Bernalillo County

Recovery Plan Performance Report

August 31, 2021

American Rescue Plan

State and Local Fiscal Recovery Funds

Period covered: Award date through July 31, 2021
Bernalillo County 2021 Recovery Plan Performance Report 1

Current Officials of Bernalillo County, New Mexico

Board of County Commissioners

Charlene E. Pyskoty, Chair, District 5

Steven Michael Quezada, Vice-Chair, District 2

Debbie O’Malley, District 1

Adriann Barboa, District 3

Walt Benson, District 4

___________

Assessor

Tanya R. Giddings

___________

Clerk

Linda Stover

___________

Probate Judge

Cristy J. Carbón-Gaul

___________

Sheriff

Manuel Gonzales III

___________

Treasurer

Nancy M. Bearce

___________

County Manager

Julie Morgas Baca

___________

Deputy County Managers

Enrico Gradi, Community Services Division

Shirley Ragin, Finance Division

Lisa Sedillo-White, General Services Division

Greg Perez, Public Safety Division

Elias Archuleta, Public Works Division
Bernalillo County 2021 Recovery Plan Performance Report 2

Table of Contents

GENERAL OVERVIEW................................................................................................................................ 3

Executive Summary....................................................................................................................................... 3

Uses of Funds................................................................................................................................................. 5

Public Health (EC 1) - $4.5 million ........................................................................................................... 6

Negative Economic Impacts (EC 2) - $7.6 million.................................................................................... 6

Services to Disproportionately Impacted Communities (EC 3) - $9.5 million.......................................... 7

Premium Pay (EC 4) - $10 million ............................................................................................................ 8

Water, sewer, and broadband infrastructure (EC 5) - $74.6 million.......................................................... 8

Revenue Replacement (EC 6) - $18 million .............................................................................................. 9

Promoting equitable outcomes..................................................................................................................... 11

Community Engagement ............................................................................................................................. 12

Labor Practices............................................................................................................................................. 12

Use of Evidence ........................................................................................................................................... 12

Table of Expenses by Expenditure Category............................................................................................... 12

Project Inventory ........................................................................................................................................... 13

ARPA Contingency........................................................................................................................................ 13
Bernalillo County 2021 Recovery Plan Performance Report 3

GENERAL OVERVIEW

Executive Summary 

The American Rescue Plan Act (ARPA) identified Bernalillo County as an eligible local government 

to receive $131,911,293 in direct aid to combat the COVID-19 pandemic, including the public health 

and economic impacts. The distribution of the funding was in two 50% direct allocations (tranches) 

each of $65,955,646.50; the first one was received on May 19, 2021 and the second will be delivered 

12 months later. 

The mission of Bernalillo County is to be an effective steward of county resources and a partner in 

building a high quality of life for county residents, communities and businesses. Bernalillo County’s 

Recovery Plan supports the critical need for investments and improvements to existing infrastructure 

in water, sewer, and broadband. Additionally, the Recovery Plan addresses the need of public health 

and negative economic impacts to services to those communities disproportionately impacted. These 

objectives are aligned with the county’s Strategic Plan of Governmental Accountability, Public 

Safety, Economic Vitality, Community Health and Public Infrastructure.

County Manager Julie Morgas Baca is committed to facilitating the community’s recovery in 

meaningful ways to include collaboration with other entities to maximize this one-time infusion of 

ARPA funding, such as through completion of water and sewer projects and expansion of broadband 

to underserved areas within Bernalillo County. In developing plans, the county met with departments, 

outside agencies, and elected officials to discuss recovery needs that comply with the U.S. Department 

of the Treasury’s (Treasury) Interim Final Rule guidance. The suggested uses of funds based on 

priorities, were discussed in two public work sessions with the county’s Board of County

Commissioners (BCC) on August 19, 2021 and August 23, 2021. Based on comments and feedback, 

the final listing of projects and initiatives will be submitted for final approval by the BCC on 

September 14, 2021, therefore, no ARPA funds have been expended. Many of the projects are 

expected to start once BCC has approved the Recovery Plan in mid-September.

