[{"_1":2,"_99":-5,"_100":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75,87],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6262603,"mediaKeyId","3114889-e66fec90c5ab5ce036391b397ad437ba","parentId",3114889,"title","City managers and finance director present conservative FY26 budget; committee gives preliminary approval to finance budget","audioSeconds",1968,"startMs",2578000,"endMs",4546000,"viewUrl","/Search/View?dp=1&key=3114889-e66fec90c5ab5ce036391b397ad437ba&start=2578&end=4546","thumbnailUrl","https://assets.pipeline.soar.com/3114889-e66fec90c5ab5ce036391b397ad437ba/thumbnail_2578000.jpg","articleUrl","/articles/6262603/Santa-Fe/Santa-Fe-County/New-Mexico/City-managers-and-finance-director-present-conservative-FY26-budget-committee-gives-preliminary-approval-to-finance-budget","mediaUrl","https://secure.pipeline.soar.com/6262603-6f76fc419b2666882edae78aaf401b3c/orig.mp4?Expires=1771137983&Signature=UUFlCKt0n7TmnE7FAxBRcqjKO4mJKgAdJ28oPxEdaiqZNMpRumzg4kYyKtum1DiGSZCxu6vQJOD8K5qP~tlP0WpX3-4tLwj5-3cb1e~2~ZNqhMkiXDxGgPsz4oAPot7957~h4Dhys8YXIk~Lnyd0RW~oXAqAuvL2hJL9jO9AYhMpsY7eKc2LawkRxh1WrQtHyMNWmKcUd0OnY8qpEi2ljrjDVzVNvICfIHI1m1-TFtap~~bTN-3gHbwe7zOY4~lOSidYGiCtbnkisEhHcQjelauRmy2ir-Xvw3ftXSjYcakMZ5Fm8c7EYe5SpovgTjken5Xc--MD1Jf8TXbme4~ZgA__&Key-Pair-Id=KUT5TJCACFTXG","author","City Council of Santa Fe, NM","date","2025-04-24T23:51:53.81Z","article","City Manager Scott and Finance Director Emily Oster presented a conservative FY26 budget overview to the Finance Committee on April 24, emphasizing tight revenue assumptions, a robust emergency reserve and targeted staffing and technology investments while acknowledging near‑term risks tied to national economic uncertainty.

Oster said the budget team set a conservative gross receipts tax (GRT) assumption of 5.9 percent growth for FY26 and built the city’s budget using three‑year averages and by removing one‑time expenditures from department base budgets. She told the committee the finance department now totals 57 full‑time equivalents and that the budget office is fully staffed after recent hires.

City Manager Scott emphasized both strengths and risks: the city projects a general fund balance near $32.6 million at fiscal year end and maintains an emergency reserve that approaches the Government Finance Officers Association guideline of 20 percent. \"So the $30,000,000 emergency reserve is definitely a positive for our city,\" Scott said, noting the city’s relatively low debt and manageable pension obligations compared with many other municipalities.

At the same time, Scott listed several budgetary risks: ongoing uncertainty about GRT revenues, rising liability exposure for self‑insured claims, deferred facility and equipment replacement reserves, and continued challenges recruiting in a tight labor market. He warned the governing body it may need to revisit the budget in a few months depending on revenue performance.

Oster described a planned reduction in recurring general‑fund accounting consultant spending and a coordinated reallocation of consulting costs across enterprise funds. That restructuring would free recurring funds to create two new finance positions — a capital budgeting specialist and a vendor‑management position — while leaving a smaller ongoing allocation for consultant support. She said the proposed structure includes $500,000 in recurring general fund dollars for accounting professional services and an additional $500,000 of one‑time funding for FY26; Public Utilities would carry $1,000,000 in enterprise funds for CLA support.

On personnel and compensation, Scott urged continued investment in employees: the proposed package includes a 3 percent across‑the‑board increase costing about $4.5 million across all funds and roughly $3.2 million in the general fund. Staff also plan to implement the remaining tranches of the class‑and‑comp parity adjustments in July and January as part of multi‑year compensation steps.

City projects and capital needs highlighted by Scott included Midtown infrastructure, Shelby Street pedestrian bridge, Cerro Gordo bridge work, Warehouse 21 planning, ongoing street repaving financed partially through an approved $25 million debt issue, and wastewater treatment plant planning. He noted some projects have design funding but not construction funding.

Key technology and process initiatives presented by Oster include implementing the Questica budgeting system, migrating procurement functions to OpenGov, expanding Munis functionality for capital asset and grant accounting, and deploying an RTA fleet management tool. Oster said these investments are intended to modernize business processes and reduce long‑term reliance on consultants.

