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OPENPUBLICA · PUBLIC MEETING RECORD

Record of Proceedings

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

Meeting Portal — Friday, May 1, 2026

BodyRio Rancho, New Mexico

SessionMeeting Portal

DateFriday, May 1, 2026

StatusFILED

Video Record

0:00 / 2:10:40

Transcript — VerbatimClick a timed line to jump · ⧉ to share it

0:27

All right.

0:28

Before we get started, I need to read through uh a brief message here.

0:32

Please silence all electronic devices while attending the governing body meeting.

0:36

For the record, I will announce the names of the governing body members.

0:39

When I say your name, please acknowledge your present by saying present.

0:43

Councilor Dabson.

0:45

President.

0:46

Councilor Lennon Tyne.

0:48

I don't see him here yet.

0:52

In route.

0:52

Okay.

0:53

Counselor Tyler.

0:54

Present.

0:55

Councillor Colbreath.

0:57

Present.

0:58

Counselor List.

0:59

Present.

1:01

Pursuant to the governing body rules and procedures.

1:03

Public comment will not be taken at the work session public meeting.

1:07

Public comment will be taken at the governing body meeting of May 14th and May 28th.

1:14

All right.

1:14

So up for discussion.

1:16

City manager's response to the mayor's comments and recommended fiscal year 27 budget.

1:23

City manager, guys.

1:24

Mr.

1:25

Mayor, members of the governing body, good afternoon.

1:27

Good not good afternoon, good morning.

1:30

Afternoon in Europe, I guess.

1:33

Just uh as you received uh via email, uh former mayor Hall, who was the mayor on April 25th, uh transmitted a uh short letter um regarding the uh recommended budget.

1:46

Uh you know, the his letter did not propose uh any changes uh to the budget, um, and just broadly speaking, uh it you know highlighted and referenced um you know the general direction of the budget uh of the you know our budget our budgeting approach and our budget philosophy that we've had for the last uh several years.

2:05

Um so with that, I would just like to acknowledge the receipt of former mayor halls in this case's uh uh response letter and next year will be coming from you.

2:15

Thank you, Mr.

2:16

City Manager.

2:18

Is that all you have?

2:19

That was very short and sweet, Matt.

2:22

All right, moving on to the uh line by line document.

2:27

This is my this is my favorite part.

2:30

All right, so I'm gonna read through the different sections and what page numbers they are on, and so if counselors have any comments or questions, we can discuss them at this point.

2:42

Mr.

2:42

Mayor, um would you like uh to go through the brief overview of the I'm sorry that's not on my list, no?

2:49

Absolutely.

2:51

Mr.

2:52

Mayor, members of the governing body.

2:54

Uh just uh wanted to provide uh just a kind of a quick recap.

2:58

A couple of these slides are uh recycled from the April 21st meeting, but also provide some information uh to answer one of the questions that we received on April 21st.

3:07

So obviously we're here for our May 21st budget work session.

3:11

Um as we know, process timeline, April 15th, uh which we uh was the city manager's recommended budget was um was was published.

3:21

Uh the FY27 budget spans July 1 of this calendar year through June 30th of 2027 uh per the charter, the mayor of Rio Rancho provided uh comments to the uh to the budget on uh April 25th.

3:37

Continuing on the the process timeline.

3:40

Uh today is that first uh referenced uh budget hearing.

3:44

Uh we also have placeholders for additional budget hearings on May 11th and or May 14th at 3 p.m.

3:53

Uh if there is a will desire or need to discuss uh any items of the budget, answer additional questions, go a little deeper on anything in the budget.

4:03

Um we'll see uh you know, based on today's dialogue and and so forth.

4:08

The governing body will take public comments on the FY27 recommended budget and capital program during its regular meetings at City Hall on May 14th and May 28th at 6 p.m.

4:18

A vote to adopt the budget for FY27 and the capital program will occur at the governing body's meeting of May 28th.

4:26

Uh that would also be um a potenti a potential time to make any amendments to the uh recommended budget that may uh spur from uh today's meeting or subsequent meetings around the budget or the public hearings.

4:40

Also at that time uh we will be bringing forward uh uh an amendment or an adjustment to the budget for approximately 1.4 million dollars uh to uh to the to factor in the compensation compensation adjustments uh with the Rio Rancho Police Department and the Rio Rancho uh Police and Communications Association that we discussed on uh April 21st.

5:02

As I referenced at that time, also the fire union has uh TA'd on the 5% salary increase.

5:10

We open union negotiations with them, which will include a full contract review on compensation in December of 2027, and uh we are initiating um uh negotiations on the annual reopener with ASME.

5:23

Uh they responded to us earlier this week to get a meeting scheduled.

Discussion Breakdown — Share of Meeting

Economic Development████████████████16%

Public Safety████████████████16%

Budget Equity Analysis███████████████15%

Procedural████████8%

Public Engagement███████7%

Fiscal Sustainability██████6%

Public Health Funding██████6%

Engineering And Infrastructure████4%

Capital Improvement Planning████4%

Summary of Proceedings

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.

Meeting Transcript

All right. Before we get started, I need to read through uh a brief message here. Please silence all electronic devices while attending the governing body meeting. For the record, I will announce the names of the governing body members. When I say your name, please acknowledge your present by saying present. Councilor Dabson. President. Councilor Lennon Tyne. I don't see him here yet. In route. Okay. Counselor Tyler. Present. Councillor Colbreath. Present. Counselor List. Present. Pursuant to the governing body rules and procedures. Public comment will not be taken at the work session public meeting. Public comment will be taken at the governing body meeting of May 14th and May 28th. All right. So up for discussion. City manager's response to the mayor's comments and recommended fiscal year 27 budget. City manager, guys. Mr. Mayor, members of the governing body, good afternoon. Good not good afternoon, good morning. Afternoon in Europe, I guess. Just uh as you received uh via email, uh former mayor Hall, who was the mayor on April 25th, uh transmitted a uh short letter um regarding the uh recommended budget. Uh you know, the his letter did not propose uh any changes uh to the budget, um, and just broadly speaking, uh it you know highlighted and referenced um you know the general direction of the budget uh of the you know our budget our budgeting approach and our budget philosophy that we've had for the last uh several years. Um so with that, I would just like to acknowledge the receipt of former mayor halls in this case's uh uh response letter and next year will be coming from you. Thank you, Mr. City Manager. Is that all you have? That was very short and sweet, Matt. All right, moving on to the uh line by line document. This is my this is my favorite part. All right, so I'm gonna read through the different sections and what page numbers they are on, and so if counselors have any comments or questions, we can discuss them at this point. Mr. Mayor, um would you like uh to go through the brief overview of the I'm sorry that's not on my list, no? Absolutely. Mr. Mayor, members of the governing body. Uh just uh wanted to provide uh just a kind of a quick recap. A couple of these slides are uh recycled from the April 21st meeting, but also provide some information uh to answer one of the questions that we received on April 21st. So obviously we're here for our May 21st budget work session. Um as we know, process timeline, April 15th, uh which we uh was the city manager's recommended budget was um was was published. Uh the FY27 budget spans July 1 of this calendar year through June 30th of 2027 uh per the charter, the mayor of Rio Rancho provided uh comments to the uh to the budget on uh April 25th. Continuing on the the process timeline. Uh today is that first uh referenced uh budget hearing.

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