Santa Fe staff propose shift to performance-based budget, new calendar and reporting

City officials presented a plan July 28 to change how Santa Fe builds and uses its budget, recommending a shift from a line-item spending document to a performance-oriented budget that ties dollars to measurable goals and recurring reporting. The proposal, led by Rod Gould, senior adviser and public engagement coordinator, called on the finance committee to direct staff to develop department goals, objectives and key performance indicators (KPIs), hold joint hearings with the full council, and adopt a performance budget framework this year. Gould said the budget “is probably the most important legislative action that any council takes” and argued a performance budget would make expected results clearer to residents and managers. Why it matters: Staff said the change would make the budget a clearer policy and management tool, not just a means of controlling spending. Under the proposed calendar, the council would set priorities in a special session this fall or at an early winter study session; staff would present mid-year performance checks in December; new department submissions with KPIs would be due in February; joint finance/council hearings would be held in May; and the adopted budget would be delivered to the state in June. What staff proposed: Gould and Andy Hopkins, the city’s budget manager, described a program of workshops, a smaller set of measurable objectives per department and a feedback loop so the council can see results mid-year. Hopkins cautioned the committee that building reliable performance indicators will take time and data: “It is not a sprint. It is a marathon,” he said, noting some indicators may require one to three years before they yield meaningful trends. Software and implementation: Director Oster told the committee the city is implementing Questica budget software to improve budget-to-actual reporting and transparency; staff warned the software rollout will require time and dedicated implementation resources. Hopkins cited other jurisdictions’ experiences with Questica and Munis integrations and warned that Albuquerque’s implementation stretched far longer than planners expected. Committee response: Members of the finance committee — including Councilors Cassatt, Lindell, Faulkner and Lee Garcia and Chair Romero Worth — voiced support for the concept while pressing for clarity on (1) state Department of Finance and Administration constraints, (2) who will own performance collection within the organization, and (3) how capital budgeting and funding sources will be treated. Hopkins and Gould stressed the need for senior-management ownership (mayor and city manager) of the performance program rather than placing sole responsibility on the budget office. Next steps: Staff said they will return with a proposed resolution and a draft of department goals and indicators this fall, and the committee instructed staff to proceed. Gould and Hopkins said they will present draft goals for council adoption in December and run periodic performance check-ins during the fiscal year. Ending note: Committee members said the proposal has the potential to produce more honest conversations about trade-offs in a constrained fiscal environment and to improve transparency about what the city delivers for its public dollars.