Good evening.

I call this committee of the whole meeting to order.

All counselors are present this evening with Councillor Teas and Rogers joining via Zoom.

Councillor Pena will be here shortly.

We will start with the moment of silence, followed by the Pledge of Allegiance.

I pledge allegiance to the United States of America.

And to the Republic for which it stands.

Tonight is the third of three public hearings the council is required to hold on the city's operating budget to consider amendments and/or committee substitutes.

No live public comment will be taken on the city's operating budget legislation R 2617.

However, live public comment will be taken on the objectives legislation R 2628.

At the end of tonight's meeting, the budget as amended and or substituted will be sent to the Monday, May 18th City Council meeting for adoption.

Live public comment and written comments will be accepted at the May 18th council meeting.

Members of the public, city staff, and the media have the ability to join this meeting in person and on live streams through four different platforms.

Also, this meeting is closed captioned, and you may enable the closed captioning services on your television or device at this time.

The video recording of this meeting will also remain available for viewing at any time on the city council's website.

Council staff is available via telephone if members of the public need assistance finding the videos online.

Please call 505-768-3100 for assistance during business hours, which are Monday through Friday from 8 a.m.

to 5 p.m.

Members of the public have the opportunity to address the committee if they have signed up for public comment for R28.

Per the rules published on the agenda or on our website.

Staff has advised that no one has signed up to speak on this evening to speak on this evening.

Okay.

All right.

Let's see, I would like to um our let's see.

R17 is appropriating funds for operating the government of the city of Albuquerque for fiscal year 2027 beginning July 1, 2026 and ending July 30, 2027.

Adjusting fiscal year 2026 appropriations and appropriating capital funds.

I move a ducast.

Okay.

All righty.

We have um we have a um, let's see here.

Okay, now do I need to vote on this or we talk about it first?

Uh Madam Chair, we'll be amending the committee sub.

Do I have to accept the committee sub first though?

As amended.

Okay.

Thank you.

All right.

But counselors, before we get into discussions and doing this amendments, I'd like to have a little discussion about the committee sub.

I want to address the concerns raised during this budget process that started with the transmittal of the mayor's proposed budget regarding the approximately 11.8 million estimated projection adjustment reflected with the administration's proposed fiscal year 27 general fund.

When our staff brought this discrepancy to my attention, I immediately contacted the administration to meet about it.

During that discussion, I was told the 11.8 million was real money.

However, shortly after I received an email from the administration saying they had changed their methodology and they no longer considered the amount available for appropriation.

Then in two public meetings following that email, the city's chief financial officer stated that the administration expects to remain within the authorized fiscal year 26 general fund appropriation level.

In addition the administration later clarified to council staff in writing that the approximately 11.8 million component of the estimated projection adjustment represented the amount necessary to bring projected fiscal year 26 expenditures within the authorized general fund appropriation amount.

Because council had concerns with this seemingly conflicting information last week I directed council staff to seek technical assistance from the local government division of the New Mexico Department of Finance and Administration regarding standard budgetary practices and treatment of projected year-in balances.

As everyone here knows local government budgets in New Mexico are ultimately reviewed, approved and certified by the State Department of Finance and Administration's local government division.

Under state law DFA has broad authority over local government budgeting including reviewing budgets requiring corrections or revisions, supervising expenditures and ensuring compliance with state budget law.

Following review of the information provided DFA advised council staff that where an adjustment reflects a realistic and well supported expectation reduced expenditures the resulting positive variants would typically flow into the following year's beginning available fund balance.

DFA further stated that if the approximately 11.8 million component represents a realistic and well supported projection then it would generally be reasonable to expect that that portion to carry forward in the fiscal year 27.

Ultimately DFA stated that from a budgetary continuity standpoint the council's understanding appeared reasonable.

In similar terms in simpler terms DFA advised us that if the city ultimately remains within the amount already authorized in the fiscal year 26 budget then those resulting savings would generally be accepted expected to carry forward into the next fiscal year following year in closure close and audit DFA also appropriate appropriately noted that the final amount if any remains subject to year in financial results and the city's annual audit process which the council fully recognizes based on our staff's due diligence the administration's representations the public statements of the chief financial officer and the technical assistance provided by the state's local government division I believe the committee sub before us takes a reasonable and fiscally responsible approach regarding treatment of the projected available balance if you'd like counselors Ms Jennifer Rocal can walk us through the general fund table to give us a visual represent representation would you like that?

Okay.

Mrs.

Brokaw Madam Chair Counselors before you is the general fund table as presented in the FY27 mayor's proposed budget.

In the current year, the anticipated ending balance and supported fund balance adjustments must equal the must equal the beginning fund balance and supported fund balance adjustments for the next fiscal year.

The FY27 proposed budget assumes departments will exceed their current FY27 appropriations by 11.8 million by only bringing forward the 63 million and not including the supported fund balance adjustment.

The 11.8 million is a component of the 13 million.

The admin has stated that departments will come within budget.

Based on this, the additional 11.8 million should have been carried forward as an ad and added as an adjustment in FY27.

So having this 63 million as a beginning fundance without the associated 11.8, it should have been included.