Las Cruces Water Rate Referendum: Projected Shifts in Monthly Utility Costs for City Households

The Las Cruces ballot measure on water rates would authorize the city to raise base charges by up to 12 percent over three years, starting January 2027. The change would apply to all accounts connected to the municipal system, which supplies water to most addresses inside city limits.

City records show the utility posted a $4.8 million shortfall in its 2025 capital improvement fund. The measure addresses that gap after state funding for pipeline replacement dropped in the current fiscal year. Without new revenue the government says deferred maintenance on 180 miles of aging mains would continue.

Effects on household budgets and daily routines

A typical single-family home using 7,000 gallons a month would see its bill rise from $42 to $47 by 2028 under the proposed schedule. Apartment residents on shared meters would face smaller per-unit increases passed through by property owners. Local advocates note that fixed-income households already spend an average 3.2 percent of monthly income on water and sewer combined.

Businesses drawing more than 50,000 gallons would pay an additional tiered surcharge. The city clerk’s office projects the extra revenue would fund replacement of 12 miles of pipe each year, reducing leak rates that now average 18 percent of treated water.

Budget documents released in May list $2.1 million for new meter technology and $1.7 million for well rehabilitation if the measure passes. Those projects are listed as unfunded in the current capital plan.

Remaining steps before the November vote

Petitions must reach 3,200 valid signatures by August 15 to qualify for the ballot. The city council has scheduled two public hearings in September to review the rate tables. If approved, the first adjustment would appear on January bills mailed to 25,000 accounts.