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HomeMy WebLinkAboutCity of Lubbock - Public Financial ReportPOPULAR ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Letter from the Mayor Popular Annual Financial Report | 1 Dear Lubbock Residents: On behalf of the City Council and the City of Lubbock, I am pleased to present the Popular Annual Financial Report (PAFR) for the Fiscal Year ending September 30, 2021. The city’s Finance Department publishes the PAFR each year so that citizens can see for themselves the financial health of our city. The information found in this report is useful, accessible, and easy to understand. This document tells the story of the financial efforts of the City, how it impacts our citizens, and makes Lubbock the place we know and love. Fiscal Discipline is this City Council’s priority, and it has been at the forefront during my entire tenure as Mayor. The PAFR reflects the City Council’s commitment to financial transparency and accountability. The PAFR is prepared in accordance with Generally Accepted Accounting Principles (GAAP), and has information that comes directly from the City’s Annual Comprehensive Financial Report, a docu- ment that is independently audited by Weaver and Tidwell, LLP. The audit received an unmodified opinion, which is the most favorable opinion the City can receive. The financial report for the City of Lubbock’s operations, activities, revenues, and expenses are all positive. Thank you to City staff for their work on the 2021 PAFR. Their efforts ensure that the City of Lubbock remains an efficient and well-managed municipality. If you have any questions about this report or need any additional information, I hope you will contact my office. It’s always a great day in Lubbock. Daniel M. Pope Mayor Description of Our City The City is a political subdivision and municipal corporation of the State, duly or- ganized and existing under the laws of the State, including the City’s Home Rule Charter. The City was incorporated in 1909, and first adopted its Home Rule Charter in 1917. The City operates under a Council/Manager form of government with a City Council comprised of the Mayor and six Council members. The Mayor is elected at-large for a two-year term ending in an even-numbered year. Each of the six members of the City Council is elected from a single-member district for a four- year term of office. City Council elections are held every two years, with elections for Council members in Districts 1, 3, and 5 being staggered with elections for Council members in Districts 2, 4, and 6. The City Manager is the chief administrative officer of the City. The City has strong manufacturing, wholesale and retail trade, healthcare, educa- tion, and government sectors. Manufacturing includes a diverse group of em- ployers who support approximately 4,900 workers. Our central location and access to transportation contributes to Lubbock’s development as a regional warehousing and distribution center. Also due to its location, Lubbock serves as the major retail trade center for a 26-county retail trade area of more than a half million people. Lubbock is home to three universities and one community college: Texas Tech University, Lubbock Christian University, Wayland Baptist University – Lubbock Center, and South Plains College. Fall 2021 enrollment for all higher education institutions in Lubbock was 56,994, an increase of 0.7 percent from the Fall 2020 enrollment of 56,595. Top Row: Shelia Patterson Harris, District 2; Daniel Pope, Mayor; Latrelle Joy, District 6 Bottom Row: Randy Christian, District 5; Steve Massengale, Mayor Pro Tem. District 4; Jeff Griffith, District 3; Juan Chadis, District 1 CITY FACTS Population- 265,609 Per Capita Income $46,502 Median Age- 31.7 Public Safety Police Reports Processed- 92,545 Police Crime/Incident Reports- 44,457 Police Calls- 704,151 Number of Police Officers- 440 Fire/Arson Investigations- 234 Inspection Activities Performed- 4,129 Number of Fire Stations- 19 Number of Fire Fighters & Officers- 406 LP&L Average Daily Usage (kwh)- 7,049,552 Number of Meters- 108,557 Number of Sub-stations- 41 Number of Steam Turbines- 6 Number of Gas Turbines- 4 Miles of Distribution Lines- 4,526 Miles of Transmission Lines- 174 Streets & Traffic Engineering Miles of Paved Streets- 1,277 Miles of Unpaved Streets- 58 Sewer Miles of Sewer Lines- 1,275 Airport Number of Airlines- 3 Scheduled Daily Flights- 19 Annual Passengers- 366,837 Culture & Recreation Number of Libraries- 4 Number