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(A) General Loan Funds. General Housing and Community Development Loan Funds are derived from Federal and State sources.
(B) Approval. That "Exhibit A" to Resolution No. 88-2001, the Community Development Block Grant Housing Rehabilitation Loan Program including the "Pilot" Eligibility Category to leverage City funds and which will be tested for one year to determine if it should become permanent, is adopted for use by the city.
(C) Housing Advisory and Appeals Committee. The same Housing Advisory and Appeals Committee ("HAAC") established in the Housing Code shall continue to have, in addition to the authority, functions, and procedures provided therein, the following duties and responsibilities as established by previous Resolutions:
(1) Advise and provide guidance to the staff of the Department of Family and Community Services in the areas of the Housing Rehabilitation Program and Planning Housing Code Enforcement.
(2) Make recommendations to the Mayor, Chief Administrative Officer and City Council in said areas.
(3) Consider waivers for the Community Development Housing Program as set forth in "Exhibit A" attached to Resolution No. 88-2001 and the Regulations promulgated pursuant to this section (the "Regulations") in the following respects:
(a) Waiver of the income limits may be granted in those circumstances after the execution of the note and mortgage where there is evidence that the mortgagor has been unable to make the full amount of the payments over a period of one hundred and twenty (120) days and there has been a substantial change in financial ability to make such payments from the time the loan was granted. Further, the modification to the loan agreement cannot jeopardize or impair the security given. Loan modification agreements that do not reduce the interest rate or extend the term of the loan beyond the maximum period provided for in "Exhibit A" and the Regulations are not required to be reviewed by the Committee.
(b) Increase of the maximum loan limit. This limitation may be increased provided that the additional funds are necessary to eliminate a serious health and/or safety hazard to occupants and/or neighborhood and the total amount loaned shall not exceed the amount allowed to be approved by HAAC pursuant to the Regulations.
(c) Increase of the 90% loan to value ratio underwriting standard, up to a maximum of 97% for low interest loans.
(4) Hear appeals of contractors who have been removed from the Active Contractor's List. Appellants shall provide and pay for the cost of all services required to transcribe the proceedings of such appeals for the benefit of the Committee, and to provide a record of the proceedings to the City.
(5) Hear disputes between the property owner and the contractor concerning the rehabilitation of the property that cannot be resolved by the Rehabilitation Section.
(6) Review all applications for loans to City employees in order to ascertain that they conform to the Rehabilitation Program Regulations.
(7) Review such other functions that may be assigned by the Mayor or Chief Administrative Officer or provided for by City Council action.
(8) Review reports and guidelines of non-governmental sub-recipient agencies and hear and determine appeals brought to the Committee by participants in such programs for which appropriations from Community Development funds are made by the City Council.
(9) The Housing Advisory and Appeals Committee may establish appropriate rules and regulations for carrying out the functions set out herein.
(D) (1) It is the intent of the City Council in appropriating funds to sub-recipient agencies that such funds shall be utilized to benefit low and moderate income persons as the same are defined by the U.S. Department of Housing and Urban Development and to upgrade existing housing stock in the program area in accordance with the Housing and Community Development Act of 1974, as amended, and that such intent shall be strictly construed.
(2) Except as provided herein, non-governmental sub-recipient agencies operating programs for which appropriations from Community Development funds are made by the City Council are not required to comply with the Rehabilitation Program requirements. However, such sub-recipient agencies shall:
(a) Develop loan policies and guidelines, which shall govern the operation of such programs and provide copies to the City's Housing Advisory and Appeals Committee for their review and approval.
(b) Certify to the City that their loan policies, guidelines and their program operations are in compliance with all applicable federal, state and local laws, regulations and ordinances.
(c) Certify that the amount of a loan to a program participant plus the total of all encumbrances against the property securing the loan shall not exceed the appraised market value of the property as determined by a qualified appraiser.
(d) Maintain a fidelity bond in the amount specified by the Mayor or his designee naming the City as a Loss Payee.
(e) Grant the City, U.S. Department of Housing and Urban Development, and the Comptroller General access to all of its records with respect to its program operations.
(3) The Mayor or his designee shall, by contract with such sub-recipient agency, establish procedures, policies and requirements as necessary to insure compliance with this section and with applicable laws, regulations and ordinances.
