,134,000 Fire Prevention/FMO 8,091,000 Headquarters 5,042,000 Logistics/Planning 4,148,000 Training 4,388,000 General Services Department Convention Center/ASC 2,092,000 Energy and Sustainability 678,000 Facilities 8,286,000 Security 9,753,000 Strategic Support 1,177,000 Transfer to Other Funds: Stadium Ops Fund (691)|910|Health, Housing and Homelessness Department Affordable Housing 1,433,000 Emergency Shelter 8,178,000 Gateway Center 15,137,000 Health and Human Services 4,624,000 Homeless Support Services 6,621,000 Of this amount, $100,000 shall be designated to HopeWorks for Day shelter operations and meal programs. Mental Health 4,731,000 Strategic Support 3,515,000 Substance Use 3,215,000 Transfer to Other Funds: Operating Grants Fund (265) 6,500,000 Human Resources Department B/C/J/Q Union Time 131,000 Personnel Services 4,704,000 Legal Department Legal Services 8,780,000 Mayor's Office Department Mayor's Office 1,085,000 Municipal Development Department Construction 2,211,000 Design Recovered CIP 2,307,000 Design Recovered Storm 3,200,000 Real Property 826,000 Special Events Parking 19,000 Storm Drainage 4,543,000 Strategic Support 3,539,000 Street Services-F110 13,536,000 Streets 6,776,000 Transfer to Other Funds: Trsf to Gas Tax Road Fund (282) 3,838,000 Office of the City Clerk Administrative Hearing Office 586,000 Office of the City Clerk 4,365,000 Open and Ethical 94,000 Office of Inspector General Office of Inspector General 1,137,000 Office of Internal Audit Internal Audit 1,266,000 Parks and Recreation Department Aquatic Services 6,536,000 CIP Funded Employees 3,034,000 Golf 5,794,000 Open Space Management 6,281,000 Park Management 21,522,000 Recreation 5,771,000 Strategic Support 2,325,000 Transfer to Other Funds: Capital Acquisition Fund (305) 100,000 Planning Department Code Enforcement 5,418,000 One Stop Shop 11,765,000 Strategic Support 4,280,000 Urban Design and Development 3,058,000 Transfer to Other Funds: Capital Acquisition Fund (305) 280,000 Refuse Disposal Operating Fund (651) 463,000 Police Department Administrative Support 22,834,000 Investigative Services 61,321,000 Neighborhood Policing 139,956,000 Off-Duty Police Overtime 200,000 Office of Emergency Management 806,000 Office of the Superintendent 18,267,000 Prisoner Transport 4,653,000 Professional Accountability 28,904,000 Transfer to Other Funds: Parking Facilities Operating Fund (641) 400,000 Senior Affairs Department Basic Services 664,000 Strategic Support 3,697,000 Well Being 7,967,000 Technology and Innovation Department Citizen Services 4,439,000 Data Management for APD 990,000 Information Services 12,169,000 Transit Department Transfer to Transit Operating Fund (661) 25,937,000 Youth and Family Services Department Child and Family Development 4,614,000 Community Recreation 17,496,000 Educational Initiatives 2,323,000 Strategic Support 1,780,000 LOCAL GOVERNMENT ABATEMENT FUND - 201 Finance and Administrative Services Department Recovery Housing 100,000 MARIJUANA EQUITY AND COMMUNITY REINVESTMENT FUND - 202 Finance and Administrative Services Department Guaranteed Basic Income Cohort 1 1,000,000 Marijuana Equity and Community Reinvestment 2,914,000 Transfer to Other Funds: Operating Grants Fund (265) 586,000 FIRE FUND - 210 Fire Department State Fire Fund 3,965,000 Transfer to Other Funds: Fire Debt Service Fund (410) 279,000 LODGERS' TAX FUND - 220 Finance and Administrative Services Department Lodgers' Promotion 8,500,000 Transfer to Other Funds: General Fund (110) 1,273,000 This increased funding shall be used for tourism projects, including the City's Indoor Track ($320,000), and programming funds for Bands of Enchantment ($440,000). Sales Tax Refunding D/S Fund (405) 8,504,000 Lodger's Tax appropriations are based on estimated revenue at the beginning of each fiscal year. Actual revenue may exceed estimated revenue causing promotional and debt appropriations to be deficient prior to the end of the fiscal year. If actual revenue exceeds estimated revenue, the variance is hereby appropriated to satisfy contractual promotional payments and debt obligations by the standard 50/50 revenue allocation. HOSPITALITY TAX FUND - 221 Finance and Administrative Services Department Lodgers' Promotion 2,009,000 Transfer to Other Funds: Capital Acquisition Fund (305) 874,000 Sales Tax Refunding D/S Fund (405) 1,135,000 Hospitality Tax appropriations are based on estimated revenue at the