On accounting and audits, Oster said the finance team is back on a normal audit cadence after an accelerated period; the FY25 financial statement and compliance audit is expected to be completed on schedule and the city is issuing an RFP for audit services.

Committee action: After discussion, the Finance Committee voted to give preliminary approval to the Finance Department budget as presented. A roll‑call vote recorded four yes votes and one absence (Councilor Lindell); the committee will consider department‑level hearings in coming days as FY26 reviews continue.

Ending: City staff said they will continue to monitor GRT and national indicators and may return to the governing body for adjustments if revenues diverge from current assumptions.","mediaType","Video","parentTitle","Budget Meeting 4/24","oneSentenceSummary","City Manager Scott and Finance Director Emily Oster presented a conservative FY26 budget overview emphasizing a $30 million emergency reserve, a proposed 3% across‑the‑board pay increase and targeted investments in finance staffing and technology.","taxTitle","Santa Fe, Santa Fe County, New Mexico","taxId",2727,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6262608,"Contracted economist warns tariffs and lower consumer sentiment cloud Santa Fe revenue outlook",1603,827000,2430000,"/Search/View?dp=1&key=3114889-e66fec90c5ab5ce036391b397ad437ba&start=827&end=2430","https://assets.pipeline.soar.com/3114889-e66fec90c5ab5ce036391b397ad437ba/thumbnail_827000.jpg","/articles/6262608/Santa-Fe/Santa-Fe-County/New-Mexico/Contracted-economist-warns-tariffs-and-lower-consumer-sentiment-cloud-Santa-Fe-revenue-outlook","https://secure.pipeline.soar.com/6262608-c8ad15ab5afb4ee0ab595ffdbe2c6673/orig.mp4?Expires=1771137983&Signature=itnVH3qLU6nDTD86ZFbg1BjsMTRhKVZkEruC1tzOWkrBUJhzClnX20joQi3Xd9UO81pcXGREHAk2Ze06-kiOAaUNfQ4CXX1~3FWuZTHYMc-AKHOEPZVMiGHhVFUVwRodub6Ko5DQNtb~znFgcgCPRiUUFOlknN9oqmhYhfU~R7aaFGUcMpWxVfaOehi5uUOl1XbEK6i-D4U5RXJXEzsGVMF2I~MmzwxlJuj1VC74BBoe3zEeLpAkmsru2zIpLIQpnmEBN6Qmw0k06XTuGj~mH5R~dLt6ZoeJATKRjWhxIYM3Rjt5xodvjz~r2LilGQRXg8Vf3G1IsLrKAkwTXokFxw__&Key-Pair-Id=KUT5TJCACFTXG","Dr. Riley White, a tenured professor at the University of New Mexico who serves as the city’s contracted economist, told the Finance Committee on April 24 that rising tariffs and falling consumer confidence have raised the odds of a U.S. slowdown and can weigh on Santa Fe’s revenue outlook.

\"We never really recovered our pre‑COVID certainty,\" White said, explaining that consumer sentiment — a key predictor of spending — has trended downward since 2020 even as overall spending remained elevated in recent years.

White told members the Federal Reserve’s real‑time GDP models showed a sharp pullback in early 2025, driven largely by companies front‑loading imports ahead of newly announced tariffs. Federal Reserve indicators cited by White tracked first‑quarter GDP near negative 2.8 percent, a figure he described as significant but subject to revision as subsequent monthly data arrive.

Why it matters: Santa Fe relies heavily on GRT, which is strongly correlated with consumer spending and tourism. White said the city’s top 10 percent of earners account for roughly 50 percent of spending nationally; because Santa Fe is a tourist economy that draws high‑spending visitors, those households have so far helped hold up local activity even while middle‑ and lower‑income household spending cools.

White outlined several possible revenue scenarios for the city: a base case of continued but slower growth in GRT; a low‑end scenario tied to prolonged trade restrictions and weak demand that could produce a modest multi‑year decline; and a higher‑end scenario in which current weakness proves short‑lived. \"The most likely scenario for GRT is actually a continued slow, slower than previously increased, but a continued slow uptick,\" he said.

Local indicators White flagged for Finance Committee members included housing and rental markets that are showing signs of softening: he cited a Santa Fe Redfin median single‑family sale price of about $612,000 and a median days‑on‑market near 108 days, compared with New Mexico’s median price of roughly $371,000. Apartment rents in Santa Fe were shown in his slides near $2,200 per month on average.

White emphasized the transmission risk from tariffs to inflation and interest‑rate policy: higher import costs can push up prices, which in turn can make the Federal Reserve less inclined to lower interest rates, he said. That dynamic raises the risk of a stagflation‑style outcome, with muted growth and still‑elevated prices.

