Rio Rancho Governing Body considers ordinance amending water and wastewater rules, rates

An ordinance adjusting the water and wastewater rules and rates was introduced at the May 23 Rio Rancho Governing Body meeting.

The ordinance would allow the current annual 1.75% increase on water bills to stay in place, which would increase the average customer’s bill by an estimated 94 cents per month.

The adjustment will result in approximately $443,000 in additional revenue for the Utilities Department. The rate adjustment does not fully offset projected increases in operating costs such as electricity (projected to increase by 22%, or $500,000) and chemicals (projected to increase by 7%, or $73,500).

According to the ordinance, in order to operate and maintain a reliable and safe water/wastewater utility system for customers, regular rate adjustments are necessary to account for such factors as inflation, miscellaneous materials/services cost increases, and new/amended regulations with associated costs.

The increase would be in place until a study is completed on the wastewater utility system.

The city council said the study, which would begin in October, will give them a more accurate multi-year water rate schedule.

In 2019, the council passed a five-year rate schedule that locked in the 1.75% annual increase. That rate schedule expires at the end of June.

Operating cost increases in Fiscal Year 2025 such as electricity for well pumping and chemicals to treat the water, which are outside of local government’s control, are projected to continue to increase significantly.

City Manager Matt Geisel’s recommended budget for Fiscal Year 2025, which was published on April 15 and passed at the May 23 meeting, factored in a 1.75% water rate-only adjustment to help offset a portion of projected operating cost increases.

The citizen Public Infrastructure Advisory Board reviewed the recommended budget and passed the proposed 1.75% water rate-only adjustment April 23.

Mayor Gregg Hull’s response to the budget was published on April 23:

“Over the past few years, supply chain issues and inflationary forces have impacted nearly all aspects of life, including infrastructure projects. Water and wastewater operations and associated projects have been hit particularly hard,” Hull wrote. “As a result of these factors, rate increases ranging from 12% to 90% are being contemplated by communities throughout New Mexico right now. I firmly believe this recommended budget contemplates only a 1.75% water rate adjustment for customers because of past management decisions and fiscal discipline.”

The first reading of the ordinance was approved by the City Council on May 23. If the ordinance passes the second reading, it will go into effect on July 1.