Lubbock City Council Approves FY2027 Budget With Property Tax Rate Set and Utility Assistance Fund Created

The Lubbock City Council on July 7 approved the fiscal year 2027 operating budget in a 5-2 vote that sets the property tax rate at 0.45 per $100 of valuation and creates a $500,000 utility bill assistance fund drawn from general revenue.

Budget Context and Timing

The action follows the city's annual budget review process that began in May with public hearings on revenue estimates and expenditure requests submitted by city departments. City documents show the rate holds steady from the prior year while adding the assistance fund to address payment shortfalls reported by the Lubbock Power and Light utility.

Local residents who own single-family homes or rent apartments will see the change reflected in annual tax statements mailed in October and in monthly utility bills starting in January 2027. The assistance fund will provide one-time credits up to $200 for households that qualify through income documentation submitted to the city's community services division.

Household Budget Effects

For a Lubbock property valued at the county median of $185,000 the unchanged rate produces an annual tax bill of $832.50 before any exemptions. Renters may experience indirect effects if landlords adjust lease amounts to cover the same tax obligation on multifamily parcels.

The utility assistance program targets accounts with past-due balances and requires applicants to demonstrate income at or below 150 percent of the federal poverty guideline. City staff estimate the fund will cover roughly 2,500 households based on current LP&L delinquency data.

Implementation begins after the budget takes effect on October 1 with application forms available at the city clerk's office and online. The council directed staff to report quarterly on fund usage and to return with any recommended adjustments by March 2027.