Las Cruces City Council Work Session - August 25, 2025

On Monday, August 25, 2025, at 1 p.m., the Las Cruces City Council held a work session led by Mayor Eric Enriquez. The meeting included presentations on the city's economic outlook, the annual internal audit report, and a discussion of projects funded by the recently approved gross receipts tax (GRT) increase. Public comments were heard on trails, transit, the library, firefighter facilities, and community priorities.

Jobs & Pets of the Week

• Gisel Palomares, one-stop operator for America's Job Center, presented job openings: City of Las Cruces active transportation coordinator (continuous, $58k–$83k), IT support technician ($24.87/hr, closes Sept. 8), and others from Sia Valley Community of Hope, Independent Delivery, and NMSU (marketing communications specialist, $48k/yr, closes Sept. 13). Upcoming hiring events were listed.
• Karen presented pets of the week: dog 'Cookies and Cream' (ID 88974) and cat 'Coco' (ID 9709). Adoptions were free through the end of August. Long-term residents Boxer (239 days), Pickle (239 days), Coset (231 days), and Coral (218 days) were highlighted. An adoption event at Tractor Supply on August 29 from 9 a.m. to 12 p.m. was announced.

Discussion Item 3.1: City of Las Cruces Economic Outlook

• Monica Torres, city economist, presented fiscal year 2024–2025 data. Key points:
  • Labor force rose 1.3% (approx. 700 people) to 54,000; payrolls rose 0.8% (800 additional) to 52,000; active job seekers rose 14% to 2,391; unemployment rate ticked up from 3.9% to 4.4% (still among lowest in recent years).
  • Employment growth: goods-producing (+4.5%), education and health services (+4%); declines: leisure and hospitality (-3.7%), other services (-3.6%).
  • Gross receipts tax (GRT) increased 3.4% in FY25 compared to FY24, totaling $102.5 million; after inflation adjustment, GRT rose 0.6%.
  • Cannabis market: total sales declined 8% ($34.9 million); adult-use sales down 5%, medical sales down 14%; excise tax dropped 80% to ~$700,000; medical cannabis licenses declined 11% to 7,700.
  • Residential permits declined 10% (67 fewer, total 625). New business registrations increased 9% (46 additional, total 587).
• Council discussion: Councilor Matisse asked about the skills of active job seekers; Torres agreed to look into industry data. Mayor Pro Tem Bencomo requested future analysis include grocery prices and cannabis revenue to the general fund. Torres confirmed she could provide monthly data.

Discussion Item 3.2: Annual Internal Audit Report

• Viola Perea, city auditor, presented the FY25 annual report. Internal audit completed four scheduled reports (citywide travel, Rincon Hills Park contract, utilities customer deposits/refunds, utilities cost allocation plan) and nine additional draft reports (sponsorships, employee benefits, utilities bill pay, PCARD – eight separate reports, citywide leases, temp agency contracts, overtime, parks inventory, Amador hospitality lease). Three audits in planning phase: ARPA-funded nonprofit contracts, risk management (accidents, drug testing), and business licenses (tied to lodgers tax). Five follow-up audits ongoing.
• Ethics survey: 203 employees responded; 75% agreed/strongly agreed they work in an ethical environment (met performance measure). 75% of annual plan completed (second measure).
• Council discussion: Mayor Enriquez asked for details on the business license audit; Perea explained scope includes policy compliance, fee collection, code enforcement, and tie-in to lodgers tax. Mayor emphasized balancing accountability with business friendliness.

Discussion Item 3.3: Improve Las Cruces – Community Improvement Bonds

• Cynthia Lamillo, CIP manager, Leslie Doyle (finance director), and Sarah Gonzalez (interim community development director) presented the plan for the new GRT increase (passed by voters) for streets, parks, public facilities, and public safety.
• Finance context: First year GRT collection estimated at $11.5 million, increasing 3% annually. Bonds of $20 million received every two years. Annual debt service is $8.8 million; remainder (first year $2.7 million) for facility maintenance. Bond proceeds must be 85% spent within three years, fully spent within five years. 16-year projection shown.
• Sarah Gonzalez outlined project categories: streets (pavement, traffic calming, sidewalks, drainage, lighting, bike paths), parks (restrooms, playgrounds, landscaping, shade, trails, new recreation center), public facilities (fire station one renovation, WIA building remodel, municipal court, water well maintenance), public safety (joint training facility for fire/police, driving track, station renovations, security cameras/fencing). Design timelines of 8–12 months noted.
• Next steps: community engagement plan to be developed; staff will return in October with project options for years 1–4, and a resolution in November identifying priorities based on public input and council direction.
• Council discussion:
  • Councilor Corran questioned the 3% GRT growth assumption given economic volatility and possible state GRT exemptions for medical services. Doyle stated the 3% is conservative based on trend and financial advisor input; she offered to provide alternative scenarios. Corran also clarified IRS restrictions on bond spending (three-year 85% requirement).
  • Mayor Pro Tem Bencomo emphasized an infrastructure emergency, prioritizing neglected city facilities (e.g., fire station one, municipal court) over new projects. She called for an equity lens in project selection (e.g., road projects on Sonoma Ranch less equitable) and robust community engagement with translation services.
  • Councilor Trice supported public input and highlighted deferred maintenance, after-school programs, a new library, public safety compensation (keeping police/fire number two in state), affordable housing monitoring, and economic development in industrial parks.
  • Mayor Enriquez added specific needs: Fire Station One (built 1964) needs full renovation; joint training facility discussed since 2007; Loheman and Angler Road bottlenecks; a new rec center on the West Side; and permanent home for municipal court. He thanked voters and Chris Favor for leading the GRT campaign.

Public Comments & Testimony

• Linda St. Clair (President, Friends of the Library): Expressed support for library funding, noting libraries offer more than books, including youth activities. Encouraged continued city support.
• George Pearson: Advocated for trail funding, specifically extending the Mesilla Drain trail to connect to Lakeside Drive for transportation connectivity. Also urged transit route extensions to new affordable housing outside current transit areas and improvements to the WIA building.
• Chris Johnson (President, Las Cruces Professional Firefighters Local 2362): Thanked council for public safety initiatives. Supported joint training facility, noting current fire training inadequate (spending ~$200k/year on rent) and emphasized need for modern facility to reduce cancer risks and improve training.
• Lucas Herndon (District 2 resident): Presented community input from informal conversations, broken into physical infrastructure (street repair, traffic calming, bus shelters, tree canopy, solar panels, cooling centers), service-oriented (support for low-income/unhoused, mental health, diversion programs), and quality of life (youth programs, water park, roller rink, arts center, library, innovative parks, events center like Rio Rancho).

Key Outcomes

• Council directed staff to develop a robust community engagement plan for the GRT-funded project list, incorporating translation and diverse outreach.
• Staff will return in October 2025 with project options for the first four years and a resolution in November 2025 to formally identify priorities.
• No formal votes were taken; the meeting adjourned by motion with all present council members voting aye (Councilor Graham and Councilor Floodis absent).