Las Cruces City Council adopts $596 million budget

The Las Cruces City Council approved the Fiscal Year 2025 budget on Monday, May 20.

According to the adopted budget, the city projects $596 million in expenditures.

The City's budget cycle is from July 1, 2024, to June 31, 2025. The budget process began in February and is the first budget to be approved under new City Manager Ikani Taumoepeau.

"We started this budget process with a different city manager," Taumoepeau said. "I appreciate the budget team and staff having their patience with me. We hope that it was a seamless transition internally."

City general fund increased, adds 21 new jobs across organization

The City's general fund, which is used to fund departments such as police, fire, public works, economic development and libraries, increased 8.8% from $151.8 million in FY24 to $165.1 million in FY25. Personnel represents the largest expenditure from the general fund (66% ), which is $109 million in FY25, followed by operating costs ($53.2 million) and capital projects ($2.9 million).

The City added 21 new positions across various departments, jobs funded in the FY25 budget. The approved budget includes a $10.2 million increase in personnel expenditures from the general fund and a $6.5 million increase in operating costs compared to the FY24 revised budget.

The new positions approved in the budget include a public defender in municipal court, one licensed clinical social worker under the fire department, as well as four firefighters, three park rangers under the police department and three real time crime center techs.

The largest expenditure from the general fund is a projected $38.2 million for the Las Cruces Police Department - a slight increase from $34.5 million in FY24. Next is fire and emergency services ($26.7 million), parks and recreation ($20.6 million) public works ($11.1 million) and quality of life ($10.2 million) as the largest anticipated expenditures.

The City projects $146 million in revenues in FY25, most of which (76%) is produced by gross receipt taxes. The City has collected $108.5 million in FY24 from gross receipt taxes and projects $110.7 million in FY25. The budget also projects $14.6 million from property tax revenue and $7 million from excise and other taxes.

Approved budget taps Telshor Fund for $28.3 million

City Council passed an amended budget that included accessing the Telshor Fund, which was created in 2004 from the long term lease of Memorial Medical Center.

The Telshor Fund is meant to support the city’s sick and indigent populations, often through disbursements to local community nonprofits, as well as supporting various needs of residents.

The FY25 budget includes spending $28.3 million from the Telshor Fund to fund a total of 16 projects, reducing the fund from a current market value of $42.9 million to $14.1 million, mostly on capital projects.

There was some concern regarding spending down the Telshor Fund from District 2 Councilor Bill Mattiace and District 6 Councilor Yvonne Flores.

"Basically we are going to zero out the Telshor Fund, eventually," Mattiace said.

"I'm thinking of the long term investment of that $42 million fund. It could bring anywhere from $4 to $5 million and if interest rates go up $6 to $7 million every year for the next 10 years. … That was my concern if there was another way for the capital needs through loans or bonds that might have been wiser."

Mayor Pro Temp Johana Bencomo proposed two amendments to the budget: An amendment to add $200,000 from the Telshor Fund for community court to fund nonprofit provided services and case management services and $300,000 from the Telshsor Fund for the Mesilla Valley Community of Hope Mano y Mano program. The first amendment passed 4 to 2 with Mattiace and Flores voting against and the second amendment passed 5 to1 with Flores voting against. Councilor Becky Corran was absent.

Flores was the lone Councilor to vote against approving the budget.

"There is no making this decision lightly," Bencomo said. "We are faced with some tough challenges with a bank account that is right there for us to use."

Some of the other proposed new projects that will utilize Telshor Fund monies include $2.5 million for improvements to Apodaca Park and Pioneer Women's Park; $1.1 million toward the establishment of a Real Time Crime Center; $2 million for the Fire Station No. 9 and $14 million for three different affordable housing projects.

Jason Groves can be reached at 575-541-5459 or jgroves@lcsun-news.com. Follow him on X @jpgroves.

This article originally appeared on Las Cruces Sun-News: Las Cruces City Council adopts $596 million budget