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City manager presents FY27 budget proposal with 5% pay adjustment and $130M general-fund plan
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Summary
City Manager Geisel told the Rio Rancho governing body the recommended FY27 budget is structurally balanced with about $130 million in general-fund revenues, a proposed 5% compensation adjustment (estimated $2.6 million recurring cost to the general fund), and a multi-year capital plan. Geisel also described health-insurance reserve moves and a schedule for budget hearings and final adoption.
City Manager Geisel presented the recommended fiscal year 2027 budget at a governing‑body work session, describing a structurally balanced plan that he said projects recurring revenues to exceed recurring expenditures over a five‑year planning period and estimates general‑fund revenues of about $130 million for FY27. "The FY '27 budget is structurally balanced and furthers the goals outlined in the city's strategic plan," Geisel said.
Geisel said the proposal includes a citywide compensation adjustment equivalent to 5% for employee groups subject to collective bargaining. He said the estimated recurring FY27 cost of that adjustment is about $2.6 million to the general fund, plus smaller amounts for the utility operating fund and the Convention & Visitors Bureau. "The adjustment will occur beginning the first full pay period in the new fiscal year," Geisel said.
Why it matters: Geisel emphasized that more than 50% of general‑fund spending goes to public safety and that personnel makes up roughly 75% of recurring expenditures, making wage and benefit decisions central to the budget. He also described the city’s conservative five‑year forecasting approach and a goal to maintain the city’s 25% reserve policy over the planning period.
Key budget details and clarifications: Geisel said the budget plan assumes a modest health‑insurance premium increase and a step to build a stronger health‑insurance reserve. He described a planned transfer of $2.2 million from the workers' compensation fund into the city’s health self‑insurance fund to help create an approximately $5 million reserve intended to buffer large claims and to stabilize future premium changes. Geisel framed the transfer as a one‑time fund adjustment to bolster financial strength for the health plan.
He outlined 21 new positions requested in the FY27 general fund — about 13 of them in public safety — including nine positions for firefighters/EMTs tied to the planned opening of Fire Station 8, two police officers, two real‑time crime center operators, a communications manager in the city manager’s office, a payroll specialist, deputy director roles in several departments and an accounting supervisor.
Capital and utilities summary: The recommended capital program includes a $6.5 million hybrid mill‑and‑inlay (HMI) residential roads program and a $3.2 million allocation for design of Tulip Road (Geisel said the full construction cost could be on the order of tens of millions if built). Geisel also summarized utility‑fund projects and reserves, saying the utility fund has recurring revenues near $62 million, operating reserves of about $11.9 million and a schedule of rate increases that would raise the average monthly customer bill by roughly $3 for FY27 under an existing five‑year plan.
Collective bargaining and budget adjustments: Geisel said the fire union has tentatively agreed to the 5% adjustment. He said the police union reached tentative agreements that include the 5% adjustment plus changes to base pay, longevity and premium pay tied to education and instructor certification; Geisel said those police adjustments are expected to require a roughly $1.4 million budget amendment to be brought to the governing body for consideration on May 28.
Schedule and next steps: Geisel announced a budget hearing at 9 a.m. Friday, May 1, optional additional hearings on May 11 and/or May 14, public‑comment opportunities at regular meetings on May 14 and May 28, and a vote to adopt the FY27 budget and capital program at the governing‑body meeting on May 28. He noted the adopted balanced budget must be transmitted to the New Mexico Department of Finance and Administration no later than May 31.
What the council asked and what comes next: Council members asked for pay‑grade examples showing how the 5% adjustment translates into different employee pay tiers; Geisel agreed to include those examples in budget hearings. The manager also invited council questions in advance of the May 1 hearing and said the recommended budget documents are available online at rrnm.gov/fy27budget. The governing body will consider final adoption on May 28.
