Hobbs staff propose 20'25% increases at the Core to reach 50% cost-recovery target

City recreation officials told the Hobbs City Commission on Tuesday that they plan to raise most fees at the city'operated recreation center known as the Core by roughly 20 to 25 percent to move the facility toward a 50% cost-recovery target.

Doug McDaniel, the city'recreation director, opened the presentation by saying the Core has not raised fees since it opened in June 2018 and that inflation and revenue shortfalls have increased the municipal subsidy. McDaniel said a feasibility study recommended a 50% subsidy level; staff found the Core'wide subsidy has varied historically (as low as about 36% and as high as about 69%) and said midyear snapshots suggested the subsidy could be near 67% before year-end adjustments.

Lindsay Henderson, the Core facility director, walked commissioners through proposed operational changes and a simplified fee schedule. Staff proposed increasing many day-pass, program and rental rates 20'25%, consolidating multiple pass tiers into simpler resident/nonresident and monthly/annual structures, eliminating a nonresident membership surcharge, and including unlimited group fitness access with many passes and memberships. The proposal also recommends a facility rental security deposit, a formal cancellation schedule, and a new $5 per-person spectator fee for non-high-school swim meets.

Henderson said the gross difference between current and proposed fees on staff'prepared sheets was about $845,000 but noted that figure is optimistic; staff estimated a more conservative realistic increase at roughly $400,000 a year once usage changes are accounted for. The presentation included operating-hour changes: Saturday hours would shift from starting at 6 a.m. to an 8 a.m. opening to better match observed usage.

Commissioners asked staff for supporting usage counts before any final vote. One commissioner asked specifically for average Saturday morning check-ins; Henderson agreed to provide those numbers at a follow-up meeting. Several commissioners urged the staff to reexamine senior and adaptive-community pricing to address affordability concerns for residents on fixed incomes; McDaniel and Henderson said equity strategies would be explored and the item would return to a future commission meeting for formal action.

At the presentation close, McDaniel summarized the objective: avoid returning to the commission in a short period for further increases and keep the Core financially sustainable for the next decade. Staff did not present a final ordinance or motion Tuesday; commissioners requested follow-up information and signaled they expect the proposal to come back for formal action after further review.

"Fees have not been raised at the Core since it opened in June 2018," Recreation Director Doug McDaniel said. "We want to capture increased costs as quickly as possible so the city does not continue to subsidize rising costs and inflation."

Henderson emphasized membership incentives: "If you're money smart, you'll purchase a membership," she told commissioners, noting memberships become cost-effective after a small number of visits and would include added benefits such as group fitness access and guest passes.

The commission asked staff to return with Saturday usage counts, projected equity mitigations for seniors and adaptive users, and a refined revenue estimate before any vote.