(4) The City's Housing Advisory and Appeals Committee shall be provided with all required reports submitted by sub-recipient agencies. The Committee shall hear appeals of program participants when such participants are unable to resolve complaints or disputes with the sub-recipient agency. Such sub-recipient agencies shall develop appeal procedures for appeals to the Committee and shall disseminate same to its program participants. The conduct of such appeals before the committee shall be in accordance with the Committee's standard procedures. The agency whose decision is appealed to the Committee shall furnish to the Committee all information contained in its records pertaining to the appellant. Such agency shall provide a representative to present its side of the appeal to the Committee and shall further have available any other persons necessary to present the facts of the case. The decision of the Committee in all such appeals shall be final.
(E) Modified bid process.
(1) The City Rehabilitation Loan Program shall establish a modified bid process for the selection of rehabilitation contractors by homeowners participating in the program. The bid process shall provide that contractors on the active contractors list will receive notice of all rehabilitation projects financed through the program and those who desire to carry out a project must submit a sealed bid on the project that conforms to the specifications prepared by program staff. Any responsive contractor whose bid is within 10% of the city's cost estimate will be eligible for selection by the homeowner. The contract for the project will be between the homeowner and the contractor that has been selected.
(2) This division shall be effective for all rehabilitation loans closed subsequent to enactment of Res. 2-2003.
(3) The Department of Family and Community Services shall promulgate regulations to effectuate the provisions division.
(Res. 53-1992, approved 5-12-92; Am. Res. 23-1994, approved 3-11-94; Am. Res. 29-2000, approved 3-21-00; Am. Res. 88-2001, approved 6-1-01; Am. Res. 2-2003, approved 1-16-03)
Editor's note: Program History: The city's Housing Rehabilitation Loan Program was initiated by the passage of Resolution 139-1975. The program was subsequently completely revised and updated by Resolution 74-1986, and again by Resolution 88-2001, which repealed the prior resolutions defining the Program.
(A) The city shall require all new construction of publicly subsidized housing to be designed and constructed to accommodate the needs of the handicapped as outlined in the applicable provisions of Chapter 41 of the New Mexico Uniform Building Code and as illustrated in Removing Architectural Barriers, published by the New Mexico Department of Education, Division of Vocational Rehabilitation, as attached. The provisions of this section are not applicable to publicly subsidized housing which has progressed beyond the schematic stage as of the effective date of this section.
(B) The city shall make at least 3% and up to 10% of its publicly subsidized housing available for congregate or group use, suitably designed to meet the needs of the mentally and/or physically handicapped.
(C) The city shall make housing rehabilitation funds available to low and moderate income handicapped persons or low and moderate income families with a handicapped member who are living within a Community Development Area designated as such under the New Mexico Community Development Law. Housing rehabilitation funds may be used to bring current housing up to the adopted Rehabilitation Standards for Community Development Areas and to modify the existing dwelling unit to meet the special design needs of the handicapped person or member of the family as illustrated in Removing Architectural Barriers, published by the New Mexico Department of Education, Division of Vocational Rehabilitation.
(D) The city shall seek additional housing rehabilitation funds to be made available on a city-wide basis to low and moderate income handicapped persons or families with a handicapped member in order to bring their current home up to code and to modify it to meet the special design needs of the handicapped persons as illustrated in Removing Architectural Barriers, published by the New Mexico Department of Education, Division of Vocational Rehabilitation.
(E) The city shall seek the advice of handicapped citizens and service agencies to help evaluate housing and related services and to develop a program to aid the handicapped in our community.
(Res. 77-1976, approved 5-25-76)
(A) Resolution repeal. This Resolution shall repeal R-52, Enactment 74-2000.
(B) Policy objectives. The objectives of the City of Albuquerque's affordable housing policy are to:
(1) Implement the policy (D-5-a) established by the Albuquerque/Bernalillo County Comprehensive Plan, that the opportunity to obtain standard housing for a reasonable proportion of income be assured for Albuquerque residents;
(2) Increase the supply of rental and home ownership housing that is affordable to very low-income, low-income and moderate-income households; and
(3) Support and enhance the development of Workforce Housing as spelled out in F/S(3) O-06-8, The Workforce Housing Opportunity Act; and
(4) Ensure equal treatment of all residents, especially very low-income, low-income and moderate-income households, in pursuing affordable housing opportunities; and
(5) Mitigate homelessness by adopting effective housing relocation strategies.
