------CITY of ALBUQUERQUE
TWENTY SIXTH COUNCIL
COUNCIL BILL NO. R-25-219 ENACTMENT NO. ___________________
SPONSORED BY: Tammy Fiebelkorn, Renée Grout, Dan Lewis, Klarissa J. Peña
RESOLUTION
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Establishing A One-Time Supplemental Compensation Payment For City Employees Based On Ending FY25 General Fund Balance (Fiebelkorn, Grout, Lewis, Peña)
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ESTABLISHING A ONE-TIME SUPPLEMENTAL COMPENSATION PAYMENT FOR CITY EMPLOYEES BASED ON ENDING FY25 GENERAL FUND BALANCE.
WHEREAS, the City Council recognizes that ongoing inflation and increases in the cost of housing, utilities, transportation, and other essential goods and services in the City of Albuquerque continue to impact City employees and their families, affecting overall financial stability; and
WHEREAS, the Council further finds that competitive compensation is essential for attracting and retaining a qualified municipal workforce capable of delivering high-quality public services for the residents of Albuquerque; and
WHEREAS, during the FY26 Budget process, the Council provided a 2.5% general Cost of Living Adjustment (COLA) to City employees; and
WHEREAS, the Council tried to provide the highest amount of COLA during the budget process, and is able to appropriate a one-time supplemental payment now that economic conditions have improved; and
WHEREAS, the Council finds that providing an additional one percent (1%) increase in total employee compensation for the remainder of FY26, through a one-time supplemental payment funded from remaining FY25 General Fund balance reflects current economic conditions in Albuquerque while balancing a measured, fiscally responsible response to inflationary pressures; and
WHEREAS, the Council further finds that the FY25 adopted budget for the City of Albuquerque contains sufficient general fund balance budgetary capacity to support an additional 1% one-time supplemental compensation.
BE IT RESOLVED BY THE COUNCIL, THE GOVERNING BODY OF THE CITY OF ALBUQUERQUE:
SECTION 1. Following the completion and authorization to release the City’s Fiscal Year 2025 (FY25) Annual Comprehensive Financial Report(s) from the New Mexico Office of the State Auditor, the Chief Financial Officer (CFO) shall determine the ending FY25 General Fund balance that exceeds the legally required one-twelfth operating reserve.
Upon the determination of the General Fund balance, up to $2,951,000 is hereby reserved to provide up to a one percent (1%) one-time compensation payment to regular full or part-time employees covered by the AFSCME (including B-Series, C-Series, J-Series, M-Series, and Transit), APOA (including Prisoner Transport), and Communications Workers of America bargaining units; and employees not covered by a bargaining unit (including unclassified employees and regular part-time employees working equal to or more than twenty (20) hours per week). Employees categorized as temporary, seasonal, student, part-time working less than twenty (20) hours per week, board and commission members, elected officials, employees in early retirement or are in inactive status at the time of payment are not eligible.
The amount and percentage of the one-time compensation payment are dependent and based on the final available General Fund balance. In the event less than $2,951,000 is available in the General Fund balance, priority shall be given to funding up to 1% payments to full or part-time employees with an annual base salary of $64,000 or less per year, and any remaining funding shall be proportionally distributed to other eligible employees with an annual base salary over $64,000 by the Department of Finance and Administrative Services Payroll Division.
The percentage applied shall be based on the annual base salary for each active employee as of the final pay-period end in December 2025 (December 26, 2025).
The up to one percent (1%) one-time compensation payment is subject to negotiations for all applicable union positions.
Upon determination of the applicable one-time compensation payment based on the final available ending FY25 General Fund balance, the amount is hereby unreserved and appropriated, and will be distributed to the respective departments and programs, including any transfers to other funds to support one-time supplemental payments, by the Office of Management and Budget in Fiscal Year 2026.
SECTION 2. This supplemental compensation payment authorized in Section 1 shall be the priority use of any certified available FY25 General Fund balance, and shall supersede any other FY25 general fund balance appropriations.
SECTION 3. SEVERABILITY. If any section, paragraph, sentence, clause, word or phrase of this Resolution 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 Resolution. The Council hereby declares that it would have passed this Resolution and each section, paragraph, sentence, clause, word or phrase thereof irrespective of any provision being declared unconstitutional or otherwise invalid.
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