Hobbs · issues
Civic issues
Topics getting the most attention in Hobbs public meetings, ranked by how frequently they come up.
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.
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.
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.
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.
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.