CITY of ALBUQUERQUE
TWENTY SIXTH COUNCIL
COUNCIL BILL NO. O-24-67 ENACTMENT NO. ________________________
SPONSORED BY: Klarissa J. Peña
ORDINANCE
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Amending Article 11 Of The City Of Albuquerque Code Of Ordinances To Improve The City's Budget Proposal Processes And Strengthen Oversight And Accountability Measures (Peña)
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WHEREAS, the City of Albuquerque seeks to enhance transparency, accountability, and efficiency in its budgeting process; and
WHEREAS, the City Charter assigns the responsibility of overseeing budgetary and financial operations to both the Mayor and the City Council, with the intent of ensuring consistency with the City's five-year goals and objectives; and
WHEREAS, Article 11 of the City’s Code of Ordinances outlines the processes and responsibilities for preparing and reviewing the City’s operating budget, and regular updates are necessary to reflect best practices in public finance and governance; and
WHEREAS, the City of Albuquerque seeks to streamline and clarify the language of its budget ordinance, aligning it more closely with current practices and operational needs; and
WHEREAS, updating the ordinance to reflect contemporary budgeting standards and procedures will enhance efficiency and ensure the ordinance remains relevant and effective for the City’s ongoing fiscal management.
BE IT ORDAINED BY THE COUNCIL, THE GOVERNING BODY OF THE CITY OF ALBUQUERQUE:
SECTION 1. Article 11 of the City Code of Ordinances is amended as follows with all sections and subsections renumbered accordingly:
§ 2-11-1 SHORT TITLE.
This article may be referred to as the City Operating Budget Ordinance.
§ 2-11-2 DEFINITIONS.
For the purpose of this article, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
[AMEND. A change in appropriation, including complete revision or substitution.
COST OF LIVING ADJUSTMENT (COLA). A salary increase intended to offset inflation. The COLA amount may be based on analysis provided by the City Economist, in conjunction with recommendations from the New Mexico Taxation and Revenue Department and the University of New Mexico Bureau of Business and Economic Research (BBER), or other relevant economic partners.
DEPARTMENT. An administrative unit tasked with the management, implementation, and oversight of specific municipal functions, services, and programs. Each department is responsible for planning, executing, and evaluating activities that contribute to the overall goals and strategic objectives of the city’s budget.
ENCUMBRANCE. A commitment to spend money for a particular purpose within a specified time frame, ie Fiscal Year, through a contract or purchase order for procurement of goods or services.
FISCAL YEAR. The 12-month budget and accounting period that begins on July 1 and ends on June 30 the following year.]
[COMMUNITY PLANNING AREAS. To the extent practicable, goals, strategies, and objective should vary depending on conditions within the different Community Planning Areas.]
FIVE-YEAR GOALS. A concise statement that summarizes a set of related results or outcomes as defined by desired community [or customer conditions]. [A goal can be a description of what Albuquerque would be like if the goal were achieved. It is achievable and lends itself to measurement.] A goal represents a long-term purpose and direction that addresses [the big picture. A goal is] broad, [but not vague. Goal measurement is based on tracking the changes in specific] desired [conditions] [outcomes that can be measured].
[ONE-YEAR OBJECTIVES. Objectives are specific steps taken by the City for achieving goals. For the most part, objectives should be tangible products rather than the activities that produce the products. Objectives are the results of explicit strategies to achieve the goals. An objective describes in specific and measurable terms the results a program is expected to achieve toward a certain goal. Each objective should be attainable within a specified period of time, preferably within a fiscal year or two consecutive fiscal years.]
[LINE-ITEM AUTHORITY. The budget appropriation level at which Council appropriation authority is applied, including program title and funding amount.
MID-YEAR CLEANUP. A budget amendment that includes line-item adjustments necessary to record recommended financial audit adjustments, appropriation of additional revenues received, re-appropriation of unused funds, reducing appropriation of funds, or for other needed purposes within a fiscal year.
ONE-YEAR OBJECTIVES. Specific steps and strategies for achieving goals, measured based on the results expected.]
PERFORMANCE MEASUREMENT. [Performance measurement is a] [A systematic approach to quantify and analyze activities to determine the amount of service delivered and/or work performed, and [as well as] how [effective,] efficient, [and] responsive [and impactful the] services are [and what impact they have on [to] the community [and customer. Goal Progress Indicators quantify the progress made towards achieving goals].