(C) Defining an affordable housing policy.
(1) The City shall have a housing policy that identifies all City actions that impact affordable housing including decisions regarding residential development made by any Department or Board, Commission, or Committee convened by the City. This shall include but not be limited to development of Sector Plans, implementation of the Planned Growth Strategy, downtown development, redevelopment, development of the 5-year Consolidated Plan, Albuquerque Housing Services 1-Year and 5-Year Plans, and Planned Communities such as Mesa del Sol; and
(2) The City shall establish percentages and types of affordable housing required in developments that receive an injection of local, state, or federal resources, or material assistance; and
(3) The City shall consider establishing the number of units and types of affordable housing required in each City quadrant, or identify some other type of formula to distribute affordable housing throughout the City to meet the affordable housing need; and
(4) The City shall establish an effective relocation strategy to help mitigate homelessness.
(D) Definition of affordable rental and for-purchase housing.
(1) Rental housing shall be considered affordable if: (1) the rent does not exceed the fair market rents established for the Section 8 program of the City of Albuquerque or rent levels established by other federal, state or local affordable housing programs currently in existence or that may come into existence in the future; and (2) households are required to spend no more than 30% of household income on rent and utilities.
(2) Homeownership housing shall be considered affordable if households are required to spend no more than 30% of household income, adjusted for family size, on monthly housing costs, or 35% under special conditions to be defined in the Workforce Housing Plan.
(E) Investment of City resources in affordable housing.
(1) Investment of City resources in affordable rental housing is appropriate if the housing is affordable to low- and moderate-income households throughout its useful life.
(2) Investment of City resources in affordable, for-purchase housing is appropriate if the project increases homeownership opportunities for low-income households and for moderate-income households who are first-time homebuyers or households who have not owned a home for three years.
(F) Revised income definitions.
(1) Following are income categories for the HOME Program in the Department of Housing and Urban Development (HUD):
(a) “Extremely Low-income” households have incomes that do not exceed 30% of the median family income for the Albuquerque Metropolitan Statistical Area (MSA) adjusted for family size.
(b) “Very Low-Income” households have incomes between 31% and 50% of the median family income for the Albuquerque MSA adjusted for family size.
(c) “Low-income” households have incomes between 51% and 60% of the median family income for the Albuquerque MSA adjusted for family size.
(d) “Moderate-income” households have incomes between 61% and 80% of the median family income for the Albuquerque MSA adjusted for family size.
(2) Households whose incomes do not exceed those as defined by other federal, state, or local programs currently in existence or that may come into existence that provide affordable ownership and rental housing to targeted groups are covered under this Section.
(G) Defining the roles and responsibilities of the Affordable Housing Committee.
(1) The primary responsibility of the Affordable Housing Committee (AHC or Committee) shall be to advise the City on policies and activities related to affordable housing. The AHC shall carry out these responsibilities as follows: (1) recommend City policy and strategy initiatives aimed at increasing access to safe, decent and affordable housing for all residents, especially low- and moderate-income households; (2) recommend ways to increase production of affordable housing by all sectors of the economy; (3) serve as the advisory committee to the Albuquerque Citizen's Team (ACT) to develop the Workforce Housing Plan and Needs Assessment and conduct an annual review of Plan progress; (4) work with city staff to develop methods to mitigate and reduce homelessness, and to develop effective housing relocation strategies to mitigate homelessness; (5) assist in efforts to streamline the City’s regulatory system.
(2) The City may request and consider recommendations from the Affordable Housing Committee to address the impact on affordable housing production or lack thereof when decisions regarding residential development are made by any Department or Board, Commission, or Committee convened by the City. This shall include but not be limited to development of Sector Plans, implementation of the Planned Growth Strategy, downtown development, redevelopment, development of the 5-year Consolidated Plan, Albuquerque Housing Services 1-Year and 5-Year Plans, and Planned Communities such as Mesa del Sol; and
(3) The City shall request and consider recommendations from the Affordable Housing Committee to establish percentages and types of affordable housing required in developments that receive an injection of local, state, or federal resources, or material assistance; and
(4) The City shall request and consider recommendations from the Affordable Housing Committee at such time as the City may begin consideration of establishing a means to distribute affordable housing throughout the City to meet the affordable housing need; and
(5) The City shall request and consider recommendations from the Affordable Housing Committee to establish an effective housing relocation strategy to help mitigate homelessness for consideration by the Mayor and Council.
