Rio Rancho Investment Advisory Board Meeting - August 26, 2026

The Investment Advisory Board of Rio Rancho met on August 26, 2026, at 6:00 PM in the City Council Chambers. The meeting included a consent calendar approval, a presentation on the Open Meetings Act, and detailed reviews of the Permanent Fund and Core/Liquidity portfolio performances by the city's investment advisor, GPA. No formal votes were taken on discussion items; the board provided input and noted information for future meetings.

Consent Calendar

• Approval of February 18, 2026, Minutes: A motion was made and seconded to approve the minutes from the February 18, 2026, regular meeting. A roll call vote resulted in unanimous approval (5-0).

Discussion Items

Open Meetings Act and Decorum

• City Clerk Davis presented on the Open Meetings Act (OMA), quorum requirements, meeting decorum, and board responsibilities. Key points included: meetings must be properly noticed (agendas posted 7 days prior), members should avoid discussing board business outside of public meetings, and a quorum (more than half of current members) is required. Two vacancies exist (Districts 3 and 5). The board's role is advisory to the governing body on the voter-approved permanent fund and city investment portfolios.

Review and Input on Permanent Fund Performance

• Director Yara provided background: The permanent fund was established via a 2024 voter-approved charter amendment with an initial $10 million investment. Subsequent contributions include $2,000 and $1 million from cell tower revenue. As of June 30, 2026, the corpus is $11,002,000, and cumulative investment earnings (over $6 million) have been fully reinvested. The board will be asked annually to advise on reinvestment versus expenditure of 50% of earnings.
• Deanne Woodring (President of Government Portfolio Advisors, GPA) presented the fund's performance and asset allocation. The fund is invested 100% in State Investment Council (SIC) pools with a 55% equity / 45% fixed income target (plus 5% real assets). Year-to-date returns were strong: fair market value return of 14.94% (vs. 12.19% last fiscal year). Miss Woodring recommended rebalancing to align with the target allocation, including selling some credit-plus bonds and buying U.S. core bonds (approximately $1.7 million), and adjusting equity sub-classes. The board asked clarifying questions about policy limits and return assumptions. No formal vote was taken; staff noted the rebalancing decision lies with the treasurer but sought board input.

Review and Input on Core and Liquidity Portfolios Performance

• Deanne Woodring reviewed the city's core investment portfolio and liquidity portfolio, which are managed separately from the permanent fund. The core portfolio (invested in U.S. Treasuries, agencies, and supranationals) totals about $200 million with a yield of 4.03% and an average maturity of 1.5 years. The liquidity portfolio (money market) yields 3.60%. Market conditions show a steepening yield curve, with short-term rates declining (Fed down 100+ basis points) but longer-term rates higher due to inflation and oil prices. The portfolio is structured in a liquidity, cash-match, core tier to meet operating needs and enhance returns. Compliance with investment policy (including NMSA 6-10-10) was confirmed. No votes were taken.

Key Outcomes

• The minutes from February 18, 2026, were approved unanimously.
• The board received information on the Open Meetings Act and board procedures.
• The board reviewed the Permanent Fund performance and noted the rebalancing recommendation; no formal action was required. The treasurer will consider the input.
• The board reviewed Core and Liquidity portfolio performance and strategy.
• A future agenda item will be added to elect a new vice chair following the departure of a prior member.
• Board members were reminded to complete annual statement of economic interest (sent in January) and to attend the upcoming counselor meet-and-greet in September.