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Council approves issuance of $16.2 million in tax notes to fund vehicles, airport projects and cemetery irrigation
Summary
The council authorized tax notes totaling $16.2 million to fund large vehicles and equipment, airport projects and a new cemetery irrigation system; Webster Bank won the bid and staff reported a roughly 3.7% interest rate and $1.3 million in savings from prior unutilized notes.
LUBBOCK, Texas — The Lubbock City Council on May 13 approved an ordinance authorizing the issuance of tax notes totaling $16,200,000 to fund large vehicles and capital equipment, airport projects and a new irrigation system at a city cemetery.
City Manager Joe Jimenez briefed council on the measure, saying the tax-note program is used for multi-year equipment financing; “The tax notes that we issued have a life term of 7 years,” Jimenez said, noting the city has issued tax notes annually since 2017.
The nut graf: The city plans to appropriate $16.2 million in tax notes: $5.6 million for airport projects, $2 million for a cemetery irrigation system and $8.56 million for large vehicles and equipment. The competitive sale drew four bank bids plus one nonconforming bid; Webster Bank submitted the winning bid with a stated interest rate of about 3.695 percent and staff reported an all-in TIC of about 3.83 percent.
Jimenez told council the issuance is intended to match debt terms to the useful life of the equipment and to avoid large one-year budget hits for high-cost purchases. He also said the city realized about $1.3 million in savings from previously authorized tax-note projects that came in under budget and were closed to unappropriated funds, reducing the amount issued this cycle.
The council voted unanimously to approve the ordinance after a motion by Mayor Pro Tem and a second by Mr. Rose.
Ending: Staff noted the notes were called in 2028, allowing early payoff if reserves permit, and confirmed the financed items were already included in the FY2024–25 budget. No council member requested further discussion before the unanimous vote.