(6) The Mayor shall appoint the members of the Committee with the advice and consent of the Council. The AHC may make recommendations to the Mayor for appointment and reappointment to the Committee at the expiration of member terms or upon their resignation. The AHC shall select a Chairperson who shall be a Committee member from the private for-profit or not-for-profit sector.
(7) The AHC shall consist of 12 members representing the following industries and community sectors: two low- and moderate-income residents or advocates, one of whom may represent the legal and Fair Housing sector; one representative from the housing building industry; two representatives of the housing lending industry; one representative of the not-for-profit housing development sector; one individual who represents housing needs of people with disabilities; one senior citizen advocate; two representatives from the Department of Family and Community Services, one of whom represents Albuquerque Housing Services; one representative from the Department of Planning; and one representative from the Department of Municipal Development. Non-City staff members shall be appointed for staggered three-year terms. The Committee may recommend Subcommittees that may include non-AHC members. Each Subcommittee shall include at least one member of the AHC who shall serve as the Subcommittee Chairperson.
(8) The Department of Family and Community Services or the Planning Department shall provide staff assistance to the AHC and its Subcommittees.
(Res. 134-1992, approved 9-30-92; Am. Res. 71-1998, approved 8-17-98; Am. Res. 74-2000, approved 8-21-00; Am. Res. R-2005-050, approved 4-18-05; Am. Res. R-2007-011, approved 2-27-07)
(A) The Ten-Year Comprehensive Neighborhood Development Plan for Housing and Economic Development in the Pocket of Poverty attached to Resolution No. 108-1993 is hereby adopted.
(B) The Ten-Year Comprehensive Neighborhood Development Plan for Housing and Economic Development in the Pocket of Poverty shall be used by the Committee as a guide for development of two-year programs for utilization of fund income.
(C) $50,000 of the uncommitted fund balance is hereby appropriated to the Convention Hotel (Legal Services/Miscellaneous) Project in the Metropolitan Redevelopment Fund (275) and that any expenditures from this project will be reimbursed when paybacks from the Albuquerque Plaza UDAG are received.
(Res. 108-1993, approved 8-2-93)
Section
General Provisions
3-5-1 Energy policies
3-5-2 Joint water/sewer fund and refuse fund financial management and rate setting guidelines
3-5-3 Solid waste convenience centers; neighborhood meetings
3-5-4 Ground Water Protection Policy and action plan
3-5-5 Guidelines for public systems for a portion of the area west of the Rio Grande
3-5-6 Expansion of utilities and development within the Petroglyph National Monument
3-5-7 Water Resources Management Strategy
Water and Sewer System Expansion Policies
3-5-10 Preface
3-5-11 Definitions
3-5-12 Location and construction standards
3-5-13 Water and sewer connection requirements
3-5-14 Private systems
3-5-15 Financing and allocation of costs of construction
3-5-16 Pro rata
3-5-17 Extension of or connection to lines outside city limits
Drainage
3-5-30 Drainage policy
3-5-31 Upgrade of North Glenwood Hills Arroyo storm drainage project
Flood Control
3-5-40 Reports on flood control projects
3-5-41 North and South Valleys flood control projects
3-5-42 Development of flood control protection in the Rio Grande Valley
Reservoirs
3-5-50 Storage of water at Abiquiu Reservoir
3-5-51 Domestic Water Reservoirs Planning Policy
Recycling
3-5-60 Recycling and long-term solid waste planning
3-5-61 Solid Waste Management, Recycling, and Waste Reduction Plan
Cross-reference:
The following goal is adopted: to provide leadership to promote a sustainable energy future that improves the environment and economy through increasing community energy efficiency by 10% by 1997. The following policies and strategies are adopted as the energy policy for the city.
(A) The role of the city.
(1) The Parks and General Services Department through the Resource Management Division, shall take the lead in developing energy saving programs and help other city agencies with energy programs and policies. Programs and activities should be coordinated through the Parks and General Services Department where possible and then integrated into budgets of the appropriate city departments with assistance and concurrence from the Department of Finance and Management. The city shall consider public and private benefits in terms of energy savings and cost savings.
(2) The Energy Conservation Council shall advise the Mayor and City Council on the city's energy policies and programs and will monitor the progress toward the goal on a regular basis in conjunction with the city's Energy Conservation Goals Committee.
