Rio Rancho Governing Body Meeting - May 28, 2026: Budget Adoption, ICIP, CDBG, and Barbara Loop Award
Rio Rancho Governing Body Meeting - May 28, 2026
The Governing Body of Rio Rancho met on May 28, 2026, at 6:00 PM in Council Chambers to adopt the FY2027 balanced budget, the Infrastructure and Capital Improvement Plan (ICIP) for FY2027-2031, the Community Development Block Grant (CDBG) Fourth Annual Action Plan, and to award the Barbara Loop Reconstruction Project. All items were approved unanimously (6-0).
Public Forum
- Stephan vanHorn spoke about the Castillon missile plant, highlighting a Department of War document indicating a target of 12,000 missiles over five years, more than double the 1,000-per-year target previously stated by the CEO. He expressed concern about future water demand and questioned the city's policy of providing water outside city zones.
Consent Calendar
The following items were approved unanimously (6-0):
- Minutes of the May 1, 2026 Special Work Session
- Minutes of the May 14, 2026 Regular Meeting
- R36, Resolution Authorizing Disposal of Property (Library and Information Services Department)
- R37, Resolution Authorizing a Budget Adjustment to the General Fund (Fire and Rescue Department)
- R38, Resolution Authorizing a Budget Adjustment to the General Fund (Public Works Department)
- R39, Resolution Authorizing a Budget Adjustment to Utility Subordinate Debt Service Fund, Utility Senior Debt Service Fund, and 2026 Utility Bond Project Fund
- D12, Appointment of Andrea Hankins to the Planning and Zoning Board
Public Hearings
- D13, Site Plan Approval for a Restaurant with Outdoor Patio – The applicant requested withdrawal. The Governing Body voted unanimously (6-0) to withdraw the item.
- CDBG Fourth Annual Action Plan (FY2026-2027) – No public comments.
- FY2027 Budget – Stephan vanHorn spoke again, questioning why the aquifer reinjection project (Rio Rancho Pure) was not prominently discussed in the budget summary documents. He expressed concern that the project may be hidden and that the city is not meeting its permit injection targets.
- FY2027-2031 ICIP – No public comments.
Discussion Items
R40 – Resolution Adopting the FY2027 Balanced Budget
- Stephanie Yara, Director of Financial Services, presented the budget. Key highlights:
- Structurally balanced, with recurring revenues exceeding recurring expenditures over the five-year plan.
- Ending fund balance projected to meet or exceed the city's 25% reserve policy throughout the period.
- Includes a 5% salary increase for all employee groups (subject to collective bargaining), a 5% health insurance premium increase, and 21 new positions.
- Recommended amendment from police union negotiations: $1.4 million increase for Police Department personnel, reducing the unreserved fund balance but maintaining the 25% reserve (FY27 ending fund balance projected at 25.4%, down from 27%).
- Councilor Bob Tyler asked the police union representative if they were satisfied with the agreement. The representative confirmed they were, stating it would help close the pay gap with competitors and recruit more applicants.
- Councilor Jeremy Lenentine expressed concern about the trend of chasing pay increases from other cities and the impact on reserves. He stated that Rio Rancho is a great place to work and should not always match the highest pay. He did not oppose the resolution.
- Councilor Karissa Culbreath praised the budget's fiscal responsibility and maintenance of reserves, noting the city's outperformance of pessimistic forecasts.
- Councilor Nicole List emphasized that public safety is a top resident priority and supports the investment.
- Mayor Paul Wymer echoed support for the police union and the importance of staying within budget.
- Motion by Councilor Culbreath, seconded by Councilor Tyler. Approved unanimously (6-0).
R41 – Resolution Adopting the ICIP for FY2027-2031
- Stephanie Yara presented the ICIP:
- FY27 capital plan: $310.1 million total ($56.4M new capital, $2M repair/equipment, $251.7M roll-forward).
- Five-year plan total: $942.9 million.
- 51% of costs are growth-related; of that, 56% lacks an identified funding source.
- City Manager Matt Geisel clarified that the aquifer reinjection project is included in the ICIP executive summary and detail.
- Motion by Councilor List, seconded by Councilor Culbreath. Approved unanimously (6-0).
