Rio Rancho approves $25 million utility bond ordinance as resident raises alarm over $4 million injection well

The Rio Rancho governing body voted to approve an ordinance authorizing the issuance of city utility revenue bonds of up to $25,000,000 and to permit targeted refundings intended to lower debt service costs.

Deputy Director Melissa Spangler presented the second reading of ordinance O1, saying the measure "amend[s] ordinance number 26" to allow the timing of a roughly $25,000,000 bond issuance and to establish parameters for possible refundings. She said the bonds would be issued "in an aggregate principal amount not to exceed 25,000,000" with an estimated all‑in interest cost around 3.6% and an estimated potential net savings of about $1,950,000, net of issuance costs, if market conditions provided sufficient present‑value savings.

The ordinance passed on a recorded roll call. Miss Davis called the roll after the second reading and the council approved the ordinance.

Public concern focused on one of the capital improvement plan items Spangler listed. In public forum and again during the O1 discussion, resident Mr. Van Horn drew the council's attention to a $4,000,000 line item for an injection well and urged the governing body to consider independent advisory review. "This is an issue that you all need to be aware of," he said, arguing the city should not move forward without scrutiny.

Mayor (unnamed) responded directly to those concerns and to what he called misleading online material. He disputed characterizations that the city was "dumping sewage into our aquifer," saying, "We're not dumping sewage into our aquifer," and defended the city's recharge program as carefully managed and recognized statewide. The mayor also framed the bond action as fiscally responsible, noting the refinancing was projected to save about $1,950,000 for ratepayers.

Spangler and staff said the refunding of targeted maturities would occur only if market conditions generated adequate present‑value savings and that final sale terms and related agreements would be delegated for execution by the mayor, the city manager and the director of financial services.

What happens next: with the ordinance in place, staff said the city will proceed with sale planning and finalize terms if market conditions are favorable. The council did not direct additional action on the advisory board during the meeting; Mr. Van Horn urged continued public oversight.