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Rio Rancho approves lodgers-tax change, advances bond and salary ordinances; budget adjustment OK'd for 9‑1‑1 center
Summary
The governing body approved final reading of a lodgers-tax ordinance to capture short-term rentals, advanced an authorization for a $32 million gross‑receipts tax revenue bond on first reading, amended industrial revenue bond schedules for Quail Ranch Energy and approved a $720,000 transfer for emergency communications upgrades.
The City of Rio Rancho governing body on March 27 took a series of votes on ordinances and a resolution that will affect tax collection, capital financing, municipal compensation rules and funding for the city's emergency communications center.
Lodgers tax: The council approved on second reading an ordinance amending Chapter 37.02 of the municipal code to account for short-term rentals as taxable premises and to address licensing and language updates that mirror applicable state statute. Director or staff presentation noted the change follows the governing body's earlier decision to allow short-term rentals to operate legally in the city effective July 1, 2025. Vote: O5 approved on second reading; recorded yes votes included Councilor Dapson, Councilor List, Councilor Linnentine, Councilor Weimer and Mayor Gregg Hall.
Gross receipts tax improvement bond (O6): On first reading, the governing body approved an ordinance authorizing the issuance and sale of gross receipts tax improvement revenue bonds, series 2025, in a maximum principal amount of $32,000,000. Finance staff said the financing would fund two priority projects identified in prior work sessions: a widening project described in staff materials and construction of Fire Station Number 8. Staff told the council the bond would enable the city to accept approximately $11,600,000 in federal funding and about $2,000,000 in state matching funds for the widening project; staff said the ordinance delegates signing authority to the mayor, city manager and finance director and sets maximum interest and maturity parameters. The ordinance received first-reading approval; staff anticipates closing on the bonds by mid‑May if the process proceeds as expected.
Industrial revenue bonds (O9 and O10): The governing body approved first readings to amend earlier IRB ordinances related to Quail Ranch Energy LLC's solar and storage projects. Economic development staff said the updates adjust the pilot (payment in lieu of taxes) schedule using 2024 property-tax mill levies and current student enrollment, producing a slight increase—about 0.65 percentage points—in the share payable to two local school districts (roughly $2,400 more for schools and $2,400 less to the city in the summary figures provided). Both O9 and O10 advanced on first reading.
Municipal compensation and court pay (O8): Councilors approved first reading of an ordinance to remove references to state law when setting future mayor and council salaries after a 2024 constitutional change; the ordinance sets numeric values so future elected officials' salaries are not tied to state statute. The ordinance also increases the salary for the elected municipal court judge from $70,000 to $80,500 effective upon the election of a new judge in 2026 and raises alternate municipal judge compensation from $175 to $200. Councilors emphasized the changes apply to future officeholders, not sitting officials.
Emergency Communications Center budget adjustment (R27): The council approved Resolution R27 to transfer $720,000 from the general fund to the building maintenance fund for upgrades at the Rio Rancho Emergency Communications Center. Manager Jolene Madrid said identified needs include replacement or upgrade of the uninterruptible power supply, fire suppression system corrections, septic system isolation and a remodel of office space. The total estimated project cost, including design, is $820,000; the city has previously allocated $200,000, leaving a $100,000 contingency buffer according to staff. The resolution passed unanimously as recorded.
Votes and next steps: Several items advanced on first reading and will return for second readings where required by ordinance procedures. The lodgers-tax amendment and the budget resolution were acted on to take effect according to ordinance and budget rules. For items advancing on first reading, staff identified expected timelines: O6 second reading set for March 27 (first reading occurred) and bond closing anticipated in mid‑May if approved through the remaining steps.
Why it matters: The votes affect municipal revenues and spending priorities'from capturing tax on short-term rentals to financing public-safety infrastructure and clarifying how future elected-official compensation will be set. The IRB amendments adjust long-term payment-in-lieu schedules that have small but direct impacts for local school districts and city receipts.
