Hobbs commission accepts FY2025 audit, approves budget tweak, contracts and $860,000 state-funded Habitat housing plan

The Hobbs City Commission on March 16 accepted the city’s FY2025 audit, approved a budget adjustment and a string of procurement and project awards — and authorized a state-funded affordable housing development agreement with Habitat for Humanity.

The most consequential formal action was adoption of Resolution 7745, the auditor’s report for fiscal 2025. Auditor Farley Benner said the firm’s opinions on the financial statements and major federal programs were “unmodified, which means clean opinions,” while noting findings that included municipal-court accounts-receivable reporting, capital-asset tracking and some timing issues for PERA contributions. Mayor Pro Tem Calderon moved to accept the audit and Commissioner Smith seconded; the clerk recorded affirmative roll-call votes and the resolution carried.

Why it matters: a clean audit preserves the city’s fiscal credibility with state and federal funding partners, while the listed findings identify operational areas staff must address.

Other formal actions — all approved by roll call among commissioners voting — included:

Votes at a glance: - Resolution 7745 (Accept FY2025 audit): Moved by Mayor Pro Tem Calderon; seconded by Commissioner Smith. Outcome: approved. Tally recorded in the meeting: 6 yes, 0 no, 0 abstain, 1 absent. (City Clerk recorded votes from present commissioners.)

- Resolution 7746 (Budget Adjustment Request No. 4, FY26): Assistant Finance Director Deb Corral summarized BAR #4 as adding about $1.7 million in revenue and $5.5 million in expenses, moving general-fund reserves from ~32% to 31% and allocating a $1.4 million private-trust donation for repairs and a sewer phase. Motion to approve carried on roll call; outcome: approved (tally: 6 yes, 0 no, 0 abstain, 1 absent).

- Award: RFP 558-26 for senior center meals to Great Western Dining, Inc. Staff reported one responsive bid (90/100 evaluation score) at roughly $5.65 per meal; the commission approved the award. Outcome: approved (tally: 6 yes, 0 no, 0 abstain, 1 absent).

- Contract award: Calle Grande / Del Norte Parkway intersection (CES contract 2026-06G1139-56) to Ramirez & Sons, low bidder, for $283,943.36 to be funded from Lee County housing grant funds. Outcome: approved (tally: 6 yes, 0 no, 0 abstain, 1 absent).

- College Lane Phase 1 final design (realignment and signalized intersection work): staff presented a $209,330.31 design package and a recommended schedule for bidding next year; the commission approved the final design. Outcome: approved (tally: 6 yes, 0 no, 0 abstain, 1 absent).

- Resolution 7747 (Affordable housing development agreement with Habitat for Humanity): the commission approved a development agreement to build 14 lots (Fowler/Copper Streets) tied to a state legislative award of $860,000. Staff said the program would be 100% state-funded, require restrictive covenants enforcing 15-year affordability at 60% AMI, and provide per-lot infrastructure reimbursements and lumber/package allowances. Commissioners discussed material storage and safeguards; Habitat representatives described volunteer construction plans and contingency storage options. Outcome: approved (tally: 6 yes, 0 no, 0 abstain, 1 absent).

Implementation notes: staff indicated the Habitat project is under a compressed state timeline (invoices and materials must be in place by June 30) and that reimbursement milestones apply; the agreement also replaces a prior participation resolution and prohibits city general-fund expenses for the project (state funds only).

The commission’s actions move multiple projects forward simultaneously: the audit acceptance sustains required reporting and federal funding compliance; BAR #4 adjusts FY26 appropriations to reflect new donations and projects; contract awards address traffic and school-access infrastructure; and the Habitat agreement subsidizes 14 affordable homes with state grant dollars.

The meeting adjourned after routine commissioner comments and staff updates.