Lubbock council reviews FY2025-26 budget, tax-rate scenarios ahead of September votes

LUBBOCK, Texas — City Manager Jarrett Atkinson briefed the City Council Aug. 12 on property-tax calculations underlying the proposed fiscal year 2025–26 operating budget, showing how different rate choices would change the maintenance-and-operations levy and the dollar variance available to the General Fund.

Atkinson told the council the new-no-revenue tax rate would produce an M&O rate of about 0.345378 (34.5378 cents per $100 of valuation) and said the resulting levy was in the neighborhood of "81.1 million dollars," repeating that the council had previously levied and collected roughly $83 million but that returning to that total would be treated as a tax increase on paper. He also laid out the council's "voter-approval" rate (the statutory measure tied to the 3.5% net new money threshold) and the "proposed" tax-rate scenario tied to the budget presented last week.

Why it matters: the council must set a proposed maximum tax rate in public notice before later public hearings and final adoption. Atkinson warned the council the numbers presented are subject to change as staff refines tax-levy and value assumptions and reminded members the difference between a nominal rate change on paper and the actual dollars paid by taxpayers.

Most important details: Atkinson walked the council through three rate scenarios and the mechanics of Lubbock's unused increment — funds accumulated when past councils did not use their full 3.5% voter-approval allowance. He said the budget proposal discussed last week would rely on a modest portion of that increment ("0.08 of a penny" in Atkinson's example) rather than calling an election, and that using the increment does not directly raise a property owner's bill beyond the voter-approval trigger.

Council follow-up: Councilmembers asked clarifying questions about how the levy figures were calculated and how the $1.9 million shortfall mentioned in Atkinson's presentation affected variance numbers. Atkinson emphasized the council would take no final action on rates at the Aug. 12 meeting and that the next step is the statutorily required public hearing and final votes in September.

Context and next steps: By law the council must publish a proposed maximum tax rate and hold public hearings before adopting a final rate. The council set a proposed maximum tax rate later in the meeting (Item 7.15), which will be subject to public hearing Sept. 2 and final adoption at subsequent meetings.

Quotes: "So the new no new revenue tax rate is going to produce an M and O rate of 0.345378," City Manager Jarrett Atkinson said. "That is where we start today." Atkinson later cautioned: "No, we're not adopting anything today other than the maximum. But I'm just raising questions or trying to get answers to questions people will have."

Ending: The council's budget team said members will have more detailed levy and revenue figures ahead of the September public hearings. Councilmembers and staff urged residents to follow posted materials and attend the September sessions to comment on the proposed rates.