On April 1, the Mayor Tim Keller Administration released the proposed city operating  budget for fiscal  2025 and submitted it to the Albuquerque City Council for final review and approval. The fiscal year begins July 1, 2024 and ends June 30, 2025.The proposed budget is a whopping $1.4 billion budget.  The General Fund Budget, which is funding for the individual city departments, is $845.9 million, an increase of $19.3 million or a 2.3% increase above the 2024 budget. Non-recurring spending will drop from $49.9 million last year to $28.4 million in the proposed budget.  The budget leaves 12% in reserves and a $5 million fund balance.

As the city adapts to inflationary pressures, normalizes revenues and prepares for a “tight economic year,” city officials say the plan is to “do more with less” in its $1.4 billion budget proposal. According to proposed budget, the city will use or obligate its COVID-19-era American Rescue Plan Act dollars by the end of this calendar year.

City Hall Employment as a whole has remained largely stagnant. Mayor Keller’s Fiscal Year  2024 proposal budgeted was for 7,014 employees. The coming fiscal year’s budget is for 7,015.

REVENUES

Total operating resources for all funds is projected at $1.39 billion in Fiscal Year 2025 (FY/25). This is $23.7 million higher than the FY/24 original approved budget of $1.37 billion. The increase is the result of estimated additional tax and enterprise revenue.

In addition, the City budget includes increases to revenue through fee adjustments in several departments. The following revenue categories continued to demonstrate economic growth from FY/24 original budget as the City normalizes economic impacts of COVID-19: $18.3 million in Gross Receipts Tax (GRT), $13.8 million in property tax, $8.2 million in enterprise revenue, and $15.5 million in service charges/fines/permits.

Gross Receipt Tax  (GRT) enterprise revenues, and property taxes together make up 66.1% of the City’s total revenues. GRT is the City’s major source of revenue and is estimated at $569.5 million or 40.8% of total resources for FY/25. Property Tax comprises 13.8% of total revenue.

The various enterprises operated by the City are estimated to generate 11.5% of total revenue in FY/25. Interfund transfers and the use of available fund balances make up the next category of revenue at 17.4%, while the other categories that include payments from other governmental entities, permits, fees, and other charges, comprise 16.4% of overall remaining City revenue.

CITY DEPARTMENTS

There are a total of 27 separate city hall departments with each having their own budgets. Those 27 departments are:

1. Animal Welfare
2. Arts & Cultural Affairs
3. Aviation
4. Chief Administrative Office
5. City Support
6. Civilian Police Oversight Agency
7. Community Safety
8. Council Services
9. Economic Development
10. Environmental Health
11. Finance and Administrative Services
12. Fire And Rescue General Services
13. Health, Housing, and Homelessness
14. Human Resouces
15. Legal
16. Mayor’s Office
17. Municipal Development
18. Office of the City Clerk
19. Office of Inspector General
20. Office of Internal Audit
21. Planning
22. Police
23. Senior Affairs
24. Solid Waste
25. Technology & Innovation
26. Transit
27. Youth Family Services

The link to review the entire proposed 2025 fiscal year budget and the individual 25 departments proposed budget is here:

https://www.cabq.gov/dfa/documents/fy25-proposed-budget-web-version.pdf

BUDGET HIGHLIGHTS

Major highlights of the proposed budget include:

$14.5 million for various pay raises subject to city union negotiations and $1.9 million increase for employee medical insurance costs.

$30.1 million will be allocated to support Transit Department Operations.

The proposed budget increases funding for public safety, including funding for  1,000 police officers and an increase in police service aides. The budget also gives Albuquerque Community Safety (ACS) money to hire more field responders.

The proposed budget allocates $8 million in non-recurring funding towards housing support and voucher programs and $100,000 towards emergency housing vouchers for domestic violence victims.

The budget allocates $1.5 million towards the medical respite facility at the Gateway Center as well as $1.5 million towards the Westside Emergency Housing Center.

The proposed budget allocates funding towards job training, economic development, and a range of other programs.

