Lubbock city leaders are tightening the budget after sales tax revenue came in lower than expected, prompting a hiring freeze and delays to some city projects.
City Manager Jarrett Atkinson said the city is projecting a nearly $5 million shortfall in the general fund, which pays for services such as police, fire, parks and street maintenance.
“Sales tax is our largest source of revenue for the general fund,” Atkinson said. “If it’s down, we’ve got to pull back somewhere.”
Sales tax collections are currently about 4.5% below what the city budgeted for this fiscal year. The city’s fiscal year ends Sept. 30.
To save money, the city implemented a hiring freeze in April for all departments except police, fire and animal control. That move alone is expected to save about $2.2 million in salaries and benefits, Atkinson said.
“The hiring freeze produced the largest savings we could get as quickly as we could, and it doesn’t require layoffs,” he said.
Other cost-cutting measures include delaying equipment purchases and putting a hold on some city-funded projects, such as repairs to a fountain that helps aerate Lake Six.
Atkinson emphasized that essential services have not been cut, and public safety remains fully staffed.
“We have not cut any services at all,” he said. “This is not damage control, this is being proactive. We haven’t overspent, and we don’t intend to.”
City leaders will continue monitoring monthly sales tax reports. Atkinson said those figures will help shape next year’s budget, which is currently in the planning stages.
