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City of Lubbock, Texas
Special City Council Meeting
September 5, 2023

Tray Payne, Mayor
Shelia Patterson Harris, Mayor Pro Tem, District 2
Christy Martinez-Garcia, Councilwoman, District 1
Mark W. McBrayer, Councilman, District 3
Steve Massengale, Councilman, District 4
Dr. Jennifer Wilson, Councilwoman, District 5
Latrelle Joy, Councilwoman, District 6

W. Jarrett Atkinson, City Manager
Chad Weaver, City Attorney
Courtney Paz, City Secretary

http://www.mylubbock.us

City Council Chambers, Citizens Tower, 1314 Avenue K, Lubbock, Texas

City of Lubbock City Council Meetings are available to all persons regardless of disability. If you require special assistance, please contact the City Secretary's Office at 775-2061 or write to Post Office Box 2000, Lubbock, Texas 79457 at least 48 hours in advance of the meeting.

Note: On occasion the City Council may consider agenda items out of order.

A quorum of the City Council will be physically present in City Council Chambers located in Citizens Tower, 1314 Avenue K, Lubbock, Texas, as it is the intent of the City Council to have a quorum physically present at this location. One or more members of the City Council, however, may participate in the meeting by video-conference call as permitted under Section 551.127 of the Texas Government Code.

2:00 p.m. - The City Council Convenes in City Council Chambers in Open Session.

Citizen Comments - According to Lubbock City Council Rules, any citizen wishing to appear in-person before a regular meeting of the City Council, regarding Item 2.1. in the Consent Agenda below, shall complete the sign-up form provided at the meeting, no later than 2:00 p.m. on September 5, 2023. Citizen Comments provide an opportunity for citizens to make comments and express a position on agenda items.

Consent Agenda - Items considered to be routine are enacted by one motion without separate discussion. If the City Council desires to discuss an item, the item is removed from the Consent Agenda and considered separately.

Budget Ordinance Amendment 1st Reading - Finance: Consider Budget Ordinance Amendment 34, Amending the FY 2022-23 Budget for municipal purposes respecting the Public Safety Capital Projects Fund; providing for filing; and providing for a savings clause.

Regular Agenda

Public Hearing - Finance: Hold a public hearing on the Proposed FY 2023-24 Operating Budget and Capital Program.

Public Hearing - Finance: Hold a public hearing on a proposal to increase total tax revenues from properties on the tax roll in the preceding tax year by 3.17% (percentage by which the proposed tax rate exceeds the No-New-Revenue tax rate calculated under Chapter 26, Tax Code).

Public Hearing - Finance: Hold a public hearing on the proposed reduction in Storm Water Drainage Charges for the City of Lubbock.

Ordinance 1st Reading - Finance: Consider an ordinance approving and adopting a budget for Fiscal Year 2023-24; approving summary of estimated and forecasted revenues, appropriations, and use of excess reserves for all funds of the city; providing for necessary transfers of funds between accounts and departments, if required; authorizing reduction of spending by City Manager if necessary; re-appropriation of balances which support authorized obligations or encumbrances; providing for filing of Adopted Budget; establishing civil service classifications and positions; appropriating funds for the Fiscal Year 2023-24 Operating Budget and Capital Program of the City of Lubbock; approving all permit, license, fees, and charges for service recommended to be adjusted; approving the pay plan and positions; approving personnel; amending section 4.02.041 of the Code of Ordinances amending animal service fees as contained therein; amending section 22.03.084 of the Code of Ordinances amending the water base charge as contained therein; amending section 22.03.085 of the Code of Ordinances amending the water volume rate as contained therein; amending section 22.03.095 of the Code of Ordinances by revising the water utility reconnect and disconnect fees as contained therein; amending section 22.04.133(A) of the Code of Ordinances of the City of Lubbock by revising the significant industrial user permit fee as contained therein; amending section 22.04.174 of the Code of Ordinances of the City of Lubbock by adding a weekend dumping fee as contained therein; amending section 22.06.051 of the Code of Ordinances of the City of Lubbock by revising the solid waste landfill service fees as contained therein; amending section 22.06.185(A) of the Code of Ordinances of the City of Lubbock by revising the solid waste collections service fees as contained therein; providing for the reconciliation of the transfer of funds from the General Fund to Enterprise Funds; accepting the budgets for Lubbock Economic Development Alliance, Market Lubbock, Inc., Civic Lubbock, Inc., and Vintage Township Public Facilities Corporation; finding that proper notice of meeting provided by law and ratifying such; providing a penalty; providing for publication; and providing for a savings clause.