[PROGRAM: A coordinated group of related activities, services, or initiatives designed to achieve specific objectives under the administration of a City department or division. Each program is aligned with the strategic goals of the City, delineated by funding allocations, and evaluated through performance metrics. Programs are established to effectively manage resources, monitor expenditures, and measure outcomes in delivering public services and addressing community needs
RAISE. Any salary increase above the identified COLA amount.
SALARY SAVINGS. The budgeted dollar amount determined from a department’s personnel budget category that represents the annual average vacancy rate. That dollar amount is determined by reviewing historical trends of filled versus vacant positions.]
[VISION. A short description of the future which is sought for the community.]
[§ 2-11-3 OBJECTIVES AND FIVE-YEAR GOALS
(A) Purpose of Objectives. Objectives are specific, measurable strategies that contribute directly to the achievement of the five-year goals. All departmental objectives must be aligned with the long-term strategic goals outlined in the five-year plan.
(B) Each objective must include performance indicators to measure progress and effectiveness.
(C) Departments must review and report, in the form of an Executive Communication (EC), on the progress of these objectives annually, ensuring alignment with the five-year goals. In addition to the EC, the Council may require a database entry to further enhance transparency and tracking of departmental progress. The use of a database entry system will be at the discretion of the Council, depending on the reporting needs of that year. The EC submission deadline shall be September 1 of each year.]
§ 2-11-3[4] PROCESS AND SEQUENCE FOR ESTABLISHING GOALS AND OBJECTIVES.
(A) [Criteria for selection. Five-year goals should be selected only if they are of priority importance to welfare of the city.] [At least every four years, the Mayor and City Council shall review the five-year goals and amend as necessary.] The five-year goals [shall] address improving the physical characteristics of the City, guiding the City’s growth and meeting human needs. [The Albuquerque Progress Report and the City/County Comprehensive Plan are guiding documents for developing the five year goals. The fact that an outcome directly addressed by city government service is not mentioned in the five-year goals does not imply that the service or function will not continue as usual; it means only that there is not a special effort to reach some goal-related outcome in that area during the coming five years.]
(B) [The City Council and the Mayor shall develop annual objectives consistent with the five-year goals.] [The Mayor and City Council will collaborate to establish the five-year goals. The City Council staff shall direct the goals and objectives review, formulation, and adoption process consistent with the City Charter, however, these tasks may be delegated to the Mayor’s staff.]
[(B) Process to develop community perceptions/ expectations. The purpose of this phase is to obtain citizen involvement in setting long-term direction in the vision and goals process.
(1) A goals forum to present progress reports, revisit the vision, and review/develop goals shall be held every four years in July beginning in 1998. The outcome of the goals forum shall be utilized as input into the revision of the vision, five-year goals, and other City plans and policies, as they are developed or revised.
(2) A report shall be produced and presented to the Mayor and City Council within three months of the goals forum. This report shall recommend a vision and goals.
(3) This process shall be facilitated by Shared Vision, Inc. or other not-for-profit organization with a similar mission in partnership with the City and shall include the Indicators Progress Commission, Environmental Planning Commission and other City commissions which influence or track important community and customer conditions.
(4) Adoption of an objective by the City Council carries with it an obligation to carry out this objective in the referenced fiscal year or years and for the Administration to incorporate this objective into the Mayor’s proposed budgets.
(C) Process to develop and adopt five-year goals. The purpose of this phase is to review the vision and goals, recommend revisions reflecting community consensus and conditions, and act on these recommendations.
(1) Every four years, the Mayor and City Council shall review the goals forum report, conduct a public hearing, and adopt a vision and goals within six months of the goals forum.
(D) Process to determine one-year objectives. The purpose of this phase is to establish measurable objectives to carry out the five-year goals by integrating such objectives into the annual City budget.
(1) The City Council and the Mayor shall develop annual objectives consistent with the five-year goals. These objectives may have up to a two year implementation cycle. New objectives will be contained in a biennial new priority objectives resolution beginning for Fiscal Year 2003. Regarding the resolution for Fiscal Year 2004 and biennially thereafter, objectives will be updated based on progress made in the first year and contained in a revised priority objectives resolution.]
[(C)] [(2)] The City Council shall hold at least one public hearing, meeting as the Committee of the Whole, at which the public can propose objectives and comment on proposed or revised objectives respectively for the coming year.
[(1) To enhance community involvement in the budget process, the City Council shall lead various engagement initiatives including but not limited to public meetings, digital surveys, online polls, and other communication tools to gather input from residents on budget priorities and proposed allocations. The Council shall determine the appropriate engagement methods each year to ensure broad participation and accessibility, fostering an inclusive approach to shaping the City's budget.]
