Rio Rancho council adopts water/wastewater rate adjustment, approves $32M bonds, $140M IRBs and CDBG amendment

The City of Rio Rancho governing body on March 13 approved multiple measures, including a utility rate adjustment, a revenue bond authorization to fund road work and a fire station, industrial revenue bond authorizations for a battery project, and a substantial amendment to Community Development Block Grant (CDBG) action plans.

The governing body adopted, on second reading, an ordinance to adjust water and wastewater rates: a 3% adjustment was presented for water and sewer with a separate 5% increase for the bulk fill station. Steve Gallegos presented the ordinance as the second reading, saying the adjustments “will ensure that the utilities has the revenue required to maintain and operate a safe and reliable water and wastewater system.” Councilor List described the choice as difficult but deliberate, saying, “I just wanna say that I know that this is not fun,” and arguing a smaller, steady increase helps residents plan. Deputy Mayor Jeremy Linentine and other councilors voted to approve the ordinance (roll call: Councilor List — yes; Councilor Tyler — no; Councilor Dabson/Dapson — yes; Deputy Mayor Linnentine — yes; Councilor Weimer — yes; Councilor Culbreth — yes). The ordinance passed.

The council also approved by vote an ordinance authorizing the issuance and sale of gross receipts tax improvement revenue bonds, series 2025, in an aggregate principal amount not to exceed $32,000,000 (excluding premium). Financial Services staff said proceeds will be used for road widening on Sir Boulevard from Cherry to P.D. V and for construction of Fire Station 8, and will enable the city to accept approximately $11.5 million in federal funding and about $2.0 million in state matching funds for the road project. The council voted unanimously to adopt the ordinance on second reading.

A separate ordinance amended municipal code provisions on elected-official compensation and municipal-court salaries; the measure set numeric annual compensation levels for future mayors and councilors and raised pay for a future elected municipal court judge and alternate judges. The ordinance was adopted on second reading with unanimous support.

The council approved two related ordinances authorizing taxable industrial revenue bonds for Quail Ranch Energy Storage LLC, allowing up to $140,000,000 in principal for the project and updating annual payments-in-lieu-of-taxes to applicable jurisdictions in conformity with state law. There was no public comment on the second readings and both ordinances passed unanimously on roll calls.

On a resolution related to federal CDBG funds, the governing body approved a substantial amendment and budget adjustment to shift remaining funds from the down payment assistance program — which staff described as historically underutilized — to the Safelite Boulevard ADA ramp project, where staff identified an immediate need. Staff reported a 30-day public comment period that closed with no comments; the resolution passed on roll call vote.

Votes at a glance (as recorded in the meeting): - O7 (ordinance amending Chapter 51 — water/wastewater rules and rates): motion to approve (mover/second not specified in record); vote: List — yes; Tyler — no; Dabson/Dapson — yes; Deputy Mayor Linnentine — yes; Weimer — yes; Culbreth — yes; outcome: approved. - R34 (CDBG substantial amendment and budget adjustment): motion to approve (mover/second not specified); vote: unanimous (Weimer, Tyler, Dabson, Colbert, List, Deputy Mayor Linnentine — yes); outcome: approved. - O6 (gross receipts tax improvement revenue bonds series 2025, not to exceed $32,000,000): motion to approve (mover/second not specified); vote: unanimous; outcome: approved. - O8 (amend chapters governing body/city officials/municipal court — compensation updates): motion to approve (mover/second not specified); vote: unanimous; outcome: approved. - O9 and O10 (taxable industrial revenue bonds for Quail Ranch Energy Storage LLC, up to $140,000,000): motions to approve (movers/seconds not specified); votes: unanimous; outcomes: approved.

Discussion vs. decisions: The most substantive discussion recorded centered on the utility rate adjustment. Councilors framed the change as a small, planned increase intended to avoid larger spikes later; one councilor noted the city’s last multi-year rate study was several years ago and that costs have risen in the interim. For bond and IRB items, staff presented the uses and the council moved to adopt on second reading with little debate and no public speakers. The CDBG amendment was described by staff as shifting funds from a low‑usage down-payment assistance program to an ADA ramp project with immediate need; there was no public comment during the 30-day notice period.

Implementation notes: Financial Services staff said the $32 million bond would allow the city to accept and leverage roughly $11.5 million in federal funds and about $2 million in state matching funds for the roadway project. The industrial revenue bond amendments update PILOTs and series designations; no project start dates were specified in the meeting record.

The governing body adjourned after a brief city‑manager report and community announcements.