The Las Cruces City Council held a work session to review the proposed FY 2025-2026 budget and Capital Improvement Program (CIP).
During the budget hearing, Jacqueline Rubalcava, budget and grants administrator, presented a proposal that estimates a total operating expense of US$$609.6 million, which represents a 12.25% decrease from the current budget of US$$694.7 million.
According to the proposal, 31% of the projected expenditures would come from Enterprise Funds and 29% from the General Fund. Personnel costs, estimated at US$$120.2 million, will continue to be the largest item within the General Fund.
This fund is anticipated to increase by US$$5.7 million over the previous year, driven by the creation of new positions and a salary increase for non-union employees, which together would total US$$10.4 million. At the same time, operating and capital expenditures would be reduced by 4.7 million.
Total projected expenditures for the next fiscal year are US$$174 million, an increase of 3.4%, while revenues are estimated at US$$166.5 million, a decrease of 0.3%. Approximately 79 % of that revenue would come from gross receipts tax.
In the second part of the session, the Council addressed the Capital Improvement Program. Cynthia Alamillo, manager of the CIP, explained that the plan projects investments of US$$191.6 million in fiscal year 2026, an increase of 14.36% over the previous year. As he explained, the increase is mainly due to previously approved projects that will continue to be executed next year.
The capital plan includes 120 ongoing projects with a cumulative value of US$$175.6 million. The CIP operates on a six-year schedule, only one of which has secured funding. Funding sources include grants, bonds, and infrastructure loans.
Both the budget and the capital improvement plan will be voted on at the Council’s May 19 regular session.
A complete recording of the April 28 work session is available on the city government’s YouTube channel. The next Council meeting is scheduled for Monday, May 5, at 1 p.m. at City Hall, located at 700 N. Main St.
