Lubbock’s next budget faces flat tax and fee revenue – not enough to keep up with “municipal inflation.” It’s the same idea as the inflation citizens face but involves a different set of purchases, according to a presentation the Lubbock City Council received last week.
“Across the board, you’re seeing a 1 percent increase in revenue,” said Tim Collins, councilman for District 6, northwest Lubbock.
But he and Jarrett Atkinson, city manager, said the year-over-year increase for a fire truck is 15 percent.
Collins said, “The Federal Reserve’s job is to hold inflation at 2.5 percent. … And our revenue increase is not meeting that.”
Atkinson responded, “The Fed’s two-and-half percent – whatever the stated number is that we read in the newspaper – that number is not based on buying fire trucks, police cars, and trash trucks. Or building roads. The stuff that municipalities buy to deliver service is not considered in that.”
Atkinson’s presentation said the cost of hot mix asphalt nearly doubled in four years, and the cost of a police unit went up 58 percent. The vehicle without equipment is more than $84,000, he said.
“Today’s number to put that patrol car on the street is $110,000,” Atkinson said.
“For every nine new police officers we add, I need $1 million just for the cars. And that just continues to go up,” Atkinson said.
Revenue growth stalled – going from a nearly 8 percent increase general fund revenue in the 2022/23 budget down to a 1.6 percent growth last year according to the city budgets posted online.
Sales tax revenue lagged enough in early 2025 to force a hiring freeze at the city. Property tax revenue was also sluggish compared to previous years. The newest numbers are expected later this month, and officials hope new construction picks up in future years.
During the same time, the number of city employees per thousand residents went down. It went from 6.35 to 6.1 in four years.
Collins said, “There’s only so many steps backwards we take in the budget process before we really start harming ourselves down the road in the five, 10-year picture.”
The council made no decisions during the informational meeting Thursday.
The discussion was intended to help Atkinson set priorities as he prepares a draft budget for the 2026/27 fiscal year. That budget needs to be finalized and approved before September 30.
“We continue to look at what our tax rate is going to be, continue to feel – I think – an appropriate pressure to keep the tax rate as low as possible,” Collins said.
Atkinson presented a list of general fund expenses for the near future.
The city needs, he said:
- A police driver training facility
- A joint police/fire training facility
- A fire station
- An addition city service center (fuel)
- Money for “step” pay (for experience and years of service)
- Money for “meet and confer” negotiations with police and fire
The city needs another fuel service center, he said.
“You don’t own a fuel pump that is west of Avenue P,” he said to the council.
The city is spending “way too much time” moving people and equipment back and forth either from Municipal Hill or 84th Street and Avenue P.
Strengths, weaknesses
The council also heard from Hilary Shine, the senior vice president with a company SGR (Strategic Government Resources).
She conducted a SWOT survey (strength-weaknesses-opportunities-threats) with the council.
Shine included a well-managed city with quality services, strong city employees, and public safety among the strengths.
She identified inequity among the weaknesses.
“I heard that from many of you … You’ve got newer build parts of town. You got older parts of town. And so, how do we make sure that we’re trying to invest equitably across the city,” Shine said.
Among the opportunities, especially with plans to renovate and expand the Civic Center, Shine emphasized downtown revitalization.
“People are very encouraged about the energy that’s happening in downtown. … In general, there’s an energy there and a life that is coming back to it,” Shine said.
She also mentioned aging infrastructure on her list of potential threats.
