Rio Rancho Governing Body Special Work Session on FY27 Budget and ICIP – May 1, 2026

The Rio Rancho Governing Body held a special work session on May 1, 2026, from 9:00 a.m. to 11:25 a.m. in Council Chambers to review the City Manager's response to the Mayor's comments on the Recommended FY27 Budget, conduct a line‑item review of the budget, and discuss the Infrastructure and Capital Improvement Plan (ICIP) for FY27–31. No public comment was taken, as per work session rules. The meeting was led by Mayor Paul Wymer (acting Mayor at the time) and attended by Councilors Deb Dapson, Jeremy Lenentine (arrived 9:09 a.m., left 11:23 a.m.), Bob Tyler, Karissa Culbreath, and Nicole List.

Discussion Items

• City Manager's Response to Mayor's Comments on FY27 Budget: City Manager Matt Geisel acknowledged receipt of former Mayor Hall's written comments (submitted April 25, 2026), which proposed no changes to the recommended budget. Geisel reiterated that the FY27 budget (July 1, 2026–June 30, 2027) is structurally balanced, supports the City's Strategic Plan, and maintains a five‑year General Fund forecast with recurring revenues exceeding recurring expenditures. The ending fund balance is projected to meet or exceed the 25% reserve policy for five years. A 5.0% across‑the‑board compensation adjustment (estimated recurring cost: $2.6 million General Fund, $82,000 Utility Fund, $15,000 CVB Fund) and a 5.0% health insurance premium increase are included. 21 new positions are proposed, with 13 in public safety.
• Line‑Item Review of FY27 Recommended Budget:
  • Economic Development Funding: Councilor Tyler proposed reducing the Sandoval Economic Alliance (SEA) funding from the current $75,000 to $55,000 and redirecting $20,000 to the Rio Rancho Chamber of Commerce, citing a lack of deliverables from SEA and strong Chamber performance (251 events, 40–41 ribbon cuttings in 2024‑2025). Councilor Culbreath supported gathering more information and establishing clear metrics for both organizations before reallocating funds. Councilor Lenentine opposed funding the Chamber, arguing that its role differs from business recruitment and that city funding would confuse its mission. Councilor List and Dapson agreed that clearer direction and deliverables were needed. City Manager Geisel recommended scheduling a deeper discussion on economic development at a future work session (proposed for June 2026), with SEA providing an update and staff sharing quantitative metrics. The Council concurred.
  • Animal Resource Center (ARC): Deputy City Manager Peter Wells confirmed that $1.2 million (combining $775,000 from FY26 and $600,000+ in FY27) is allocated for a kennel expansion adding 12 kennels, addressing long‑standing capacity needs.
  • Overtime Budgets: Councilor Lenentine questioned a significant increase in fire department overtime (from $800,000 in FY26 to $1.5 million in FY27). Fire Chief James Wenzel explained the increase reflects aligning the budget with actual historical spending (FY23: $1.7M, FY24: $1.37M, FY25: $1.6M, FY26 YTD: $1.48M) and accounts for scheduled special events (62 in 2025), minimum staffing, PTO, and community engagement activities. Councilor Tyler suggested exploring schedule adjustments to minimize overtime, while Chief Wenzel noted that flexing schedules can be challenging. The new budget approach uses actuals rather than a lower baseline, as recommended by Budget Manager Don.
  • Police Compensation: A budget adjustment of $1.4 million for the Rio Rancho Police Department and Police Communications Association (sworn and dispatch) will be brought forward on May 28, 2026, pending union negotiations. The current budget only includes the 5% across‑the‑board increase; the adjustment accounts for additional compensation to remain competitive.
  • Opioid Settlement Fund: City Manager Geisel noted that $3+ million has accumulated, with strict usage limitations to opioid treatment and prevention. Staff is exploring partnerships with existing providers and considering consulting help to identify local uses. Councilor Tyler proposed using funds to offset costs at county jails for opioid treatment programs; Councilor Culbreath suggested youth prevention programming. Councilor List emphasized the need to connect with behavioral health providers and address co‑occurring conditions.
  • Impact Fee Revenue Forecasting: Budget Manager Don explained that FY27 road impact fee revenue is based on an estimated 635 single‑family residential starts (down from 900+ in FY26) to align with conservative projections and macroeconomic factors, using data from Zonda and UNM BBER.
  • Water Rights Acquisition: Councilor Culbreath asked about future funding needs. City Manager Geisel noted that the primary source is the water rights acquisition fee; if opportunities exceed revenue, options include internal loans from the General Fund or considering a development‑related fee, common in other communities.
  • Body‑Worn Cameras for Code Enforcement: Councilor Tyler raised the idea of equipping animal control and code enforcement officers with body‑worn cameras. City Manager Geisel agreed to revisit a prior analysis and provide an update.
• Infrastructure and Capital Improvement Plan (ICIP) FY27–31: Councilor Culbreath highlighted that the ICIP sets long‑term priorities, noting progress on Fire Station 8 (groundbreaking May 4, 2026) and the multi‑generational facility. City Manager Geisel explained that the ICIP is required for state and federal grant applications and that a dedicated ICIP work session in fall 2026 is being considered. Councilor Tyler requested that the economic development discussion occur before the July final budget, and he also proposed exploring a council discretionary fund for future budget cycles, supported by Councilor Dapson. City Manager Geisel confirmed the June work session could address economic development and that staff would research discretionary fund options.

Key Outcomes

• The Governing Body concurred to hold a deeper work session on economic development (SEA and Chamber roles, metrics, and potential funding reallocation) in June 2026.
• City staff will bring forward a $1.4 million budget amendment for police compensation on May 28, 2026 (the public hearing and adoption date for the FY27 budget).
• Staff will research and present options for a council discretionary fund for future budget cycles.
• The ICIP adoption will proceed; staff will schedule a fall work session for project updates.
• The opioid fund usage will be explored further with consulting support and reported back.
• Body‑worn cameras for code enforcement will be re‑examined by staff.
• No formal votes were taken at this work session; decisions will be finalized at the May 28, 2026 regular meeting (budget adoption) and subsequent meetings.