BUDGET HIGHLIGHTS OF MAJOR DEPARMENTS

The budget highlights of 11 of the largest budgets out of the  27 city hall  budgets are as follows:

PUBLIC SAFETY

As has been the case for the last 6 years, public safety continues to be a major priority.

The Albuquerque Police Department and the Fire and Rescue Department  are two of the largest departments of the 25 departments for City operating appropriations, primarily due to their large workforces. The two departments together comprise 29.2% of the total fund appropriations of $1.4 billion and 46.3% of the General Fund appropriations of $845.9 million in FY/25. Other departments such as City Support, Finance and Administrative Services, and Human Resources have large appropriations because of the number and type of funds within their departments.

ALBUQUERQUE POLICE DEPARTMENT

The Albuquerque Police Department (APD) continues to be the largest funded department budget and it is about a fifth of the total. The proposed Fiscal Year 2025 General Fund budget for the Albuquerque Police Department is $271.5 million, which represents an increase of 5.2% or $13.4 million above the Fiscal Year 2024 budget.  1,840 full time positions will be funded which includes funding for 1,010 sworn police positions.

The budget includes funding for 1,010 sworn police officers which is identical to last year. However, the city has yet to hit its goal of 1,00o sworn police.  APD had 856 sworn officers last year and this year  there are 880 sworn police officers in the department and 50 people are currently going through the police academy.

The proposed budget includes the following:

• Funding for positions across the Albuquerque Police Department,  – including 1,110 officers, with an increase in Police Service Aides and civilian support staff
• $22 million again for the use of crime-fighting technology through the Real-Time Crime Center and the APD Crime Lab
• $800,000 is allocated for support for the Office of the Superintendent of Police Reform and the Independent Monitoring Team  for  federal oversight and consent decree related expenses so that APD can reach reform goals.
• Funding for the Automated Speed Enforcement program, including hearing officers.

ALBUQUERQUE FIRE AND RESCUE DEPARTMENT

The proposed Fiscal Year 2025 General Fund budget for the Albuquerque Fire and Rescue Department is $119.9 million and reflects an increase of 4.3% or $4.9 million above the Fiscal Year 2024 original budget. 821 full time positions will be funded. There is funding to support wage increases for Albuquerque Fire Rescue so the department can continue emergency response and run important community programs.

ALBUQUERQUE COMMUNITY SAFETY DEPARTMENT

The FY/25 proposed budget continues the Albuquerque Community Safety Department’s service of responding to calls for service 24/7 and performing outreach for inebriation, homelessness, addiction, and other issues that do not require police or  emergency medical team response.

The proposed Fiscal Year 2025  General Fund FY/25  budget for the 3 year old Community Safety Department is $19.3 million, a $924 thousand increase of 5.4% increase from  the Fiscal Year 2024 original budget. The budget includes funding for 131 Full time positions. There is funding for the Albuquerque Community Safety to continue to hire more field responders. 

HEALTH, HOUSING AND HOMELESSNESS DEPARTMENT

Homelessness and housing continue to be a major priority of the Keller Administration.  The Health, Housing and Homelessness Department (HHH) is a new department in Fiscal Year 2025. Effective July 1, 2024, Family and Community Services Department split to create two departments:  Health, Housing and Homelessness and Youth and Family Services.

The Health, Housing and Homelessness Department provides a range of services designed to support people in need, improve neighborhoods, and enhance the quality of life for all members of the community in all stages of life. The services offered by the department directly or by contract with community providers include:

• Behavioral health services, which encompass mental health and substance abuse treatment and prevention;
• Homeless services;
• Domestic violence support;
• Health care;
• Gang/violence intervention and prevention;
• Public health services;
• Rental assistance and affordable housing developments.

HHH also operates four Health and Social Service Centers. Services are incorporated within programs to allow for performance measures and to align specifically to city goals and desired community conditions.

The proposed FY/25 General Fund budget for the HHH Departmernt is $52.2 million, which includes $48 million for strategic support, health and human services, affordable housing, mental health services, emergency shelter, homeless support services, Gibson Health HUB operating and substance use services from Family and Community Services Department, and $4.2 million for a move of Gibson Health HUB maintenance division form General Service Department.

