Rio Rancho adopts $119.3 million FY26 general‑fund budget; adds nine staff positions

The Rio Rancho governing body approved the fiscal year 2026 balanced budget after staff presented the proposal and the city held two public hearings.

Director of Financial Services presented highlights of the FY26 budget, reporting general‑fund recurring revenue of $119,300,000, recurring general‑fund expenses of $99,600,000, nonrecurring expenses of $3,700,000 and transfers out totaling $27,200,000. The budget includes nine new staff positions—six for public safety, two for public works and one for human resources—plus a 4% cost‑of‑living adjustment for all employee groups subject to collective bargaining and a projected 15% increase in health‑insurance costs.

The budget package also includes a utilities enterprise operating plan with a proposed 3% rate increase for water and wastewater. Utilities recurring revenue was projected at $59,800,000 with operating and maintenance expenses of $30,400,000 and an ending utility fund balance projected at about $10,700,000 (roughly 119 days cash). The city reported an ending general‑fund balance of $28,300,000 and a reserve of 27.4%, which staff said exceeds the local target of 25% and the state requirement.

City staff said there were no changes to the manager’s recommended budget after the governing body’s May 2 budget meeting and that two public hearings had been held with no public comments on the proposed budget. Staff recommended approval to enable submission of the preliminary budget to the state Department of Finance and Administration by the June 1 deadline; the final budget is due July 31 and is scheduled for the July 24 meeting.

The governing body approved R‑56 adopting the FY26 balanced budget by roll call vote.