[(D)] [(3)] The City Council shall annually adopt or revise and adopt objectives aimed to accomplish each of the goals and objectives to be reflected in the operating and capital budgets of the city.
[(E) Timing. In sufficient time for consideration in the formulation of the Mayor's proposed budget and, in any case, prior to November 30 of each year, except in years in which there is a Mayoral election, in which case prior to December 31, the Council shall review existing goals and objectives and proposals for revisions of objectives and shall adopt objectives for the following year. The purpose of this phase is to enable the Mayor and City Council to integrate the five-year goals and one-year objectives into the City's budgeting process.
(F) Progress reports. The purpose of this phase is to have a mechanism for accountability and monitoring of the Goals and Objectives Process. It is intended that such progress reports will include performance measurements of the Goals and Objectives Process as well as the budget process.
(1) By September 1 of each year, a status report on the prior year's one-year objectives will be presented to the Mayor and City Council. Each year a status report on the current one-year objectives will be prepared and presented by the Mayor to the City Council at a Committee of the Whole meeting held each year as required in §2-11-6(B) ROA 1994.
(2) Biennially in January of even numbered years, a roundtable discussion shall be held among the City Administration, City Council, Indicators Progress Commission, the Environmental Planning Commission and other appropriate commissions to review progress on achieving the five-year goals.
(3) The roundtable meeting held immediately prior to the conduct of the goals forum will discuss the structure of the forum.
(4) Shared Vision, Inc. or similar not-for-profit organization as determined by the Mayor and City Council shall provide the leadership to schedule and facilitate the roundtable meetings.]
[(E) Objectives shall be established by resolution and submitted along with the Mayor’s annual budget proposal.
(1) Departments must review and report, in the form of an Executive Commuication (EC), on the progress of these objectives annually, ensuring alignment with the five-year goals, as required in § 2-11-4 (F)(1), including shortfalls and corrective actions. The EC shall be submitted to the City Council by September 1 of each year.]
[(2)] [(5)] On an annual basis, the City shall conduct a “Citizens’ Perception of Conditions Survey” to poll the residents on the perception of City governmental services and community conditions related to the Goals [and Objectives].
[(6) At least every two years, a progress report shall be generated. This report will provide measurements of desired community conditions related to the goals data through a review of census data, locally generated socioeconomic data, citizen survey information, goal progress indicators, and other information indicating the current situation and progress towards the goals to date. For each measurement, the report shall include historical data for at least ten years, if such data are available and reliable.
(7) The Indicators Progress Commission shall have the lead responsibility to facilitate the production of this report for presentation to the Mayor and City Council every two years and to the goals forum participants every four years.]
[(3)] [(8)] On an annual basis, during the month of September, City Administration including key departmental staff and City Council shall meet to review the five-year goals, community conditions, strategies, programs, and one-year objectives.
(G) Staffing. Both the Mayor and City Council shall identify appropriate staff to collaborate in the development and implementation of the Goals and Objectives Process.
§ 2-11-[4][5 COUNCIL COMMITTEE OF THE WHOLE] [PROGRAM REVIEWS BY THE CITY COUNCIL].
The [City] Council shall meet as the [, meeting as a] Committee of the Whole[, may] [and] hold [up to three] public hearings [as needed for the following purposes:
(A) To review the Mayor’s proposed operating budget and amend and adopt a final operating budget.
(B) To review and adopt Five-Year Goals.
(C) To review and adopt One-Year Budget Objectives.
(D) To review, amend, and adopt the Mid-Year Cleanup to the annual operating budget.
(E) To review semi-annual revenue and expenditure reports, preliminary year-end reports, summary financial and management reports, revenue forecasts, and other reports as provided by the Mayor or Office of Management and Budget.
(F) To conduct program reviews of City operations or departments. The subject of these reviews shall be determined by the Chairperson of the Committee of the Whole or the Council President, and other members of the Council. This group and the Mayor shall provide input on the topics of the program reviews to or the Council President.
