The City Council’s Jan. 28 budget retreat and March 23 work session included the proposed CIP budget, and a public hearing was held April 13 on the CIP as well.
Source: City of Las Cruces
Photo: Courtesy
At its Monday, May 18, 2026, regular meeting, the Las Cruces City Council discussed and voted on two resolutions, approving the City’s fiscal year 2026-27 budget and its six-year Capital Improvements Program (CIP). Both resolutions were passed unanimously.
The first resolution adopted a total budget for the City of Las Cruces of $586.3 million for fiscal year 2027, which begins July 1. That total includes almost $167.9 million for the City’s general fund, which pays for services like public safety, public works and parks & recreation, and accounts for almost 29 percent of the total municipal budget.
General fund revenues include gross receipts tax, property tax, cannabis excise tax, franchise fees and other fees and charges.
Almost 75 percent of the general fund will pay City personnel costs, including a general-wage increase of two percent and an insurance-premium increase of 18 percent. Nearly 25 percent of the general fund will pay for operations and .3 percent for capital assets.
Since the Work Session and Public Hearing on April 13, staff worked to reduce general fund expenditures by almost $16 million in personnel costs, operating and other expenses to achieve a stable and sustainable fund balance as the City enters the new fiscal year.
The total municipal budget also includes almost $199 million (33.9 percent of the total budget) for the City’s enterprise fund, which covers utilities, Las Cruces International Airport and public transit; $96 million for capital projects; $55.1 million in special revenue funds, which include City matching funds for grants received from federal, state and other sources, and are earmarked for specific projects and programs other than debt service or capital projects; $36.8 million in trust and custodial funds; and almost $21 million for debt service.
Before the final vote on the budget, an amendment to the resolution was passed 7-0 by the council to continue the City’s funding of Las Cruces Public Schools’ community schools program at $150,000 a year rather than cutting it to $90,000.
The budget must be filed with the New Mexico Department of Finance and Administration by June 1, 2026.
The proposed budget has been available for public review since March 30. The City Council held a budget retreat on Jan. 28, and a work session on March 23 and a second work session and public hearing on the budget on April 13.
You can view the budget at this link.
The second resolution adopted by the City Council approves the City’s CIP six-year program (FY27-32) that identifies infrastructure and capital funding needs in various categories throughout Las Cruces.
The CIP budget for FY27 is $210 million to continue work on 311 projects that include street improvements, public facilities, utilities, public safety, public transit, Las Cruces International Airport, nonprofits, City parks and affordable housing. The CIP projects proposed spending to complete current and future capital project costs through FY2032.
CIP funding sources include bonds and loans; grants; the Telshor Facilities Fund, gross receipts tax revenues and other local funding; and capital outlay from the New Mexico Legislature.
The City Council’s Jan. 28 budget retreat and March 23 work session included the proposed CIP budget, and a public hearing was held April 13 on the CIP as well.
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