Property tax measures need tweaks to protect city’s public safety obligation

The Texas Legislature has made tax reform and relief a priority this session. I fully support this meaningful work. The proposed bills limit maintenance and operations property tax revenue growth to 2.5 percent per year with a required election if the city budget exceeds this amount. These are good ideas, if done responsibly.

I am concerned there is an unintended consequence of the bills as they are currently written. While 2.5 percent is close to inflation most years, this limit can create challenges in funding our essential public safety functions. Property taxes today provide nearly $63 million annually, while our public safety expenses are twice that at $126 million a year.

As mayor, I frequently hear from citizens applauding our first responders – Lubbock Police Department, Lubbock Fire Rescue and EMS – for their heroic and often life-saving efforts. Public safety is Job One for the Lubbock City Council. The second most common comment I hear is about debt.

Lubbock is on a planned and deliberate path to both pay down existing general fund debt and reduce future debt issuances, which in the long term produces real savings for our residents. While this plan is working, the proposed legislation could create future debt problems. Last year, outstanding general fund debt was reduced by $37 million. 73 of 76 of our needed vehicles & equipment were purchased with cash. Street maintenance funding increased to $8.5 million and $400,000 was added to convert dirt residential streets to paved streets. Ten additional police officers and their required vehicles and equipment were added. These were all done with cash, not debt. To continue on this path requires fiscal discipline, and cash funding.

Should the currently proposed 2.5 percent limit become law, one or more of several things will occur. Street maintenance funding will either be limited or we will again be forced to fund street maintenance with debt, which is a losing proposition for us all. Public safety funding will remain relatively flat as the ratio of officers to population declines, which is both a current and future issue. Fleet purchases and small capital projects could also be delayed.

Using this year’s numbers, 2.5 percent on the property tax levy is $1.8 million. Our next 10 new police officers, vehicles & equipment has a first year cost of $1.49 million. Our next fire station includes a current personnel cost of $1.2 million, exclusive of the station and equipment. This does not account for inflation, additional street maintenance or additional investment in our parks. This is also exclusive of the need to expand public safety services as we grow, simply to maintain existing service and safety levels. We were proud to announce last year that Lubbock achieved an ISO 1 rating regarding LFR. This is the highest possible level of fire protection and it must be maintained both for safety and insurance rates. Providing public safety services has never been cheap, yet providing and improving these services is the most important job for our city.

There is a solution to both deliver tax reform and ensure that our city’s future is protected. Retain the proposed automatic rollback election requirement, the 2.5 percent limit AND establish a limited allowance for year-over-year increases in public safety and street maintenance. An allowance for such documented expenses amounts to a restricted revenue stream to ensure that public safety is not compromised and allows the city to continue to fund our street maintenance with cash, not debt.

I applaud Texas House Ways and Means Chairman Dustin Burrows for his efforts this session to work with all parties on this complex and difficult topic. The Texas Miracle is real – and it requires a unique partnership between the state of Texas and local governments. With the changes I suggested, the Legislature can provide meaningful tax reform that encourages, not restricts, the success of Lubbock and Texas. I look forward to working with our delegation and hope you will join me in asking for these simple adjustments to accomplish both tax reform and to secure Lubbock’s future.

Dan Pope is serving his second term as mayor of Lubbock.