Rio Rancho advisory board recommends reinvesting $1.03 million of permanent fund earnings

The Rio Rancho Investment Advisory Board voted to recommend that the governing body reinvest 50% of the permanent fund’s 2025 earnings and asked staff to study creating a separate short-term subaccount to hold accumulated rainy‑day cash.

Director Stephanie Yara told the board the permanent fund’s market value with the State Investment Council is about $15,896,000 and that “the fund earned a little over $2,000,000. Fifty percent of that will go back in, and be reinvested per the ordinance.” From the distributable amount, staff identified about $1,028,605 available for the governing-body decision.

Board members discussed alternatives, including using the distributable earnings for capital needs the city has requested from the state — park improvements, a multipurpose court, library repairs — or routing some funds into a separate, liquid “portfolio B” to create an internal stabilization account. A member warned of the risk of routing money to the general fund: “If it goes to the general fund, it’s gonna get spent,” the member said, urging a structure that preserves savings for downturns.

Staff and the board agreed that creating a separate short-term account that remains part of the permanent fund could be modeled by staff and reviewed at a later meeting, but that any change allowing mid‑year withdrawals or different access rules would likely require an ordinance amendment or a governing-body decision.

Chair Wainwright moved to follow staff’s recommendation to reinvest the distributable half of the 2025 earnings and to have staff study the portfolio‑B option; the motion was seconded and carried by roll call. Board members voting in favor included Member Billups, Member Jablonski, Member Baker and Chair Wainwright.

The board provided its recommendation to the governing body and directed staff to return with modeling and draft language about how a two-portfolio structure could be implemented and tracked.