To ensure government accountability, the county pledges that the planned uses of funds will conform 

with the Treasury’s Interim Final Rule by being transparent and accountable for the use of ARPA 

funding. The county will establish an internal monitoring, review and reporting process; certify 

eligible expenditures; and adhere to reporting requirements. The Recovery Plan will be allocated 

prior to December 31, 2024 deadline and all ARPA expenditures will be completed by December 31, 

2026, as required by federal law. The county will review the plan regularly and reallocate priorities 

if necessary.
Bernalillo County 2021 Recovery Plan Performance Report 4

Bernalillo County is located in the central part of the state. Bernalillo County is 1,160 square miles 

and is New Mexico’s most populous county with more than 676,000 residents. Bernalillo County 

government provides a wide range of public services to residents who live in Albuquerque, Los 

Ranchos and Tijeras and the 106,000 residents who live outside the village and city limits in the 

unincorporated areas of the county. Bernalillo County employs approximately 2,500 people and has 

an annual operating budget and capital investments of more than $650 million. The Board of County 

Commissioners, each representing one of the county’s five districts, govern the county and are each 

limited to two, four-year terms. Commissioners are responsible to voters; however, their duties are 

defined and controlled by state law.

(Source: New Mexico Counties)
Bernalillo County 2021 Recovery Plan Performance Report 5

Uses of Funds

The following charts illustrate the allocations of the ARPA funding by expenditure category and 

commission district.
Bernalillo County 2021 Recovery Plan Performance Report 6

The county intends to use funds and institute strategies as follows:

Public Health (EC 1) - $4.5 million

In the need for public health measures to respond to COVID-19 which will continue in the months 

and potentially years to come. Bernalillo County has assessed a significant jump in behavioral health 

service needs and those most impacted by the pandemic. The following projects are proposed:

• A total of $2.25 million will be committed to the Young Adult Inpatient Substance Abuse 

Program. Young Adult Inpatient Treatment Services administered by the Department of 

Behavioral Health Services (DBHS) on the Comprehensive Assessment and Recovery 

through Excellence (CARE) Campus in the center of Bernalillo County to serve young adults 

(ages 18 - 21) with Substance Use Disorders (SUD). Many treatment programs are not 

designed to meet the developmental needs of young adults as they struggle with misuse of 

substances and its consequences. Programming is tailored to the needs of this population, 

which often is not yet ready to make a commitment to long-term recovery. Motivational 

Interviewing and Community Reinforcement Approach (CRA-A) are two best practices which 

meet young adults “where they are” and which recognize their needs with regard to substance 

misuse.

 

• A total of $2.25 million will be committed to the Outpatient Clinic (OPC) which incorporates 

two evidence-based best practices:

1. Integrated treatment of co-occurring disorders, addressing issues simultaneously in 

recognition of how they interact with each other.

2. Medication Assisted Treatment (MAT) for opioid use disorders, an established best 

practice for treatment of such disorders. 

Clinic staffing will include peer recovery specialists who can support the recovery process, 

and Case Managers who can assist with meeting the basic needs necessary for maintaining 

recovery. The Living Room model is an emerging best practice, whereby individuals in 

distress or crisis can access care without a formal intake into a large-scale, clinical program, 

which may for many be too intimidating. Peer recovery specialists will assist such individuals 

in determining what supports or services they might need in an informal, supportive 

environment.

Negative Economic Impacts (EC 2) - $7.6 million

Bernalillo County has received numerous funding requests from community members, county staff, 

and other organizations for those in the community most adversely economically impacted by 

COVID-19, The Bernalillo County recovery plan will administer the following projects with recovery 

funds in order to address and assist those negatively economically impacted by the pandemic. The 

following projects are proposed:

• Competency Evaluation Program - $388 thousand. The pandemic period has slowed the New 

Mexico criminal justice system and judicial processing, which has also caused complications 

in scheduling face-to-face appointments with defendants. The number of competency 

evaluations has also increased to over 30 requests per month. Bernalillo County proposes to 

address this with increased support to District Court’s competency evaluation program above 

its current county arrangement to provide an additional court clinician and a 0.5 FTE 

Competency Evaluation Program Manager. This will enable the program to complete 30 or 
Bernalillo County 2021 Recovery Plan Performance Report 7

more competency evaluations per month, reducing the back log and meet the statutorily 

determined completion timeline.

