City of Albuquerque
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File #: EC-19-434   
Type: Executive Communication Status: In Committee
File created: 8/5/2019 In control: Finance & Government Operations Committee
Final action:
Enactment date: Enactment #:
Title: Report on Uses of 3/8 Hold Harmless Tax - Fiscal Year 2019 - Quarter 3
Attachments: 1. EC-434



CITY OF ALBUQUERQUE

DEPARTMENT OF FINANCE AND ADMINISTRATIVE SERVICES



Timothy M. Keller, Mayor

Interoffice Memorandum May 31,2019

TO: Klarissa J. Pe?a, City Council President

FROM: Timothy M Keller, Mayor

SUBJECT:
title
Report on Uses of 3/8 Hold Harmless Tax - Fiscal Year 2019 - Quarter 3
body


This memo is in response to your request for information regarding the new 3/8th cent GRT tax passed by Council last spring. The tax took effect July 1, 2018 and is expected to generate $49.6 million by the close of Fiscal Year 2019. After taking into account the 1/12th state required reserve, this leaves $45.5 million available for appropriation. The enabling legislation mandates at least 60% of this new tax be spent on improving public safety in the City. When youth and social service programs are included, the targeted use for public safety is closer to 78%.

For the close of the third quarter of the fiscal year ending March 31, 2019, we estimate the total expenditures at $29.8 million, with 77.0% of those expenses categorized as "Public Safety".

The Office of Internal Audit completed a special review of the Hold Harmless Report and indicated that the report was not sufficient. They recommend that the City establish new departments to track spending. They also provided a suggested report format. They did not fill in the actual quarterly expenditures because it is not possible to do so with the current program set up the City has. The suggested process would require separate programs for hold harmless tax employees as opposed to putting the police officers in the programs such as Neighborhood Policing. It is not cost effective to track the actual expenditures in the format they presented nor is it cost effective to do so. The cost of providing the information including the costs of gathering, processing and compiling the information should not be is cost prohibitive. The administr...

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