of Library Visitors- 223,473 Municipal Swimming Pools- 4 Number of Parks & Playgrounds- 138 Number of Recreation Centers- 9 Number of Dog Parks- 2 Municipal Water Utility Daily Average Water (Gal)- 34,457,140 Water Distribution Miles- 2,011 Number of Meters- 95,701 Number of Fire Hydrants 7,403 Number of Water Wells- 175 Acres of Water Rights- 246,547 Number of Gallons Allocated Annually by Canadian River Municipal Water Authority (in Millions)- 10,747 Table of Contents 1 Letter from the Mayor 6 Citywide Revenues 2 Our City 7 Citywide Expenses 3 A Note About the PAFR 8 General Fund Balance Sheet 4 Financial Highlights 9 General Fund Income Statement 5 Condensed Statement 10 Proprietary Funds of Net Position 11 Capital Assets & Debt 2 |Popular Annual Financial Report The City’s Top Employers % of Total City Principal Employers Employees Employment 1. Texas Tech University 5,253 3.38% 2. Covenant Health System 4,831 3.11% 3. United Supermarkets 4,000 2.58% 4. Lubbock ISD 3,987 2.57% 5. University Medical Center 3,684 2.37% 6. TTU Health Sciences Center 3,442 2.22% 7. City of Lubbock 2,365 1.52% 8. Frenship ISD 1,258 0.81% 9. Lubbock County 1,194 0.77% 10. Living Center 866 0.56% A Note About the PAFR This report provides an overview of the City’s financial position, including sources of revenues and expenditures, as well as economic information about the community. The Popular Annual Financial Report of the City of Lubbock is published to increase public awareness about the City’s financial condition in a format that is easy to read and understandable. The Popular Annual Financial Report summarizes the financial activities of the City of Lubbock’s governmental and proprietary funds and draws its information from the 2021 Annual Comprehensive Financial Report. The Annual Comprehensive Financial Report was prepared in conformance with generally accepted accounting principles (GAAP) and includes financial statements audited by Weaver and Tidwell LLP. The City received an unmodified (or clean) opinion that the financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City. The amounts within the Annual Comprehensive Finan- cial Report were arrived at by employing accrual and modified accrual basis accounting techniques as prescribed by the GASB (Governmental Accounting Standards Board). Government-wide data on pages 5-7 and 11 is presented similar to a consolidated finan- cial statement for a private business (accrual basis). General fund financial information on page 8 and 9 is presented under standard governmental accounting rules (modi- fied accrual basis). Modified accrual accounting is a governmental accounting method based on revenues being recognized in the period when they become available and measurable (known). This Popular Annual Financial Report is unaudited and is presented on a non-GAAP basis. The differences between the GAAP basis presentation in the Annual Com- prehensive Financial Report and the non-GAAP presentation in the Popular Annual Financial Report are as follows: the use of prescribed accounting methods and financial statement formats; the presentation of segregated funds; and the disclosure of all ma- terial financial and non-financial matters in notes to the financial statements. Compo- nent unit information has been excluded from this presentation in order to focus on the primary government. Individuals who desire to review the audited GAAP-based, full disclosure financial statements should refer to the City’s Annual Comprehensive Financial Report, which is available on the City’s website at www.ci.lubbock.tx.us, or by contacting the Accounting Department at 1314 Avenue K, Lubbock, Texas, 79401. Popular Annual Financial Report | 3 The following financial highlights summa- rize the City’s financial position and oper- ations as presented in more detail in the Annual Comprehensive Financial Report. • The City’s total government-wide assets and deferred outflows exceed- ed its liabilities and deferred inflows at September 30, 2021 by $1.2 billion (net position). • The City’s total net position in- creased by $108.8 million resulting from operations during the fiscal year. • The ending unassigned fund balance for the General Fund was $87.8 mil- lion, or 37.0 percent of total General Fund revenues, an increase of $16.3 million from the prior year. • The City’s governmental funds reported combined ending fund balances of $229.6 million, of which $87.8 million is available for spending at the City’s discretion. • The City’s enterprise