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Council unanimously approves annexation first reading and $16.2M in tax notes for airport, cemetery and vehicles
Summary
On May 13 the Lubbock City Council approved a first reading for an annexation request by Nicollet Land Company LLC and passed an ordinance to issue tax notes totaling about $16.2 million to fund airport projects, a cemetery irrigation system and large vehicles and equipment.
The Lubbock City Council on May 13 unanimously approved two items affecting city boundaries and capital financing: a public hearing and first reading on an annexation request by Nicollet Land Company LLC and an ordinance authorizing the issuance of tax notes to fund airport projects, cemetery irrigation and large vehicles.
Annexation: Council opened a public hearing on a request from Nicollet Land Company LLC to annex property adjacent to the city's southwestern limits, south of 130th Street (Loop 88) and west of Milwaukee Avenue. City staff member Kristen Seager described the agenda item as "the public hearing and first ordinance reading for a proposed annexation of a 21 acres located South of A Hundred And Thirtieth West Of Milwaukee Avenue." The mayor's earlier description of the agenda identified the parcel as "approximately 121.8 acres." No members of the public spoke in favor or opposition during the hearing. The council approved the motion to adopt the first reading (motion by Councilmember Colton Collins; second by Dr. Wilson) with a unanimous vote; staff said the second reading will be scheduled for the council's next meeting.
Tax notes: The council also approved an ordinance to issue tax notes to fund large vehicles and equipment, airport projects and a new cemetery irrigation system. Chief Financial Officer Joe Jimenez told the council the city sought to appropriate $16,200,000 in tax notes: $5,600,000 for airport projects, $2,000,000 for the cemetery irrigation system, and $8,560,000 for large vehicles and equipment. Jimenez said tax notes have a typical seven‑year term and are used to better match debt with the expected useful life of vehicles and equipment.
The city solicited competitive bids for the notes and received four bank bids plus one nonconforming bid; Webster Bank presented the lowest bid with a total interest rate of about 3.695 percent. The all‑in true interest cost (TIC) reported to council was about 3.83 percent. Jimenez said issuance costs were projected at about $80,000. He also said the city had $1.3 million in savings from previously authorized tax note projects that came in under budget; those savings reduced the planned issuance from roughly $18 million to about $16.1 million.
Councilmember discussion was brief. The council approved the tax‑note ordinance by unanimous vote (motion by Mayor Pro Tem; second by Mr. Rose).
Votes at a glance: - Annexation (first reading) — Applicant: Nicollet Land Company LLC; property described by staff as 21 acres south of 130th Street and west of Milwaukee Avenue; motion by Councilmember Colton Collins; second by Dr. Wilson; outcome: approved unanimously. Second reading to be scheduled. - Tax notes ordinance — Amount appropriated: $16,200,000 (allocation: $5,600,000 airport; $2,000,000 cemetery irrigation; $8,560,000 vehicles/equipment); low bidder: Webster Bank (interest ~3.695%); TIC ~3.83%; issuance cost ~ $80,000; motion by Mayor Pro Tem; second by Mr. Rose; outcome: approved unanimously.
The meeting record shows the council conducted the annexation hearing without public testimony and adopted the first reading; staff indicated any additional documentation (second reading for annexation, final sale documents for the tax notes) will return to council for final action.
