Hobbs commission approves preliminary FY25-26 budget with 30% city reserve

The City Commission of Hobbs on May 19 approved a preliminary fiscal year 2025–26 budget that projects roughly $140 million in revenue, about $150 million in spending and preserves the city's self-imposed 30% reserve requirement.

The approved preliminary budget will be submitted to the New Mexico Department of Finance and Administration to meet the June 1 filing deadline required for municipalities before the commission returns with a final budget in July.

Toby Spears, the city's finance director, told the commission that the preliminary plan reflects an estimated $140,000,000 in total revenue and roughly $150,000,000 in expenditures. "So there's probably around $8,000,000 where we're projecting we're going to go into the reserves assuming we spend everything in a 12-month cycle," Spears said. He described the document as a stop-gap measure to bridge July 1 until the final budget is presented on July 21.

Mayor Sam D. Cobb and commissioners discussed statutory and local reserve requirements during the hearing. When asked what the state requires, Spears replied, "The state requires 1/12, which is 8.3% reserve." He added that Hobbs' city ordinance sets the city's internal target at 30% because of the local economy's volatility.

Commissioner Penick moved to adopt Resolution No. 76-18 approving the preliminary budget; Commissioner Fields seconded. The commission voted unanimously in favor: Mills yes; Fields yes; Calderon yes; Penick yes; Girth yes; Mayor Cobb yes.

The preliminary budget document will be posted as required and merged with the 2024-25 final budget at the July meeting, when commissioners consider the full-year appropriation and final adjustments.