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?

Thank you.

Okay, moving on to comments by counselors.

Do we have any comments by counselors?

Councilor List.

Uh I have a few.

So first I just wanted to say that um this past Monday was a memorial celebration.

It was wonderful and beautiful.

Thank you to um Connie and your staff.

It was wonderful.

Thank you to all the veterans that came out.

It is such a a beautiful ceremony, so I encourage everybody in the future to try and attend one of those.

What a great way to honor the men and women that have served and allow us to be able to be here and to do the things that we're doing.

Um also I want to just say congratulations to the city of Rio Rancho.

The last two weeks have been really 10 days have been incredibly um wonderful.

We've had young people in all sorts of sporting events.

The state competitions for baseball, softball, um, and track were held, and we've had lots and lots of Rio Rancho young people involved in those, including one of our own at the state championship baseball game.

We also have seen lots and lots of young people in the city of Rio Rancho acquire their high school diplomas this week.

So just congratulations to everybody.

What a celebration across the city.

Please make good choices.

Just because your kids celebrated doesn't mean we need to make bad choices.

We want to be able to celebrate a lot longer.

And then last, I just had a quick question.

But I am hoping that before we get too far into the design phase, I would really like to request that we have a focus group.

And again, I'd like to see someone with small children, middle-aged children, our seniors.

Just a large demographic be a part of that.

And I'd be happy to be a part of that as well.

But anyway, I just wanted to put that out there.

Thank you.

Thank you, Counselor List.

Counselor Tyler.

Real quick, I'm just gonna bring up a comment about political signs.

So I know this is kind of hard, but you know, I think the city's getting polluted with the signs, and I'd like to see.

I know that it I don't know if any of them are still in compliance.

I know there's some that are out there that are not in compliance.

I know there's some without stickers, I know there's some that are tied to street signs.

It's just getting a little bit ridiculous.

So all I'd like to see is that maybe um we can, and I know Amy, I know your group is doing as much as they can, but at the end of the day, I'd like to see not like four by eight signs all over 528.

Looks like a parade of signs all up and down there.

So maybe we can do something to, and I think is it 32 square feet still, Matt, for the signs?

Is it or on a private property?

I know you're gonna look that up, but you may not have, but we'll figure that part out.

But I I would like to maybe for the general election, put out some documentation uh to all these folks that they really need to comply, or we're just gonna start yanking their signs.

I'm tired of I'm just tired of seeing it.

Just yank them and pull them and go throw them out here on the side of the building, let them come pick them up because I think that a lot of them are not, some of them aren't stickered, some of them are doing things that just aren't right.

Encourage them to abide by the rules.

What's kind of funny is all these people are out there running for legislative offices, sheriff, and all this other stuff, but they're yet violating the rules of how to put up signs, which it just makes me I don't understand it.

But anyways, if we could just maybe do something for that for the future.

I know that it's a little too late for this one, but maybe for the general, we can take a look at that.

So I appreciate it.

Thank you, Mr.

Mayor.

Thank you, Councilor Tyler.

Anyone else?

I just want to add, um, I want to echo Councilor List's comments on the graduation.

It was so exciting out here for those of you who were who were here and saw all of the family members and all of the crowds, and I don't know, maybe some of the staff doesn't think it was exciting because we had a park way over there and walk, but we got our steps in.

But I would it's it's always a proud event, I think, when we see our seniors graduate from high school and move on to the next phase of their life.

So very enjoyable.

Thank you, Councilor List.

Oh, and the oh, yeah, do you want to talk about baseball, Bob?

No.

Okay.

All right, moving on to the consent calendar.

Can I have a motion?

I move to approve the consent calendar.

Okay, third.

I have a motion and a second.

Call the role.

Thank you, sir.

Councillor Colbron.

Yes.

Counselor Lynn and Time.

Yes.

Councillor Dabson.

Yes.

Counselor Tyler.

Yes.

Counselor List.

Yes.

And Mayor Weimer.

Yes.

The consent calendar is approved.

All right, moving on to public hearings.

Anyone with a pecuniary interest on an item under public hearing and wishing to address the governing body shall register with the city clerk.

Each comment will be limited to two minutes.

This hearing will be handled in accordance with the rules and procedures.

Section 3.4 and strict decorum will be maintained.

Item D 13, site plan approval for a restaurant and outdoor patio at the property legally described as the village tract E5.

The applicant has requested the item to be with withdrawn.

Good evening, Mr.

Mayor, and members of the governing body, Amy Rincone, Director of Development Services.

Yes, so we have heard from the applicant that at this point in time they would like to withdraw this item.

Because this is a notice public hearing.

Because this is a notice public hearing, we do need a motion and approval by the governing body to withdraw this item.

And I will stand for any questions.

Thank you, Director Wincone.

Mr.

Mayor, I'll make a motion to withdraw D 13.

Second.

I have a motion and a second.

Any discussion.

Hearing none.

Call the roll.

Councillor Calbreth.

Yeah, Mr.

Mayor, thank you.

Um I would just like to say that you know the City of Rear Rancho, we do such a great job of supporting our businesses and restaurants.

Um, and so I would love to hopefully see this come back one day because um our city um just uh truly truly shows up for um for our restaurants um and all of our businesses.

And so hopefully the applicant uh we will see this again soon because I expect that the the wait times would be ridiculously long in such a wonderful way.

Um and so hopefully we see it again very soon.

Thank you.

Thank you, Councillor Colbreath.

Anything further.

All right, now let's call the roll.

Thank you, Mayor.

Councilor Dabson.

Yes, Councillor Lynn-Tyne, yes, Councillor List, yes, Councillor Tyler.

Yes, Mayor Weimer?

Yes, Deputy Mayor Colbreth.

Yes, thank you.

D13 has been withdrawn.

All right, moving on to item seven, public hearing for fiscal year 2027 budget.

The budget and ICIP were presented during the April 21st governing body work session and a special budget work session on May 1st, 2026.

Would anyone from the public like to speak?

Yes.

Um, Mr.

Van Horn has signed up to speak on this item.

Mr.

Van Horn.

Mr.

