Rio Rancho proposes multi-year water and wastewater increases, raises water-rights fee and bulk-fill charge

City of Rio Rancho utilities staff presented a proposed five-year rate package that would increase water and wastewater user rates by 3% annually beginning July 1, 2025, update water-rights acquisition fees and raise the offsite bulk-fill station price to help fund major capital projects and rising operating costs.

The proposal matters because the utilities department projects large capital needs — including $64M in wastewater and $82M in water production projects over the planning period — and rising operating costs; staff said the rate package and planned debt will keep the system solvent and fund planned reinvestments without a sudden, larger single-year increase.

Steve Gallegos, acting director of utilities, reviewed recent rate history and drivers. He said the current ordinance already schedules a 1.75% annual water-rate increase (wastewater has remained at 0% since 2017). Staff modeled two scenarios: status quo (1.75% water, 0% wastewater) and a study scenario that assumes 3% annual increases…