R42 – Resolution Adopting the CDBG Fourth Annual Action Plan (FY2026-2027)
- Don Martinez, Budget and Grants Manager, outlined the $522,046 in CDBG funds allocated to:
- Haven House Shelter Services: $34,670
- Sandoval County Permanent Supportive Housing: $24,375
- St. Felix Pantry Homelessness Prevention: $19,260
- Chayote Road – ADA Ramp Remediation: $250,000
- Broadmoor Senior Center Outdoor Activity Space Equipment: $84,249
- Rebuilding Together Sandoval County: $12,000
- Planning and Administration: $97,492
- Councilors praised the program and staff efforts.
- Motion by Councilor Culbreath, seconded by Councilor List. Approved unanimously (6-0).
D14 – Advice and Consent to Award the Barbara Loop Reconstruction Project to Albuquerque Asphalt, Inc.
- BJ Gottlieb, Director of Public Works, presented the project:
- Award amount: $3,273,113.85 (including NM gross receipts tax).
- Funding: NMDOT Transportation Project Fund grant ($1,922,350), City Infrastructure Fund ($199,934), Utilities Department sources ($1,150,830).
- Scope: full roadway reconstruction, new water line and services, new sanitary sewer line and services, ADA ramp improvements.
- Construction duration: approximately 9 months, starting August 2026.
- Councilor Lenentine asked about competition; Gottlieb noted three contractors were solicited via a mini-bid, with one non-responsive and one higher than Albuquerque Asphalt.
- Councilor Culbreath commended the department for securing state funding.
- Motion by Councilor Culbreath, seconded by Councilor Deb Dapson. Approved unanimously (6-0).
Key Outcomes
- All resolutions (R40, R41, R42) and the contract award (D14) were approved by a 6-0 vote.
- D13 was withdrawn at the applicant's request.
- The FY2027 budget includes a $1.4 million increase for police personnel, maintaining a 25.4% ending fund balance.
- The ICIP identifies $266 million in growth-related capital needs without identified funding sources, requiring future financing strategies.
- The Barbara Loop project will begin in August 2026 with a 9-month timeline.
- City Manager Geisel reported 51 major road projects completed since 2016 and announced upcoming community events: Fourth of July celebration, summer reading kickoff on June 4, and The Hub's third anniversary on June 6.
Meeting Transcript
One nation under our individual liberty justice world. Please remain standing so we can I'd like to take a moment of silence to celebrate our hard working personnel, the public safety personnel, as well as our military personnel. We've got a lot of folks overseas that are in a very dangerous situation. So please take a moment of silence. Thank you. You may be received. A couple of housekeeping items. 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 presence by saying present. Councilor Dabson. Present. Councilor Denantine. Present. Counselor Tyler. Present. Councilor Culbright. Present. Councilor List. Present. And the district four seat remains vacant. I'm working on interviews for that for those who are interested. Proclamations and awards of merit. We have none this evening. Public forum. Each comment will be limited to two minutes and no more than two hours in total be allotted for public forum comments at any meeting. I see we have one speaker signed up, Mr. Stephen Van Horn. Good evening, Mr. Mayor Counselors. I uh wanted to bring a item in the uh observer the uh to your attention. I did make a copy of it for each of you. Uh the articles about Cassion lands agreement with Department of War. And um it's uh very short article. The last sentence on the first page I've highlighted. It says to further encourage Castillon's self-funded facility expansion, the department is actively seeking the necessary authorization and appropriations to purchase over 12,000 black beard missiles for five years. The Department of War release dates. When the CEO was here and and was explaining to us what the demands are going to be for the rocket plant, one of the things he said, I think many of you were there at these uh discussions. He said their intent is a target of 1,000 missiles produced per year, and they intended to start that in one year. It's interesting, I think that what the Department of War is saying is they actually wanted to do way more than that. 12,000 missiles in five years, that's more than double the production that the CEO was saying they want to target. That's the first thing to note. The second thing is this first phrase to further encourage Castillo's cell-funded facility expansion. If you consider that, you see the Department of War is already trying to encourage them to expand likely their facility so they can produce this much raised target that they want to achieve. Since the city is already committed to provide water outside of our city zones, and we have a policy that we don't provide water. Are you contemplating what this may do as far as their demand in the future? Thank you. Thank you, Mr. Van Horn. Is there anyone else signed up to speak?
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