Rio Rancho approves FY2026 midyear budget adjustments, allocates funds for roads and drainage

The Rio Rancho governing body on a unanimous roll-call vote approved a resolution adopting fiscal year 2026 midyear budget adjustments that recognize $2,150,000 in additional general-fund revenue and reallocate money across general, special, capital, debt-service and utility enterprise funds.

Don Martinez, budget and grants division manager in financial services, told the council the midyear package allows the city to "address unforeseen expenditure needs, and to adjust priorities to meet goals and objectives." He told members the packet includes schedules that detail all proposed changes and that "sources and uses in the general fund will increase by 2,150,000." He also said reserves in the general fund will remain above the city's target at 25.8% of expenditures.

Why it matters: the adjustment recognizes positive variances already collected, funds one-time capital needs and preserves a large reserve cushion. Martinez and other staff emphasized conservative revenue estimating and one-time transfers rather than using excess as recurring revenue.

Key changes and figures in the midyear package include: an increase in general-fund sources of $2,150,000; a $529,000 increase tied to property-tax adjustments; a $1,363,000 increase from gross-receipts tax (GRT) timing and distributions; an $8,100,000 rise in special and capital sources largely reflecting state grant awards for road projects and an addition at Fire Station 3; a $283,000 decrease in the utility operating fund; and an explicit $500,000 nonrecurring transfer for feasibility, planning and design of a permanent pump house tied to drainage work.

Council discussion and public comment centered on locally visible priorities. Councilor Tyler urged approval to fund about $1,055,000 of road repairs in his district, including a mill-and-inlay project and work on Vista Entrada and Nativas. City staff described a drainage and pond issue on 19th Avenue: the pond predates modern release rules and has lost capacity to sediment. Staff said short-term measures include purchasing a mobile pump, hose and sound wall (about $98,000) and pursuing a $500,000 feasibility study for a permanent pump house.

A public commenter, Mr. Van Horn, used the public-forum time to raise concerns about water-quality warnings for private wells (citing a New Mexico Department of Health bulletin about Mora County) and to criticize city advisory bodies for not being used routinely to review budget items. The city manager later urged residents to fact-check social-media reports after a retracted post about a senior staff member caused confusion.

On budget structure, staff noted recurring revenues of about $123.9 million versus recurring expenditures of about $103.8 million, which Martinez characterized as a structural surplus that supports responsible one-time spending. The midyear changes increase the budget by roughly 1.2% over original estimates for the remainder of the year, staff said.

The clerk called the roll for the resolution; Councilors List, Tyler, Dapson, Deputy Mayor Linentine, Weimer and Culbreth recorded "Yes" and R5 was approved.

The council did not take additional formal actions on related items at the meeting; staff will implement the approved transfers and one-time expenditures as described in the agenda materials.