Rio Rancho council considers proposed budget with potential for adjustments

RIO RANCHO — The Rio Rancho Governing Body considered Friday a massive budget proposal that includes investments in new projects, programs and jobs that city officials warned may need to be adjusted later this year due to economic uncertainties.

The $158.8 million proposed budget, effective July 1, 2025, through June 30, 2026, and a $690.9 million capital program, effective July 1, 2026, through June 30, 2030, were submitted April 15 by Rio Rancho City Manager Matthew Geisel for Mayor Gregg Hull to review and respond by April 25. The six-member council reviewed the proposal with Hull on Friday but took no action or public comment. The council will hold a public hearing on May 8 and 22 before potentially adopting the budget and capital program on May 22. Council consideration and a vote on a final budget, with minor adjustments, could occur in July.

In his letter to Hull and councilors, Geisel called the budget proposal “a snapshot in time,” and gathering more data in the coming weeks and months on new economic activity, such as inflation, tariffs and a potential recession, may necessitate the council’s adjustment of the budget.

Hull stated in his letter to Geisel that the proposed budget was “structurally balanced” and would meet the city’s policy of maintaining a minimum 25% rainy day fund for the next five years to help, in part, manage “uncertainties such as economic fluctuations.” He did not think general fund taxes would be raised.

Friday’s budget hearing came as councilors could possibly vote May 8 on whether to extend their terms in office in response to city staff’s recommendation to opt in to electing its municipal officers in the regular local election, held in November of odd-numbered years. Ordinance 13, which would do away with elections in March of even-numbered years, drew strong reactions for and against the measure online, including Nextdoor, a social media site for neighborhoods, and the Rio Rancho Observer’s Facebook page. The ordinance was not discussed Friday.

During the hearing, Geisel noted the potential budget adjustment before the city gets “off to the races” in crafting the next budget. He praised outgoing Finance Director Carole Jaramillo for her work in crafting a conservative budget that allows the city to “plan for the worst, hope for the best.”

“We hope by budgeting conservatively, even if there’s a recession, we can still continue with our baseline,” Geisel told the Observer.

District 5 Councilor Karissa Culbreath, who was unable to attend Friday’s hearing, wrote in an email distributed to her fellow councilors that she appreciated the city staff’s “conservative approach to budgeting because the global and local markets are highly volatile.”

City departments crafted budget proposals using last year’s budget as a framework and only added items that reflected city’s strategic plan, Geisel said. These items include several new positions — three police officers, a lieutenant, a crime scene technician, a public works division project manager, a public facilities custodian and an employee and labor relations specialist.

New capital projects include $12.9 million in road projects, including a roundabout at Silent Spring Drive; $9.5 million in wastewater carry and treatment plant improvements; $1.9 million in construction of a new phase of Unser Boulevard; and almost $1 million in building improvements, including to City Hall and Loma Colorado and Esther Bone libraries.

Non-capital projects in the budget proposal include a city-run emergency communications center, an after-school youth program and a pilot program for home purchase down payment assistance for city employees.

Geisel said during the meeting that the down payment program recognizes employees who have lived in the city for a long time and are continuing to see an increase in the cost of housing. Programmatic details are yet to be determined, he said.

District 6 Councilor Nicole List commented on the after-school program, which would be funded through city money and not grants, stating she is excited about “what we can do for our kids.” She encouraged other cities do fund similar programs.

Hull, who recently surpassed 11 years as mayor, praised the items in the budget proposal that are new.

“Ten years ago, we would never have thought of anything like this,” he said.

Hull applauded outgoing finance director for her work, including the recent budget proposal.

“We don’t get here without the whole team,” he said, holding up a folder of paperwork containing the budget. “You guys make it easy on me and the governing body; it’s very specific and purposeful spending. We’ve never been here before; it’s new territory, and it’s wonderful territory.”

Editor’s note: This story has been revised to clarify the source of online opinions and residents’ viewpoints regarding the proposed municipal election change.