beginning of each fiscal year. Actual revenue may exceed estimated revenue causing promotional and debt appropriations to be deficient prior to the end of the fiscal year. If actual revenue exceeds estimated revenue, the variance is hereby appropriated to satisfy contractual promotional payments and debt obligations by the standard 50/50 revenue allocation. CULTURAL AND RECREATION PROJECTS FUND - 225 Arts & Culture Department Balloon Center Projects 8,000 Community Events Projects 63,000 Museum Projects 259,000 ALBUQUERQUE BIOLOGICAL PARK PROJECTS FUND - 235 Arts & Culture Department BioPark Projects 2,500,000 AIR QUALITY FUND - 242 Environmental Health Department Operating Permits 3,369,000 Vehicle Pollution Management 1,433,000 Transfer to Other Funds: General Fund (110) 636,000 SENIOR SERVICES PROVIDER FUND - 250 Senior Affairs Department CDBG Services 100,000 Senior Services Provider 8,809,000 Transfer to Other Funds: General Fund (110) 1,042,000 OPERATING GRANTS FUND - 265 Health, Housing and Homelessness Department Prepaid Rapid Rehousing 6,500,000 Housing Voucher Support Services 586,000 The determination of the total housing voucher funding is based on the department's available rolling balances and historical expenditure patterns. In the event additional housing voucher funding is determined necessary during Fiscal Year 2027, available mid-year funding shall be prioritized for consideration of supplemental appropriation for housing voucher assistance. LAW ENFORCEMENT PROTECTION PROJECTS FUND - 280 Police Department Law Enforcement Protection Act 1,427,000 Law Enforcement Protection Act - Aviation 20,000 Transfer to Other Funds: General Fund (110) 100,000 GAS TAX ROAD FUND - 282 Municipal Development Department Street Services-F282 7,244,000 Transfer to Other Funds: General Fund (110) 248,000 AUTOMATED SPEED ENFORCEMENT FUND - 289 Municipal Development Department Speed Enforcement Program 3,032,000 Transfer to Other Funds: General Fund (110) 2,221,000 That the following appropriations are hereby made to Fund (289) Vision Zero Projects per attachment A. SALES TAX REFUNDING DEBT SERVICE FUND - 405 City Support Department Sales Tax Debt Service 27,863,000 FIRE DEBT SERVICE FUND - 410 Fire Department Fire Debt Service 279,000 GENERAL OBLIGATION BOND DEBT SERVICE FUND - 415 City Support Functions General Obligation Bond Debt Service 97,775,000 AVIATION OPERATING FUND - 611 Aviation Department Management & Professional Support 14,835,000 Operations, Maintenance and Security 37,917,000 Public Safety 8,131,000 Transfers to Other Funds: Airport Capital and Deferred Maintenance (613) 17,000,000 General Fund (110) 7,383,000 PARKING FACILITIES OPERATING FUND - 641 General Services Department Parking Services 5,146,000 Transfers to Other Funds: General Fund (110) 727,000 REFUSE DISPOSAL OPERATING FUND - 651 Solid Waste Management Department Administrative Services 9,559,000 Clean City 19,561,000 Collections 26,852,000 Disposal 12,598,000 Maintenance - Support Services 7,152,000 Transfers to Other Funds: General Fund (110) 9,666,000 Refuse Disposal Capital Fund (653) 5,935,000 A contingent appropriation is made based upon the cost of fuel exceeding $2.30 per gallon during FY/27 in the Refuse Disposal Operating Fund (651). Fuel appropriations for Administrative Services, Clean City, Collections, Disposal, and Maintenance - Support Services programs will be increased up to the additional fuel surcharge revenue received at fiscal year-end. REFUSE DISPOSAL DEBT SERVICE FUND - 655 Solid Waste Management Department Debt Service 2,764,000 TRANSIT OPERATING FUND - 661 Transit Department ABQ Rapid Transit 5,807,000 ABQ Ride 33,111,000 Facility Maintenance 3,189,000 Paratransit Services 7,748,000 Special Events 96,000 Strategic Support 5,440,000 Transfer to Other Funds: General Fund (110) 7,254,000 Refuse Disposal Operating Fund (651) 150,000 TR Grants Fund (663) 463,000 SPORTS STADIUM OPERATING FUND - 691 General Services Department Stadium Operations 1,225,000 Transfer to Other Funds: General Fund (110) 30,000 SPORTS STADIUM DEBT SERVICE FUND - 695 General Services Department Stadium Debt Service 976,000 RISK MANAGEMENT FUND - 705 Finance and Administrative Services Department Risk - Fund Administration 1,352,000 Risk - Safety Office 2,775,000 Risk - Tort and Other 3,981,000 Risk - Workers' Comp 3,291,000 WC/Tort and Other Claims 29,291,000 Transfers to Other Funds: General Fund (110) 