Mayor, Counselors, thank you.

I spoke at the last the first hearing on this item, and I did get a response that's actually published.

I made a copy of uh what was in the paper from the same one that I showed you earlier.

The question that I asked had to do with why there was nothing in the planning, the the summary statement document about major expenditure on wastewater, specifically the the five million dollars for another injection.

Well uh there was a response that was gained by the observer from the city manager, and but I think his answer is not an answer.

My question is why isn't this talked about?

Why isn't Rio Rancho Pure something that's discussed in the planning and the you know the summary statement?

Why is this something that seems to be hidden for some reason?

I I guess I could Google it and search through the whole document to find out a specific amount, but the thing that I think may be happening is the mayor's right now running for governor.

He's out there on radio and he's saying Rio Rancho is the number one city.

We're injecting millions of gallons every year into the aquifer to refresh it.

That's true, but it's also true that we're on permit to inject 300.

Oh, 365 million gallons a year.

That's how much we're supposed to be.

Last report, it was around 36 million, about a tenth.

There seems to be something wrong.

What's happening?

Why is all this effort being taken to not talk too much about this?

What is going on?

And that's what's concerning me.

They still haven't really I brought it before you many times, but I still think that this is a major item, and I don't understand why there's no discussion about it.

The only thing I can really guess at is that there's a realization, and I can speak to this because I used to be on the utilities commission.

There's a realization about the amount of money it's actually going to take to make this thing work.

And that this would be a reason why no one wants to talk about it.

Thank you.

Thank you, Mr.

Van Horn.

Anyone else signed up to speak from the public?

No, sir, there is not.

Any discussion by council.

Hearing none, call the roll.

Oh, there is no roll call, sir.

Oh, I'm sorry, you're right.

This is just a discussion.

Or just in public hearing, and I made an error on your uh agenda, and we'll need to go back to the CBDC.

Thank you.

Yes, I have I have an agenda with the order incorrect, so we'll have to go back.

Um so we will do that now.

We will move backwards to public hearing for the community development block grant, fourth annual action plan for the 2026-2027 fiscal year.

Miss Davis, anyone signed up for from the public to speak?

No, sir, there is not Miss Yara.

Do you have anything to add?

Um this item will actually be addressed with the resolution.

Okay, so yeah, because we're gonna do that later.

Okay, so this is just public hearing.

Got it.

Yes.

Thank you.

All right, so no public comment, no discussion from the council.

We will move on.

So we just did public hearing for the fiscal year 2027 and the ICIP.

Do we need to do them separate?

Yes, sir.

All right, so we heard on the budget.

Now we'll hear on public hearing on the fiscal year for fiscal years 2027 through 2031 on the infrastructure capital improvement plan, the ICIP.

Ms.

Davis, is anyone signed up from the public to speak on this?

No, sir.

Any comments by counselors?

Is this the is this all the budget council time?

It's being changed with uh unions.

Mr.

Mayor, members of the governing body.

This is just the public hearing.

Okay, to provide citizens' opportunity to comment the different elements of the budget as we just heard from Mr.

Van Horn.

Okay, thank you.

The budget adoption, Mr.

Mayor, members of the governing body will follow in uh R 40 and R 41.

Thanks.

All right.

No public comment and no comment by counselors.

We will move on and second reading of ordinances.

We have none.

First reading of ordinances.

We have item number 12 resolution adopting the fiscal year 2027 balanced budget.

Ms.

Yara.

Sorry.

Mr.

Mayor and Counselors, um, good evening.

I'm here to go over um the FY27 recommended budget and also the 27 to 31 ICIP plan.

And if it pleases the governing body, I'd like to go through my presentation, which would um cover both R 40 and R 41, and then you can take separate votes on those items.

Um please proceed.

Thank you.

Uh over overview of the the cap the general fund budget and the capital budgets, um, a discussion about a recommended amendment, um, the utilities enterprise fund operating and capital budgets and the ICIP plan.

So, how did we get here?

Um so back in April, on April 15th, the city manager provided his recommended fiscal year budget, uh fiscal year 27 budget and fiscal year 30 27 to 31 ICI P I CIP plan to the mayor and to this council uh in accordance with the city charter.

Um on April 21st, uh the governing body held a work session to discuss uh the budget and also um to hear about the submitted budget request from the municipal court.

Um on May 1st, a special work session was held um to receive the city manager's response to the mayor's comments, which were very short this year, um, and to provide an overview of the budget and the ICO P plan.

You will see that this presentation is is very similar to that presentation that you saw that night.

On May 14th at the regular governing body meeting, the first required public hearing was held on both those items.

And as you saw earlier tonight, we just held the second required public hearing for both those items.

Oops.

The budget is structurally balanced and furthers the goals outlined in the city's strategic plan.

Being structurally balanced means that we are not spending more money than we are expecting to take in and are considering the reserves that are required.

This structural balance does is maintained throughout the five-year plan in the forecast.

Ending fund balance for all of these years is projected to meet or exceed the city's 25% reserve policy.

This is just a real short snapshot of the general fund budget as recommended.

We are expecting to bring to have about 39.7 million dollars of fund balance going into the new fiscal year.

In the original recommendation, about 29.5 million dollars of available fund balance at the end of the year.

Make up a little over 50% of the general fund budget.

This proposed budget includes a 5% salary increase for all employee groups, and that's subject to collective bargaining.

This adjustment will occur beginning with the full first full pay period in the new fiscal year, which begins July 13th.

For the general fund, the estimated cost of this salary increase is about $2.6 million for the utility operating fund about $82,000 and $15,000 for the convention and visitor bureau fund.

As part of our benefit package, we do provide health vision and dental insurance insurance to our employees.

This year the recommendation is to increase our medical premiums by 5%.

We have a pretty healthy self-insured fund that has some healthy reserves.

We are able to mitigate large increases.

Some cities are seeing up to 18% increase in their health insurance.

Also this year, we are asking that you allow us to transfer $2.2 million from the workers' compensation fund to the health insurance fund to increase the reserves there.

The reason is that we no longer need the reserves in that fund.

We have changed the way that we interact with the New Mexico Municipal League and its insurance and products.