funds reported combined ending net position of $1.1 billion, of which $80.0 million is avail- able for spending at the City’s discretion. • During FY 2021, the City issued $408.5 million in bonded debt. Part of this was used to refund debt, which decreased debt service requirements by $7.3 million. Oct 2019 US 5.0 6.0 7.0 3.8 4.9 4.34.0 3.0 2.0 Oct 2020 Texas Unemployment Rate Ra t e Oct 2021 Lubbock FY19 78.2 million FY20 80.7 million Annual Sales Tax Collection $ M i l l i o n s FY21 90.0 million 40 50 60 70 80 90 Sales Tax Collections: Sales tax collections in FY 2021 totaled $89.8 million, 11.3 percent higher than collections through the same period in FY 2020. Employment: The total non-agricultural employment estimate for October 2021 was 152,000, an increase of 3.5 percent over the revised October 2020 esti- mate. The unemployment rate for the Lubbock Metropolitan Statistical Area (MSA) in October 2021 was 3.8 percent, a decrease of 2.1 percent, largely at- tributed to Lubbock’s rebounding from effects of the Covid-19 pandemic. His- torically, Lubbock has had a low rate of unemployment that is well below the national and state unemployment rates. Credit Rating Similar to an individual’s credit score, ratings for municipalities influence the city’s ability to finance projects. A bond rating is a letter grade assigned to bonds that indicates their credit quality. Private independent rating services evaluate a bond issuer’s financial strength, or its ability to pay a bond’s principal and in-terest, in a timely fashion. In June 2021, Fitch Ratings, Inc and Standard and Poor’s (S&P) each reaffirmed the City’s bond rating of AA+AA+ and characterized the City’s rating outlook as stable. This rating allows the City to enjoy favorable interest rates on the issuance of debt. Financial Highlights 4 |Popular Annual Financial Report Condensed Statement of Net Position Government-Wide Financial Analysis As noted earlier, net position serves as a useful indicator of the City’s financial position. Assets and deferred outflows exceeded liabilities and deferred inflows by $1.2 billion (net position) at the close of the fiscal year, compared to assets and deferred outflows exceeding liabilities and deferred inflows by $1.1 billion (net position) at the end of the prior fiscal year. As a result of operations, total net position increased by $108.8 million during the period. Approximately 96.8 percent of the City’s net position reflects its investment in capital assets, e.g., land, buildings, infrastruc- ture, machinery and equipment, less accumulated depreciation and any related outstanding debt used to acquire those assets. The City uses capital assets to provide services to citizens; consequently, those assets are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, the resources needed to repay this debt must be provided from other sources since the capital assets cannot be used to liquidate the liabilities. The City has restricted net position totaling $102.2 million, which represent resources subject to external restrictions on how they may be used. Such resources include bond funds restricted for spending on specified capital projects, debt service re- serves restricted by bond covenants, passenger facility charges restricted for airport improvements, and special revenue funds restricted for specific purposes. The unrestricted net position is the amount that may be used to meet the government’s ongoing obligation to citizens and creditors. The adoption of GASB Statement No. 68 in FY 2015 and No. 75 in FY 2018 resulted in the City’s reporting of net pension liabilities, and deferred inflows of resources, deferred outflows of resources for the pension plan and the recognition of pension expense. Both statements had a significant negative effect on the City’s net position and consequently unrestricted net position. At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position for business type activities. The government-wide unrestricted net position increase by $4.9 million from FY 2020. (in thousands) 2021 2020 Assets Current & Other Assets $ 748,092 $ 729,662 Capital Assets 2,476,813 2,251,524 Total assets 3,224,905 2,981,186 Deferred Outflows of Resources 67,242 51,416 Liabilities Current Liabilities 261,437 337,808 Noncurrent Liabilities 1,757,291 1,531,798 Total Liabilities 2,018,728 1,869,606 Deferred inflows of resources 48,818 47,221 Net position Net Investment in Capital 1,184,807 1,091,638 Restricted 102,264 91,504 Unrestricted (62,470) (67,367) Total