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Santa Fe introduces $521 million FY27 operating budget with pay increases, new positions and reserves
Summary
Mayor Garcia and city staff unveiled a $521 million proposed FY27 operating budget that includes a 2.5% across-the-board pay increase, 14 new positions, strategic reserves for repairs and capital, and a focus on shifting some contracted services in‑house.
Mayor Michael Garcia and city budget staff introduced the fiscal year 2027 proposed operating budget at the May 13 City Council meeting, highlighting employee pay increases, new positions and a push to move some contracted work in‑house.
The proposed all‑funds operating budget totals about $521 million and includes a 2.5% cost‑of‑living adjustment for city employees, the mayor said. Interim City Manager Brian Moya and Budget Officer Andy Hopkins outlined a range of staffing and program changes intended to strengthen city operations and reduce reliance on outside contractors.
“Balancing the budget is our immediate priority, and our first priority is to support our city employees,” Mayor Garcia said. The budget includes 14 new positions and reclassifications across departments. Notable additions flagged in the proposal include a broadcast and streaming production specialist and a full‑time language translator in constituent services; two project managers in economic development; two project managers in affordable housing; a public information officer; and a parks crew comprising seven positions to shift vegetation and encampment cleanups in‑house.
The budget also sets aside strategic reserves: $1.5 million for critical repairs and maintenance, $1.5 million for high‑priority vehicle and equipment replacement, and a capital reserve of $8.9 million for ongoing and emergency capital projects. Hopkins emphasized the goal of building long‑term fiscal stability and reducing recurring contractor costs where it is efficient to do so.
On ARU, the mayor said the budget does not cut the program, a point staff repeated amid public discussion of the unit’s reorganization. “As mentioned, ARU is not being cut,” Mayor Garcia said during the presentation.
Council members were briefed on the timeline for budget hearings: council budget review hearings were scheduled for May 14–15, with a finance committee review on May 26 and anticipated adoption on May 27, the city budget officer said.
The budget documents presented detailed fund-level assumptions, including a modest 6.7% projected increase in GRT and a 10.9% projected increase in property‑tax receipts in the all‑funds forecast. Staff said both projections were developed with an external economist and that GRT growth is moderating compared with recent years.
The council did not adopt the budget that night; the item was introduced and public hearings were set under the statutory calendar for review, revision and adoption later in May.