So we can build up our reserves a little more in the health insurance fund.

This of course the 5% salary increase would far exceed the amount of this health insurance increase for everyone.

Um that includes nine firefighters for the new station that's being um built right now, two police officers, two real-time crime center operators, uh one electrician uh level two, a communications manager, a payroll specialist, a deputy director for parks and recreation, an accounting supervisor, a seasonal library worker, a receptionist, and a part-time cashier.

Uh this slide just um kind of uh summarizes the road infrastructure projects that are being funded by the general fund.

And we also have some facility projects that are being uh funded by the general fund.

All right, now I'd like to talk about the recommended amendment to the budget, the operating budget.

So as a result of negotiations with the Rio Rancho Police and Communications Association, the union.

The following changes have been incorporated into the recommended budget for the general fund.

Um there would be an increase of 1.4 million dollars for personnel at the police department.

Um that results in a decrease in our unreserved fund balance to fund that as well as the increase in the reserve that's required.

Um so um the recommended budget would uh expenditures would increase by 1.4 million dollars from this first slide we saw earlier.

Um we will still be able to maintain our 25 percent level of reserves throughout the five year four five year period, including this adjustment.

So as you can see, uh our original um percentage for FY27 was 27 percent.

This adjustment and we'll take it down to 25.4 percent, and uh it goes throughout the period, five-year period.

That's uh the presentation for the general fund.

I'll stand for any questions on that and uh before we move on to utilities.

Thank you, Director Yara.

Counselor Tyler.

I don't have questions for you, but I have questions for the union for the police department.

So if a couple of you all could come up here, or one of you, I don't really care who so we've been here before, and uh I'm gonna I'll ask it again because we asked last time if you all were happy with the agreement that we had, and there obviously was some miscommunication or some pieces where you all felt that it wasn't good enough.

And I think over the last year it's kind of been a situation where everyone's trying to work together to get things done, and I think that um city staff, all I know all my peers are of the same.

We want what's best for all the employees of the city of River Rancho, including the police department, the fire, everybody.

But what I want to ensure is that this time I'm going to ask you again, and I because I don't want to see it in the news.

I don't want to see any of that stuff.

What I want to see, I'm asking you guys, hey, is this something you agree with?

Are you guys good?

Because last time we heard it, and you weren't really good, or you said, or whatever it was, but I just want to make sure that this time we're all of the uh uh the assumption that everything's good city staff, us, we're all happy.

Right.

I appreciate the count council member Iler.

Um, um yes, there was probably some mismute miscommunication on the last go-around.

Um this last year we've kind of been all over the place.

I've met with several of you.

Um it led to some very good conversations.

Um I think the the idea of the mission from both sides was very well communicated in those meetings.

Um a lot was achieved.

Um we've had very good meetings with city manager, um HR with the chief, um, and those we kind of came to a very solid understanding of the direction where we wanted to go and what it was gonna take to get there.

Um it's it's no surprise.

Law enforcement recruiting is a challenge.

Um we're trying to close that gap with all of our competitors around us.

Um this is one of, in my opinion, one of the best cities in the state of New Mexico, and that requires it to have the best police department.

And I think with the proposed budget that was just briefed um before everyone, that's gonna get us closer to the it's gonna close that gap with everyone around us.

And I honestly think we're already starting to see that um as soon as word got out, um, we're starting to see more applicants.

I think it's gonna be extremely beneficial, not to just the police department, but to the entire city of Rio Rancho.

Um so to answer your question, yes.

This one um is good.

I think everyone's on board with us, um, and I think it's gonna help tremendously um in accomplishing what we are trying to get done.

Okay, and because that means a lot to all of us.

Well, I know it does me, and I'm sure my peers feel the same way.

But again, I just want to encourage that we keep lines of communication open and we all work together to achieve what's in the best interest of the city, and that's how we do it because that's how we're successful here, and that's how you all are successful, and that's how we all are successful having you guys as one of the best police departments in the country, not just in the state of New Mexico, okay.

So I'm glad to hear you're happy.

That that makes me happy.

So there you go.

Thank you, Mr.

Mayor.

I appreciate it.

Thank you, Counselor Taylor.

On behalf of the we just like to extend our gratitude and thanks for for all your guys' participation and everything you've done to work with us through this.

I know it hasn't been easy for anybody, but we want to thank you.

All the city council members, Deputy Mayor Colbreth and Mayor Weimer, thank you guys for your support.

Thank you.

Anything further from counsel on this item, Mr.

Mayor.

Councillor Ender Time.

Uh yeah, first off, I'd like to say that these kind of comments are just my own, so I'll divorce the city council from my from my position on this.

Um and this is mostly directed just kind of to those who sit at the negotiating table, and so those with union and everything.

Um not necessarily a declaration of opposition, just stating my clear position.

I've thought for a couple of years now, a couple rounds, that you know, there's been too much of a squeeze here, and basically looking at where we're having to go with the reserve percentage.

Um, I gotta say I don't like it at all.

I know that in a negotiation you always have to push where there's mush, but in my opinion, the mush is gone.

So if you're happy with this round, that's great.

Love that we're happy with this round.

I think sometimes we've gone to places that we shouldn't have gone with comments with kind of stating our disapproval, the past is the past.

Rio Rancho is a great place to work for all of our unions for a couple of reasons.

First off, the long-term benefits are absolutely amazing.

Next, and this definitely is true, particularly for the police department, it's an extremely safe community to work in.

Knowing that you're far more likely to go home to your family every day, every night, nothing is guaranteed, obviously.

Uh it means something.

Um, it's a great city.

Uh low crime, low homelessness.

Um frequently I'm in Albuquerque, and they've got ACAP spray painted on places and such.

You don't have that here.

You've got a lot of backing of the whole community, really.

You have backing for the eight years I've been here for the city council for a long, long time.

And great leadership inside your own department, uh, starting with Chief Seal, in my opinion.

So I don't really want to I feel like every time we come to the round of negotiations, we're always chasing the latest city that just really upped their pay for officers or for fire, whatever the case.