net position $ 1,224,601 $ 1,115,775 Government-Wide Net Position Popular Annual Financial Report | 5 FY 2021 FY 2020 FY 2019 Charges for Service $ 486,663 $ 422,697 $ 422,414 Grants & Contributions 81,697 77,128 54,347 Property Tax 105,517 103,521 97,440 Sales & Other Taxes 99,256 88,106 87,758 Franchise Fees 29,733 26,326 9,617 Other 25,413 32,220 33,755 Total $ 828,279 $ 749,998 $ 705,331 Total revenues for all of the City’s activities were $828 million in fiscal year 2021, or a 10.4% increase from fiscal year 2020. The increase stems primarily from increases in charges for services, but property tax and sales tax revenues also had significant growth. The charges for services category represents receipts primarily from electric, water/wastewater, storm water, and solid waste. Charges for services were $487 million in 2021, a 15.1% increase from 2020. Property taxes totaled $105.5 million in fiscal year 2021 compared to $103.5 million in fiscal year 2020, with total assessed values in- creasing 11.8% compared to the prior year. The property tax rate decreased from $.55802 per $100 of assessed value. Sales tax to- taled $90.0 million in fiscal year 2021, which was an increase of 11.5% compared to the prior year. Citywide Revenues(In Thousands) 6 |Popular Annual Financial Report • The Statement of Net Position presents infor- mation on the City’s assets, liabilities (including capital assets and short and long-term liabilities), and deferred inflows/outflows of resources with the difference re- ported as net position. Over time, increases or decreas- es in net position serve as a useful indicator of whether the financial position of the City is improving or dete- riorating. • The Statement of Activities presents a compar- ison between direct expenses and program revenues for each of the City’s functions. Direct expenses are specifically associated with an activity and are therefore clearly identifiable with that activity. Program revenues include charges paid by the recipient of the goods or services offered by the program. Program revenues also include grants and contributions restricted to meeting the operational or capital requirements of a particular activity. Revenues not directly related to a specific activ- ity are presented as general revenues. The comparison of direct expenses with revenues from activities iden- tifies the extent to which each activity is self-financing, or alternatively, draws from any City generated general revenues. • Governmental activities (activities principally sup- ported by taxes and intergovernmental revenues) of the City include administrative services as well as general government, community services, cultural and recreation, economic and business development, fire, health, police, other public safety, solid waste, and streets and traffic. The General Fund is the chief op- erating fund of the City. • Business-type activities (activities intended to recov- er all of their costs through user fees and charges) of the City include electric, water/wastewater, storm wa- ter, transit, airport, civic centers, cemetery, and Lake Alan Henry Recreation. Electric includes Lubbock Power and Light (LP&L). Accounting Terms 58.7%12.7% 12 . 0 % 3 . 6 % 3. 1 % 9.9% Popular Annual Financial Report | 7 Total expense for the City’s activities were $719 million in fiscal year 2021, a 12.2% increase from fiscal year 2020. Govern- mental expenses increased primarily due to pension expense in fire and health expenses related to providing aid in response to the COVID-19 pandemic. Electric operating expenses increased $60.8 million. The primary operating expenses contribut- ing to the increase included higher energy prices, below cost rates in 2020 and the ERCOT integration. These were offset by decreases in police expense due to retirements and vacancies, payroll covered by Cares Act funding, and canceled events that usually had police presence. Other public safety grant expenses decreased as well. Citywide Expenses (In Thousands) 15. 8 % 20.3% 2. 6 % 2.8%2.5% 8.3 % 3. 0 % 4. 4 % 3 . 4 % 36. 