Las Cruces faces public backlash over $15m Lead and Copper Rule funding and inspection records

Las Cruces faces public backlash over $15m Lead and Copper Rule funding and inspection recordsResidents allege the municipal utility falsified pipe inspection reports and neglected disadvantaged neighborhoods in its deployment of a $15 million New Mexico Finance Authority loan intended for lead and galvanized pipe replacements.

Public commenters accused the city of fabricating 36 inspection reports to reclassify galvanized pipes as plastic or plain steel, allegedly to divert funds away from pipe replacement.

Advocates claim only 17% of recent service line inspections targeted disadvantaged properties, despite the city's commitment to prioritize them for the $15 million NMFA funding.

The City Council approved an amended FY2026-2031 Capital Improvements Program that includes $6.3 million in future funding for Lead and Copper Service Line Replacement.

The FY26 budget was adjusted to add $271,072 for water well repairs and over $360,000 to cover increased electricity expenditures at wastewater facilities.

During the April 20, 2026, Las Cruces City Council meeting, residents leveled serious allegations against the city's utilities department regarding its compliance with federal Lead and Copper Rule improvements. The controversy centers on a $15 million funding package from the New Mexico Finance Authority (NMFA) intended for service line replacement, of which the city is only required to repay 25%. Resident Lynn Moorer accused utility staff of fabricating 36 inspection reports—representing 43% of a recent batch of records—to alter the documented material of service lines from galvanized steel to plastic or plain steel. Moorer alleged the changes, including at Fair Acres Elementary, were made to preserve the $15 million fund for projects unrelated to pipe replacement. According to Moorer, no galvanized piping has been replaced at any of the 83 properties identified in the city's inventory records. Liz Rodriguez-Johnson presented an independent assessment of the city's inspection rollout, claiming the utility has failed to honor its commitment to the NMFA to prioritize disadvantaged properties. According to her analysis of 183 citywide inspections conducted during the first week of five consecutive months, only 31 (17%) were for disadvantaged properties. Furthermore, in a 20-block downtown area near Mesquite and San Pedro Streets where all 194 properties are classified as disadvantaged, only 40 properties (21%) had been inspected between January and September 2025. While city staff and council members did not directly respond to the allegations during the public comment period, the council later approved a resolution amending the FY2026-2031 Capital Improvements Program (CIP). The updated CIP formally outlines future expenditures for Lead and Copper Service Line Replacement, starting with an anticipated $6.3 million in FY2027 and scaling up to $9.8 million by FY2031. In separate water infrastructure business, the council approved FY2026 budget adjustments to cover operational shortfalls and critical maintenance. The water operations budget was increased by $271,072 to repair and maintain water wells, while $461,379 was added for measurement and verification services. The wastewater operations budget saw an increase of more than $360,000 to cover El Paso Electric expenditures, including $309,525 specifically for the Jacob Hands Wastewater Treatment Facility. Meanwhile, near-term wastewater capital improvement budgets were decreased by over $2.6 million to reflect revised expectations for the current fiscal year.