• Temporary County Court Complex - $100 thousand. The pandemic period has slowed the 

New Mexico criminal justice system and judicial processing, which has also caused 

complications with District Court proceedings and hearings being scheduled and conducted 

while meeting public health measures. This project will allow additional court proceedings 

and hearings to be conducted at a temporary facility to allow additional members of the public 

to be part of the judicial process and maintain the required health measures. 

• Partnership for Community Action (PCA) - Social Enterprise Center (SEC) expansion of 

services - $1 million. New program activities: The SEC will provide living wage jobs and 

wrap-around services including justice-centered work in economic security and early 

childhood education. Using 2Gen strategies, PCA works with families with young children 

for systems level changes including access to capital for racially diverse enterprises, micro 

lending, guaranteed basic income and access and equity within NM’s tax policies - including 

the federal EITC, Child Tax Credit and the state Working Families Tax Credit - initiatives 

proven to help children thrive. This work is supported through deep collaborations with homebased childcare business owners, microlenders, and asset building non-profits among them 

the Nusenda Credit Union, Prosperity Works, and SW Creations Collaborative. SEC 

programmatic initiatives will support thriving children, working families and equitable 

communities through proven popular education strategies including those of national partners 

Abriendo Puertas/Opening Doors, the Aspen Institute, and Communities Organizing on 

Family Issues (COFI). Job Creation: Direct jobs created by 2029: 77 full time jobs; Indirect 

jobs created by clients: 820 full time jobs.

• Other projects - $6.1 million. Additional project estimates are being formulated as materials 

and construction costs were dramatically impacted due to the high demand and supply 

shortages brought on by the public health emergency, COVID-19.

Services to Disproportionately Impacted Communities (EC 3) - $9.5 million

Bernalillo County is proposing to spend $9.5 million on services to disproportionately impacted 

communities. One of the pressing issues the county, as well as the rest of the country, is currently 

facing is homelessness. Geographically diverse communities from high cost urban areas to rural 

communities are experiencing high rates of homelessness, mental distress and substance use 

disorders. Low income communities have been disproportionately impacted by the pandemic-related 

recession and are in need of supportive housing assistance as well as affordable housing. Working in 

conjunction with Department of Behavioral Health Services and other departments, the county is 

committed to reviewing ways in which it can aid underserved populations who have been hit the 

hardest by the COVID-19 pandemic. The details of some projects are being finalized. The county is 

dedicated to focusing on the underserved, marginalized, and adversely affected groups in its vetting 

process.
Bernalillo County 2021 Recovery Plan Performance Report 8

Premium Pay (EC 4) - $10 million

Bernalillo County is proposing to spend $10 million of the ARPA funding for premium pay for 

qualified employees. Bernalillo County will pay a lump sum amount as premium pay on a quarterly 

basis, rather than increasing employees’ hourly rate of pay. Only employees who are considered 

essential workers in critical infrastructure sectors who regularly perform in-person work, interact with 

others at work, or physically handle items handled by others are eligible for premium pay. Both the 

lump sum premium pay and the employer share of FICA on the premium pay will be charged to the 

ARPA funds. All public safety employees and behavioral health employees will qualify. These 

include fire, sheriff, adult detention corrections officers, youth services detention officers, animal care 

officers, court security officers, dispatchers, behavioral health employees, and nurses. In addition to 

public safety, certain other employees that handle inventory, clean facilities, cook, run daycare and 

exercise facilities would also qualify.

Employees covered by a Collective Bargaining Agreement (CBA), are subject to the guidelines of 

the ARPA and any payout can only be granted through negotiations, per State Statute NMSA 1978, 

Section 10-7E-17 Scope of Bargaining and Section 10-7E-4 (F) Collective Bargaining. The County 

plans to negotiate with union groups with essential workers.