And so, you know, I hear it every time, and every time it's you know, it's like we forgot what the last two years were like, and so oh well, this place has got to have this, and so we've got to match.

I I don't want I want to just divorce from the matching game.

To me, that doesn't make any sense really.

I understand you have to be competitive, you know, whatever.

Um, but again, it's a better city to work in, it's a better environment to work in, and so that means something.

So kind of the the veiled kind of pushback of well, one that we're gonna lose, you know, people or officers or whatever group we're talking about to these other places if we don't match this pay, or if we don't really run this up or whatever else, I don't really go for that anymore because of the reasons that I stated previously of why at the end of the day, if it's a difference of I don't know, a couple bucks here or there, uh in the short term as far as like the immediate pay, Spreo Rancho is still a better place to work, and I feel like there'll be enough people that recognize that.

And our recruiting classes are strong and all of that.

Um secondly, it's always said and it will be said in every negotiation that we're always short staffed, and if we don't do this, then we're gonna be short staffed and all of that.

Uh that's subjective, obviously.

How many, you know, you look at it, you know how many officers you need.

I know the city's growing.

I'm not getting into all of that.

That's something that's beyond what I know.

I do recognize and know that the public to the public, they probably don't think that we're short staffed.

At least that's all the interaction that I get with the public.

Frequently, I get asked more often uh how come when someone gets pulled over, you know, three or four officers are there, you know, versus the feeling of we're really, really short staffed.

I know internally looking at our numbers of what we're supposed to have versus based on population, blah, blah, blah.

We could come up with whatever metrics to say that we are short staffed.

Uh, but I'm just telling you that that's not the feel amongst the public.

And so because they're the ones who we have to go to to get money in order to pay people, really shortstopped is subjective.

But I know that we come up with these different different uh algorithms to say, and I'm not I'm not disputing any of that.

All that I'm saying is that the game of always chasing to match Berna or Santa Fe or Albuquerque or whatever else uh is a game I want to get out of.

I think that we're flying a little too close to the sun for our reserves.

We had some really strong reserves four uh or six years ago, and this is the first time we're where as the budget's been presented to us, we've had to talk about some pain in taking those reserves down.

I understand when you're looking at it going like, okay, original 27% with amendment 25.4, I understand that.

However, we're not always guaranteed that we're gonna have strong economies.

We're not always guaranteed that gas and oil will cover and will carry us and all the rest of that.

So it is our job, though, obviously you have you you have and will have and have always had our support, mine personally, this council for all the time that I've been here and going forward.

Again, great community, great council, great leadership, great departments.

Um I am getting, I I I do think that we're hitting a point where uh walking into the next round saying, well, we got a match because of this place, that place, whatever other place.

That's totally fine.

It just doesn't scare me anymore, and I think that we need to be careful about that when we go into the next round uh of negotiations to make sure that at the end of the day that we have enough of a reserve and that we have enough uh monies, which comes from our citizens, in order to spread it around to every single department uh that we need to.

Obviously, we're still plowing through with a lot of different roads, road projects.

We are expanding community, and so that pulls on every single resource.

Not saying that your job is easy, I'm not saying that city staff's job is easy as we go into these negotiations and we need to take care of people.

I get that.

I'm not against any of this.

I'm just saying that I think probably for the last couple of rounds, uh, because I was new to this, felt like I didn't know, felt like I was too new or junior on this uh council.

I've kind of just said, like, hey, I don't know about this, I'm kind of getting nervous about it.

Just kind of shots across the bow.

I think now what I'm saying is uh we've we've we've gone really far, we've matched, we've done a good job staying up.

Uh I just don't think that that's a great uh approach for us going forward.

I think that we need to let the fact that our city is a great place to work, that it's a safe community, we have great long-term benefits, let that actually carry.

And if that means that another place it pays a little bit more per hour than us, so be it.

Uh I don't think that we're gonna have this flight from all of these positions to all these other places.

And if we do, oftentimes we see that they come back.

Our own city manager came back uh from another city because it's a great place to work, it's a great place to be.

And so uh those are my comments.

Again, they're just they're mine uh alone.

Um, but I just wanted to add that into the record.

Thank you, Mr.

Mayor.

Thank you, Councillor Anti.

So you're not proposing any changes at this time.

No, sir.

Okay, thank you.

Mr.

Minister.

Counselor Colbright.

Thank you.

Um, thank you very much.

Um shifting slightly, um, I do want to give my thanks to um all of the department directors for their work um in uh producing this budget um that continues to demonstrate our fiscal responsibility and maintaining our reserves.

I think that's critical to recognize when um the news almost every week is showing other municipalities that are having to make budget cuts uh because they have over budgeted for a number of reasons.

And so for us to be able to have the raises that we're providing for all of our employees, as well as the efforts that have gone forward in regards to the police unions ensuring um that up while continuing to maintain our 25% reserve, I think is really fantastic.

Um, and and being able to see even the progress that we're making and our roads, um the progress that we're making and all of our quality of life while continuing to maintain these reserves.

And I would like to highlight that this has been done with the more pessimistic budget forecast.

Um, and we know that we have been outperforming that budget forecast in the past, um, but I think it continues to be the best approach to budget on the pessimistic forecast because we don't know what lies ahead.

Uh, what we have seen in the past several years though, is that by the end of the year um we have outperformed uh that budget with the amount of GRT that comes in.

Um, and if you know if we had one more restaurant, we'd have a little bit more, but I digress.

Um, but um uh I think this this this budget and the work that's been done by the entire team really demonstrates um why we are um a wonderful city.

We are also a growing city, um, and so there are some pains that come with growth.

There's additional investment that comes with growth, and at times we need to get ahead of the growth.

Um, and so I do uh feel like the investment that we are making here with this amendment helps to support the growth that we're seeing right now, but it also prepares us for the growth for the future.

Um, and so thank you very much, and thank you to all the department directors.

Thank you, Councilor Culbreth.

Counselor Dust.

Mr.

Mayor, uh I just wanted to follow up with the fact that this community, our residents are are very outspoken about their priorities, and public safety is very, very high on the priority list.