(G) Each City department shall be required to present an overview of their proposed budget, key performance metrics, and primary programs at a Committee of the Whole meeting. Presentations shall be scheduled by the Chair in alignment with the Council’s meeting calendar. Each department will provide a brief report on the previous year’s objectives, summarizing achievements and areas where goals were not fully met. Departments may also receive specific instructions from the Chair regarding areas of focus for that year. Visual aids, such as charts or graphs, are encouraged to support a concise and clear presentation of information, emphasizing alignment with the City’s strategic goals.] [which shall be programmatic reviews of city operations or departments which are Council priorities, especially as identified in the adopted city goals and objectives. Since these reviews shall focus in part on city goals, they may be cross departmental and involve public agencies external to city government. These hearings shall be held between September 15 and January 15. The subjects of these Council reviews shall be determined by the Chairperson of the Committee of the Whole, the Council President, and other members of the Council. This group and the Mayor shall provide input on the topics of the program reviews to the Council President.]
[§ 2-11-5 PARTICIPATION OF THE COUNCIL IN PUBLIC PRESENTATIONS ON BUDGET-RELATED MATTERS.
The public shall be encouraged to participate in the city budget review and adoption process. The Council and the Mayor are encouraged to discuss budget and budget-related policy issues at community forums. Whenever the Mayor expends public funds to inform the public about his proposed budget or budget-related programs, the Council shall be invited to participate in such forum. The Mayor shall extend the invitation to the City Council through the President of the Council.]
§ 2-11-6 PREPARATION OF CITY BUDGET; DEPARTMENTAL REQUESTS; BUDGET PROPOSAL.
(A) The Mayor shall prepare a proposed city operating budget [for the next fiscal year] [from the departmental requests,] taking into consideration the requests of the departments and the resources anticipated to be available to the city [for the fiscal year for which the budget is prepared].
(B) Each year [the Mayor, or their appointed representative, shall hold budget hearings with each City department to discuss the preparation of the budget for the next fiscal year. Council staff shall be in attendance at all budget hearings.] [between the first day of December and the first City Council meeting in January, the Mayor, or his appointed representative, shall hold a series of meetings, not less than two in number, with the City Council to discuss the preparation of the budget for the next fiscal year.]
(C) [During] [Throughout the preparation of the proposed City Budget [by] the Mayor[,he] shall furnish any requested information on departmental requests to the staff of the City Council and shall cooperate with City Council staff so that it may monitor the budget process and prepare preliminary analyses and other information for the City Council.
(D) The Mayor shall propose an operating budget to the Council no later than April 1 of each year [and such proposal shall be made available to the general public in an effort to encourage public awareness and citizen involvement in the budget process].
§ 2-11-7 BUDGET - CONTENTS AND FORMAT.
(A) [A full-program budget will be prepared for all city departments each year. The program budget shall clearly identify each program that is proposed to be implemented or continued in the ensuing fiscal year and shall include the funding amount of each program.
(B) The budget proposal shall not propose expenditures in excess of resources anticipated to be available to the city for the fiscal year for which the budget is proposed. If new programs are proposed, a detailed recommendation and justification of the program shall be provided which must include the estimated annual costs of the program and the source of revenues and other resources for financing the program. All new programs must be identified and justified as such in the budget proposal.
(C) In determining a salary savings for each department, the budget office shall review a minimum of three years data, comparing filled versus budgeted positions to arrive at a salary savings rate. A department salary savings rate should not exceed 3.5%. A report of salary savings calculations shall be reported to Council along with material submitted with the proposed budget.
(D) Salaries Reflective of Department: Any employees directly interviewed by the Mayor, lower than Director and Deputy Director, must have their salaries reflected as part of the Mayor and CAO’s department approved budgets to include those employees that meet the requirements as defined in the Albuquerque Charter of the City, Article X, Section 2(b).
(1) In addition, the Office Management and Budget and Budget (OMB) shall document and report the salaries of these employees in the Mayor and CAO’s department approved budget section with the proposed budget.
(E) Employee Compensation Adjustments (Non-Bargaining Employees): For non-bargaining employees, salary adjustments shall be evaluated each year based on inflation measures, budget limits, compensation studies, and other city priorities. The Administration shall separate adjustments meant to address the cost of living from other types of pay adjustments.
(1) Each year, the Administration shall determine a COLA based on standard inflation measures by the City Economist with recommendations from the Consumer Price Index Urban (CPIU) and other economic partners. COLAs shall not exceed what is needed to match inflation.
(2) If a proposed salary adjustment is below the inflation or COLA standard, the Administration shall explain why it does not fully cover the cost of living.
(3) Any salary above the identified COLA amount shall be considered a salary raise.