Ordinance 1st Reading - Finance: Consider an ordinance setting the tax rate and levying a tax upon all property subject to taxation within the City of Lubbock for 2023; apportioning said levy among the various funds and items for which revenue must be raised; fixing the times in which said taxes shall be paid and assessing penalty and interest for nonpayment of such taxes within the time provided.

Resolution - Finance: Consider a resolution amending the schedule of drainage charges by decreasing the rates.

AI# 11879 Image of Lubbock City Logo 2021

Special City Council Meeting

2.1.

09/05/2023:

Agenda Item

Item Summary

Amend Capital Improvement Project 92711, Fire Station 20, and appropriate funding in the amount of $3,000,000, from $7,645,000 to $10,645,000. Funding will be from Tax Notes.

Capital Improvement Project 92711, Fire Station 20, was initially allocated a budget of $493.77 per square foot. However, due to open requisition process receiving only one sole bid, the cost per square foot escalated to $748.98, representing an overage of 51.6% against the original budget. Following negotiations, Lubbock Fire Rescue successfully reached a consensus, resulting in a finalized cost of $600 per square foot. This resolution, however, produced a budgetary gap of $2.1 million that warrants consideration.

Fiscal Impact

Included in item summary

Staff/Board Recommending

D. Blu Kostelich, Chief Financial Officer

Attachments

Budget Amendment 34

AI# 11823 Image of Lubbock City Logo 2021

Special City Council Meeting

3.1.

09/05/2023:

Agenda Item

Public Hearing - Finance: Hold a public hearing on the Proposed FY 2023-24 Operating Budget and Capital Program.

Item Summary

This item is a budget public hearing concerning the FY 2023-24 Operating Budget and Capital Program. A notice has been published on August 23, 2023, as required by law to allow citizens an opportunity to comment on the proposed budget.

Fiscal Impact

None

Staff/Board Recommending

D. Blu Kostelich, Chief Financial Officer

Attachments

Budget Public Hearing Notice

AI# 11824 Image of Lubbock City Logo 2021

Special City Council Meeting

3.2.

09/05/2023:

Agenda Item

Item Summary

On August 8, 2023, the City Council approved a resolution for a proposed maximum tax rate of $0.480164 cents per $100 valuation. A public hearing is required prior to adopting a tax rate that is higher than the no-new-revenue rate or voter-approval rate. A property tax rate of $0.480164 per $100 valuation is proposed, which is higher than the no-new-revenue rate and lower than the voter-approval rate. The tax rate is distributed as follows:

General Fund Maintenance and Operations

$0.370381

Interest and Sinking Fund

$0.109783

Fiscal Impact

The tax rate is scheduled to be adopted at the September 12, 2023 City Council Meeting. The fiscal impact of that decision is unknown until the tax rate is chosen and adopted.

Staff/Board Recommending

D. Blu Kostelich, Chief Financial Officer

Attachments

Tax Rate Public Hearing Notice

AI# 11827 Image of Lubbock City Logo 2021

Special City Council Meeting

3.3.

09/05/2023:

Agenda Item

Public Hearing - Finance: Hold a public hearing on the proposed reduction in Storm Water Drainage Charges for the City of Lubbock.

