Rio Rancho approves $452 million budget, boosts police pay

Rio Rancho residents will feel the city’s newest budget most immediately in police staffing and pay. The Governing Body unanimously approved a recommended $452 million fiscal 2027 budget and a $940 million five-year infrastructure plan on May 29 after a second public hearing, setting the city’s spending plan for July 1, 2026, through June 30, 2027.

The sharpest debate centered on a $1.4 million amendment tied to the Rio Rancho Police and Communications Association agreement. The package gives dispatch and non-sworn employees a 5% raise and boosts five police department ranks by 8.6% to 19.3%. It also adds a biweekly payment for officers pursuing higher education, an incentive for new instructors and a lower threshold for longevity pay and compensation increases.

Finance director Stephanie Yara said the adjustment would be paid for with a $1.5 million reduction in unreserved fund balance and a $116,000 increase in reserved fund balance. Without the amendment, the city would have finished with a 27% fund balance; with it, the figure would be 25.4%, keeping reserves above the level city officials were willing to defend while still closing the pay gap for public safety workers.

Councilor Bob Tyler questioned whether police union members were satisfied with the deal, and Rio Rancho Police Department Sgt. Kevin Buchanan said "everyone is on board." Buchanan argued that the new pay scale would help close the compensation gap between Rio Rancho and comparable cities, a change with direct consequences for recruiting, retention and 911 response capacity.

The larger $940 million infrastructure plan matters because the city says the Infrastructure and Capital Improvement Plan is the primary basis for later annual capital budgets and a multi-year projection of capital needs and financing requirements. City Manager Matt Geisel presented the recommended fiscal 2027 budget and capital program on April 15, the mayor’s review period ran through April 25, and the first public hearing was held May 1 at City Hall before residents returned for the final hearing on May 28. During earlier hearings, residents raised concerns about which projects were included, underscoring that the long-range plan will shape future road, water and utility projects as annual capital budgets are built from it.