Rio Rancho City Council Meeting Summary - October 21, 2025

The Rio Rancho City Council convened on October 21, 2025, to review financial updates regarding a major Enterprise Resource Planning (ERP) system implementation and to hear an informational presentation from Rio Rancho Public Schools regarding their upcoming bond proposal. The Council reordered the agenda to address the ERP update first due to the absence of the school district's presentation. Director Yara detailed the $7.4 million cost to replace legacy software with an integrated system, while School District representatives outlined an $80 million bond request to fund critical infrastructure and new facilities.

Consent Calendar

• No items were presented on the Consent Calendar during this work session.

Public Comments & Testimony

• No members of the public offered formal testimony or comments; the meeting proceeded directly to the agenda items.

Discussion Items

Enterprise Resource Planning (ERP) System Update

• Project Overview: Director Yara presented an overview of the proposed ERP system, which will integrate finance, HR, permitting, and utility modules into a single database, eliminating fragmented legacy systems like Central Square. The system is expected to operate on one database for real-time data access across all departments.
• Vendor Selection: After an RFP process with eight responses and three finalists, the City Manager's office recommended DLT Solutions as the vendor. Final negotiations were underway regarding the scope of work and pricing.
• Implementation Costs and Timeline: The total estimated implementation cost is $7.4 million over a two-year period, with operations targeting a January 2026 go-live date.
• Funding Options and Debate:
  • A funding gap of $1.9 million exists after $5.5 million in capital budget funds.
  • Option 1: Withdraw funds from the General Fund fund balance, lowering the reserve percentage from 26.1% to 24.3% (below the 25% policy target). Counselor Weimer expressed hesitation to dip below the 25% threshold, citing the risk of unforeseen expenses and federal reimbursement delays for road projects.
  • Option 2: Utilize the Strategic Governance fund, though this was generally deprioritized in favor of preserving funds for other initiatives.
  • Option 3: Repurpose funds earmarked for an Under Boulevard construction project pending grant reimbursement. Councilor List expressed strong opposition to using funds designated for future construction projects.
  • Option 4 (Proposed Solution): A blended approach funding the gap with 80% from the General Fund and 20% from the Utilities Fund ($380,000 from Utilities, $1.5M from General).
• Council Positions on Funding:
  • Counselor Tyler: Expressed strong opposition to drawing from the Utilities Fund initially, fearing negative impacts on rate analyses, but stated full support for an 80-20 split, noting it is a proportional cost recovery method. He also noted that GRT revenue is currently running over budget, which may offset the temporary dip in reserves.
  • Councilor Linantine: Expressed support for moving forward with the ERP immediately despite the cost, agreeing to the 80-20 or potentially a 90-10 split to avoid delaying necessary modernization.
  • Councilor List: Expressed concern regarding the use of funds for ongoing construction projects (specifically the Under Boulevard placeholder) and emphasized the long-term necessity of the system despite the "growing pains" for staff.
  • Director Yara: Clarified that the $1.9 million gap is required to award the contract and noted that a 20% share from the Utilities Fund aligns with a usage-based recovery model rather than a full deduction.
• Longevity and Challenges: Director Yara noted the system is expected to last 20-25 years. Staff highlighted challenges including resistance to change from employees accustomed to legacy workflows and the risk of over-customization limiting future updates.

Rio Rancho Public Schools Bond Presentation

• Bond Details: Wyndham Kemsley (Executive Director of Communications, RRPS) requested $80 million in voter funding, which could grow to $104 million with a potential 60% match from the Public School Facilities Authority (PSFA) for specific new construction projects.
• Scope of Projects:
  • New Pre-K Facility: $17 million allocation (potentially $41 million with match) for a new stand-alone facility on the south end, similar to Shining Stars.
  • Completion of 2023 Bond Items: $20 million for outstanding projects, including Independence High School, due to increased construction costs (rising from ~$260/sq ft in 2020 to over $800/sq ft).
  • Rio Rancho Elementary Transformation: ~$18 million for a STEAM-focused renovation, including a planetarium and a permanent home for the UFO record center.
  • Facility Maintenance & Upgrades: ~$7 million for roofs, HVAC, and drainage across the district.
  • Vista Grande Elementary: Renovation of the bus loop.
  • New Middle School Site: Land acquisition in the south end for future construction.
  • Athletics and Fine Arts: Reconstruction of soccer fields and turf improvements at Rio Rancho and Cleveland High Schools, plus marching band field paving.
  • Enchanted Mesa Daycare: Construction of a permanent facility to serve employees and student parents.
• Council Position: Councilor Weimer expressed support and appreciation for the school district's efforts, emphasizing the mutual relationship between the city and schools.

Key Outcomes

• ERP Funding Agreement (Pre-Approval): The Council is tentatively agreeing to pursue the Blended Funding Option: 80% from the General Fund and 20% from the Utilities Fund to cover the $1.9 million gap, pending final budget adjustments and a potential policy variance to dip below the 25% reserve target temporarily.
• Next Steps - ERP: Staff are directed to finalize the contract with DLT Solutions and prepare the necessary budget amendment documents for the official vote to award the contract, incorporating the agreed 80-20 funding split.
• Next Steps - Schools Bond: The public comment session on the bond concluded with no action taken; the district will proceed with their voter campaign for November 4th.
• Administrative: The Meeting was adjourned after no further items were raised.