Sunland Park Approves 40% Rate Hike for Water and Sewer Services

Residents in Sunland Park and Santa Teresa, New Mexico, will experience a significant increase in water and sewer rates, with bills set to rise by 40% starting in 2026. This decision follows the approval of a rate increase by the Sunland Park City Council on Wednesday, responding to financial challenges presented by the Camino Real Regional Utility Authority (CRRUA). The Doña Ana County Board of Commissioners had previously endorsed this increase in August 2023.

The revised rates will mark the first adjustment for CRRUA customers since 2009. Following the new rates, the average combined water and sewer bill will increase from approximately $48 to more than $68 in 2026. Additionally, residents can expect smaller annual rate hikes over the next four years, as indicated by a study conducted by the firm Jacobs Engineering.

CRRUA has faced ongoing difficulties, including mismanagement and financial instability, which have led to operational failures at water treatment plants. In recent years, customers have reported receiving water contaminated with arsenic and other issues, such as a high pH level resulting from caustic soda being introduced into the system in late 2023. Despite these past problems, the quality of water has improved significantly over the last year, meeting health standards more consistently.

The utility currently has only $1.4 million in cash reserves and is projected to exhaust its funds by next year without the rate increase. Juan Carlos Crosby, the executive director of CRRUA, emphasized the urgency of the situation, stating, “There’s a lot of items that have many years of deferred maintenance that have not gotten repaired. The simple reason is because there were never sufficient funds to take care of the utility, so there were not appropriate rates set.”

Crosby acknowledged the discomfort that comes with raising rates but highlighted the necessity of the increase. “Nobody likes rate increases. Nobody does. But nothing here is the same price that it was in 2009. Our utility costs much more to maintain and operate than what is coming in,” he noted.

The decision to increase rates comes amid ongoing tensions between Sunland Park and Doña Ana County regarding the future of CRRUA. Sunland Park plans to establish its own municipal water utility, while the county intends to create a new utility to serve customers in Santa Teresa and areas outside of Sunland Park.

During the council meeting, some residents expressed frustration over the lack of clarity around the rate increase details. One resident, Kym Hemley, criticized the council for not providing clear information during the presentation. She stated, “You give a presentation for the public, for the council, you don’t even have the rates? That’s a misstep.”

Despite acknowledging the necessity of the rate increase for essential repairs and staffing, Hemley suggested a more gradual approach to implementing the change. The community’s concerns reflect a broader apprehension regarding the financial management of local utilities and the potential impact on household budgets.

As the implementation date approaches, residents in Sunland Park and Santa Teresa will need to prepare for the financial implications of the new rates. The city and county’s ongoing efforts to restructure CRRUA may also play a pivotal role in shaping the future of water and sewer services in the region.