Keller proposes $1.4 billion city budget for fiscal 2025

The belt-tightening might be over, but city officials describe Mayor Tim Keller’s proposed budget for the 2025 fiscal year in frugal terms.

As the city adapts to inflationary pressures, normalizes revenues and prepares for a “tight economic year,” city officials say the plan is to “do more with less” in its $1.4 billion budget proposal. According to budget documents, the city will use or obligate its COVID-19-era American Rescue Plan Act dollars by the end of this calendar year.

But that doesn’t mean budget cuts.

In 2022, Keller’s proposed $1.37 billion budget for that upcoming year would cut citywide spending by $53.6 million. This year’s budget proposal represents an increase in spending — but not by much. The $1.4 billion budget is an approximately 2.3% increase, or about $24 million, from last fiscal year. Non-recurring spending has dropped in the proposed budget, from $49.9 million last year to $28.4 million.

“This budget continues to make important investments where they are needed, but takes a conservative approach, adjusting for past inflation and future revenue projections,” said Donna Sandoval, director of the Department of Finance and Administrative Services.

The budget leaves 12% in reserves and a $5 million fund balance.

The City Council will get its chance to listen to public input and revise the budget over the coming weeks. The city charter gives the body until May 31 to complete the final budget. Fiscal year 2025 begins July 1.

Employment

Police spending makes up the largest portion of the budget — about a fifth of the total.

The budget includes funding for 1,000 police officers — the same number as last year. But the city has slightly increased the number of sworn officers over the past year. In March 2023, APD had 856 sworn officers. This year, there are 880 such officers in the department, and 50 people are currently going through the police academy.

It also includes funding for technology in crime fighting and additional dollars for police service aides and civilian staff.

“We need to civilianize more roles and have realistic expectations about the number of sworn officers we can attract and employ,” states read the mayor’s letter introducing the budget.

Albuquerque Community Safety will see a 5% increase in funding, as officials report that the department has seen call volume triple as it rolled out graveyard shifts. The funding can be used to hire more field responders.

Employment at the city as a whole has remained largely stagnant. Keller’s FY2024 proposal budgeted for 7,014 employees. The coming fiscal year’s budget is for 7,015.

Fees

Out-of-state visitors could see a steeper price to visit the city’s BioPark.

The budget proposes fee increases, which budget documents say better reflect the cost of city services. That includes $5 ticket increases for BioPark visitors from outside New Mexico, $1 increases for New Mexican children and $2 increases for the state’s adults.

There hasn’t been an increase in ticket prices since before the pandemic, in 2017.

Golf fees would also increase by $2 per round, and entry to public pools would increase by 50 cents — with the exception of swimming lessons. “The City wants to continue keeping swim lessons as affordable as possible to promote this vital life skill,” the budget states.

In total, the rate changes would bring in $2.5 million more to the city. The proposed budget predicts a 3.6% increase in total city revenues.

Housing and Homelessness

The proposed budget also includes $8 million in one-time funding for supportive housing and voucher programs, plus $100,000 for emergency housing vouchers for victims of domestic violence.

Gateway, the city’s one-stop shop for shelter, housing and employment services, would receive $10.7 million in total funding this fiscal year. The Westside Emergency Housing Center, which city representatives said has been close to capacity all year, would receive $1.5 million.

This story has been updated to reflect the city charter gives the council until May 31 to complete the budget. Incorrect information was supplied to the Journal.