City Council members kick off the month’s long budget process with discussions about tough choices ahead. City Manager Leeann Dumbauld asked members to consider if and how much they're willing to increase taxes, which areas are priorities, and where cuts can and should be made.Among the many budget challenges highlighted were addressing maintenance needs and increased costs associated with adding personnel for the police and fire departments.
Also during Thursday's meeting, council members set a March 29th public hearing regarding proposed changes to the ordinance governing Lubbock Power and Light.
The Electric Utility Board's recommendations include changing the minimum reserve fund balance requirement from $50 million or four months' expenses, to $50 million or 3 months' expenses. Modifying that to a simple 25% reserve policy is among changes the council is proposing.
“It's actually better business sense,” said Mayor Tom Martin. “It keeps us from having to every 6 months come back and look at reserve levels. 25 percent of operating expenses on the current budget would be about $50 million but it wouldn't be tied to the number of months. So that's the proposal.”
Mayor Martin said LP&L currently has at least $65 million in cash reserves.
