Hobbs · issues
Civic issues
Topics getting the most attention in Hobbs public meetings, ranked by how frequently they come up.
Budgetary Adjustment No. 1, FY 2026-2027
The city's budget gets a $19.2 million revenue boost — mostly grants — with a healthy $122 million ending cash balance across all funds.
Senior Center and Animal Adoption Center Grants
Two legislative grants ease the city's budget: $250,000 keeps the Senior Center's meals and programs running for two years without general fund dollars, and $180,000 buys a mobile adoption unit to take shelter pets into neighborhoods.
Gross Receipts Tax Increase
Hobbs is considering its first general GRT increase in 33 years to close a $6.87 million gap between payroll/operating costs and revenue. The increase would cost about $61 a year for a household spending $10,000 on taxable purchases, and could raise roughly $14.7 million by mid-2028. Extra revenue beyond operating needs would go toward capital projects like roads and sewers.
2027 Employee Benefit Plans
City employees keep their medical premiums flat for 2027 — rare good news in a double-digit health cost market — with only about $2 per paycheck more for dental and vision after switching back to Delta Dental.
HB 6 revenue losses
State tax law changes shifted gross receipts taxation from business location to delivery destination, costing Hobbs an estimated $15-20 million a year — and over $50 million in a single boom year. Eight of Hobbs' top ten GRT producers were oil and gas companies the city no longer taxes directly.
Proposed Gross Receipts Tax Increase
The city is exploring a gross receipts tax increase as a way to secure its long-term financial health. Because gross receipts taxes are built into prices, residents and businesses could see higher costs if it's eventually adopted. No decision has been made — this was a discussion-only work session.
$14.25M Lea County infrastructure grant
Lea County is giving Hobbs $14.25 million for roads, water and sewer lines, hydrants, and drainage. That's real money that takes pressure off the city's general fund, freeing local dollars for pay and services. Funds must be spent by June 30, 2028.
FY 2026-2027 Final Budget Adoption
The Commission adopted a $258 million budget with a 45% reserve. Officials warned that with no tax increase since 2002 and state revenue impacts from House Bill 6, the city must discuss long-term financial sustainability soon.
Roof Replacement MOU for City Facilities
Resolution No. 7792 would set up an MOU with the New Mexico Self-Insurers' Fund to replace roofs at the Motor Vehicle Department and the Prairie Haven Memorial Park Chapel — deferred maintenance that matters to staff and visitors.
Fiscal Year 2025-2026 Budget Adjustment No. 6
Two resolutions were on the agenda: the third budget adjustment of the fiscal year and an allocation of lodgers' tax money to fund local events in FY 2026.
Procurement Policy Update (Ordinance No. 1169)
The city raised its small-purchase threshold to $30,000 and written-quote threshold to $90,000, added cooperative purchasing, and encouraged departments to shop local — all effective July 1.
Fiscal Year 2026-2027 Preliminary Budget
The city locked in its spending plan for the year starting July 1, with a 38% general fund reserve and $2.4 million shifted from the cannabis fund. A resident urged commissioners to balance the budget without raising the gross receipts tax.
Fiscal Year 2025 audit acceptance
The commission was scheduled to formally accept the city's FY2025 audit from Hinkle + Landers, P.C. — the annual checkup on how the city handles public money.
Federal funding application for community projects
Resolution 7743 would let the city apply for congressional directed spending and community project funding — a shot at bringing federal dollars home, championed by the fire chief.
Ambulance billing write-offs
Resolution 7740 would clear uncollectible ambulance billing accounts off the city's books — routine accounting, but it means those bills won't be collected.
Related party contract with Watson Truck and Supply, Inc.
The Commission was scheduled to approve a related party contract with Watson Truck and Supply, Inc. — a vendor relationship requiring special disclosure because of a connection to someone involved.
Second-quarter financial report
The city's FY 2026 second-quarter financial report, filed with the state DFA, was up for approval — a routine check on how the budget is tracking halfway through the fiscal year.