There are 95 full-time positions transferred from Family and Community Services, and 5 full-time positions transferred from General Services. The FY/25 budget includes:

• $13.3 million of FY/24 one-time funding transferred from Family and Community Services, including $265 thousand for strategic support,
• $110 thousand for health and human services,
• $8.5 million for affordable housing,
• $1.5 million for mental health services,
• $1.2 million for emergency shelter,
• $200 thousand for substance use services,
• $1 million for homeless support services and $500 thousand for the Gateway Phase 1 and Engagement Center at Gibson Health Hub.

The FY/25 proposed budget increases recurring funding of $250 thousand for Family Housing Navigation Center/Shelter (Wellness-2), and recurring funding of $250 thousand for Gibson Health HUB maintenance. The proposed budget adjusts program appropriations of $776 thousand in FY/25 based on projected savings.

The Gateway Homeless shelter on Gibson, the city’s one-stop shop for shelter, housing and employment services, will receive $10.7 million in total funding fiscal year 2025.

The Westside Emergency Housing Center, which has been close to capacity all year, will receive $1.5 million.

The proposed budget includes $8 million in one-time funding for supportive housing and voucher programs, plus $100,000 for emergency housing vouchers for victims of domestic violence.

Other major budget highlights for the homelessness, housing and behavioral health include the following:

• $900,000 nonrecurring to fully fund the Assisted Outpatient Treatment program.
• $730,000 in recurring funding for operation of the Medical Sobering Center at the Gateway Shelter.
• $100,000 nonrecurring for emergency housing vouchers for victims of domestic violence.
• “Full funding” for service contracts for mental health, substance abuse, early intervention and prevention programs, domestic violence shelters and services, sexual assault services, health and social service providers, and services to abused, neglected, and abandoned youth.
• $1.5 million in recurring funding for the Medical Respite facility at the  Gateway Center.
• $100,000 nonrecurring for the development of a technology system that enables the city and providers to coordinate on the provision of social services to people experiencing homelessness and behavioral health challenges.
• $500,000 nonrecurring to fund Albuquerque Street Connect. According to the mayor’s office, Street Connect is a “proven program” that focuses on establishing ongoing relationships with people experiencing homelessness to help them into supportive housing.

DEPARTMENT OF MUNICIPAL DEVELOPMENT

The Department of Municipal Development (DMD) operates and maintains City streets, storm drains, traffic signals, street lighting, parking operations and the development and design of capital public buildings. Program initiatives include:

• Capital improvement projects;
• Design recovered for transportation and storm drain, street CIP/transportation infrastructure tax;
• Storm drainage;
• General Fund Street services;
• Special events parking;
• Street services;
• Plaza del Sol building;
• Parking services;
• Gas tax fund administration.

The FY/25 proposed General Fund budget for the Department of Municipal Development is $36.5 million, a decrease of 5.2% or $2 million below the FY/24 original budget.  There are 229 General Fund full-time positions within the Department of Municipal Development.

PARKS AND RECREATION DEPARTMENT

The Parks and Recreation Department serves the recreational needs of Albuquerque and the surrounding metropolitan area. The department is organized into the following divisions: park management, recreation, aquatics, open space, golf, design & development, construction, and administration.

The FY/25 proposed General Fund budget is $49.8 million, an increase of 3.6%, or $1.7 million from the FY/24 original budget. The department’s  Full Time Position  position count for the FY/25 proposed budget is 345.

PLANNING DEPARTMENT

The Planning Department function is to provide  leadership to facilitate quality growth and development in the  City. The department enforces zoning, building, and land use codes and regulations so that buildings and neighborhoods are safe and protected. It also creates development plans and strategies to ensure that growth conforms to adopted plans, policies and regulations.

Albuquerque Geographic Information Systems (AGIS) moves back to Planning from Technology and Innovation in FY/23 and provides up to date and innovative online mapping capabilities and information concerning property within the City of Albuquerque.

