Advisory board backs Rio Rancho FY26 operating budget and recommended five-year capital plan

The Rio Rancho Public Infrastructure Advisory Board voted to approve the recommended fiscal year 2026 operating budget for roads, drainage and the water and wastewater utility system and to support the city manager’s recommended FY26–30 capital improvement program.

Deputy City Manager Peter Wells and Public Works Director BJ Gottlieb told the board the FY26 operating budget includes the first year of debt service for a $32,000,000 loan that will fund two major projects: a new fire station and the reconstruction and widening of Unser Boulevard from Cherry Road to Paseo del Volcán (the wider program cost for the two projects is about $46,000,000, with roughly $14,000,000 for the fire station and $32,000,000 for Unser Boulevard). Wells said the city is borrowing $32,000,000 because federal and local funds cover part of the total cost.

Gottlieb and Wells walked through proposed capital projects that the governing body and staff have prioritized in the ICIP. Projects highlighted for FY26 include Southern Boulevard phase 2 (Nicholas Crossing), a match for multiple state transportation grant applications (Golf Course Road, Western Hills, Barbara Loop), design work to extend Loma Colorado to Chessman Drive (including a proposed roundabout), pavement-condition inspections, additional inspection services and right-of-way purchases, and improvements at the Cleveland Heights High School drop-off. The board also heard that the city expects to bid the Unser Boulevard reconstruction this summer with construction likely to begin in the fall and run into 2027.

Wells presented options for a potential general-obligation (geo) bond package staff recommended for voter consideration. Staff estimate about $18,000,000 in bond questions could be placed on a future ballot without raising the property tax rate; staff outlined a separate scenario in which a larger $23,000,000 package would increase the tax burden on a $300,000 home by about $47 in the first year. Staff recommended dividing the $18,000,000 into multiple questions and allocating roughly two-thirds to road projects, consistent with previous bond cycles.

Board member discussion touched on procurement challenges for neighborhood patch-and-seal contracts, the use of federal funding and reimbursement timing, and contingency plans if federal reimbursements are delayed. Wells said the FY26 budget includes cash to cover near-term cash-flow needs on the Unser Boulevard project so the city can proceed while awaiting federal reimbursements. He said if reimbursements arrive later the cash will be repurposed for other priorities.

Votes at a glance: - Approve minutes of 07/16/2024 — motion made and seconded; roll call: Juan Martinez (yes), Serena Pearson (yes), Anand Nayar (yes) — outcome: approved. - Approve 2025 quarterly board meeting schedule — outcome: approved (roll call: Martinez, Nayar, Pearson yes). - Approve annual report letter to governing body (municipal code 33.26) — motion seconded by Juan Martinez; outcome: approved (roll call recorded as yes). - Approve FY26 operating budget (roads/drainage/utilities) — motion and second; roll call: Anand Nayar (yes), Serena Pearson (yes), Juan Martinez (yes) — outcome: approved. - Support recommended FY26–30 capital improvement program to the governing body — motion and second; roll call: Anand Nayar (yes), Serena Pearson (yes), Juan Martinez (yes) — outcome: approved.

Ending: Board members said they will provide formal feedback when staff returns with a finalized bond-question package and timing; staff said they plan additional public outreach and will return to advisory boards for input before a final governing-body decision.