Hobbs commission adopts $250 million expense budget for FY2025–26, keeps 46% general‑fund reserve

The Hobbs City Commission adopted the city’s fiscal year 2025–26 final budget with unanimous approval, accepting staff adjustments that restored capital spending and maintained a 46% general-fund reserve.

Why it matters: Finance staff described a final budget that uses a $195 million beginning cash balance and projects $165 million in revenues and $250 million in expenditures, leaving a projected ending cash balance of $109 million. The adopted package restores capital spending, including a $10 million paving rehabilitation line item.

What the commission heard: Finance presenter Deb (last name given as Grama/Corral in remarks) summarized fourth-quarter cash balances and the changes made to the draft budget. Staff said the general fund began the period at $90 million and ended at $97 million; the quarter showed total beginning cash across all funds of $191 million, revenues collected of $149 million and expenditures of $145 million, leaving $195 million.

Budget changes and capital: Commissioners were told staff added previously removed items back into the final budget and made commissioners’ special project accounts $300,000 across the board. The presenters described capital carryovers, operating carryovers and new money; most notably, staff said they increased paving rehabilitation funding from a previously cut amount back to $10 million.

Commissioner remarks and vote: Commissioners discussed the long-term consequences of deferred capital investment, noting deferred maintenance can lead to damaged water and sewer infrastructure and aging fleet vehicles. The commission approved Resolution 7649 to adopt the FY2025–26 final budget with a unanimous recorded vote.

Next steps: Staff will proceed with budget execution and incorporate the adopted beginning balances and carryovers into departmental planning.