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Monday, November 23, 2009
Hobbs Revenues 30 Percent Below Projections
Associated Press
HOBBS — The city of Hobbs is cutting projects and leaving vacant positions unfilled as revenues for the year roll in nearly 30 percent lower than expected.
City Manager Eric Honeyfield says Hobbs budgeted this year's gross receipts tax revenues at $30 million, a conservative number compared with the $42.6 million in revenues from last year.
The years of 2007 and 2008 were records for the city's gross receipts tax revenues, thanks to surges in oilfield activity and construction.
However, times are tougher now because of the national economic slump, a fall in oilfield activity and construction dropping to one of its lowest points in five years.
Honeyfield says Hobbs has good reserves and city officials have trimmed expenses, so the city is not in dire straits yet.
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