CITY of ALBUQUERQUE
TWENTY FIFTH COUNCIL
COUNCIL BILL NO. R-22-18 ENACTMENT NO. ________________________
SPONSORED BY: Louie E. Sanchez, Dan Lewis, Trudy E. Jones, Isaac Benton
RESOLUTION
title
Creating A Pilot Program To Test And Review A Priority-Based Budgeting Approach In The Development Of The Annual Operating Budget (Sanchez, Lewis, Jones, Benton)
body
CREATING A PILOT PROGRAM TO TEST AND REVIEW A PRIORITY-BASED BUDGETING APPROACH IN THE DEVELOPMENT OF THE ANNUAL OPERATING BUDGET.
WHEREAS, Article IV, Section 10 (b) of the Charter specifies the Albuquerque City Council shall review, amend, and approve all budgets of the City and adopt policies, plans, programs, and legislation consistent with the goals and objectives established by the Council; and
WHEREAS, Article VII, Section 6 of the Charter specifies the Albuquerque City Council shall establish a procedure for formulation of the annual operating budget by ordinance and adopted by the Council, after consultation with the Mayor, consistent with the provisions of the City Charter; and
WHEREAS, Article VII, Section 1 of the Charter specifies the Mayor shall formulate the City’s operating budget and the biennial capital improvement budget in consultation with the Council; and
WHEREAS, Chapter 2, Article 11, Section 7(B) of the City Code of Ordinances specifies a full program budget will be prepared for all city departments each year, and shall include the projected costs of each program; and
WHEREAS, the definition of a program is not clearly defined in the Code of Ordinances; and
WHEREAS, a priority based budgeting approach could be a useful tool in better identifying the true cost of providing a given city service or program; and
WHEREAS, the current budget formulation process is incremental in that it begins with prior year budgeted expenditures, adjusts for projected year-over-year cost increases, and adds any additional programs in the form of issue papers; and
WHEREAS, the City’s current incremental budget process can have the effect of limiting the Council’s ability to fully evaluate spending decisions of the past and determine whether the services they support are meeting the needs of the community and supporting the Goals and Objectives of the City; and
WHEREAS, the current approach also creates a significant cyclical administrative burden for all City departments because of the information needs necessary for a thorough review of the proposed budget in the spring of each calendar year; and
WHEREAS, the Albuquerque City Council desires to make more data-informed decisions and to be good fiscal stewards of public funds, and is therefore exploring new and innovative approaches to the formulation of the annual operating budget; and
WHEREAS, priority-based budgeting is a method that provides information to elected officials that is necessary for decision making by clearly defining the full cost of detailed programs, allowing for the ranking/prioritization of each program, and connecting programs with desired results; and
WHEREAS, a priority-based budgeting approach identifies the services that provide the highest value, continue to provide funding for them and in times of budget deficits, reduces service levels strategically and divests or potentially eliminates services that are identified as lower priorities; and
WHEREAS, a priority-based budgeting model can meaningfully engage citizens in the budgeting process and provide transparency on how funded programs make a meaningful difference in their lives by focusing on the results of a program or service the city provides; and
WHEREAS, priority-based budgeting is recognized as a best practice by the International City/County Management Association (ICMA) and the Government Finance Officers Association (GFOA); and
WHEREAS, priority-based budgeting has been implemented in over 300 municipalities across the United States, including City/County of Denver, City of Pittsburgh, City of Scottsdale, City of Tacoma, City of Boise, City/County of Los Angeles, and San Juan County, New Mexico; and
WHEREAS, the Albuquerque City Council desires to establish a pilot program to test a priority-based budgeting approach with select departments in the City; and
WHEREAS, The American Rescue Plan Act of 2021 supports program evaluation, data, and outreach through technology infrastructure and improvement expenditures to increase public access and delivery of programs and services.
BE IT RESOLVED BY THE COUNCIL, THE GOVERNING BODY OF THE CITY OF ALBUQUERQUE:
Section 1. That the Administration is directed to establish a Priority-Based Budgeting Pilot Program that will focus on Public Safety Departments, to include Albuquerque Police Department, Albuquerque Fire Rescue, Albuquerque Community Safety, Department of Animal Welfare, and the Civilian Police Oversight Agency.
Section 2. The Administration will work in collaboration with City Council staff to set up and administer the Pilot Program described in Section 1.
Section 3. The Pilot Program shall begin within 60 days after adoption of the Fiscal Year 2023 Operating Budget with plans to implement the approach with the Public Safety Departments for preparation of the Fiscal Year 2024 Operating Budget.
Section 4. City Council shall reserve One Hundred Fifty Thousand ($150,000) Dollars from the American Rescue Plan Act of 2021 for purposes of this Pilot Program.
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