Rio Communities approves property tax hike to cover budget shortfall

A typical Rio Communities homeowner will pay about $20 to $41 more each month after the city council approved a 4.9-mill property tax increase meant to close a projected $1.15 million budget shortfall and keep basic services operating. The higher levy will start showing up on tax bills in January 2027, and city officials said the added revenue will not reach the budget immediately because the municipality will wait about 18 months to collect it.

The council approved the increase Monday night after a workshop earlier in the day. Michael Melendez and Lawrence Gordon voted yes. Matthew Marquez first voted no, then changed to abstaining after Tom Nelson also abstained and declined to explain his position. No one from the public attended either meeting, leaving the council to move ahead without direct comments from residents in the room.

Finance Director Cassandra Montano said the increase was intended to sustain city services and give staff a workable path through the budget crisis. City leaders also discussed a $750,000 grant request to the New Mexico Board of Finance to help with operating costs, showing that the tax hike was part of a broader effort to stabilize the city’s finances rather than a stand-alone fix. Montano’s projection for fiscal year 2027 put city revenue at about $1,912,175, roughly $59,000 below the current year, while Rio Communities also expects its annual payment to the Valencia Regional Emergency Communications Center to jump from $77,500 to $107,500, a $30,000 increase.

The 4.9-mill increase pushed Rio Communities to the top of the 7.65 mills municipalities may levy without voter approval under state law. New Mexico’s Department of Finance and Administration says the state’s 20-mill cap is divided into 11.85 mills for counties, 7.65 mills for municipalities and 0.5 mills for school districts. Rio Communities has raised property taxes only once since incorporating on May 16, 2013, when the former council enacted a 2.75-mill levy in 2015.

The decision carries extra weight in a city that had 4,926 residents in the 2020 Census and has grown well beyond its volunteer-government roots. Mayor Joshua Ramsell has said the city now has 36 employees, a full-time public works department, a 24/7 fire department and three full-time paid fire staff backed by 18 volunteers. That expansion has brought higher costs for streets, water and wastewater systems, streetlights, parks, trails, police vehicles and fire equipment, all of which helped drive the council to choose recurring tax revenue over deeper service cuts.