(F) A separate program strategy for motor coach and para-transit operators, mechanics, vehicle cleaners, transit operations personnel, and security officers’ salaries and benefits shall be created within the Transit Enterprise fund to be used to fund salaries and benefits for transit motor coach and para-transit operators. The program strategy shall be funded with general fund revenues and any fare revenues, and other sources as is applicable.
(G)] The Mayor's operating budget proposal submitted to the Council shall include:
(1) The Mayor's budget message;
(2) An annual appropriation resolution recommended by the Mayor [, presented alphabetically by Fund and Program Strategy];
(3) A complete statement of the non-capital project financial operation of the city for the fiscal year last completed;
(4) A comparable statement for the current fiscal year including expenditures to date and anticipated expenditures to the end of that year[, to include;]
[(5) A financial plan in comparable form for the fiscal year commencing on July 1 of the year in which the budget proposal is submitted. Except as otherwise provided by § 2-11-11, the Non-Capital Project Financial Plan for the ensuing fiscal year shall include:]
(a) All proposed expenditures for [the administration, operation and maintenance of] all departments of city government.
(b) All interest and debt redemption charges.
(c) All anticipated revenues and other available resources by source and amount.
(d) The proposed means of financing all proposed expenditures.
[(e) Any fee or rate adjustment proposal for the upcoming fiscal year and projected revenue requirements for the following two fiscal years.
(f) The basis used to determine the COLA for the fiscal year, based on the Consumer Price Index Urban (CPIU), a compensation study, and other relevant benchmark chosen by the city.
i. A breakdown of all salary adjustments that meet, fall below, or exceed the COLA rate;
ii. Justifications for any adjustments that do not meet the identified COLA standard, including explanations for budget constraints or other considerations as required.
(g) Descriptions of all programs, services, and activities to include strategies, missions, customers, and key initiatives, as proposed in the Mayor’s Budget;
(h) Performance measures, as defined in § 2-11-2, associated with all programs, services, and activities.
(i) Plans for a new department or a department reorganization with an annual budgetary impact in excess of $500,000, to include justification for the reorganization, anticipated financial and service benefits, work plan for the newly organized unit, an organizational chart of the departments effected by the reorganization, and job descriptions for any new staff positions created through the reorganization
(j) Historical trend analysis covering the past five fiscal years. This analysis shall include, at a minimum:
i. Personnel demographics, including workforce composition and diversity,
ii. Salary and vacancy trends, including savings from unfilled positions,
iii. A breakdown of operational costs by department and program.
(H) The Mayor's budget proposal must be accompanied by a supplemental document providing comprehensive responses to the formal questions and requests raised by the City Council during the budget review process. Each department must provide the following information to be included in the proposal:
(1) An updated Organizational Chart for the department.
(2) A current vacancy listing, including status details for each vacant position (e.g., number of days vacant, posting date, interview date, hire date), along with vacancy rates for the past five years.
(3) A breakdown of salary savings.
(4) All issue papers submitted for the annual budget, including all drafted issue papers that were not included in the CAO hearings.
(5) A detailed report on the total annual expenditure allocated toward social services, programs, and initiatives within the department. This report should include all funding sources. (e.g., dedicated funding, external funding, grants) and expenditures related to direct assistance, indirect support, infrastructure contributions, and administrative overheads for these services. Along with the total annual expenditure, provide a brief description of the key components contributing to these totals.
(6) A comprehensive list of all applicable fees, including registration, licensing, and permit fees, along with:
a. The total amount that should be collected based on full compliance.
b. The total amount collected in the current and prior year, along with projected amounts for the following year.
(7) A list of vehicles currently in the department’s possession (e.g., electric vehicles), vehicles earmarked for disposal, and plans to procure additional vehicles within the next three years, with justification where applicable.
[(6) A performance plan in comparable form for the fiscal year commencing on July 1 of the year in which the budget proposal is submitted to include:
(a) Descriptions of all programs, services, and activities to include strategies, missions, customers, key initiatives, and desired results, organized by Five Year Goal, that are proposed in the Mayor’s Budget;
(b) Performance measures, as defined in § 2-11-2, associated with all programs, services, and activities;
(c) Consistent with the Financial Plan defined in § 2-11-7(A)(5), all proposed expenditures for the administration, operation, and maintenance of all programs, services, and activities, organized by Five Year Goal and identified by Fund.
(B) A full-program budget will be prepared for all city departments each year. The program budget shall clearly identify each program that is proposed to be implemented or continued in the ensuing fiscal year and shall include the projected costs of each program.
