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Lubbock reports late-year sales-tax gains and an unaudited balanced general fund
Summary
City Manager Atkinson told the Lubbock City Council that fiscal-year 2025 ended with stronger-than-expected late-year sales-tax receipts, narrowing an earlier $5.4 million shortfall and leaving the general fund balanced on an unaudited basis after cost-saving measures.
City Manager Atkinson told the Lubbock City Council on Dec. 2 that an anticipated roughly $5.4 million sales-tax shortfall in June narrowed during the final months of fiscal year 2025, with July–September collections outperforming comparable months in 2024.
Atkinson said June projections had shown the “worst of the year,” putting the shortfall near $5,460,000. He said the city then saw stronger actual receipts in July (+$270,000), August (+$462,000) and September (+$629,000) when compared with the prior year. “We did not end up at $5,470,000 below budget. We ended up at 5.187 or 5.19,” Atkinson said.
Why it matters: sales taxes are a major operating revenue source for Lubbock. Atkinson said the late-year gains improved the city’s overall receipts but did not fully erase the year’s budget variance.
The city reported FY24 collections of $99.1 million and FY25 collections of $100.4 million — a positive variance of about $1.33 million versus the prior year. On an unaudited basis, Atkinson said the general fund was about $6.2 million under budget but that management steps prevented deficit spending and the fund is expected to close balanced when audits are final.
Atkinson told the council the administration took multiple steps to manage the shortfall: a hiring freeze on general-fund positions (except public safety), reductions in cash-funded projects and nonessential travel and training, renegotiation of employee health-plan terms, and other expense reductions. He attributed roughly $900,000 in savings to compensation and benefits adjustments and about $1.7 million to health-insurance savings, along with savings in supplies and maintenance.
Councilmembers thanked staff. Councilmember Collins and others praised the leadership team and front-line employees for the company-wide spending adjustments that avoided a deficit.
What’s next: Atkinson said audited figures will be available in February; the next monthly report will arrive after the Dec. 9 council meeting and will show the first month of 2026 activity.
Reporting note: figures cited are the administration’s unaudited numbers; the city will present its official audit in February.