Um, and with that, I I definitely think it's an important amendment, and I'm I'm glad that we're we're able to present something.

Um, at the same time, I think that it's very important for you to remember that the residents value you and you need to value them and not just chase a dollar.

So please do good.

Thank you.

Thank you, Councilor List.

Anything further?

I I just wanted to comment on Councillor Tyler's discussion with the police union.

I agree 100% with him.

It's critical that we understand that you all are happy with where we're at, because I too heard after the fact that that was not the case.

That was an uncomfortable conversation, but it needed to be had.

I have always been a strong advocate of place and fire, and I will remain such.

So it's very critical that we keep you folks happy, but also need to be cognizant of the budget per Council Lennon Tine's comments.

So I just wanted to add that and echo those those same comments.

All right, Director Yari, you have one more item to discuss.

Yes, thank you.

I'll I'll continue with it real quickly through utilities, and we'll uh have a brief discussion about the ICIP plan.

Um, the utility operating fund, of course, um provides water and wastewater services to over 40,000 customers in the Rio Rancho uh City of Rio Rancho, and that's about we deliver about 3.5 billion gallons of water uh annually.

The revenue, of course, from the utility, it's an enterprise fund.

Um, so its revenues um it is funded by revenues of its service.

So the sale of water service, wastewater service and recycled water.

Um for FY27, we are expecting uh to have an available fund balance of about 16.3 million dollars going into the year.

Total revenues are estimated at 62 million dollars, and um expenditures are appropriated at 37.2 million dollars.

Um that results in a 15.9 million dollar ending fund balance.

Um at the end of the year.

Um want to talk about the reserves in the utilities enterprise fund are a little bit different than the general fund.

Um there are operating reserves of 11.9 million dollars, capital reserves of four million dollars, debt service reserves of 230,000, and capital funds and impact fee reserves of 3.1 million dollars.

The operating reserve of 11.9 million dollars represents uh 126-day cash reserve.

Our target is 90 days, so we are far in excess of our target there.

Um the capital reserve of four million dollars simply represents one percent of the total estimated value of the utilities capital assets at this point.

As as we've discussed in previous meetings, the utilities enterprise fund did have a rate adjustment uh go into effect last year.

Um for FY27, that rate increase will um result in about a three dollar increase in a monthly customer bill.

Um this is the three percent increase in the water rates as well.

There's a five percent increase to um I'm sorry, there's there's a three percent increase in the water rights acquisition fee.

There's a five percent increase to um I'm sorry, there's there's a three percent increase in the water rights acquisition fee that helps us build up uh funding to buy to purchase water rights.

Um and then there's a five percent increase to the rate for bulk fill customers, which is a very small amount of our revenues.

The utilities enterprise fund also includes a five percent salary adjustment for all employees uh for this fund that is about 82,000.

Um again also includes the 5% increase in health insurance premiums.

And they are requesting two new positions, an administrative services manager and associate engineer.

Here's just a real quick snapshot of some of the operating uh I'm sorry, the capital that is funded through the utilities fund or the upcoming year.

That is all for utilities.

If you have any questions about that, uh otherwise I'll move on to ICK IP.

Um Steph, yes, ICIP is a separate action item.

Do you want me to talk about it or do you want to pause pause?

Okay, yeah, can we actually go back just a little bit and get a motion and a second on the first item since we've already did the discussion and then do a motion and a second on this item as well before we proceed with discussion?

I move to approve our 40.

Second.

Any discussion.

Councilor Colper.

Yes, do um do we need to clarify R 40 as amended or just R40 straight away?

Mr.

Mayor, counselors.

The resolution already states that it is as amended, so uh it is on the record.

Thank you.

Any discussion on R 40?

No.

Further discussion.

Mr.

Mayor, if I may, um second to um if I could provide a couple comments.

Um first of all, um we've referenced a couple employee groups this evening uh in the realm of public safety.

Um, and I would like to take a moment to highlight uh two other employee groups that haven't been mentioned.

First of all, uh ask me asked me has representatives in uh the room here this evening.

Uh we've reached a reached a tentative agreement with them on compensation adjustments for FY27.

So that'll be integrated into the uh FY20 uh when we do the final final budget in July.

Um so uh that and also we have unrepresentative employees or management confidential.

Um and uh just want to recognize them as part of the COG that keeps the the city going forward as well.

Um and uh, you know, here in the conversation this evening discussion, um, you know, I think in large part the discussion is is positive and and and fruitful um and a lot of a lot of positive things to hear about.

I appreciate um the observation from Councillor Colbreth about uh some more of the the budgetary challenges that we are seeing from other entities, um also uh you know, even operational challenges that are being highlighted.

And I don't I don't uh wish anything negative on any other entity because our jobs are already hard enough in the public sector.

Um so I actually feel for some of the uh the managers and the elected officials who are navigating those those challenges and uh as they work through their budget process.

We've had the good fortune a decade now at least that we haven't had a really difficult budget.

Um and I think that's because we've built good core budgeting philosophy, and we start off conservative and we grow into the budget and then reset, start conservative, grow into the budget, reset.

Um but uh we are seeing a lot of local governments, be it state or be it county or municipality with budget challenges here in the state of New Mexico and across the country.

Um my LinkedIn feed is uh very much about city managers and local governments.

It's kind of shifted over the years uh into that and this seed and read articles um that that folks are facing.

And I hope that we will never get too close to the sun and we'll be able to uh avoid that.

But and I've said it for a few years now.

I'm afraid next year is gonna be the year that we have pain.

I'm afraid next year, and I've been wrong every year, so I'm really happy I am wrong.

Um, but it is seems to be tightening up.

Um, so I think those those observations of the long range and being a steady eddy place for the long range are very important.

Um want to thank all employees at the city, um, those who've been here for a day, those who've been here for a week, those have been here for uh um you know, no longer with us, but David Branch, I think, is here with 35 years.

I want to thank all those employees across the organization.

Um but also we wouldn't be here today to have these positive conversations and fruitful conversations about collective bargaining agreements, about the state of the budget, um, if it weren't for the extremely hard work that we get um from the department directors and building the budget that is balanced and and reasonable coming in into the finance team, the budget team, and in particular HR.

