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Council approves FY2027 balanced budget with police union amendment
Summary
Rio Rancho’s governing body adopted a structurally balanced FY2027 budget that includes a 5% across‑the‑board salary increase and a $1.4 million amendment to fund police personnel costs; councilors emphasized maintaining a 25% reserve policy while supporting public safety recruitment.
The governing body adopted a structurally balanced fiscal year 2027 budget on a unanimous vote after leaders negotiated an amendment to accommodate police personnel costs.
Director Yara presented the recommended budget and the five‑year ICIP, saying the general fund recommendation anticipates roughly $170 million in revenues and approximately $109.1 million in expenditures while preserving the city’s 25% reserve policy. The proposal includes a recommended 5% salary increase for all employee groups, subject to collective bargaining, and a proposed $2.2 million transfer from the workers’ compensation fund to the health insurance fund to bolster reserves.
Councilors discussed the budget and whether bargaining units were satisfied with the outcome. Councilor Tyler asked union representatives whether they supported the negotiated package; a union representative said the recent talks produced a “very solid understanding” and that the revisions should aid recruiting. Director Yara said negotiations with the Rio Rancho Police and Communications Association resulted in a recommended $1.4 million increase for police personnel costs, which lowers the projected year‑end reserve from the original estimate but keeps the city above its 25% target.
Councilor Lendentine expressed concern about long‑term reserve erosion from repeated increases tied to competitive matching but said he would not block the current package. Other councilors praised the city’s budgeting approach and the work of finance and HR staff.
A motion to approve R40 (the FY2027 balanced budget, as amended) was moved, seconded and adopted by roll call; the resolution passed unanimously.
Next steps: the FY2027 final budget will be processed with rollovers and other routine adjustments ahead of the first full pay period in the new fiscal year, which begins July 13.
