Rio Rancho Governing Body Special Work Session – May 2, 2025

The Rio Rancho Governing Body held a special work session on May 2, 2025, from 9:00 AM to 10:48 AM to review the City Manager's Recommended FY26 Operating Budget and the Infrastructure and Capital Improvement Plan (ICIP) for FY26-30. The meeting began with the Pledge of Allegiance and a reminder that no public comment would be taken at this session; public hearings are scheduled for May 8 and May 22. The Council reviewed each department's line items in detail, discussed new program proposals, and received a summary of the city’s significant financial growth since 2015. No amendments were proposed, and the budget will be formally voted on at the May 22 governing body meeting.

Municipal Court FY26 Budget Request

• Municipal Judge Robert Cook presented the court’s budget as essentially flat. He thanked city staff for assisting with needed projects, including replacing 25-year-old carpet and retiring an old vehicle. Councilor Tyler praised the partnership between court staff and city staff.

City Manager Response to Mayor's Comments on Recommended FY26 Budget

• City Manager Matt Geisel reported that Mayor Hull had reviewed the recommended budget and submitted comments per City Charter Section 6.04. The Mayor’s comments did not include any proposed amendments, so the City Manager incorporated all comments. The recommended budget is balanced and supports the City’s Strategic Plan. Geisel noted that Councilor Culbreath was absent due to a prior commitment but had submitted written comments and observations for the Governing Body.

Line Item Review of FY26 Recommended Budget

• Mayor Hull led a line-by-line review of all departments. Key discussions included:
  • Strategic Planning and Initiatives Fund: Geisel explained that this fund, created two budget cycles ago, provides cash flow for major projects (e.g., Unser Boulevard widening, Fire Station 8) while awaiting federal reimbursements. The fund balance will reach approximately $9 million with a proposed $4 million general fund transfer.
  • Permanent Fund: Councilor Tyler noted the fund’s growth from $10 million to $15 million in about 2.5 years through reinvestment of earnings and a one-time cell tower lease deposit. Voter approval is required to withdraw principal.
  • Employee Down Payment Assistance Program: The City Manager proposed a $120,000 pilot program to provide up to $20,000 in forgivable loans (over 5 years) for city employees to buy homes in Rio Rancho. Eligibility would be broad (all employees, one year of service, no income cap). Councilors expressed support and asked for final program parameters to be shared in a future work session.
  • After-School Program: A $75,000 allocation (split $50,000 and $25,000) was included for a middle school (5th–8th grade) after-school program, likely at Loma Colorado Library or a community center, with transportation provided. Councilor List expressed excitement about this investment in youth.
  • Overtime Questions: Councilor Tyler asked about overtime increases in Police (PSA overtime moved to administrative category) and Fire (41% increase due to minimum staffing, special events, and unscheduled overtime). Chiefs clarified the reasons and noted ongoing tracking.
  • Transportation Costs: A question about a 700% increase in a line item was answered as costs for staff travel to conferences, which are normally spread across multiple line items.
• The Council reviewed all departmental budgets without suggesting changes.

Infrastructure and Capital Improvement Plan FY26-30

• City Manager Geisel described the ICIP as a critical five-year planning document. The budget funds only FY26; the subsequent four years provide a forecast and identify yet-to-be-determined funding sources for capital projects. The ICIP overview is on page 279 of the budget book. No questions or amendments were raised by the Council.

Key Outcomes

• No amendments were proposed to the Recommended Budget or the ICIP. The budget will be formally voted on at the May 22, 2025, Governing Body meeting and then submitted to the New Mexico Department of Finance Administration by the May 31 deadline.
• New program approvals: The Council generally supported the proposed employee down payment assistance program and the after-school program, both subject to further parameter development.
• Staff transitions: Director of Financial Services Carole Jaramillo and budget manager Juan are retiring; their replacements (Don Martinez for Juan, Kate Bennett for ICIP/Grants) were announced, with a new finance director to be appointed at the next meeting.
• Financial highlights: Mayor Hull compared FY15 to FY26 projections: property tax revenues grew from $13.5M to $24.7M, GRT from $24.9M to $72.5M, total revenues from $52M to $119.3M, ending fund balance from $7.1M to $28.3M, and rollover from $8.6M to $39.4M. He credited conservative budgeting, business recruitment, and the strategic plan for the city’s strong financial position.