The County used the OIG guidance to calculate highly compensated employees “using the groups of 

workers for whom premium pay would increase total pay above 150 percent of their residing State’s 

average annual wage, or their residing county’s average annual wage, whichever is higher, on an 

annual basis.” Based on the guidance, the County used guidance 2020 data from University of New 

Mexico Bureau of Research and Economic Research (UNM BBER). Based on their report, Bernalillo 

County had the highest average annual pay in 2020 at $53,528. An employee is highly compensated 

in Bernalillo County if their salary is $80,292 or greater. 

Employees whose premium pay would increase total pay above $80,292 will receive half of the lump 

sum premium pay on a quarterly basis. These employees have oversight of essential workers and 

work with the public. 

Water, Sewer, and Broadband Infrastructure (EC 5) - $74.6 million

Bernalillo County is proposing to spend approximately $74.6 million of America Rescue Plan Act 

(ARPA) funding to improve the overall quality of life of county residents by investing in water, sewer, 

and broadband infrastructure. 

The county has completed necessary assessments, prioritized needs and collaborated with other 

entities. The county is proposing to spend approximately $64.6 million to build, rehabilitate, and 

improve water and sewer initiatives for underserved communities within the county. New 

infrastructure investment not only provides social benefits but also ensures our community will 

emerge from the COVID-19 pandemic. The county plans on utilizing staff from Public Works as well 

as partnering with local water utility companies to accomplish its goals. The proposed use of funds 

would be as follows:

1. Drinking water - $32.3 million

2. Clean water (sewer) - $32.3 million
Bernalillo County 2021 Recovery Plan Performance Report 9

Ten million of the funding would be to build broadband infrastructure that bridges the digital divide 

for residents and businesses in two targeted areas of the county:

1. The 87059-area code in the East Mountains area, (District 5) south and north of Interstate 40.

2. The far west side of Albuquerque (District 1), primarily along the Atrisco Vista Boulevard 

corridor, where economic development opportunities are emerging. 

The broadband infrastructure project will address unserved and underserved households and 

businesses in the East Mountains area, where geography, topography, and costs have prevented 

expansion. It also addresses future economic growth in the far west side of Albuquerque, where the 

Amazon Fulfillment Center promises future economic growth.

The county’s goal is that by building a core infrastructure hub in the two targeted areas, Internet 

Service Providers (ISPs) will commit to installing last-mile connections to residential and commercial 

customers via fiber, wireless, or satellite technologies. In that vein, the county is currently in the 

process of seeking partnerships with telecommunications contractors and service providers to ensure 

successful delivery of affordable and reliable broadband.

In accordance with ARPA funding requirements, the goal of the project is to deliver service to the

unserved and underserved households and businesses in the project areas internet speeds that are not 

currently served by a wireline connection that reliably delivers at least the minimum FCC threshold 

of 25 Mbps download and 3 Mbps upload speeds. In addition, as a requirement, the infrastructure hub 

must reliably meet or exceed symmetrical 100 Mbps download and upload speeds.

Revenue Replacement (EC 6) - $18 million

The county calculated revenue replacement to the extent of the reduction in revenue due to the 

COVID–19 public health emergency, relative to revenues collected in the most recent full fiscal year 

of the recipient prior to the emergency. The revenue replacement calculation as of 12/31/2020 was 

$17,986,816.

In calculating general revenue, the county started with all governmental funds (general fund, debt 

service funds, special revenue funds, and capital projects funds) and all enterprise fund revenues. The 

fund revenues used are the entity wide revenues from our own sources. Internal service revenues and 

transfer in accounts were excluded because they are internal charges or transfers of cash within the 

county. The county did not include any fiduciary funds since these are not our own source revenue. 

The county then subtracted out all federal revenues, which are identified by specific account numbers. 