9 % FY 2021 FY 2020 FY 2019 Administrative Svcs/General Govt $ 21,533 $ 18,499 $16,151 Other 59,690 57,732 60,070 Cultural & Recreation 17,904 18,630 19,543 Economic & Business Development 20,025 18,535 20,175 Public Safety 145,810 146,022 149,712 Solid Waste 18,801 19,575 19,604 Electric 266,510 199,683 193,325 Water/Wastewater 113,325 111,443 101,953 Airport 24,394 17,823 18,545 Other Business Type 31,461 33,048 32,291 Total $ 719,453 $ 640,990 $ 631,369 General Fund Balance Sheet 2021 2020 Assets Cash & Cash Equivalents 615,131 1,664,785 Investments 74,066,559 61,812,855 Taxes Receivable (net) 16,872,731 14,721,259 Accounts Receivable (net) 5,951,055 2,960,162 Interest Receivable 124,018 122,819 Due From Other Funds 2,710,865 3,180,864 Due From Others 1,492,126 1,226,236 Inventory 141,304 158,566 Restricted Investments 246,718 3,235,247 Total Assets 102,220,507 89,082,793 Liabilities Accounts Payable 3,496,205 4,404,597 Accrued Liabilities 8,459,233 7,511,162 Unearned Revenue 42,993 269,171 Total Liabilities 11,998,431 12,184,930 Deferred Inflows of Resources Unavailable Revenue 2,004,962 1,948,905 Total Deferred Inflows of Resources 2,004,962 1,948,905 Fund Balance Nonspendable 141,304 158,566 Restricted 246,718 3,235,247 Unassigned 87,829,092 71,555,145 Total Fund Balance 88,217,114 74,948,958 Total Liabilities Deferred Inflows of Resources & Fund Balances 102,220,507 89,082,793 8 |Popular Annual Financial Report Statement of Revenues, Expenditures & Changes in Fund Balance 2021 2020 Revenues Taxes 157,516,522 145,388,175 Franchise Taxes 29,115,534 25,857,142 Fees & Fines 2,285,580 2,134,434 Licenses & Permits 4,740,047 4,549,345 Intergovernmental 749,047 607,112 Charges for Services 30,064,774 26,639,772 Interest 461,841 1,819,877 Miscellaneous 12,645,561 11,804,182 Total Revenues 237,579,386 218,800,039 Expenditures Current: General Government 19,429,653 15,291,794 Cultural & Recreation 14,080,804 13,771,260 Economic & Bus. Development 911,234 758,605 Public Safety & Health 133,734,941 124,514,833 Streets & Traffic 6,792,251 6,343,518 Solid Waste 15,183,786 14,555,558 Debt Service: Principal 6,664,965 8,757,750 Interest & Other Charges 333,419 462,190 Capital Outlay 521,738 279,728 Total Expenditures 197,652,791 184,735,236 Revenue Under Expenditures 39,926,595 34,064,803 Other Financing Sources (Uses) Long-term Debt Issued 1,370,538 7,936,000 Transfers In 7,027,332 6,604,553 Transfers Out (35,056,309) (29,282,746) Net other Financing Sources (26,658,439) (14,742,193) Net change in Fund Balance 13,268,156 19,322,610 Fund Balance Beginning of Year 74,948,958 55,626,348 Fund Balance End of Year 88,217,114 74,948,958 General Fund The General fund is the primary fund used by the City. This fund is used to record all resource inflows and outflows that are not associated with special-purpose funds. The activities being paid for through the general fund constitute the core administrative and operational tasks of the City. The unassigned fund balance serves as a useful measure of the City’s resources available for spending at the end of the fiscal year. In FY 2021, the General Fund had $87.8 million unassigned fund balance compared to $71.6 million unassigned fund balance in FY 2020. Popular Annual Financial Report | 9 The City maintains two different types of proprietary funds. • Enterprise funds are used to report the same functions present- ed as business-type activities in the Government-Wide Financial Statements (GWFS). Enterprise Fund Financial Statements pro- vide the same type of informa- tion as the GWFS, only in more detail. The City uses Enterprise funds to account for Electric, Wa- ter/Wastewater, Storm Water, Transit, Airport, Civic Centers, Cemetery, and Lake Alan Hen- ry Recreation activities, of which the first three activities are con- sidered to be major funds by the City and are presented separately. The latter five activities are con- sidered non-major funds and are combined into a single aggregated presentation within the Annual Comprehensive Financial Report. • Internal service funds are an accounting device used to accu- mulate and allocate costs inter- nally among the City’s various functions. The City uses internal service funds to account for vehicle service operations and fueling, central warehouse and printing services, information technology services, risk man- agement, health benefits, and investment pool funds. The services provided by the internal service funds benefit both gov- ernmental and business-type activities, and accordingly, they have been included within both, as appropriate, in the GWFS. Reconciliations are provided for the proprietary fund statement of net position and the propri- etary fund statement of reve- nues, expenses, and changes in fund net position for compar- ison between enterprise funds and business-type activities. Proprietary Fund Utilities LP&L Water/Waste Water Storm Water Operating Revenue Charges For Services (Net) 273,843,064 134,824,670 