CITY of ALBUQUERQUE
TWENTY SEVENTH COUNCIL
COUNCIL BILL NO. O-26-3 ENACTMENT NO. ________________________
SPONSORED BY: Joaqu?n Baca, Nichole Rogers, Dan Champine, Brook Bassan
ORDINANCE
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Amending Chapter 2, Article 11 Of The Revised Ordinances Of Albuquerque, New Mexico (ROA 1994), To Add A New Section Regulating Indirect Overhead (IDOH) Charges To Capital Funds Establishing An IDOH Rate Cap; Requiring Annual Reporting And Transparency; And Aligning Eligible Uses With Capital Delivery Standards (Baca, Rogers, Champine, Bassan)
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WHEREAS, the Department of Municipal Development (DMD) administers capital projects through the City's Capital Implementation Program (CIP), funded by voter-approved General Obligation Bonds and other capital sources; and
WHEREAS, to offset administrative and project management costs, the City assesses an Indirect Overhead (IDOH) rate to capital funds; and
WHEREAS, over the past decade, IDOH rates charged to CIP have fluctuated significantly-from a low of 1.04% in FY24 to a high of 8.0% in FY26-raising concerns about transparency, consistency, and appropriate use of capital funds; and
WHEREAS, the purpose of IDOH is to recover actual, allowable indirect costs that support capital project delivery, but not to subsidize general departmental or operational expenses; and
WHEREAS, the City Council seeks to formalize the process for calculating, applying, and reporting IDOH, ensuring fair use of capital funds and restoring public confidence in capital project budgeting.
BE IT ORDAINED BY THE COUNCIL, THE GOVERNING BODY OF THE CITY OF ALBUQUERQUE:
SECTION 1. A NEW SECTION OF LAW IS HEREBY ADDED TO THE REVISED ORDINANCES OF ALBUQUERQUE, CHAPTER 2, ARTICLE 11, AS FOLLOWS:
? 2-11-18 Indirect Overhead Charges to Capital Funds
(A) Purpose. To ensure that charges to capital project funds for indirect overhead (IDOH) are reasonable, transparent, and tied to capital project delivery costs.
(B) ...
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