Mayor Timothy M. Keller
INTER-OFFICE MEMORANDUM April 1, 2026
TO: Klarissa J. Peña, President, City Council
FROM: Timothy M. Keller, Mayor
SUBJECT:
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Submission Of The Five-Year Forecast FY2026 To FY2030
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Attached please find the City of Albuquerque Five-Year Forecast. The Five-Year Forecast estimates future revenues and expenditures for the General Fund and subsidized funds for the current fiscal year, and for fiscal years 2027 through 2030. The purpose of the report is to provide key trends in revenues and expenditures and information about the financial challenges and opportunities anticipated over the next few years.
As with previous Five-Year Forecasts, the forecast broadly includes potential expenditures but does not reflect expenditure levels that will be presented in the upcoming budget. Similar to previous years, the forecast includes deficits for the out-years of the City. This trend continues as a result of expanding City needs and historical wage increases, especially for public safety. The year’s forecasted expenditures are particularly impacted by across-the-board cost inflation and medical increases. Lastly, expenditures going forward include recurring union negotiated wage increases.
City revenue shows a leveling off of expected recurring tax revenues, more in line with historical growth patterns. The forecast represents our expectations for the baseline scenario, which excludes any one-time and supplementary funds that are unpredictable.
My Administration is committed to presenting a balanced budget and will continue to comply with relevant budget law. Based on this forecast, the anticipated deficit can be addressed through strategic program reviews and reductions; and will still allow for investment in some priority operations.
Preliminary estimates of revenues to date indicate that the City should expect modest growth in Fiscal Year 2026, followed by slower revenue growth through the end of the forecast. Final estimates will be reported to the Council through the Committee of the Whole process as stated. I look forward to working with the Council as we prioritize resources and create a balanced operating budget for Fiscal Year 2027.
EXECUTIVE COMMUNICATION FOR THE Submission of the Five-Year Forecast
Approved:
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Dr. Samantha Sengel Date
Chief Administrative Officer
Recommended:
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Carla Martinez Date
Chief Financial Officer
Recommended:
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Donna Sandoval Date
DFAS - Director
Recommended:
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Kevin Noel Date
DFAS - Acting Budget Officer