(C) The budget proposal shall not propose expenditures in excess of resources anticipated to be available to the city for the fiscal year for which the budget is proposed. If new programs are proposed, a detailed recommendation and justification of the program shall be provided which must include the estimated annual costs of the program and the source of revenues and other resources for financing the program. All new programs must be identified as such in the budget proposal.
(D) Along with publication of the proposed budget, the Office of Management and Budget shall produce a separate document to serve as a citizen’s guide to understanding the budget process and the financial plan for the upcoming fiscal year. This guide shall explain how the budget is organized, justify significant expenditures that are included in the proposed budget, and outline revenue sources. This document shall be made available to the general public in an effort to encourage public awareness and citizen involvement in the budget process.]
[§ 2-11-8 BUDGET REVIEW COMMITTEE.
The Mayor, the Chief Administrative Officer, the Chairperson of the Council Committee of the Whole, and the Council President shall constitute a joint review committee of the Budget. This committee shall meet at least quarterly or at the call of either the Mayor or the Council President. The committee shall review preliminary year end reports, summary financial and management reports, revenue forecasts, status of the current year budget and budget issues, and discuss all matters concerning the contents and format of the city annual operating budget and the city's goals and objectives, prior to introduction to the City Council.]
§ 2-11-[8][9] BUDGET PROPOSAL - PRINTING AND INDEXING.
[The budget proposal shall be printed and indexed prior to its submittal to the Council.] Sufficient [printed] copies [requested prior by City Council,] of the budget proposal shall be prepared [by City Administration] to allow for distribution to members of the Council, city department heads, and other interested parties as may be deemed reasonable by the Chief Administrative Officer or [their] [his] designee [no later than April 1].
§ 2-11-[9][10] CONSIDERATION OF BUDGET PROPOSAL BY THE COUNCIL.
(A) After receiving the budget proposal from the Mayor the Council shall schedule at least three public hearings [regarding its adoption, as the Committee of the Whole.] [on it. Any fee or rate adjustment proposal for the upcoming fiscal year and projected revenue requirements for the following two fiscal years shall be submitted to the Council at the same time as the budget proposal]. As a result of its deliberations and the information gathered at the public hearings, the Council may amend the budget proposal at any time prior to May 31. If the Council fails to approve a budget within that time limit, the budget proposal as submitted by the Mayor is deemed approved.
(B) The Mayor or [their] [his] representative shall be present at all public hearings on the budget proposal and fee or rate adjustment proposals. The Chief Administrative Officer, or [their] [his] representative, shall be available to the Council at its request during any of its deliberations on the budget proposal. [The Administration shall prepare to answer all questions posed by the Council regarding the budget, providing complete and accurate information. If the Administration is unable to provide an answer during the hearings, they shall commit to delivering the requested information in writing within three (3) days of the hearing in which the question was proposed. The Administration's responses shall be documented and made available to Council Services.]
[(C) Definition. As used in this section AMEND includes complete revision or substitution.]
[§ 2-11-11 CONFERENCE COMMITTEE ON THE BUDGET.
(A) A Conference Committee on the Budget shall meet to help resolve any disagreements between the Mayor and the Council concerning the city budget. The Conference Committee on the Budget shall consist of the members of the Budget Review Committee.
(B) In the period from March 1 through the adoption of the annual operating budget, the Conference Committee on the Budget shall meet at the request of the Mayor or any Councilor. The following procedures shall govern this process:
(1) Issues presented to the Conference Committee on the Budget should be of a significant or critical nature concerning the City Budget;
(2) Issues presented to the Conference Committee on the Budget should be issues about which the development or clarification of performance measurement data or other information can contribute significantly to the formation of options or recommendations;
(3) After consideration of the issues, the Council-designated members of the Conference Committee on the Budget may present recommendations or options to the City Council for action;
(4) A meeting of the Conference Committee shall occur prior to final adoption of both the operating and enterprise budgets;
(5) The Conference Committee on the Budget shall be chaired by one of the Council-designated members.]
§ 2-11-[10][12] APPROVAL CONSTITUTES PROPOSAL AS BUDGET; EXPENDITURES MUST BE AUTHORIZED.
(A) The annual operating budget appropriation resolution, as approved, in addition to other approved appropriations for operating purposes shall constitute the city's operating budget for the ensuing fiscal year. The city shall not expend any public funds, except for capital project expenditures, special assessment district expenditures, and trust and agency fund expenditures, unless the expenditure is authorized in the budget and is made or encumbered in the fiscal year covered by the budget.