(3) The energy policies will be reviewed and revised as needed, according to the advice and recommendations of the Mayor, City County, and/or Energy Conservation Council.
(4) Strategies.
(a) Fiscal years 1993-1994.
1. Establish a community energy database to assist with implementation of Energy Strategy programs by influencing decisions made by builders, commuters, businesses, and residents.
2. Identify and implement one cost-effective demonstration project that translates to the private sector.
3. Solicit outside funding sources for energy efficiency projects to leverage City funds.
4. Participate in and report semi-annually the New Mexico Public Service Commission's efforts to induce Integrated Resource Planning to determine optimal methods of obtaining electricity supplies.
5. Review and update the Energy Policies and Strategies every two years.
6. Establish a method of converting streetlights to high pressure sodium bulbs on a larger scale than is currently being achieved.
(b) Fiscal years 1995-1997.
1. Support state of New Mexico efforts to provide energy education and energy assistance among local government, state agencies, utilities, and other public and private entities.
2. Investigate opportunities to finance municipal activities through utility franchise agreements.
3. Prepare 5-year evaluation of Energy Policies in terms of progress toward the goal of reducing per capita energy consumption by 10%.
(B) Energy efficiency in city buildings.
(1) The city shall support energy efficiency projects of municipal operations where life cycle costing supports the expenditure as cost-effective.
(2) Strategies.
(a) Fiscal years 1993-1994.
1. Determine costs involved with participation in U.S. EPA's Greenlights program to increase lighting efficiencies in city facilities.
2. Compile comprehensive energy use data for municipal facilities and review administrative instructions to establish clear energy use guidelines in buildings.
3. Enhance the enforcement of the Life Cycle Costing Ordinance and distribute a manual to architects and engineers who design new and remodelled facilities for the city.
4. Develop an energy efficiency improvements plan for selected city facilities as part of the Capital Improvement Project (CIP) Decade Plan.
5. Identify applications for co-generation, self-generation, solar absorption air conditioning, renewable energy, and energy savings/performance contracting.
6. Compile a list of the most cost-effective energy efficient construction practices, particularly natural lighting and other solar elements, that could be included in a code for municipal buildings.
7. a. Explore the feasibility of purchasing energy services and/or supplies from energy management service companies and independent power producers. This would apply to energy savings or performance contracts and projects involving co-generation and self-generation.
b. Establish appropriate payback criteria for energy efficiency projects funded by: general fund; enterprise funds (rates); general obligation bonds; and revenue bonds.
8. Establish an In-House Energy Management Committee to achieve and coordinate all energy efficiency improvements to facilities submitted to the Capital Improvement Program and to control energy consumption in operations.
(b) Fiscal years 1995-1997.
1. Obtain a 10% energy reduction in city facilities in five years.
2. Develop justification for the creation of an Energy Savings Payback Fund to support an on-going energy management program to make continual energy efficiency improvements to municipal facilities.
(C) Energy efficiency in residential/commercial buildings and land use.
(1) The city shall encourage cost-effective energy savings in residential and commercial buildings, and associated development, by helping to develop or participate in federal, state and local programs, and modifying local building codes and land use zoning regulations towards that end.
(2) Strategies.
(a) Fiscal years 1993-1994.
1. Develop a coalition of professional, technical and environmental organizations, builders, developers, lenders and city staff to evaluate and demonstrate the effectiveness of solar and energy conservation measures in affordable housing projects and to offer an amendment to the Building Code encouraging the most cost-effective energy efficiency and solar measures.
2. Evaluate Home Energy Rating Systems (HERS), and implement a program for the Albuquerque area with cooperation from local realtors and mortgage lenders.
3. Determine and report on method(s) through franchised utilities to effect Demand Side Management, or energy efficiency programs and track their effectiveness.
4. Review sidewalk improvement/expansion requirements and ordinances to facilitate pedestrian use and allow public funding of sidewalks.
5. Demonstrate the energy and land use connection. As part of the community identity/sub-areas planning effort, designate one area as a demonstration project for energy-efficient buildings and transportation alternatives.
6. Identify infill opportunities by planning sub-areas and identify specific parcels within the sub-areas for possible rezoning or recommended energy-efficient project designs.