Item Summary

Section 552.045 of the Texas Local Government Code requires a public hearing be held prior to the Storm Water rates being adopted by the City Council. The public hearing is to discuss the proposed decrease to Storm Water rates and to hear public comment on the proposed rates. The new proposed rates are as follows:

Residential Property Rates:

Tier 1:

Impervious area less than or equal to 2780 square fee

$6.70 per month

Tier 2:

Impervious area greater than 2780 square feet and less than or equal to 3680 square feet

$10.25 per month

Tier 3:

Impervious area greater than 3680 square feet and less than or equal to 4770 square feet

$12.97 per month

Tier 4:

Impervious area greater than 4770 square feet

$19.46 per month

Non-Residential Property Rate:
$19.46 per Equivalent Residential Unit ("ERU") per month

This is an 8.3% decrease in all rate tiers.

Notice of the public hearing was published in the legal notices section of the Lubbock Avalanche Journal on three occasions: August 4, August 16, and August 28, 2023.

Fiscal Impact

No impact

Staff/Board Recommending

D. Blu Kostelich, Chief Financial Officer

Attachments

Public Hearing Notice

AI# 11904 Image of Lubbock City Logo 2021

Special City Council Meeting

3.4.

09/05/2023:

Agenda Item

Item Summary

This is the first reading of the ordinance adopting the City's FY 2023-24 Operating Budget and Capital Program. The budget ordinance must be considered prior to consideration of the tax rate.This ordinance incorporates the operating and capital budgets that have been proposed by the City Manager. The property tax rate proposed by the City Council is $0.4801640 per $100 valuation. The following changes that impact the FY 2023-24 Proposed Operating Budget and Capital Program have occurred since the proposed budget was filed on August 10, 2023:

General Fund

Add monthly commercial garbage charge for 8 cubic yard dumpster to Summary of General Fund Fee Changes; General Consumer Metered 7523 – Budget 2024

$ 183.25

Add monthly small commercial charge to Summary of General Fund Fee Changes; General Consumer Metered 7523 – Budget 2024

$ 36.38

Add Not Covered during transit non-commercial vehicle to dumping waste surcharge to Summary of General Fund Fee Changes; Landfill Surcharge 6630 – Budget 2024

$ 15.00

Add Not Covered during transit commercial vehicle to dumping waste surcharge to Summary of General Fund Fee Changes; Landfill Surcharge 6630 – Budget 2024

$ 30.00

Increase Office Supplies to City Secretary for Vital Statistics

$ 4,874

Increase Use of Excess Reserves

4,874

Decrease Stability Pay to City Manager's Office

$ (5,500)

Decrease Use of Excess Reserves

(5,500)

Decrease in Non-Departmental Special Projects

$ (75,000)

Decrease in Credit Card Charges to Building Inspection

(41,778)

Decrease Use of Excess Reserves

(116,778)

Water/Wastewater Fund

Add septic tank emptying load fees to Summary of WaterWastewater Fund Fee Changes; Septic Load Fees 7604 – Budget 2024

$ 0.00371 per gallon

Investment Pool Fund

Increase Use of Excess Reserves for Additional Cost of Living Adjustment

$ 976

Fleet Capital Fund
CIP 92850 General Fund Vehicle Replacement FY 24 Tax Notes

Remove two E1 Aerial Ladder Fire Trucks from Vehicle Replacement List

$ (4,000,000)

Decrease Tax Notes Funding

(4,000,000)

Grant Fund

Increase Justice Assistance Grant funding and appropriation

$ 7,277

Increase Public Health Emergency Preparedness Grant funding and appropriation

21,619

Decrease Regional and Local Service System/Local Public Health System (RLSS) Grant funding and appropriation

(8,765)

Decrease Immunization Branch - Local Grant funding and appropriation

(11,606)