I cannot overemphasize the heavy lift that it takes for us to go through those processes, and we are here today.

Um there's a lot of people behind you know, cranking away participating in those negotiations, um, throwing the proverbial stapler, um, not physical staplers.

We don't throw any physical staplers, but sometimes we have to have those those types of conversations.

So um a broad based thanks, an expression of gratitude to everybody.

Um, but really want to also thank some you know some of the the the silent players in this process coming out of the finance team and the HR team to make this all possible, so thank you.

Thank you, Mr.

Gyson.

Mr.

Mayor, uh Councillor Tyler.

Based on what you just said, Matt, you said something that um we just finalized negotiations with ASME, and in doing so.

Can you go back, Director Yard to that um 25% or ending fund balance?

Is that gonna impact that with that new piece?

I mean ending fund balance, I get it.

Our ending fund balance requirement by the state requirement DFA is eight percent.

So we're way above it.

We're we're nowhere close.

This is a policy.

So are we gonna go below that or are we gonna stay above that with this new one with ASME?

Mr.

Mayor, members of the governing body.

Um with the final final budget when we with the rollovers and and everything else, um, we anticipate that we'll we'll be above it.

Okay.

I do think very, you know, I think the 25% ending fund balance target is one of our core budgeting strengths that's help us navigate in a positive way.

Um there are folks that don't have that, and you can come kind of come to a correlation on those who are in the articles without saying their names that that don't have that.

So I I get it.

I'm just asking if we're gonna go below it, and I'm not worried about if we go below it a little bit right now, especially with that, because I know what our requirement is by the state requirement.

So we're well above it, and I know why we do it, and I completely appreciate it, but I didn't want that to impact ASME's making sure that they get what they're also deserved as well.

So that was why I was asking the question.

So thank you very much.

Thank you, Councillor Tyler.

Anything further on our 40 hearing none?

Call the roll.

Thank you, sir.

Councillor Dabson.

Yes.

Councillor Colbrand?

Yes.

Counselor List.

Yes.

Mayor Weimer.

Yes.

Councillor Lennon Time.

Yes.

Councillor Tyler.

Yes.

R 40 is approved.

Moving on to item 13 R41.

Director Yara.

All right.

My apologies, Mr.

Ian.

Checking on the next item.

Um let me before you start.

I did not read what this item is.

It's a resolution adopting the infrastructure and capital improvement plan ICIP for fiscal years 2027 through 2031.

Thank you.

Thank you.

Um, I'll go real quickly through our presentation on ICIP.

Um, this is uh spans for the next five years, 2027 to 2031.

Um the ICIP does not confer legal authority for capital spending outside of FY27.

The document really is uh for the the future years is really serves as a basis for um setting our our budgets in those years and projecting our needs.

Um so tonight's vote will only give authority for us to to uh expend the FY27 funding.

Um for FY27.

Um the total amount of the ICIP is 310.1 million dollars.

Um that's broken up as uh about 202 million of pay as you go.

Um debt financing of about almost 91.2 million, and yet to be determined of about 17 million dollars.

Um the FY27 capital plan consists of about 56.4 million dollars in new capital appropriations, two million in repair minor equipment and contract service appropriations, and about 252 million dollars in roll forward appropriations uh for uh existing funding.

This the chart on the right side uh just gives a breakdown of projects by department.

Of course, the largest department getting funding is the public works department.

They are responsible not only for streets but all our facilities.

And then of course water and wastewater projects would fall in bull uh as a second there.

On to the the five-year plan.

Um ICIP for the five-year period um is 942.9 million dollars.

Um again.

Um the chart on the right breaks that down.

456 million uh is going to public works, and then of course, wastewater and water about 260 million.

Um a very detailed list of each of these projects is contained in the budget book and in your packet.

As it relates to uh capital that's related to growth and non-growth, it's almost right down the middle this year.

Non-growth uh items uh represent 49 percent of the ICOP and growth related items 51 percent of this about 56 percent uh does not have an identified funding source.

This is where we look towards grants uh bonds, um, you know, additional revenues above our estimates uh is where that money goes towards as each year comes on, we will uh reassess um the funding available and other uh financing options.

And that is it for the ICIP plan.

I sound for questions.

As I mentioned, the detail can be found in the budget book.

Thank you, Director Yara.

Can I get a motion?

I move to approve R 41.

Second.

Is there anyone from the public signed up to speak?

No, Mr.

Mayor.

Any discussion by council?

Mr.

Mayor, members of the government body.

If I may very briefly chime in.

Um there's been a couple comments, uh, public comments and public hearings about um the budget book as well as um the aquifer reinjection.

Um so on the city's website we you know, as you know, we created a vanity URL, um, which I believe was FY27 budget.

Um double checking, looking at counselor Dabson and Peter on that.

Um and then there's two ways to interact with the budget on that.

Uh there is a more of a kind of interactive flip book, and then there's a PDF uh on that document.

It's a 330 some odd page document, and that document strikes seeks to strike the balance of executive summary overview and detail, as well as also but you know, you know, and provide additional information.

Um just wanted to share that and uh in you know, really kind of the as you look at that document.

Um the beginning there's an executive summary, um, technically called the city managers transmittal or something like that that provides an overview of the general fund, and then you get to the ICIP, and there's a similar letter for the ICIP.

Um and you know, so if you're gonna look across these 340 pages, about 10 pages distill it in one area, five pages is still in another.

Um the aquifer reinjection funding is highlighted in the executive summary of the ICIP.

That's on page 310, then it's also listed in in the detail.

Um, we discuss the aquifer reinjection project the same way we discuss the UNSER Boulevard widening and the other capital projects.

Uh it is it is in there, um, and then we do our additional reporting on projects through the additional um means and mechanisms and tools that we have to do that.

But I just wanted to share that um because there's been some comments and questions made about it's not in there, are we funding it, things of that sort?

Discussing aquifers reinjection the same way we're discussing.

Um probably broad, you know, barber loop like we discussed in last year's budget, which is gonna be the next item, I think, on the agenda here in a second.

