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§ 3-2-6 GUIDELINES AND FINANCIAL POLICIES FOR PROGRAMS WHICH RECEIVE FEDERAL FUNDS, OPERATING FUNDS AND BONDING MATTERS.
   (A)   The following guidelines and policies relating to programs which receive federal funds be utilized by the Mayor and City Council as part of their decision-making process in the approval of programs which receive federal funds.
      (1)   Guidelines for programs which receive federal funds.
         (a)   Many federal programs, including federal projects and federal seed money programs, which are available to local governmental units, are not necessarily consistent with local priorities.
         (b)   The local community, through its elected and community leadership is better equipped to set its own priorities than are other levels of government.
         (c)   The city cannot afford to support national priorities with local resources.
      (2)   Financial policy for programs which receive federal funds.
         (a)   The city should not accept funding from other levels of government for programs which do not meet local objectives.
         (b)   The city does not support the initiation of pilot projects which are inconsistent with local objectives.
         (c)   The city supports the continuance of federal and state funds for use by local government where local priorities are met.
   (B)   The following guidelines and policies relating to operating programs be utilized by the Mayor and City Council as part of their decision-making process in the selection of operating programs:
      (1)   Operating program guidelines.
         (a)   Local government has the primary responsibility for insuring the adequacy of traditional city services.
         (b)   Local government also must assume the primary responsibility for such other operating programs as its local community may demand and be willing to finance.
         (c)   Enterprise operations of the city should be run on a self-sustaining basis.
      (2)   Operating program financial policy.
         (a)   The city accepts as its first priority for funding those traditional city services which have been established as the primary responsibility of local government. For the purposes of this resolution, traditional city services shall mean those services which have been established by virtue of precedence as essential to the preservation of the health, safety and general welfare of the citizens of the city.
         (b)   The city accepts responsibility for other programs which the governing body of the city determines to have a high local public purpose. Inherent in such a local policy determination is the explicit recognition that the city need not accept the responsibility for programs which are based on a statewide, regional or national public purpose. Also inherent in this policy statement is the recognition that even where a high local public purpose can be demonstrated, the city need not assume responsibility for programs which have traditionally been the responsibility of other organizations within the community.
         (c)   Fees which are charged in connection with existing city programs should be studied on a periodic basis and adjusted when appropriate. Programs which are defined as enterprise operations should include charges which will insure that the program is self-sustaining.
   (C)   The following guidelines and policies relating to bonding should be utilized by the Mayor and City Council as part of their decision-making process as it relates to bonding matters:
      (1)   Bonding guidelines.
         (a)   The city has supported a tradition of stability in the ad valorem tax rate for capital improvements.
         (b)   Debt service should be included as a cost of operation for enterprise functions.
         (c)   The city should limit its capital projects to funds available for capital purposes.
      (2)   Bonding financial policy.
         (a)   The ad valorem tax rate should not be increased to support new bond issues.
         (b)   Fees charges for services in enterprise operations should generate revenues sufficient to cover debt service resulting from the issuance of bonds for capital improvements and assure the continued financial self-sufficiency of the enterprise function.
         (c)   Capital projects which would require the continuing use of general operating funds and thereby reduce amounts available to support basic services should be discouraged.
(Res. 2-1977, approved 2-3-77)