Dona Ana County adopts $403.93 million FY26 final budget, uses reserves for one-time projects

Dona Ana County commissioners adopted the county's FY25-26 final budget, approving Resolution 2025-89 and a total budget of approximately $403.93 million.

The motion to adopt the final budget was made by the chair and seconded by Commissioner Gamedos; the resolution passed by recorded vote with Commissioner Ramirez, Commissioner Sanchez and Chair Sheldrow Hernandez voting yes.

Nut graf: The final budget increases revenues from the preliminary proposal and budgets one-time uses of cash reserves for capital projects and grants while preserving a small recurring surplus. The package funds personnel adjustments, negotiated pay plan changes, grant programs and several capital expenditures the board previously approved.

Lucio Luttrell of the county budget office summarized changes between the preliminary and final budgets. Revenues rose by about $29.7 million, from $312.1 million to $341.8 million, driven by higher payment-in-lieu-of-taxes (PILT) receipts, increased landfill punch-card fee revenue (a $4-to-$5-per-punch change approved at a prior meeting) and law-enforcement protection fund carryover. Department grant budgets increased by about $29.53 million.

Expenditures increased by about $16.55 million, to a total of $403.93 million. Personnel increases included two positions added in the final budget (an HR administrator and an outreach position for the La Mesa Community Center), budget to reflect a 3% cost-of-living adjustment for represented staff and an estimated $285,000 impact for recently approved blue-collar pay-plan negotiations. Capital and one-time additions include fire tax projects and new capital purchases; Luttrell said the budgeted capital adjustments total roughly $3.06 million and that the county is budgeting remaining cash in the fire-tax fund now that the restricted GRT for fire tax has ended.

The final budget includes countywide tax revenues of about $165.4 million, service revenues of $33.2 million, other revenues of $9.9 million and investment revenue of about $5.02 million for operating revenues near $213.6 million, plus grant revenues of approximately $128.0 million. Luttrell presented an ending cash projection of $111.1 million before reserve requirements; after applying a 25% general fund reserve and a one-twelfth road fund reserve the adjusted ending cash is $79.5 million. Luttrell said the adopted package represents a planned use of reserves of about $62.0 million for primarily one-time items.

The board discussed several specific allocations previously approved and carried into the FY26 budget. Luttrell said the budget includes a $1.2 million grant program funded from hospital lease fund reserves to support municipal fire-based emergency medical services (to be distributed to the City of Las Cruces, the Town of Mesilla and the City of Sunland Park). The county also budgeted $1.35 million for fire, ambulance and EMS equipment approved from the hospital lease fund, and $200,000 from reserves for pilot water filtration and bottle-filling stations in Santa Teresa and Raymond Springs areas.

Luttrell noted that after removing one-time uses the county shows a recurring surplus: "We actually have a recurring budget surplus of $2,100,000," he said. The surplus is intended to help absorb future costs the county expects when federal SAFER grant funding (which temporarily supports 24 firefighters) expires.

Commissioners and staff thanked the budget office and accounting teams for the presentation and supporting notes. Treasurer and county staff noted significant last-minute postings and cross-training work to finalize year-end numbers.

Next steps: the budget will be submitted to the Department of Finance and Administration for review; Luttrell said DFA normally takes about a month and typically issues approval by Sept. 1. The board also noted the FY26 budget sets the baseline for the next budget cycle and for an anticipated bond (GoBond) initiative the board has discussed.

Ending: There was no public comment on the final budget at the meeting. The board's approval completes the county's formal FY25-26 budget process for local adoption.