By Kevin Hendricks, The Paper.
Rio Rancho residents will pay more for water, but city workers will take home bigger paychecks under a $452.3 million budget the Governing Body adopted May 28.
The FY2027 budget, approved as Resolution 40, takes effect July 1. The General Fund — which covers core city services — totals $169.9 million. The Utility Operating Fund, which delivers water and wastewater service to more than 40,000 customers, is set at $78.3 million. Together they represent about 55% of total city spending.
Police pay deal adds $1.4M
A tentative agreement with the Rio Rancho Police and Communications Association, reached in April, drives the budget’s most significant amendment. The deal adds approximately $1.4 million above the 5% cost-of-living adjustment already budgeted for all city employees, pushing base rate increases for officers ranked First Class through Sergeant to between roughly 8.6% and 19.3%. The union’s representative told the council the agreement has broad support.
“To answer your question, yes, this one is good,” Kevin Buchanan, President of Rio Rancho Police and Communications Association, said. “I think everyone’s on board with this, and I think it’s going to help tremendously.”
Reserve cushion narrows
The police deal trims the city’s projected ending fund balance from 27% to 25.4% — just above the city’s self-imposed 25% reserve target. Finance Director Stephanie Yara noted the city is still projected to meet or exceed that threshold throughout the five-year forecast.
But Councilor Jeremy Lenentine used the budget vote to put down a marker for future negotiations, warning that the city has spent years chasing competitor pay scales at the expense of its financial cushion.
“I think we’re flying a little too close to the sun for our reserves,” Lenentine said, adding that Rio Rancho’s low crime rates, strong long-term benefits, and community quality of life should carry more weight in future talks than salary matching alone. “If that means another place pays a little bit more per hour than us, so be it.”
What else is in the budget
- A 5% salary increase for all city employees, effective July 13
- Two new police officers and two real-time center operators
- Nine firefighter/EMTs formally added ahead of Fire Station 8’s opening
- Expanded parks and recreation and senior center staffing
- A $2.2 million transfer from the workers’ compensation fund to bolster health insurance reserves, offsetting what City Manager Matt Geisel said could have been an 18% health insurance premium increase
Rio Rancho FY2027 Budget — Key Numbers
- Total budget (all funds): $452.3 million
- General Fund: $169.9 million
- Utility Operating Fund: $78.3 million
- Projected ending fund balance: 25.4% (city target: 25%)
- Employee pay increase: 5% (effective July 13)
- Police union agreement: additional ~$1.4 million
Review budget documents:rrnm.gov/5053/FY-27-Recommended-Budget