7. Establish requirements for bicycle, pedestrian paths, and park-and-ride criteria in new development permits.
(b) Fiscal years 1994-1997.
1. Construct at least ten miles per year of additional commuter bicycle/pedestrian paths with associated parking and bicycle lockers.
2. Establish an economic development infrastructure plan to promote energy efficiency in commercial, industrial, and residential developments.
3. Develop criteria for adopting a mandatory energy retrofit program on resale and rental properties.
(D) Energy efficient transportation.
(1) The city shall develop incentives for more energy efficient transportation modes and support activities to reduce gasoline and diesel fuel consumption throughout the community. The city shall do this primarily through promotion of alternatives to the private vehicle; where necessary, the city will also make the use of streets by private vehicles more energy-efficient.
(2) Strategies - High occupancy mobility.
(a) Fiscal year 1993-1994.
1. Expand transit service by providing a variety of transit user inducements including new routes, reduced headways, additional express service, fare reductions, free-fare zones, increased service hours, etc.
2. Promote greater transit ridership through an aggressive, on-going marketing and advertising campaign.
3. Promote increased ridership through enhanced service reliability, quality, and convenience through bus shelters, benches, and on-board rider amenities.
4. Expand efforts to support carpooling, ride sharing, and other high-occupancy vehicle (HOV) programs through various inducements such as employer subsidized parking fees, auto insurance, or auto maintenance allowances.
5. Develop a Downtown Core Parking Policy to balance redevelopment and parking requirements.
(b) Fiscal year 1995-1997.
1. Develop high capacity corridors by constructing and converting arterials to provide for priority HOV lanes and other such improvements.
(3) Strategies - Alternate mobility.
(a) Fiscal years 1993-1994.
1. Expand efforts to develop facilities designated on the Bikeways Master Plan, such as bike lanes, trails, and crossings.
2. Provide bicycle user incentives, such as lockers, bus carrier racks, and the elimination of barriers, including policy barriers to bicycle users.
3. Expand efforts to develop pedestrian facilities, such as sidewalks and pedestrian trails and crossings.
(4) Strategies - Trip reduction.
(a) Fiscal years 1993-1994.
1. Develop a city-wide policy for telecommuting for internal applications and promote the concept throughout the community. Demonstrate through a pilot project.
2. Work with employers on trip reduction strategies for employees and customers, and to establish day-care services within or in proximity to places of employment.
(b) Fiscal years 1995-1997.
1. Study auto facility pricing methods to reduce rush-hour travel, as well as the number of single occupant autos using street facilities, methods such as increased gas taxes, tolls, parking fees, and other congestion management measures.
2. Continue to support efforts to establish a rail link between Albuquerque and Santa Fe.
(5) Strategies - Vehicle efficiency.
(a) Fiscal years 1993-1994.
1. Support efforts to offer tax or purchase rebate incentives for vehicles having an EPA, city-average fuel economy of 20 miles per gallon or better.
2. Expand, where appropriate, efforts to convert the municipal fleet from gasoline and diesel to compressed natural gas, electricity, and other alternative fuels.
3. Develop criteria for replacing municipal vehicles with those designed to consume alternative fuels.
(b) Fiscal years 1995-1997.
1. Support state and national efforts to increase vehicle efficiencies and provide inducements for the production of vehicle engines designed to consume alternative fuels.
(6) Strategies - Roadway efficiency.
(a) Fiscal years 1993-1994.
1. Improve the system efficiency of the urban street network by reducing vehicle delay and out-of-direction travel. The types of projects involved include major intersection reconstruction, lane additions to arterials, and construction of new arterial roadways. Coordinate this through the Transportation Improvement Program to achieve a balance between high occupancy/alternate mobility and expansion projects. Priority will be given to road projects which support the city's goal of alternate modes of transportation and/or which are in high air pollution locations.
(b) Fiscal years 1995-1997.
1. Provide a smoother, more fuel-efficient surface for arterial and collector streets. Make this a high priority to the Transportation Improvement Program.
2. Implement a variety of roadway efficiency measures, such as the addition of left-turn lanes, signal coordination upgrades, bus bays and other congestion mitigation.
3. Consider the feasibility of making expressway/access management improvements such as upgrading existing arterials, within existing rights-of-way, and through measures such as limiting access to connecting cross-streets, including grade-separating facilities.