Committee response and next steps: Committee members asked few technical questions during White’s presentation. The economist closed by saying his forecasts use a range of estimates (low, median, high) and that the city’s most likely GRT trajectory is a modest upward trend with downside risks if tariffs and global conditions deteriorate.

Ending: White urged the committee to treat the current outlook as a cautionary input into revenue forecasting for the FY26 budget and recommended monitoring near‑term national releases for confirmation of first‑quarter weakness.","Dr. Riley White told the Santa Fe Finance Committee on April 24 that new federal tariffs, falling consumer sentiment and weaker GDP readings raise downside risk for locally important gross receipts tax (GRT) revenues, though tourism and high‑income consumer spending have so far buffered the city.",{"_33":88,"_35":36,"_37":38,"_39":89,"_41":90,"_43":91,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6262599,"Unions press for contract funding, workplace improvements and retention in FY26 budget hearings",490,3075000,3565000,"/Search/View?dp=1&key=3114889-e66fec90c5ab5ce036391b397ad437ba&start=3075&end=3565","https://assets.pipeline.soar.com/3114889-e66fec90c5ab5ce036391b397ad437ba/thumbnail_3075000.jpg","/articles/6262599/Santa-Fe/Santa-Fe-County/New-Mexico/Unions-press-for-contract-funding-workplace-improvements-and-retention-in-FY26-budget-hearings","https://secure.pipeline.soar.com/6262599-1e46d76edaad7f135aee4fbcf61eb4c2/orig.mp4?Expires=1771137983&Signature=YXhp8Uxm8rXeNt6dJ1nSjSW~hRVXpdI8FFYw4DJaeNWFSWGQQ5NBI0qodg5RnsTwkSM0kopDk-i-k47YLjBdtZIWpqzKyA4PKnsbQSKBEBc7WS4mAuSbsgm07jx8qLdX8yM3llxTUlvGq56DapQExSEv-Bg97kuORvfGDBqOb~ZPxmqM8-0Cem-JQsNhXN69NvCmitBTcOrqVjxsx1ESCRHd~IeSR5ZfK6Fdokak7Qu3LykloPqeVcfRGV9ZItZDkeBMg4UJnkawRHNmuJIoQjFng84vGHVd438BsCVNVde2NDvztIu5U-jBgqfMLUHJ4ayyuk4S3aQa-6ZNuCHQRw__&Key-Pair-Id=KUT5TJCACFTXG","Representatives from AFSCME Local 3999 and Santa Fe Firefighters Local 2059 addressed the Finance Committee on April 24, urging the city to fund a new collective bargaining agreement, improve working conditions for environmental services staff and continue investments that helped recruit and retain first responders.

Louis Damelo, AFSCME Local 3999, told the committee the union represents more than half of the city workforce and said the union’s contract is in arbitration. \"Our first ask is funding AFSCME's new collective bargaining agreement with the city of Santa Fe,\" Damelo said, adding that the city will need to budget for whatever the arbitrator determines. He also asked for one‑time funding for supplemental air‑conditioning units in environmental services trucks after members reported cabin temperatures above safe comfort levels.

Clinton Peterson, AFSCME secretary‑treasurer and member of the negotiating committee, told the committee vacancies and rising housing costs are squeezing workers: \"Our workers are simply being priced out of the housing market,\" he said, and requested a dedicated budget line to fund future collective bargaining outcomes.

Santa Fe Firefighters Local 2059 President Charles Gonzales briefed the committee on recruitment and retention gains tied to recent class‑and‑comp investments. Gonzales said the department received the largest applicant pool in several years and credited parity increases with helping retain personnel. He asked for continued financial transparency in negotiations and for investment in support services that had not grown in recent budgets.

Committee response: Members thanked union representatives for testimony and noted the budget includes a 3 percent across‑the‑board proposal and multi‑year class‑and‑comp tranches. Several councilors acknowledged ongoing vacancy pressures across city departments and said they expect the budget process to weigh employee compensation alongside other priorities.

Ending: Union leaders said they would continue negotiations with the city and monitor the budget hearings; members asked the committee to consider AFSCME’s request that the budget include a perennial line item to cover future bargaining outcomes.","AFSCME Local 3999 and the Santa Fe firefighters union told the Finance Committee on April 24 that collective bargaining funding, workplace safety improvements and recruitment/retention remain top priorities as the city finalizes its FY26 budget.","actionData","errors"]

Article not found

City managers and finance director present conservative FY26 budget; committee gives preliminary approval to finance budget

Contracted economist warns tariffs and lower consumer sentiment cloud Santa Fe revenue outlook

Unions press for contract funding, workplace improvements and retention in FY26 budget hearings