(B) [Any amounts encumbered but not expended at the end of each fiscal year must be approved by the Council as a resolution before being appropriated in the subsequent fiscal year. A report shall be submitted to the Council following the end of the fiscal year for their consideration for re-appropriation.] [The amount encumbered but not expended at the end of this fiscal year is appropriated to the subsequent fiscal year without further action by the Council. A report of the amounts and individual purchase orders will be reported to the Council by October 1.]
[§ 2-11-13 COUNCIL COMMITTEE OF THE WHOLE.
The City Council shall meet as a Committee of the Whole to hold public hearings for the following purposes:
(A) Review and adopt five-year goals and one- year objectives.
(B) Conduct program reviews of city operations or departments.
(C) Review the cleanup of the annual operating budget.
(D) Review the midyear report for the current fiscal year and the midyear budget appropriation resolution.
(E) Review all components of the Mayor's proposed annual operating budget.]
[§ 2-11-14 FISCAL YEAR.
The fiscal year of the city begins on July 1 of each calendar year and ends on June 30 of the following calendar year.]
§ 2-11-[11][15] BUDGET AMENDMENTS [BY COUNCIL] DURING FISCAL YEAR [OUTSIDE ADOPTION OF ANNUAL BUDGET].
[(A)] Upon its own initiative or upon a recommendation by the Mayor, the Council may amend the budget during the fiscal year to which it applies. No amendment to the budget shall be made without a public hearing prior to the meeting at which action is taken on the proposed amendment. [Amendments to the budget effect the pertinent fiscal year’s Performance Plan, which effect shall be estimated by Administration staff and incorporated into the Plan.] No amendment to the budget shall result in total authorized expenditures that exceed resources to be available for the fiscal year to which the budget is applicable.
(B) The Mayor shall propose expenditure adjustments or revenue enhancements to the City’s operating budget whenever it is determined, after the adoption of the annual budget, that projected revenues are insufficient to cover appropriated expenditures, or that additional revenues have become available. These proposals shall be submitted to the Council through a Mid-year Cleanup or other appropriating resolution.
(C) The Mid-year Cleanup report shall be introduced to the Council between November and December accompanied by a midyear appropriation resolution for programs projected to be overspent, where expenditure controls cannot bring spending within the limits of administrative authority as defined by §§ 2-7-1-1 et seq. of the Administrative Code. Midyear appropriation adjustments shall only be proposed due to unexpected circumstances such as natural disasters, unforeseen economic shifts, or other emergencies. Except as otherwise provided, budget adjustments by the Mayor and Council shall be limited to the midyear resolution.
§ 2-11-[12][16] TRANSFER OF FUNDS AND EXPENDITURE AUTHORITY WITHIN BUDGET.
(A)[ (1) ]During the fiscal year, the Mayor is authorized to transfer funds or change expenditure [appropriations] [authority] within and among line-item authority, as established by the annual appropriation resolution and other approved appropriations for operating purposes, if the transfer or change does not result in the increase or decrease in that line-item expenditure authority in excess of the cumulative amount of $[500,000][100,000] or 5% of the line-item authority, whichever is lower.
[(2) LINE-ITEM AUTHORITY refers to the line in the budget appropriation resolution approved by the Council. The lines of the budget appropriation resolution shall include the title and cost of each program of the city's operating budget. The transfer of funds or change in expenditure authority “among” line-item authority refers to such transfers or changes between lines in the budget appropriation resolution which contain dollar amounts. The transfer of funds or change in expenditure authority “within” line-item authority shall be defined as transfers or changes between budget activities within programs in instances where the budget of an activity is $500,000 or more. A decrease in line-item expenditure authority means preventing resources appropriated by Council to a budget program or allocated to an activity as specified above from being spent. RESERVED APPROPRIATIONS, and other similar techniques, are reductions in expenditure authority.]
[(B)][(3) ]No actions are authorized which would result in exceeding the total expenditures authorized in the operating budget for the city government as a whole. Actions taken by the Mayor under [this] division (A) [of this section] shall be reported in detail to the City Council within ten days of the approval of transfer or change by the Mayor or [their] [his] designated representative. [The City Administration is required to submit a quarterly report to the City Council on all transfers of funds within the line-item expenditure authority.]
[(C)][(B)] The transfer of funds or changes in expenditure authority in the operation budget, other than those authorized by division (A) of this section, may be made only by amendment of the budget by the City Council under § 2-11-[11][15]. No new program not already authorized in the budget shall be implemented by actions authorized under division (A) of this section, nor shall any existing program authorized in the budget be terminated by such actions.