22,423,463 Total Operating Revenues 273,843,064 134,824,670 22,423,463 Operating Expense Personal Services 19,156,150 13,116,650 1,456,346 Supplies 1,201,773 3,945,663 109,764 Maintenance 3,057,183 4,814,377 458,390 Purchase of Fuel & Power 184,691,789 - - Billing Office Expense - 3,682,405 1,059,179 Other Services & Charges 13,804,754 37,587,183 3,728,651 Depreciation & Amortization 18,063,182 34,837,083 4,436,130 Total Operating Expenses 239,974,831 97,983,361 11,248,460 Operating Income (Loss) 33,868,233 36,841,309 11,175,003 Nonoperating Revenues (Expenses) Interest Earnings 487,744 2,469,860 62,294 Disposition of Assets (1,826,016) (359,533) - Miscellaneous (17,503,401) 1,126,416 12,523 Interest Expense (7,331,906) (14,677,461) (2,445,550) Net Nonop. Revenues (Expenses) (26,173,579) (11,440,718) (2,370,733) Income Before Contrs & Transfers 7,694,654 25,400,591 8,804,270 Capital Contributions/Grants 261,513 14,238,414 5,740,600 Transfers In 2,800,113 136,290 - Transfers Out (2,882,471) (5,795,905) (3,412,403) Change In Net Position (Deficit) 7,873,809 33,979,390 11,132,467 Total Net Position - Beg. of Year 229,846,212 565,547,184 87,525,802 Total Net Position - End of Year 237,720,021 599,526,574 98,658,269 Statement of Revenues, Expenses and Changes in Fund Net Position 2021 10 |Popular Annual Financial Report City of Lubbock Capital Assets (Net of Accumulated Depreciation) (in thousands) 2021 2020 Land $ 116,857 $ 107,872 Electric Non-depreciable 46,808 20,091 Buildings 241,457 236,531 Improvements Other than Buildings 1,310,176 1,291,144 Machinery & equipment 141,719 144,303 Electric Depreciable 516,138 303,487 Construction in Progress 103,658 148,096 Total $ 2,476,813 $ 2,251,524 City of Lubbock Outstanding Debt General Obligation and Revenue Bonds (in thousands) Long-term debt: A summary of the City’s total outstanding debt follows 2021 2020 General obligation bonds $ 726,615 $ 827,815 Revenue & contract bonds 640,595 334,578 Other 6,474 129,514 Total $ 1,373,684 $ 1,291,907 There is no direct debt limitation in the City Charter or under state law. The City operates under a Home Rule Charter that lim-its the maximum tax rate for all city purposes to $2.50 per $100 of assessed valuation. The Attorney General of the State of Texas permits an allocation of $1.50 of the $2.50 maximum tax rate for general obligation bonds debt service. The FY 2021 interest and sinking fund tax rate per $100 of assessed valuation was $0.12043, which is significantly below the maximum allowable tax rate. As of September 30, 2021, the City’s total outstanding debt has increased by $81.8 million, or 6.3 percent from the prior fiscal year. General obligation bond and revenue and contract bond debt increased by $204.8 million or 17.6 percent. The increase in outstanding debt is attributed to the $306.0 million increase inrevenue and contract bonds issued to fund various capital projects and the refunding of direct borrowing notes. Total bond addi-tions were $408.5 million, offset by the payment of scheduled principal payments totaling $102.0 million and refunded debt of $101.7 million. Capital Assets & Debt 53.0%4.2% 4.7%1.9% 9.7 % 5. 7 % 20.8 % Major capital asset projects and purchases during the fiscal year included the following: •345kV transmission line interconnecting Oncor’s Black Draw Station and Oncor’s Folsom Point Switch Station totaling $32.0 million •Transmission facilities connecting the existing Abernathy Station, to the existing Double Moun- tain Switch Station totaling $34.9 million •Airport work on the terminal building remodel for $14.4 million •Work on the new police substations as the City implements community policing totaling $15.1 million 46.6%52.9% 0. 5 % Popular Annual Financial Report | 11 Awards and Acknowledgments The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its annual comprehensive financial report for the fiscal year ended September 30, 2020. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized annual comprehensive fi- nancial report in which contents conform to program standards. Such reports must satisfy both GAAP and applicable legal requirements. The City of Lubbock has received this award for sixteen consecutive years. A Certificate of Achievement is valid for a period of one year only. We believe our current report con- tinues to conform to the Certificate of Achievement Program requirements, and we are submitting it to the GFOA to determine its eligibility for another cer- tificate. 12 |Popular Annual Financial Report