Increase Texas Epidemiology Capacity Expansion Grant funding and appropriation

59,538

Decrease Substance Use Disorder Administrative Grant funding and appropriation

(12,500)

Increase Adult Treatment (TRA) Grant funding and appropriation

1,459,383

Decrease Specialized Female Treatment (TRF) Grant funding and appropriation

(7,023)

Decrease Prevention Resources Center Grant funding and appropriation

(89,835)

Increase STD/HIV-DIS Grant funding and appropriation

392,969

Decrease Safety City Grant funding and appropriation

(1,689)

Decrease Section 5304 Planning Grant funding and appropriation

(500,000)

Decrease Internet Crimes Against Children funding and appropriation

(15,300)

Included as Exhibit G in the proposed Budget Ordinance are the changes that have occurred since the FY 2023-24 Operating Budget and Capital Program was filed with the City Secretary on August 10, 2023, and all changes to the FY 2022-23 Adopted Budget and Capital Program that have been approved since the presentation of the FY 2023-24 Budget.

Fiscal Impact

Included in Item Summary

Staff/Board Recommending

D. Blu Kostelich, Chief Financial Officer

Attachments

Budget Ordinance

Exhibit B - All Funds Summary

Exhibit C - Transfer Summary

Exhibit D - Capital Program

Exhibit E Pay Plans

Exhibit F - Position Control

Exhibit G - Changes to Proposed FY 2023-24

AI# 11826 Image of Lubbock City Logo 2021

Special City Council Meeting

3.5.

09/05/2023:

Agenda Item

Item Summary

This is the first reading of the ordinance adopting and levying the tax rate for 2023. Prior to considering the ordinance adopting and levying of the tax rate, the City Council must consider the ordinance adopting the budget. The first reading adopting the budget is item 3.3 on today's agenda. The September 12, 2023, City Council agenda will include the second reading and adoption of the tax rate ordinance. The property tax is proposed at $0.480164 per $100 valuation. The tax rate is distributed as follows:

General Fund Maintenance and Operations

$0.370381

Interest and Sinking Fund

$0.109783

Fiscal Impact

The General Fund Maintenance and Operations tax rate will generate $89.6 million and the Interest and Sinking Fund tax rate will generate $26.6 million.

Staff/Board Recommending

D. Blu Kostelich, Chief Financial Officer

Attachments

Tax Rate Ordinance

AI# 11828 Image of Lubbock City Logo 2021

Special City Council Meeting

3.6.

09/05/2023:

Agenda Item

Resolution - Finance: Consider a resolution amending the schedule of drainage charges by decreasing the rates.

Item Summary

Storm Water has historically had a significant amount of debt that was issued for large drainage projects in the City of Lubbock. Some of the debt has matured and is being paid off, so there is room in the financial model to reduce the Storm Water rates. The proposed reductions are as follows:

Residential

Current Rate Per Month

Proposed Rate Per Month

Tier 1

$ 7.30

$ 6.70

Tier 2

11.18

10.25

Tier 3

14.14

12.97

Tier 4

21.22

19.46

Non-Residential

Current Rate Per ERU per Month

Proposed Rate Per ERU per Month

All

$ 21.22

$ 19.46

ERU - Equivalent Residential Unit which is defined as five thousand, seven hundred (5,700) square feet of impervious area of a single property.

Section 552.045 of the Texas Local Government Code requires that a public hearing be held prior to the Storm Water rates being adopted by the City Council. The public hearing was held prior to consideration of this resolution. Notice of the public hearing was published in the legal notices section of the Lubbock Avalanche Journal on three occasions: Friday, August 4, 2023, Wednesday, August 16, 2023, and Monday, August 28, 2023.

Fiscal Impact

The decrease in rates will decrease revenues in the Storm Water Fund by approximately $2.2 million when compared to budgeted FY 2022-23 revenue.

Staff/Board Recommending

D. Blu Kostelich, Chief Financial Officer

Attachments

Storm Water Resolution