$25M in bonds possible for RR water and wastewater utility system

RIO RANCHO — The Rio Rancho Governing Body is considering up to $25 million in bonds to fund improvements to the city’s water and wastewater utility system.

In a first reading of the ordinance, the six-member body all voted in favor of an ordinance to authorize the issuance of the bonds, which will fund utilities projects tied to the city’s five-year capital improvement plan. A second reading, scheduled for Oct. 23, needs to be approved by the governing body before the ordinance can go into effect.

City Manager Matt Geisel said following the meeting that bonding is necessary for bigger city projects as opposed to smaller ones.

“This is a very standard approach,” he said. “This is a more manageable way for the city — and the water user, the rate payer — to accomplish these large-scale projects.”

The five-year plan includes $109.5 million in water production improvements, including $25.6 million for wastewater treatment plant No. 2, which is one of the city’s key utilities projects, according to Geisel. The plan includes another $28 million just to install and replace water lines.

“We have capital improvements identified on the water side and the treatment side, so ... we’ll work through what is the best use of these funds, coupled with other funding sources, to execute the highest-priority projects,” Geisel said.

Editor's note: This story has been amended to say the Rio Rancho Governing Body approved a first reading of the ordinance and it has not gone into effect.