Hobbs commission moves to adopt FY2027 preliminary budget; staff cites $79 million revenue projection

The Hobbs City Commission voted to advance the city’s FY2026–27 preliminary budget to allow operations beginning July 1, 2026. Assistant Finance Director Deb Corral told the commission the preliminary plan projects general-fund revenue of $79,000,008.52 and general-fund expenditures of $83,671,467.33, leaving an ending general-fund cash balance of about $31,716,785 and a reserve of roughly 38 percent.

The preliminary budget is a stop-gap measure while staff close FY2026 books and assemble the final FY2027 budget packages. Corral said the city moved roughly $2,400,000—half of the cash balance in the cannabis fund—into the general fund as an interfund transfer to balance cash flows. She also gave consolidated totals for all funds: beginning cash about $106 million, projected revenue about $147 million and projected expenditures of about $156 million, for an ending cash balance of about $97 million.

Corral presented the figures and invited questions; Commissioner Penick moved approval and Commissioner Fields seconded. The commission voted to adopt the preliminary budget so staff can operate on July 1 and submit required documents to the New Mexico Department of Finance and Administration. Corral noted preliminary budgets are due to DFA on June 1 and that DFA typically issues an interim approval letter by July 1.

The preliminary adoption permits the city to continue operations while the final budget is developed and does not finalize spending decisions. Staff and department heads will continue to refine allocations as the fiscal year closes and the final budget process continues.