The county also subtracted out bond proceed and bond premium revenues. The county does not have 

utility revenue as described in the Census Bureau’s manual, nor was there any of the other excluded 

revenues.

The county used the cash basis of accounting, as allowed in the Frequently Asked Questions 3.12. 

This was chosen because the Interim Final Rule required recipients to calculate revenue loss for the 

period ending December 31, 2020. This created significant challenges for the county in that audited 

records are prepared on a fiscal year end of June 30. Since our fiscal year end is different from the 

calendar year, on December 31, our revenue record would have a material accumulation of accruals. 

Revenue recognition adjustments are often required at fiscal year-end. At all other points in the fiscal 
Bernalillo County 2021 Recovery Plan Performance Report 10

year, revenues are typically recorded on a cash-basis. The increased audit risk of the December 31 

calculation is extremely problematic. 

It would take Bernalillo County a significant number of hours to provide accrual entries for all the 

revenues for both 1/1/2020 and 12/31/2020 to convert records to an accrual basis. The significant 

dollar entries would be calculated on property taxes and gross receipt taxes; however, there are 

numerous entries in all the revenue accounts that would need to be considered. The grants would 

take considerable analysis to make sure the revenues are recorded properly at December 31. The 

numbers would need to be reviewed by management and there would need to be consideration for 

auditing the data. Many counties across the country appealed to the Office of Inspector General to 

allow the audited year end to be allowed in the Interim Final Rule, but this was not changed.

Total estimated revenue reported was formulated through a twelve-month of total actuals reported 

from dates of 1/1/2020 to 12/31/2020 and a report and an average growth year over year report of 

total actuals from fiscal year 2016 to 2019. The cash basis method was used in both reports. All 

federal grant and or federal funding was excluded from the calculation. All transfers in, internal 

service fund revenue, and any bond related revenue or revenue that was used to pay bonds that got 

refunded was also excluded from the calculation. The budget view report in the enterprise resource 

planning financial management system Bernalillo County uses for financial reporting was used for

all reports. 

For total revenue the Bernalillo County used the appropriations and expenditures report generated

from the financial system for each year. 

House Bill 407 (HB 407) was enacted by the New Mexico Legislature in 2019. That statute sought 

to consolidate elections throughout the state by aligning local and school board elections with national 

and state elections. Local elections often contain mil levy and bond questions that affect property tax 

collections and distributions. Local elections were held on November 5, 2019. In order to mail an 

accurate tax bill that included any and all bond/mil levy questions, tax bills could not be printed until 

the election had been completed and certified by the state. As a result, a large portion of the 1st half 

of property tax collections that are collected in December for fiscal year 2020, were delayed and 

subsequently received in the calendar year 2020, which artificially inflated the revenue collection in 

the “actual base year” to $50,402,532 million. This is a significant increase over the $6,185,863 

million collected in the “base year. Without HB 407, the 1st half of fiscal year 2020 property taxes 

would have been collected by mid-December of 2019 and would not have been counted in December 

2020 calendar revenues. Bernalillo County and most counties in New Mexico were required by HB 

407 to delay tax collections, and consequently had a substantial increase in property tax revenue in 

the Treasury defined “actual base year”. 

Based on this timing change in property tax collections, the county estimated what collections would 

have been without HB 407. In order for Bernalillo County to calculate a more accurate estimate of 

what the actual revenue would have been in 2020, an average of the last ten years was used to 

determine what percentage of property tax collections was collected by December. It was determined 

that an average of 55.15% of the property taxes were collected by December 31 of each year starting 

in 2010 through 2019. The percentage was applied to December 31, 2019, which was the starting 

point for the 2020 year. Based on the calculation, the county expected that $89,150,813 would be 

collected if the due date was not delayed by a month. 
Bernalillo County 2021 Recovery Plan Performance Report 11

Proposed Uses of Revenue Replacement (Lost Revenue):

The estimated $18 million from the lost revenue calculation will be allocated to general government 

services including the proposed initiatives below, in which the details are being finalized:

• Commissioner initiatives.

• Employee initiative; focused on the lowest paid employees.

