Unexpected Appraisal Shift Delays Lubbock Budget Hearing

A sudden change in property value assessments by the Lubbock Central Appraisal District (LCAD) has disrupted the city’s budget schedule, leading to the cancellation of the public hearing scheduled for Wednesday.

City Manager Jarrett Atkinson informed the council on Tuesday that LCAD’s revised worksheets, which were received on Monday evening, have reduced the current year’s property tax levy by $2 million, decreasing it from $83 million to $81 million. “This is truly unprecedented,” Atkinson remarked. “Should this prove accurate, the initial $2 million in new revenue merely brings us back to square one.”

The data is essential for establishing both the no-new-revenue tax rate, which maintains the average tax bil, and the voter-approval rate, the maximum rate permitted without a public vote. According to the updated figures, implementing the no-new-revenue rate would result in a $2 million budget shortfall for the city next year. The town anticipates generating approximately $1.5 million from new property, resulting in a decrease of $500,000 compared to the previous year.

The rate, formerly known as the effective rate, does not generate new revenue and does not account for income from new development. Before initiating an election, the rate that voters approve sets the upper limit. The tax rate for this year is 47.0120 cents per $100 in valuation. Atkinson’s presentation on Monday revealed a suggested rate of 47.9365 cents, alongside a no-new-revenue rate of 46.6749 cents, before the release of the new data. The updated LCAD figures reduce that to 46.1938 cents.

Tim Radloff, the Chief Appraiser of LCAD, held a meeting with city staff on Tuesday to review the figures, and tax attorneys will conduct a closer examination of the issue.

The latest statistics arrive amid the city's declining sales tax revenues. Last year’s budget anticipated $105.6 million in sales tax revenue, but recent forecasts indicate a decline to $100.7 million—a decrease of 4.7 percent. The suggested budget anticipates $103 million in sales tax revenue, which is 2.5 percent lower than the current year's budget.

The increase in property values is experiencing a deceleration. Recent assessments have contributed an additional $796 million for FY 2024, compared to $408 million for FY 2025, resulting in a total of $1.2 billion in new tax revenue. Atkinson anticipates comparable growth in the upcoming year, followed by a recovery in FY 2028.

The council is set to reconvene at 2 p.m. Thursday at Citizens Tower to discuss the budget further.

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