The MISSION of the Planning Department is to play a key role in developing the tools to implement and manage the future growth of Albuquerque, and enforce regulations to promote the health, safety, and welfare of the public.

The FY/25 proposed General Fund budget for the Planning Department is $22.2 million, a $1.5 million or 7.1% increase over the FY/24 original budget.  The FY/25 proposed budget includes funding of $448,000  for code enforcement enhancement of regulatory efforts which will result in 5 additional FTE positions.

The proposed budget adjusts program appropriations by $1.6 million in FY/25 based on projected savings. The FY/25 budget carried forward one-time funding of $300,000  property abatement. With the  mid-year and new positions created, the proposed staffing level will increase by 7 FTEs brining the FY/25 total headcount to 200. The FY/25 revenues are estimated at $5.9 million from proposed fee increases.

DEPARTMENT OF SENIOR AFFAIRS

The Department of Senior Affairs offers a broad range of programs and services responsive to the needs of senior citizens in Albuquerque/Bernalillo County. The department provides services through three program strategies: 1. well-being, 2. access to basic services, and 3.  volunteerism.

The well-being program strategy provides activities and services for seniors to prevent social isolation and includes socialization, nutrition, health and education.

Access to basic services supports independent living and provides intervention services that support primarily frail, low-income elders. Services include information, home delivered meals, transportation, in home services and senior center support services.

Volunteerism promotes community involvement, awareness and opportunities to get involved. The department maintains 6 senior centers, two multigenerational centers, two stand-alone fitness centers and 23 meal sites where seniors may gather for organized activities, socializing and services.

The FY/25 proposed budget is $11 million, which reflects an increase of 1.7% or $187 thousand above the FY/24 original budget. There are 62 full-time positions in the department.

YOUTH AND FAMILY SERVICES DEPARTMENT

The Youth and Family Services (YFS) was part of Family and Community Services Department prior to FY/25. Effective July 1, 2024, Family and Community Services Department split to create two departments, Health, Housing and Homelessness and Youth and Family Services.

The services offered by the YFS department directly or by contract with community providers include:

• Behavioral health services, which encompass mental health and substance abuse treatment and prevention;
• Homeless services;
• Domestic violence support;
• Health care;
• Early childhood education;
• Out-of-school time;
• Youth services;
• Inclusive recreation;
• Gang/violence intervention and prevention;
• Public health services;
• Rental assistance; and affordable housing developments.

The YFS department also operates multiservice centers and community recreation centers. Services are incorporated within programs to allow for performance measures and to align specifically to city goals and desired community conditions.

The proposed FY/25 General Fund budget for YFS  is $27 million. The FY/25 proposed budget for the department’s grants, which is appropriated in separate legislation, are estimated at $24.6 million in the Operating Grants Fund. The department’s total full-time position count is 258 for FY/25. The full-time position count in General Fund is 189, and the Operating Grants Fund is 69.

ARTS AND CULTURE

The Department of Arts and Culture is comprised of seven divisions. The Albuquerque Biological Park (BioPark) operates the Zoo, Aquarium, Botanic Gardens, Heritage Farm, Bugarium, and Tingley Beach. The Albuquerque Museum protects and displays the artwork and historical items of the middle Rio Grande valley and brings world renowned traveling exhibits to the City. The FY/25 proposed General Fund budget for the Department of Arts & Culture is $51.4 million, a $756 thousand or 1.5% increase over the FY/24 original budget.

ANIMAL WELFARE

The Animal Welfare Department is dedicated  to improving  the health and well-being of Albuquerque pets through a variety of programs and initiatives. These initiatives include animal shelters,  adoption centers, veterinary clinics,  “We Care” Community Pet Services Unit (providing vaccinations, microchipping and free to low cost spay/neuter for those that qualify),  a free dog training class with every adoption, Animal Protection Services (public-safety), foster program, a community-cat program, a public information initiative, dog house program,  dog tag program,  pet food bank,  a volunteer program.

