Santa Fe officials optimistic about city’s recovery outlook
Finance director predicts sharp improvement over next two, three years
Santa Fe officials are optimistic about the city’s economic recovery as they start to get a clearer picture of its financial health heading into the next fiscal year and beyond.
Finance Director Mary McCoy said the city can expect a “V-curve” recovery over the next two or three years as more sectors of the economy return to normal and the federal government continues to provide assistance.
“We had a very quick, very sharp decline in our economic activity, and we are looking to come out of that over the course of the two-, three-year period as more businesses open up and not only see their taxable receipts recover, but also the city’s revenue recover at the same time,” McCoy said Monday.
Optimism surrounding the city’s recovery is based on early data indicators like February’s disbursement of December’s gross receipt tax, federal stimulus dollars and Santa Fe
County’s turquoise status in the state’s four-tiered system of COVID-19 business restrictions, she said. Turquoise is the highest rating, due to success in slowing the virus’s spread, and allows the fewest restrictions for business operations.
The city is a far cry from where it was this time last year.
Randy Randall, the city’s tourism director, said Santa Fe hotels lost
about 50 percent of their occupancy rate revenue in 2020 compared with 2019, a key indicator of economic decline in a city partly fueled by tourism.
He added that he expects hotels to see about a 50 percent recovery in 2021.
McCoy noted from February 2020 to January 2021, Santa Fe businesses lost about half a billion dollars in taxable revenue.
“We have never seen that level of decrease for our business activity in Santa Fe. Obviously that translates to the city’s revenue,” McCoy said. “But now we expect a very quick economic recovery as businesses are starting to open.”
McCoy added the $15 million the city expects to receive in direct assistance from President Joe Biden’s American Rescue Plan — and possibly more aid down the line — bodes well for Santa Fe’s recovery. McCoy also noted last year’s federal CARES Act disbursement to the city was key in buttressing the budget through 2020.
As the budget outlook improves, McCoy said, the city hopes to address key service concerns through a series of budget adjustments over the next few weeks and months, including funds to boost police staffing and summer youth programs.
Last week, city officials said they were planning to increase the Affordable Housing Trust Fund to $3 million for the current fiscal year by adding $1.8 million. They pledged keep the fund at $3 million for fiscal year 2022.
The City Council is expected to vote on that budget adjustment Wednesday.
Santa Fe police Chief Andrew Padilla also announced the department was seeking to hire more personnel, both officers and civilian staff. Among the positions he plans to fill in May are one animal service officer, one police captain, one public safety aide and two patrol safety aides, he said, adding four officers are scheduled to start Monday.
The new additions would precede the mid-May graduation of six police academy cadets.
Padilla said the benefit for a lateral hire — an officer with experience on another force — versus a cadet is that a lateral officer only needs about one month of on-the-job training compared to 14 weeks for a cadet.
“We look forward to bringing as many laterals on as possible because they are a quick fix and they already have that experience,” Padilla said.
He said the department hopes to send another 10 to 15 cadets to the academy in July.
The hires will help address vacancies in the Santa Fe police force. Padilla said the department has 33 vacancies — which will increase to 35 after two officers retire in April. The department is budgeted for 169 officers.
The Santa Fe Police Department also will undergo a workforce assessment by an outside firm to study the department’s organizational structure and staff levels.
The city also plans to retire its recreation-on-wheels program, in which a van brought activities to families across Santa Fe, in favor of a return to its traditional summer youth program.
The city of Santa Fe canceled its youth program in the summer due to the coronavirus pandemic, but Melissa Bustos, the city’s youth program coordinator, said it will return this year at pre-coronavirus numbers.
The program will employ 80 temporary staff — made up of teens and young adults — and serve up to 800 children.
McCoy said staff members will likely be hired throughout May, with activities restarting in June.