So just want to share that.

Thank you very much.

Thank you, Mr.

City Manager.

Anything further from council on item R41.

Hearing none, call the roll.

Thank you, sir.

Councilor Dabson.

Yes, Councillor Lynn Time.

Yes.

Counselor Colbreth, yes, Councillor Tyler.

Yes.

Councillor List.

Yes.

And Mayor Weimer.

Yes.

Thank you.

R41 is approved.

Moving on to R 42 resolution adopting the community development block grant fourth annual action plan for 2026 through 2027 fiscal year.

Director Yara.

Mr.

Mayor and Counselors, yes.

Uh this is a resolution to adopt the CDG C D BG grant for FY27.

I'm going to defer to Don Martinez, our budget and grants manager, and he will uh summarize the item.

Thank you.

Mr.

Martinez.

Mr.

Mayor, members of the government body.

As Stephanie stated, this was a resolution adopting the fourth annual action plan for the C D B G.

This is the fourth year of a five-year consolidated plan.

The city is in eligible to receive federal funds from the U.S.

Department of Housing and Urban Development as an entitlement community.

This year we're slated to receive $522,000.

That money has been allocated approximately $78,000 to public service programs, $334,000 to public improvement programs, $97,000 to planning administration.

There's various caps on how we can use that funding.

We always max out the public service.

That's a 15% cap.

We always max that out to put as much money in the community as we possibly can for those purposes.

And the planning administration cap is 20%.

This year, as in uh several of the last uh recent past years were under that cap.

So in the way that we try to maximize the money out to the community, we try to minimize the um administrative costs of the of the grant.

Um the detail behind all of those various uh programs and activities can be found in the plan itself on pages 20 through 22 through 26, and with that I'll stand for any questions.

Thank you, Mr.

Martinez.

Can I get a motion?

Move to approve R 42.

Second.

Anyone signed up from the public?

No, sir, there is not.

Any discussion from the council?

Mr.

Mayor.

Counselor List.

Uh, I just want to say thank you so much for the time and effort that goes into this.

This is a big deal to take federal fund monies and read through all the rules in the red tape and to apply them.

And I think um when people look at what we are doing for the community, this this is huge.

And this is the heart of the community, and this is actually probably one of my favorite uh votes that we're gonna have all year.

Thank you.

Thank you, Counselor List.

Anything further from Council, Mr.

Mayor, Councilor Lennantine.

Uh I I also just wanted to say thank you so much to our staff, particularly uh this time of year in the summer, we get to highlight uh how good our financial services staff uh are and some new faces presenting this year.

So I guess we'll you know we'll wait and see.

But no, you guys are doing a great job, and uh no matter who's up here, you you take the time, you read through everything, balance budget.

We just take for granted that we're gonna have balanced budgets, award winning, you know, all this other stuff.

We shouldn't take it for granted because it's a big deal, and that doesn't happen in too many places around uh our state and around our in our region.

And so uh you're a big reason.

Uh everybody wants to be able to go out and do stuff and swipe the card and know that there's money there.

Uh but you're on the back end, making sure that we can fund all of this.

Uh you know, big number, big tickets uh for things we've watched ever since COVID prices steadily go up in road and maintenance and parks and all of this other stuff, and you guys have consistently found ways uh to get out there and and use the money, use interest and be able to bond and use our bond ratings, and uh it it is a big deal.

I don't want to sit here and just take it for granted every year that what you guys do Monday through Friday, eight to four, eight to five, whatever.

Uh you consistently keep our city on track.

And so thank you so much for that.

Uh thank you for all the boring spreadsheets and time that's your desk and all that stuff that you do to give a great community, great place to raise families, and uh we don't take it for granted.

So thank you for everything that you guys do, Mr.

Mayor.

Thank you, Councilor Donantine.

Um I um I'm just I think we should be shouting from the rooftops that we have these programs.

Um I get a lot of questions about this kind of stuff, and um I think it's awesome that we do.

And I mean, I'm specifically talking about our community plan, and um yeah, I think we should be letting people know about it because it's an awesome project.

All of the projects are awesome, and I I appreciate everything we're doing to make sure that our community is safe, secure, and happy and real rancho.

Thank you.

Thank you, Councilor Dabson.

Counselors.

Nothing further.

Call the roll.

Thank you, sir.

Yes.

Counselor Tyler.

Yes.

Mayor Weimer.

Yes.

Councillor List.

Yes.

Counselor Debson.

Counselor Calbreath.

Yes.

R 42 is approved.

Moving on to item D 14 advice and consent from the governing body to award the Barber Loop Reconstruction Project to Albuquerque Asphalt Inc., Director Gottlieb.

Well, good evening, Mr.

Mayor.

Uh counselors.

I'm glad to be here again.

Um talking about Barber Loop.

Uh so tonight I am seeking advice and consent to award Barber Loop reconstruction to Albuquerque asphalt, an amount of three million two hundred and seventy-three thousand hundred thirteen dollars and eighty-five cents, which includes New Mexico Grocery Seat taxes.

Um happy to say this project is funded with transportation project fund grants from the New Mexico Department of Transportation, as well as our city infrastructure funds and utility department sources.

Um our project consists of full debt pavement repay replacement, which it needs, uh new water line throughout the entire quarter with a bore under 528 across the street, um new sewer line and sewer services, and of course ADA improvements.

Um we anticipate starting this project in August, and it will take about nine months to complete working with the Department of Transportation.

Um with that I'll stand for any questions you may have.

Thank you, Director Gottlieb.

Can I get a motion?

Second second.

No, sir, there is not.

Any discussion from council?

Mr.

Mayor, Councilor Lennon Time.

Yeah, I know BJ, you consistently spend all of the money that financial services finds for us.

Um here's my question.

Uh how many different companies uh bid on this project?

I know before we've been kind of short on competition.

Uh Mr.

Mayor, Councilor Lennatine.

So actually, what we're using on this project is the Burnley Oak County on call contract.

So what we did is we took that contract and we submitted a what we call a mini bid.

That's not the technical term within the contract, but a mini bid to TLC, Franklin's Earth Moving and Albuquerque asphalt.