4. Promote and provide the opportunity for greater use of flextime, staggered work hours, and compressed work-week programs on a community-wide basis.
(E) Energy consumer education.
(1) The City shall encourage energy conservation and efficiency in the community through assertive, specifically targeted, education programs to develop a broad based energy awareness.
(2) Strategies.
(a) Fiscal years 1993-1994.
1. Determine consumer priorities and the level of public awareness of energy conservation measures through a needs survey or from existing state or regional information.
2. Increase public awareness on energy conservation and efficiency and renewable energy uses through displays, workshops and media publicity.
3. Develop and distribute an energy consumer guide listing the most cost-effective energy actions and energy-efficient appliances and where and how to obtain the products and/or services. Coordinate with utilities as a measured demand side management activity.
4. Conduct targeted workshops for citizens, realtors, buildings and designers on cost-effective energy efficiency and renewable energy technologies and proposed city initiatives such as the community identity program promoting infill development.
(b) Fiscal year 1995-1997.
1. Develop a coalition and infrastructure to promote Albuquerque as an energy-efficient and environmentally clean city in order to increase economic development.
(Res. 14-1994, approved 1-26-94)
(A) All future financial actions taken by the Joint Water/Sewer Fund and Refuse Fund be taken in conformance with the Financial Management and Rate Setting Guidelines, attached to Resolution No. 167-1986.
(B) This section shall become effective upon adoption and be applicable to the fiscal year 1988 and subsequent budgets.
(C) Definitions.
A or A-. A Moody's credit rating, or equivalent, for a bond which is considered an “upper medium” grade credit risk.
AA or AA-. A Moody's credit rating, or equivalent, for bond which is considered an “excellent” grade credit risk.
DEBT SERVICE COVERAGE. Income available for debt service divided by total debt service for the same period.
FAIR MARKET VALUE. The price an asset would bring if well advertised and sold competitively in the open market.
INCOME TRANSFER PAYMENT. Use of governmental revenues, derived from one sector of the population or the population in general, to provide economic support for another group or classification of citizens.
INTERGENERATIONAL EQUITY. The concept that presumes users of utility services from one generation or period will not be required to invest any more than is required to maintain services of adequate quality and reliability for their own use; and that future users of that same service will not be burdened with costs which represent costs of doing business from an earlier period.
INTERCLASS SUBSIDIZATION. A circumstance where one group or classification of customers is supporting the cost of providing services to another group by being required to pay more than their fair share of costs.
INTRACLASS SUBSIDIZATION. Refers to an instance where one subset of a class customers is subsidizing the cost of service to others within their same group.
LONG TERM DEBT. Debt with a maturity of more than one year after the date of issuance.
(D) Financial management and rate setting guidelines.
(1) Financial management.
(a) Accounting practices applied to enterprise funds must make it possible to determine whether they are operated at a profit or loss similar to comparable private enterprises;
(b) All services rendered by an enterprise fund to other funds of the city shall be billed for on the same basis that other users are charged, and all services received by the enterprise fund from other funds shall be paid for on the same basis that other users are charged;
(c) Enterprise funds must be reimbursed, at book value, for assets transferred to other city purposes; and at book or market value, which ever is higher, for assets sold for private use;
(d) A ceiling shall be established with respect to the maximum amount of annual revenue from utility expansion charges that will be treated as recurring income for the purpose of establishing rate requirements for the Joint Water/Sewer Fund. The amount of this ceiling shall be established on the basis of a study to be provided by the Fund for Council approval during its fiscal year 1988 budget hearing. The amount of this ceiling will be determined as a fixed amount, to be updated annually;
(e) Operating income should be sufficient to:
