General Obligation Bond Questions

The following questions will appear on  March 3, 2026 Municipal Officer Election ballot:

"Shall the City of Rio Rancho issue up to $12,435,000 of general obligation bonds, to be repaid from property taxes, for the purpose of designing, constructing, repairing, preserving, rehabilitating, enhancing and otherwise improving roads and underlying utility infrastructure?"

Yes

No

"Shall the City of Rio Rancho issue up to $4,365,000 of general obligation bonds, to be repaid from property taxes, for the purpose of designing, constructing, repairing, preserving, rehabilitating, enhancing and otherwise improving public safety facilities and repairing, replacing or otherwise improving public safety vehicles, apparatuses, and equipment?"

Yes

No

"Shall the City of Rio Rancho issue up to $1,200,000 of general obligation bonds, to be repaid from property taxes, for the purpose of designing, constructing, renovating, acquiring, rehabilitating, improving and equipping public quality of life facilities in the City?"

Yes

No

Background Information

$12,435,000 for Roads

What is proposed is a bond question in the amount of $12,435,000 to be used for designing, constructing, repairing, preserving, rehabilitating, enhancing and otherwise improving roads and underlying utility infrastructure. Approximately $11,620,000 is estimated to be available for projects after accounting for the required 1% for the Arts, bond issuance costs, and contingency. Exhibit A details the proposed projects as well as the additional funding (Fiscal Year 2026 General Fund and Utilities Fund contributions) earmarked to complete projects.

Rio Rancho's street system requires increased investment/funding (preventative maintenance, rehabilitation, reconstruction, etc.). The road need exceeds the recurring resources currently available to municipal government. The City’s adopted Infrastructure and Capital Improvement Plan for 2026-2030 has approximately $259,500,000 identified for road projects with $33,300,000 (13 percent) projected from bond funds (subject to ballot placement and voter approval), and approximately $146,800,000 (57 percent) in funding to be determined.

$4,365,000 for Public Safety

What is proposed is a bond question in the amount of $4,365,000 to be used for designing, constructing, repairing, preserving, rehabilitating, enhancing and otherwise improving public safety facilities and repairing, replacing or otherwise improving public safety vehicles, apparatuses, and equipment. Approximately $4,079,250 is estimated to be available for projects after accounting for the required 1% for the Arts, bond issuance costs, and contingency. Exhibit B details the proposed projects to be completed with approved bond funding.

Current and recurring revenue sources are not keeping pace with municipal government’s needs for vehicle and apparatus replacement as well as facility improvements in relation to its public safety departments (Police and Fire & Rescue). The City's adopted Infrastructure and Capital Improvement Plan for 2026-2030 has approximately $17,300,000 identified for police projects with more than $4,800,000 (28 percent) of this cost projected to come from General Obligation Bonds (subject to ballot placement and voter approval), and approximately $4,200,000 (24 percent) in funding to be determined. The City's adopted Infrastructure and Capital Improvement Plan for 2026-2030 has approximately $47,100,000 identified for fire/rescue projects with $4,300,000 (9 percent) of this cost projected to come from General Obligation Bonds (subject to ballot placement and voter approval), and approximately $15,900,000 (34 percent) in funding to be determined.

$1,200,000 for Quality of Life Facilities

What is proposed is a bond question in the amount of $1,200,000 to be used for designing, constructing, renovating, acquiring, rehabilitating, improving, and equipping public quality of life facilities. Approximately $1,121,400 is estimated to be available for projects after accounting for the required 1% for the Arts, bond issuance costs, and contingency costs. Exhibit C details the proposed projects to be completed with approved bond funding.

Additional resources are needed for parks and recreation and library services in order to address identified needs and maintain the quality of highly desirable community services. The City’s adopted Infrastructure and Capital Improvement Plan for 2026-2030 has approximately $69,800,000 identified for parks and recreation projects with approximately $2,000,000 (3 percent) of this cost projected to come from General Obligation Bonds (subject to ballot placement and voter approval), and approximately $44,100,000 (64 percent) in funding to be determined.

The City’s libraries rely on voter-approved Sandoval County Library Bond proceeds for the vast majority of its available budget for public books, movies, periodicals, digital services, facility improvements, and technology. Despite a growing population and tax base, inflation, additional locations, and the need to expand services due to technological changes, the County’s historic allocation of funding to Rio Rancho has been inadequate and not keeping up, and some recent additional restrictions on fund-use have been imposed by the County.

Taxes and Other

If the bond questions are approved by voters, no corresponding property tax rate increase would occur. This is the case because previously issued bonds have been paid off and retired, and these new and approved bonds would replace them (i.e., a continuation of the bonding cycle). If the questions are voted down, the corresponding property tax rate decrease would initially equate to a reduction of approximately $277 for a property/home with a total appraised value of $300,000.

Bonding provides a predictable source of funds that is considered the most secure form of municipal debt, is the most cost-efficient form of borrowing, and has favorable terms with no additional security or reserve funds required.

The Delma M. Petrullo Art in Public Places Local Ordinance requires that one (1) percent of the proceeds of each General Obligation Bond issuance shall be dedicated for works of permanent public art that enhances the environment of the City.