By Jesse Jones, The Paper. — On the streets of Burque, it’s a tale of two financial realities: Automated speed cameras are bringing the city millions in revenue, while increasing police and fire costs are continuing to outpace the city budget’s projections. According to the city’s third quarter fiscal year 2026 revenue and expense report that Mayor Tim Keller sent to the City Council, rising public safety is projected to leave the General Fund about $11.1 million short of its $873.4 million budget.
Albuquerque Fire Rescue accounts for the largest share of the projected deficit, with its Emergency Response and Field Operations program running $6.8 million over budget toward an overall $8 million department overrun. The program funds firefighters, paramedics and emergency responses. The Police Department is projected to finish $4.4 million over budget, including an $8.4 million overage in its Neighborhood Policing program, which covers daily patrols and beat assignments. Municipal Development’s street services division also exceeded its budget by $3.3 million, but savings elsewhere put the department $922,000 under budget overall. Slowing commercial and residential construction pushed Planning Department building permit revenue 24% below expectations, reducing city revenue by nearly $3 million as commercial and residential construction slowed.
To offset some of the losses, the Automated Speed Enforcement Fund, created in 2022, is projected to bring in $6.7 million by the end of the fiscal year, nearly $2.9 million more than budgeted, thanks to higher fine collections and civil compliance fees. Gross Receipts Tax, the city’s largest revenue source, accounts for 69% of the General Fund and is expected to grow 3.8% this year. But the report warns that the projection does not yet account for the potential effects of the war in Iran or ongoing inflation.
The City Council will consider the report on its consent agenda Sept. 9. The mayor’s office said it will closely monitor departments facing potential budget overruns for the rest of the fiscal year.