1. Ensure payment of obligations on a current basis, including adequate maintenance and repair;
2. Maintain credit ratings of “AA-” for the Joint Water/Sewer Fund and “A” for the Refuse Fund; and
3. Provide for minimum working capital balances and contingency reserves.
(f) Cash and investments in excess of the level required to maintain minimum working capital balances should be used for capital expenditures and maintenance of contingency reserves, as required;
(g) In addition to the maintenance of minimum working capital balances, contingency reserves will be appropriated and maintained at a level sufficient to provide for unanticipated, non-recurring events or emergencies. The amount of this reserve shall be established on the basis of a liability study to be provided by the departments for Council approval during its fiscal year 1988 budget hearing. The amount of the appropriation will be determined as a fixed amount, to be updated annually, or as a percent of projected annual operating revenues;
(h) Minimum annual operating fund transfers to the departments' capital improvement programs will be established. The amount of these appropriations shall be established on the basis of a cost/benefit study to be provided by the departments for Council approval during its fiscal year 1988 budget hearing. The amount of these appropriations will be determined as a fixed amount, to be updated annually, or as a percent of property and equipment in service, as of June 30 of the immediately preceding fiscal year;
(i) Operating transfers to capital will be included in a fund's cost base for the purpose of establishing rates;
(j) Long term debt will be executed only for the purposes of capital acquisition, including water rights purchases, replacement and refurbishment of plant;
(k) The Administration shall propose policies and procedures by which debt issued to finance enterprise fund capital projects will be sized and timed to meet annual capital improvement program cash flow requirements, rather than total project appropriations;
(l) The Administration will recommend to the Council increases in charges for services, or other effective measures, if prospective debt service coverage tests for proposed and outstanding bonds will not be met within the planning horizon of the departments' annual combined rate and budget proposal;
(m) Long term debt will not extend past the expected useful life of the facilities financed, and will not be so high relative to total operating expenses as to jeopardize a fund's credit rating;
(n) The impact on rates for existing customers from an expansion of services will be minimized. For this purpose, policies shall be established for the recovery of just and reasonable costs from those parties causing or directly benefiting from system expansion and growth. Existing policies together with any proposed changes, in this regard, will be summarized and provided by the departments for Council review during the fiscal year 1988 Budget Hearing.
(2) Rate design.
(a) Both inter- and intraclass subsidization should be minimized. Optimally, a customer or class of customers benefiting from a service should pay the full cost of such service, no more, no less. Generally, rates representing fully allocated costs of service should be maintained for all services in order to send clear economic signals regarding the cost and efficient use of those services. Where differences among users are significant and determinate, charges should, to the extent possible, reflect differences in the cost of providing service;
(b) Intergenerational equity should be maintained. Future rate payers should not be expected to pay for costs incurred to serve current customers and vice versa;
(c) City residents should not subsidize enterprise fund services provided to entities outside of the incorporated city limits and vice versa. However, the city reserves the right to earn a fair economic return on its capital investment to serve those entities, as compensation for financial risk incurred as a result of providing those services. A minimum charge of a 5% return on the investment allocated to provide such service is hereby established. Higher rates of return are permitted, if justified by prevailing market rates of interest and/or the value of service to those customers;
(d) Revenue stability should be protected. Rate adjustments should be adopted regularly, in small increments, in order to avoid revenue losses associated with reduced demand for services which can be precipitated by large, infrequent rate adjustments;
(e) When special situations require that factors other than the cost of service be considered in the final determination of rates, steps should be taken to minimize any discriminatory effect:
1. Concerns for the socio-economic impact of charges for services on individuals can best be resolved through the implementation of explicit, specifically targeted income transfer payments or credits which are to be reimbursed by the General Fund (as is the current practice for both the Water and Refuse Funds); and
2. Presentation of all annual budget/rate proposals shall include historical tables which show average bills and actual costs per unit of service. Comparative data from similar communities should also be provided, as available. Also, a department requesting a rate change must indicate likely effects of the new rates on the relative level of utilization of service by class of customer, and assuming utilization remains unchanged, calculate the percentage changes in average monthly billings and marginal rates to be paid for each class of service; and
3. Every request for a rate adjustment should also be accompanied by a qualitative assessment, where possible, of the impact of the rate change on incentives and disincentives to: conserve water, recover resources, and utilize city services instead of other alternatives such as using well water, septic tanks and disposing of wastes illegally.
(3) Financial performance ratios. The Joint Water/Sewer Fund and the Refuse Fund will also annually report their performance with regard to the following ratios over a five year period ending with the projected budget year, as part of each year's combined budget and rate proposal to the Council:
ENTERPRISE FUND FINANCIAL PERFORMANCE INDICATORS
Category Description
Liquidity a. Debt service coverage
b. Working capital as % of operating income
c. Liquid assets/current liabilities
d. Current assets/net assets
Leverage a. Long-term debt as % of net assets
b. Annual debt service as % of total expenses
Activity a. Operating ratio, i.e., total income/total operating expenses
(Res. 167-1986, approved 11-19-86)
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