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Copyright © 2017 Albuquerque Journal

An estimated $63.3 million that Albuquerque has paid in legal settlements in law enforcement civil rights cases from 2010 to 2016 has resulted in a $40 million shortfall in the city’s risk management fund, which pays for uninsured losses, state Auditor Tim Keller wrote in a letter to city officials.

The city needs to substantially increase funding for the risk management fund to $6.3 million a year to cover the shortfall, Keller wrote in a cover letter to the city’s 2016 annual audit.

The city has budgeted from $2.1 million to $3.6 million a year to bolster the risk management fund in the past three years, he wrote.

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“In light of the city’s troubling trend of incurring more liabilities, it is appropriate and necessary for the city to better fund the (risk management fund),” Keller wrote in the letter addressed to Albuquerque Mayor Richard Berry.

Keller last month announced his bid for the Albuquerque mayoral race to succeed Berry.

A top Albuquerque official responded Monday that the city has implemented a plan to improve the financial health of its risk management fund.

The audit shows that city officials initiated a 10-year “risk recovery” plan in 2015 intended to bolster the risk management fund by allocating money from other city departments, subject to City Council approval.

Chief Administrative Officer Rob Perry also said in his written response to Keller that the city has adopted policing reforms intended to reduce the number of legal claims against the Albuquerque Police Department and the city.

Perry cited reforms that include the adoption of lapel cameras worn by police officers and crisis intervention training for all officers, intended to defuse potentially deadly situations.

Many of the reforms were adopted as part of the city’s 2014 settlement with the U.S. Department of Justice, which found that APD engaged in a pattern or practice of excessive force that violated the U.S. Constitution.

“Now that unprecedented policing reforms have been adopted and are being implemented, especially as it relates to individuals living with mental health issues, we are hopeful that future outcomes will be much improved” between police and the public, Perry wrote.

Albuquerque officials also said that the overall health of the city remains strong and it has Standard & Poor’s top bond rating of AAA.

Keller said the $63.3 million estimate of city payouts for legal settlements is based on data provided by the city.

Albuquerque paid $14,062,281 in law enforcement civil rights liabilities in fiscal year 2016, which ended June 30, according to city data provided by Keller’s office.

“The city is basically spending more than it can afford for settlements for police shootings and civil rights violations,” Keller said in an interview Monday. “That’s obviously a financial problem, which is why it shows up in our audit.”

Claims paid by ABQ

2010 – $6,079,942

2011 – $8,132,328

2012 – $1,985,101

2013 – $6,307,190

2014 – $14,958,354

2015 – $10,849,856

2016 – $14,062,281