[(C) The Mayor shall provide a written report on all reorganization plans with an annual budgetary impact in excess of a cumulative amount of $100,000 or 5% of the line-item authority, whichever is lower. The report shall provide justification for the reorganization which contains its rationale, financial and service benefits, the method for determining these benefits, a work plan for the newly reorganized unit, and an organization chart of the affected department or departments showing the results of the proposed reorganization. The Mayor also shall specify the affected positions and appropriations. Such report shall be provided prior to any necessary approval by Council.]
§ 2-11-[14][18] FINANCIAL [AND MANAGEMENT] REPORTS.
(A) The Mayor shall submit [two] [on a quarterly basis summary] financial [and management] status reports of all operating funds to the City Council. [The first by January 15 and the second by April 15.] These reports shall include:
(1) Current annual revenue estimates [by source] for each fund;
(2) Brief analysis [highlighting] [explaining] revenue trends [by source] for each fund;
(3) Current expenditure levels and projections by program/line-item through end of fiscal year.
(4) The City’s operating fund-balance, to date, including a General Fund (110) table. [A midyear programmatic review of each program and department and the progress made year- to-date in achieving its goals and objectives.
(B) Reports shall be received by the Council on a timely basis according to the following schedule:
(1) The preliminary year-end report shall be received for introduction at the first City Council meeting in October following the close of the fiscal year;
(2) The final year-end report shall be received for introduction at the first City Council meeting in December;
(3) The midyear report shall be received for introduction at the first City Council meeting in February. The midyear report shall be accompanied by a midyear appropriation resolution for those programs that are projected to be overspent and which the Mayor determines that expenditure controls cannot bring the programs within the limits of administration expenditure authority as defined by §§ 2-7-1-1 et seq., the Administrative Code. Mid-year appropriation adjustments shall be proposed only when caused by unexpected circumstances such as a natural disaster, unforeseen shifts in the national economy, and other events that constitute an emergency. Except as otherwise provided, the Mayor and Council shall confine budget adjustments to the midyear resolution. The midyear report and midyear appropriation resolution shall be reviewed by the City Council at a minimum of one public hearing by a Committee of the Whole.]
[§ 2-11-19 BUDGET MODIFICATIONS IN FISCAL YEAR OUTSIDE ADOPTION OF ANNUAL BUDGET.
(A) The Mayor shall be responsible for identifying and proposing expenditure reductions or revenue enhancements to the operating budget of the city when it is determined, in the period between adoption of the annual operating budget [i.e., the fiscal year], that city revenues are not expected to equal city expenditures.
(B) When the Mayor engages in planned mid- fiscal year reductions of the annual operating budget in excess of $250,000 cumulative for the fiscal year, the Mayor shall cooperate with the Council staff so that it may monitor this budget process and prepare analyses and other information required by the City Council. A representative of the Council shall be allowed to participate in all meetings and have access to all information related to the formulation of this budget reduction program.
(C) When the Mayor engages in a planned mid- fiscal year reduction of the annual operating budget in excess of $250,000 cumulative in the fiscal year, this effort shall be consistent with Ordinance No. 51-1990. Any redirection or reclassification of appropriations into sequestered or reserved budget categories by the Mayor shall be considered a transfer of funds between budget line-items. Such transfers shall be subject to the regulations contained in § 2-11-16.
§ 2-11-20 [PROGRAM STRATEGIES.]
A separate program strategy for motor coach and para-transit operators, mechanics, vehicle cleaners, transit operations personnel, and security officers salaries and benefits shall be created within the Transit Enterprise fund to be used to fund salaries and benefits for transit motor coach and para-transit operators. The program strategy shall be funded with general fund revenues and any fare revenues, and other sources as is applicable.]
SECTION 2. COMPILATION. SECTION 1 of this Ordinance shall amend, be incorporated in, and made part of the Revised Ordinances of Albuquerque, New Mexico, 1994.
SECTION 3. SEVERABILITY. If any section, paragraph, sentence, clause, word or phrase of this Ordinance is for any reason held to be invalid or unenforceable by any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions of this Ordinance. The Council hereby declares that it would have passed this Ordinance and each section, paragraph, sentence, clause, word or phrase thereof irrespective of any provision being declared unconstitutional or otherwise invalid.
SECTION 4. EFFECTIVE DATE. This Ordinance shall take effect beginning July 1 of Fiscal Year 2026 after publication by title and general summary.