Uh one of the contractors was non-responsive to the request for proposals or uh costs, and the other contractor came in higher than Albuquerque asphalt, so we actually had three contractors on this this project.

Okay, very good.

Uh and no one needs to be done, love the project.

Just wondering about that.

Also, I have you here if I could ask about a different issue real quick.

Uh this time last year we were having some discussion about how we were having a hard time keeping up with the weeds, you know, hiring to be able to get out there, so we would it out to uh third party.

You only had one company that responded to that, so we were doing some work with them.

Um now that we're into you know, we a lot of rain in the last couple weeks here or whatever.

Uh has anything changed, or are we going to be kind of in the same position where it's gonna be hard for us to keep up with it, and it's also hard to find maybe a third party to help us to get to all of the the weeds that we need to get to.

Mr.

Mayor, Councillor Lennon Tyne.

Um, yes, we still have our one on-call contractor.

Um that's Yellowstone landscaping that's working with our uh internal crews.

I think this year we were able to uh better anticipate weather, and so we are out spraying more efficiently and more effectively this year.

Um it depends on how dry the season is.

Uh you know, weather forecast is gonna be pretty dry, so we may not see a lot of rain.

So I'd like to say that that means we're doing a great job keeping up with the weeds, but Mother Nature may just be helping us as well.

I do think we have put processes in place to make us more effective with the weeds.

Um obviously, if you're seeing areas that don't look that way, please contact me and I will talk with my team internally and we'll get with our contractor on the contracted areas and make sure that we are um taking care of that.

Our first and foremost goal is to make sure our contractor is delivering on the contract that we have with them.

We have an inspector assigned to them and they follow them around and actually our inspector helps them occasionally to get stuff done because we want to make the sure the city does look good for everybody in Rio Rancho.

Thanks so much for doing that with the inspector.

I know that we said when we were awarded that contract that we wanted some type of metric to make sure that they were fulfilling their end of the contract.

So obviously you took that really seriously and you got on it, so thank you so much for doing that.

And yeah, I don't notice any you know bad spots in the city.

I was just kind of wondering because now we're into that kind of you know rainy season here, and so hopefully, uh hopefully it's a lot better than uh last year.

Thanks for the update.

Thank you, Councilor Renantine.

Anything further from Council?

Mr.

Mayor.

Councilor Colbreath.

Thank you, Mr.

Mayor.

Um, I'd like to point out that BJ, you not only spend everything that we allocate to you, you also find additional sources of funding.

Thank you.

Um, because almost two million of this 3.2 million dollar project is funded by state uh funds.

Um so once again appreciate you going out.

I know when this was uh proposed as part of the road plans it was one of my questions.

Um, if we how confident you felt that we would be able to secure um the fundings for this road and then there's another future project.

Um, and I um am appreciative of the work that you all do uh to go out and seek additional funding so that we can cover more roads in our communities.

We know that continues to be the number one concern um among residents.

Um and so we're also using our um city resources but also going out and getting state funding to do that.

So thank you very much.

Thank you.

Thank you, Councilor Colbreth.

Anything further?

Good job.

I just uh you Councilor Cobra, you stole my thunder.

I was gonna say the same thing, but thank you.

Um and BJ, I I don't know that I've ever heard anyone describe no rain as a good thing, but I guess you see the glass half full in any event, right?

Not really, it's kind of empty.

It's kind of empty.

Oh my gosh.

All right, nothing further, call the roll.

Thank you, sir.

Councilor Tyler.

Yes.

Counselor List.

Yes, Councillor Colbright, yes.

Councilor Dabson.

Yes, Mayor Weimer?

Yes.

And Councillor Lennon D14 is approved.

All right, that concludes the agenda items for this evening.

Mr.

City Manager.

Mr.

Mayor, members of the governing body.

Um just with just reflecting here as I opened up the newsletter.

Um, we just had a uh a conversation on what is probably the best kept secret, and or what is said to be the best kept secret in Rio Rancho, that we do road work.

Um when we do a lot of road work.

Um and uh looking down here at the newsletter, um, and I'll have to have Peter and BJ update this.

Uh I guess that make Barbara Loop would be 51 major road projects.

That's not the residential roads, but 51 major road projects since 2016.

So one of the regular features of our newsletter that just hit mailboxes in the last seven to ten days.

Um the the two pages in the middle talks about roads, both residential and major road projects.

So um it is uh it's an uphill battle.

We know the history of where we started from in 2016.

Um, but just want to uh um you know it's we do do a lot of work road work everybody.

Um I enjoy some of the conversations that we've had um over the years with with with folks, whether um and so always encourage folks to visit rrnm.gov forward slash road work um to see uh more information there and um sure this will be another successful project before too long BJ will be asking you about UNSER.

Okay.

Um but in that I'd also like to highlight that again.

The newsletter just came out, features a lot of the fun activities that are taking place this summer.

Um obviously the Fourth of July celebration will take place on 4th of July is one of the highlights of the summer, but many great things in between.

Uh you can't find it in your mailbox available at a 11 city facilities, also available online.

A couple other uh highlights as we get into the summer, uh summer the outdoor pools are open.

Uh summer reading is kicking off with a kickoff party on Tuesday uh June 4th.

Uh they have a couple um cool themes, uh including that kickoff party is uh the library of Alexandria uh and also unearthed a story, so some cool themes there.

Um we in the spirit of uh libraries and um and uh parks and rec, the hub will be celebrating on June 6th.

It's three-year birthday or third year anniversary.

It's hard to believe that it's been it's been three years.

And there will be cake, right?

What's that?

There will be cake.

I think Jason was just told to have cake.

There will be now.

It wasn't planned, it just got added to the list.

Um and uh we will invite um Councilor Tyler to come cut the cake since it's in district three.

Um but also just a couple other things along that we've heard it a few times, but we're gonna be kicking off any day now are Esther Bone Library Veterans Memorial Monument Park parking lot up uh improvements, uh partially funded with uh state legislators.

And um, and that's about it for today.

Thank you very much.

Thank you, Mr.

City Manager.

We are adjourned.