City manager proposes budget for Rio Rancho

All workers due 1.5% pay hike under plan

The recommended City of Rio Rancho budget for the coming fiscal year includes a 1.5 percent pay raise for employees, a new ambulance and 10 new police cars.

City Manager Keith Riesberg last week submitted his proposed budget for fiscal 201516, which starts July 1 and ends June 30, 2016.

In the executive summary, Riesberg wrote that the budget reflects a slowly improving economy.

“Various signs suggest that the economy is continuing to recover, including a steadily declining unemployment rate, improving housing market indicators and overall lower foreclosure activity in the area compared to recent years,” he wrote. “Unfortunately, the growth in revenues has not been strong enough to meet all of the funding needs of the city.”

Department heads were instructed to keep their budgets level with this year, except for the highest-priority needs.

The budget projects general fund revenues of a little more than $55.8 million, and expenditures of almost $52.2 million.

According to Riesberg’s report, general fund income is expected to decrease by 0.7 percent, or $386,000, compared to this year. The drop comes from dispatch center activities being accounted for in a new special fund and the city not including grant revenue in the budget until a grant agreement is signed.

Forecasts indicate general fund expenses decreasing by 5.6 percent, or $3.1 million, next fiscal year, mostly because of dispatch activities moving to a special fund, according to Riesberg.

Personnel expenses account for 78 percent of the general fund operating budget. Major items funded include:

A 1.5 percent across-theboard pay increase for all employee groups, at a cost of $543,300. A new ambulance. Ten new police vehicles, paid for through a loan, impact fees and general fund transfers.

A new animal control truck costing $51,000.

A new gurney and refurbished cardiac monitor for emergency medical services.

A new administrative posi-

tion for the Fire Rescue Department to free up fire captains to focus on higher-priority tasks, costing $53,500.

$1.7 million for a required match to get a $7 million federal grant to reconstruct Southern Boulevard.

A new special projects coordinator for the municipal court, costing $70,000.

A new dump truck for $120,000.

Dust suppressant at $50,000 and $35,000 for soil stabilization for dirt roads.

The fourth year of the City- wide Graphical Information System program.

A 5 percent increase in health insurance premiums and a 10.9 percent increase in dental insurance premiums.

Riesberg is recommending allocating half of revenue from unmanned speed monitoring and red-light cameras, or $190,000, to police vehicles and the other half to the general fund next year. He advised putting all of that revenue toward police vehicles in the following year.

The budget anticipates a cash reserve of $7.2 million, or 13.8 percent of expenditures, well above the state-mandated 8.3 percent. The city goal is 15 percent, but Riesberg wrote that the budget prioritizes critical capital needs over that goal because unaddressed facility and infrastructure needs result in more expensive projects later.

Finally, the damage payment from a lawsuit lost to developer Curb North Inc. over impact fees wasn’t factored into the budget, because the judge hasn’t set the amount.

As per the city charter, the mayor has until April 25 to review the recommended budget and make comments to the city manager. Then the Rio Rancho Governing Body will review the budget at public budget hearings at 6 p.m. May 4, 5 and 11 at City Hall.

Members of the public can comment on the budget during regular Governing Body meetings starting at 6 p.m. May 13 and 27 at City Hall.

Governing body members can make changes. They’re scheduled to adopt a budget May 27.

The recommended budget and capital program can be viewed on the city’s website at www.ci.rio-rancho.nm.us/ FY16Budget.