Las Cruces adopts $612.2 million FY26 budget; council trims Mavita funding

The Las Cruces City Council adopted the fiscal year 2026 municipal budget May 19, approving $612,200,000 in proposed expenditures citywide and a $175,339,787 general fund budget for FY26.

Jacqueline Rubalcaba, budgeting and grant administrator, told council: "The f y 26 proposed city budget, we wanted to break it down to show the $612,200,000 expenditures that we previously saw in the table," and outlined the major fund totals and changes from FY25. Council materials showed the general fund proposed revenues at $166,520,697 and expenditures of $175,339,787, leaving an estimated unreserved balance of about $3.5 million after the required two‑twelfths reserve.

Major budget components approved include a 5% general wage increase for FY26, inclusion of represented bargaining contracts and longevity adjustments, and projected insurance premium increases (health insurance parent/spouse rates and a 12% insurance premium increase). Personnel remains the largest general fund category at roughly 69 percent of expenditures. The adopted budget also includes 30 new general‑fund FTEs (across parks and recreation, police, finance, community development and fire) and 11 non‑general fund positions.

Council also approved funding for two police and one fire academies spanning FY25–26 to support recruitment and staffing, and a vehicle acquisition program with replacements and limited new units across departments.

During debate, Mayor Pro Tem Ben Como moved — and the council adopted — an amendment reducing a proposed increase to Mavita/Film Las Cruces funding from $275,000 back to $250,000. Economic development director Elizabeth Teeters told council the organization had requested an increase to cover higher costs tied to travel and expanded programming; councilors said they wanted additional review before permanently increasing partner funding. The amendment passed on a roll call vote and the full budget passed as amended.

The budget resolution (25-139) passed on council vote following the amendment. City staff said remaining items such as grant agreements and capital carryovers will be handled as agreements are finalized and brought back to council when required.

What this means: The budget funds personnel and services the city says it needs for FY26 while preserving reserves and approving specific program allocations and capital plans. Council members and staff said they expect ongoing review of some grant‑dependent items and carryovers over the coming year.