Santa Fe city councilors boost spending for FY 2022 by 11%

Finance panel chairman says $347 million budget ‘realistic’ and ‘optimistic’

SANTA FE — It’s going to be a year of big spending for Santa Fe, after city councilors approved the fiscal year 2022 budget late Wednesday night.

The council’s unanimous approval came after hours of debate, both Wednesday night and during a series of budget hearings this month, during which city officials explained plans to increase spending in several areas.

That includes an allotted $347.3 million total for expenditures across all funds, an increase of 11% compared with the previous fiscal year, with increased investments across several departments.

Councilor Roman Abeyta, who heads the Finance Committee, said the pandemic presented challenges for creating a budget, such as conducting meetings online, but that he was happy with the final product.

“I’ve never had to do it under these circumstances,” Abeyta said, later applauding city staff for putting it together. “It’s realistic, it’s optimistic.”

City officials said the budget seeks to undo much of the austerity implemented last year in the wake of the COVID-19

pandemic, which tanked revenues as Santa Fe’s hospitality industry suddenly came to a halt.

Part of that is unfreezing 58 city positions, pay raises for some employees and department heads, and the city covering health care premiums for employees.

While the budget reflects a sense of optimism in the city’s finances, some councilors expressed plenty of concerns.

Union officials with the American Federation of State, County and Municipal Employees Local 3999, which represents about half of the city’s workforce, complained their workers would not receive an across-the-board raise like other employees.

Union employees, rather, will receive a pool of money and negotiate with the city on where and how those funds are spent. The city maintains the sum is “equivalent” to a 4% raise.

Councilor JoAnne Vigil Coppler addressed multiple concerns during Wednesday night’s meeting and criticized the city for making it seem as though union employees were receiving an across-the-board raise.

“If we meant something else, we should have said something else,” Vigil Coppler said.

City Manager Jarel LaPan Hill said the city’s messaging was consistent, but that she can understand why there was confusion.

Councilor Michael Garcia said the budget relies too heavily on cash reserves — around $10 million across all funds — and that it fails to account for a potential virus spike that could damage the local economy.

“I do believe that we’re being fiscally irresponsible in the sense of dipping into our reserves the way we are,” Garcia said. “If it wasn’t for entities like the federal government or state government, we would still be climbing out of the hole.”

He also criticized the budget for not anticipating a settlement with AFSCME over violations made while furloughing employees at the onset of the pandemic.

Some of the most discussed aspects of the budget, such as the city covering increases in health premiums, are being paid for out of cash reserves, Senior Budget Officer Andy Hopkins said. He added, though, that an emergency like the pandemic warrants governments to utilize reserves when necessary.

The budget does not include the $15 million the city expects to receive from the American Rescue Plan; officials have said adjustments will be made once the city receives the funds.