• Any other government services such as modernization of cybersecurity.

Promoting Equitable Outcomes 

Bernalillo County prioritized projects and programs based on the following criteria:

• Community need/benefit

• System preservation

• Project readiness

• Commission awareness

In its mission to promote equitable outcomes, the county will review and analyze low income data 

from HUD Qualifying Census Track (QCT), Economic Development Opportunity Zones, and Tribal 

communities.

The proposed distribution of funds prioritizes those geographical areas that typically have

marginalized communities. The map below illustrates where those communities are located within 

Bernalillo County’s five commission districts.
Bernalillo County 2021 Recovery Plan Performance Report 12

The legends below show statistical and geographical information for each district.

 

Community Engagement 

At a public meeting of the Board of County Commissioners on May 25, 2021, the first tranche of 

ARPA funding in the amount of $65,955,646.50 was accepted and budgeted. Additionally, approval

was received to commence analysis of water, sewer, and broadband projects. In developing plans, the 

county met with departments, outside agencies, and elected officials to discuss recovery needs that 

comply with ARPA Interim Final Rule guidance. Constituents and business owners reached out to 

commissioners and the county manager prior to the public work sessions held on August 19, 2021 

and August 23, 2021.

Labor Practices 

The county will follow all applicable labor laws. In accordance with the county’s current procurement 

ordinance (Bernalillo County Code Sec. 2-356 Rules of Construction) regarding prevailing wage 

requirements for construction contracts. Any ARPA infrastructure projects will be solicited with 

contracted labor, and the contract agreements requiring that contractors offer wages at or above the 

prevailing rate and include local hire provisions. Each infrastructure contract will be carefully 

considered whether to follow the county’s existing prevailing wage ordinance, or Davis-Bacon Act 

prevailing wage guidelines. Some of the water and sewer infrastructure projects will be overseen by 

the Albuquerque Bernalillo County Water Utility Authority (ABCWUA), and the proposed 

Memorandum of Understanding will include language that the ABCWUA follow Davis-Bacon Act 

requirements.

Use of Evidence 

The COVID-19 pandemic and the corresponding economic crisis has had a devastating impact on

minority groups in Bernalillo County. These groups have experienced a disproportionate number of 

COVID-19 infections and deaths as well as higher-than average unemployment rates. When final 

approval for the ARPA funding is received by the Board of County Commissioners, Bernalillo 

County will describe the goals and the evidence base for the interventions funded by each project and 

initiative. The projects and initiatives that have dollar amounts allocated toward evidence-based 

interventions will be clearly reported and tracked.

Table of Expenses by Expenditure Category

The county will utilize the appropriate expenditure category as defined in the ARPA Interim Final 

Rule. Detailed projects and initiatives will be presented for approval at the Board of County 

Commission meeting on September 14, 2021, therefore no ARPA funds have been expended to date. 

BCC District Incorporated 

Population

Unincorporated 

Population

Total 

Population

1 124,948 8,019 132,967

2 81,853 51,361 133,214

3 126,892 3,941 130,833

4 123,236 23,567 146,803

5 113,941 18,686 132,627

Total Population 570,870 105,574 676,444

BCC District Description of District Boundaries

1 Primarily covers the Far North Valley, primarily west of Interstate 25 from Paseo 

Del Norte to Central Avenue.

2 Covers the southernmost part of the County.

3 Is mainly within the City of Albuquerque limits.

4 Primarily runs east to west along the northernmost county boundary.

5

Covers the majority of the east mountain area east to the Santa Fe County line, 

and the Isleta Pueblo/Sandia Laboratory boundaries to the south, including the 

NM 14 south neighborhoods.
Bernalillo County 2021 Recovery Plan Performance Report 13

Project Inventory 

Pending approval. 

ARPA Contingency

A contingency has been established in anticipation of new initiatives or justified increases to 

previously approved projects.

Bernalillo County Communications Services Department; 2021; Bernalillo County; Ken Sanchez Commission Chambers

Prepared by Bernalillo County Finance Division