1,307,000 Human Resources Department Employee Equity 1,085,000 Unemployment Compensation 1,540,000 GROUP SELF-INSURANCE FUND - 710 Human Resources Department Group Self Insurance 110,735,000 FLEET MANAGEMENT FUND - 725 General Services Department Fleet Management 14,368,000 Transfer to Other Funds: General Fund (110) 493,000 VEHICLE/EQUIPMENT REPLACEMENT FUND - 730 Technology and Innovation Department Computers 500,000 EMPLOYEE INSURANCE FUND - 735 Human Resources Department Insurance Administration 4,193,000 Transfer to Other Funds: General Fund (110) 299,000 COMMUNICATIONS FUND - 745 Technology and Innovation Department City Communications 12,653,000 Transfer to Other Funds: Transfer to General Fund (110) 338,000 Section 5. That the following appropriations are hereby adjusted to the following programs from fund balance and/or revenue for operating City government in Fiscal Year 2026: FLEET MANAGEMENT FUND - 725 General Services Department Transfers to Other Funds: Capital Acquisition Fund (305) 2,300,000 Section 6. That the following appropriations are hereby made to the Capital Program to the specific funds and projects as indicated below for Fiscal Year 2027: Department/Fund Source Amount City Support/Fund (305) LEDA Transfer from Fund (110) 1,000,000 Finance and Administrative/Fund (305) Convention Center Improvements Transfer from Fund (221) 874,000 Parks & Recreation/Fund (305) Park Development/Parks Transfer from Fund (110) 100,000 Urban Forestry Activity 7289060 (150,000) Urban Tree Canopy Grant Program Activity 7221340 200,000 Solid Waste/Fund (653) Refuse Equipment Transfer from Fund (651) 4,800,000 Automatic Collect Sys Transfer from Fund (651) 475,000 Disposal Facilities Transfer from Fund (651) 1,104,000 Refuse Facility Transfer from Fund (651) 500,000 Recycle Carts Transfer from Fund (651) 505,000 Computer Equipment Transfer from Fund (651) 505,000 Alternative Landfills Transfer from Fund (651) 199,000 Landfill Environmental Transfer from Fund (651) 1,020,000 Section 7. That the following appropriations are hereby made to the Capital Program to the specific funds and projects as indicated below for Fiscal Year 2026: Department/Fund Source Amount Municipal Development/Fund (305) Roof Repair City Facilities Transfer from Fund (725) 2,300,000 Section 8. TEMPORARY FY27 CIP INDIRECT OVERHEAD AUTHORIZATION. The City Council finds that Ordinance O-26-03 established a baseline Capital Implementation Program ("CIP") Indirect Overhead ("IDOH") rate of 2.75% and further established a process for review and approval of alternative IDOH rates by the City Council. The Council further finds that the Administration submitted Executive Communication EC-26-144 requesting approval of a 5.0% FY27 IDOH rate associated with administration and support of capital improvement activities. For Fiscal Year 2027 only, the City is authorized to apply an additional IDOH recovery amount associated with the administration and implementation of the 2026 Series General Obligation Bond program in excess of the baseline 2.75% rate established in ? 2-11-21 ROA 1994, provided that: A. The total IDOH recovery rate applied to the 2026 Series General Obligation Bond program shall not exceed 5.0%; B. Any additional IDOH recovery above the 2.75% baseline shall be limited solely to allowable indirect administrative, fiscal, procurement, legal, project management, and capital program support costs consistent with ? 2-11-21 ROA 1994, applicable law, bond covenants, and adopted financial policies; C. No IDOH recovery authorized pursuant to this section shall be applied to ineligible operating, maintenance, executive administrative, or unrelated departmental expenses prohibited under ? 2-11-21 ROA 1994; D. The Department of Finance and Administrative Services ("DFAS") shall calculate and implement the allowable FY27 IDOH recovery associated with the 2026 Series General Obligation Bonds and process any necessary budget adjustments consistent with this section; and E. This authorization shall expire at the conclusion of Fiscal Year 2027 (June 30, 2027) unless otherwise approved by the City Council. Section 9. That the City of Albuquerque hereby adopts the budget hereinabove described and respectfully requests approval from the State of New Mexico, Local Government Division of the Department of Finance and Administration. X:\CL\SHARE\CL-Staff\_Legislative Staff\Legislation\27 Council\R-17CSfinal.docx 14