The Fiscal Year 2025 proposed General Fund budget for Animal Welfare is $16.3 million, a $1 million or 6.9% increase over the FY/24 original budget.  The Animal Welfare Department has a total count of 158 full time employees FY/25 and this number is reported as “flat” or identical from last year.

OTHER BUDGET HIGHLIGHTS

Other budget highlights worth noting include:

• $1.25 million investment in the Job Training Albuquerque program to continue to fill workforce training gaps and help local workers gain valuable skills.
• “Full funding” for the Small Business Office, which helps support entrepreneurs and gives them access to valuable resources.
• Enhanced public safety technology and related staffing for the public transit system.
• $1 million for the Local Economic Development Act (LEDA) fund, which helps the city attract and retain key businesses.
• “Full funding” for the Head Start program and the highly successful Youth Connect programs so the city can continue to create productive, safe opportunities for thousands of youths.
• Funding for nuisance abatement efforts for Code Enforcement and the ADAPT program.  It was in July, 2019 that Mayor Tim Keller announced the creation of the “Addressing Dilapidated and Abandoned Property Team” (ADAPT). ADAPT is a program in the Fire Marshal’s Office that focuses on abandoned and dilapidated properties that have a pattern of serious criminal activity or pose an immediate threat to public health, safety and welfare. Keller’s ADAPT program replaces the Safe City Strick Force and the ADAPT program handles only a fraction of the number of substandard  properties the Safe City Strike Force handled which was upwards of 1,000 properties a year.
• Funding for the Duke City Ambassador program, formerly called Block by Block, “to provide outreach, hospitality, cleaning, and a positive presence in Nob Hill and Downtown areas.”

FEE INCREASES PROPOSED

There are a number of fee increases being proposed that are worth noting.  There hasn’t been an increase in ticket prices since 2017. The budget proposes fee increases to “better reflect the cost of city services”. In total, the rate changes will  bring in $2.5 million more to the city. The proposed budget predicts a 3.6% increase in total city revenues.

The fee increases include a $5 ticket increases for BioPark visitors from outside New Mexico, $1 increases for New Mexican children and $2 increases for the state’s adults.

Golf fees would will increase by $2 per round, and entry to public pools would increase by 50 cents but with the exception of swimming lessons.  The buget states “The City wants to continue keeping swim lessons as affordable as possible to promote this vital life skill.”

PRESS RELEASE ANNOUNCING BUDGET

Mayor Tim Keller had this to say in a press release announcing the proposed budget:

“We are focused on continuing to invest in public safety and fully supporting our frontline workers and the programs and services they provide to help address our city’s challenges ….. We’re implementing creative solutions to address homelessness and housing insecurity, and strengthening our neighborhoods to make our city better for all of our families.”

Donna Sandoval, the director of the Department of Finance and Administrative Services had this to say  in a press release:

“This budget continues to make important investments where they are needed, but takes a conservative approach, adjusting for past inflation and future revenue projections.”

LINKS TO QUOTED NEWS SOURCES

https://www.kob.com/new-mexico/albuquerque-mayor-submits-1-4b-city-budget-for-2025-fiscal-year/

https://www.krqe.com/news/politics-government/albuquerque-mayor-proposes-1-4-billion-budget-for-fiscal-year-2025/

https://www.abqjournal.com/news/keller-proposes-1-4-billion-city-budget-for-fiscal-2025/article_49cd464a-f13f-11ee-80eb-d308ba1f9c86.html

COMMENTARY AND ANALYISIS

It appears the belt-tightening because of COVID is over.  The proposed 2025 city fiscal year budget can be described simply as “frugal”.

The Albuquerque City Council will now schedule “budget hearings” on each of the 25 city departments and each city department budget will be reviewed and scrutinized. The Council will be able to amend and make changes to the budget as they see fit. The general public will also be allowed to attend all the budget meeting and give their input.

The city charter mandates a “balanced budget” and the council must enact it on or before May 31 with the fiscal year to begin on July 1, 2024 and ending June 30, 2025.