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Hobbs City staff flag large carryovers, propose "deconstructing" budget to free reserves
Summary
City Manager Manny Gomez and finance staff told the Hobbs City Commission that large encumbrances and unspent carryovers make the city's high reserve percentage misleading and recommended a multi‑year review to prioritize projects and set a sinking fund for capital needs.
City Manager Manny Gomez and finance leaders told the Hobbs City Commission on May 5 that Hobbs City's high reported reserves overstate how much cash is actually available because of long-running encumbrances and carryover project funds.
"We will begin by deconstructing our existing budget to better understand the current spending patterns," City Manager Manny Gomez said, summarizing the administration's approach to the FY 2026 preliminary budget.
The deconstruction exercise matters because staff said the city's June 30 projected cash balance differs substantially from the reserve percentage used in the…
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