RR governing body approves water/wastewater bond sale period  

RIO RANCHO — The Rio Rancho Governing Body gave the city the green light on Thursday to extend the period to issue $25 million in utility revenue bonds after staffers said shifts in the economy prevented them from selling bonds sooner.

The six-member governing body approved an ordinance authorizing the extended timeframe, following on a required first reading of the measure Feb. 12. 

The decision will extend the city’s utility revenue bonding cycle 120 days to give officials a new window of time to sell the bonds. Councilors approved the same window in October, but time ran out due to fluctuations in the economy, Stephanie Yara, director of financial services for the city of Rio Rancho, said at the time. 

With Thursday’s governing body vote, it is still not clear when or if the city will sell the first tranche of revenue bonds, according to city staffers who briefed councilors and Rio Rancho Mayor Gregg Hull. But the city has target dates based on the advice of its bond counsel, which is not employed by Rio Rancho.

The bonds would help pay for some major water and wastewater projects outlined in a $233 million capital plan. If approved, the plan would provide a bonding cycle that allows for two utility revenue bondings — at $25 million each, over the next five years — to help pay for those projects, including potentially the second phase upgrade of the city's wastewater treatment plant. 

What's more, the ordinance allows the city to refund previous bonds and loans related to water utilities "if conditions are right,” Yara previously said. The strategy would save rate-payers approximately $2 million.

Following Thursday’s meeting, Hull said the council’s vote was “an important move forward,” not only in paying for improvements to Rio Rancho’s water system but saving rate-payers money.

Yara, Hull and City Manager Matt Geisel must authorize sale of the bonds, Hull said. 

“I have full faith and confidence in our finance staff that they will monitor this,” he said.