The Levelland City Council approved a handful of housekeeping items prior to receiving a Certificate of Obligation (CO) update.
As a member of the Canadian River Municipal War Authority (CRMWA) the City of Levelland appoints two citizens to represent Levelland on the CRMWA Board of Directors. The board members serve staggered terms so that the Council has a CRMWA appointment to consider each summer.
Due to having a reliable supply of water being so important to the city, the Council has historically appointed two of Levelland’s community leaders as their representatives to the CRMWA Board. The current representatives, Richard Ellis and Ryan Hall, are two representing Levelland. Ellis is a veteran member of the CRMWA Board, having been appointed in 2006. Since 2019, Ellis has served as the board president. Ellis’ term expired at the end of July, and indicated a willingness to continue serving on this board.
The brief presentation of the item was followed by an approval of the Council.
Assistant City Manager Justin Balderas presented a Temporary Operator Services/ Operator of Record agreement with PSC Water Operating Company.
Since June 2025, the City has partnered with Parkhill Smith and Cooper LLC and PSC Water Operating Company (PSC) to support the water and wastewater department with Texas Commission on Environment Quality (TCEQ) daily reporting. Due to critical licensing requirements and a major departmental transition, PSC was brought on to ensure compliance and prevent Notices of Violation (NOV) for inadequate licensing.
Balderas added that PSC has been working closely with City Staff to prepare them for licensing exams. Training will begin this month, with the first two or three sessions held in person, followed by remote sessions. Their goal is to help the team become certified operators.
This is a month-to-month agreement. Once the wastewater treatment plant is operational, PSC will assist with its operation until the staff is fully trained. At that point, the City will discontinue PSC’s services unless a significant need arises.
The Council approved the agreement with Mayor Breann Buxkemper sharing her excitement for the aggressive pursuit of licenses for department staff.
Another agreement was presented to the group. This agreement included the City and The South Plains Association of Governments (SPAG).
SPAG is classified as a regional commission and as a political subdivision of the State. SPAG provides many services to its member cities including Regional 911 services which include address assignment, training, public education, and planning. SPAG has developed a Strategic Plan to establish and operate 911 service in the region and the Commission on State Emergency Communications (Commission) has approved the current strategic plan.
The contract between SPAG and the Commission requires SPAG to execute interlocal agreements each year with local governments relating to the planning, development, operation, and provision of 911 service, the use of wireline and wireless 911 fees, 911 funds and adherence to applicable laws related to 911.
In the interlocal agreement the City agrees to operate and maintain 911 services at the communications center and to provide that service 24 hours per day, seven days per week, and to work with SPAG in providing and maintaining suitable Public Safety Answering Points space meeting all technical requirements set by the Commission on.
The Council emphasized the importance of continuing the agreement between the entities following a quick approval after the presentation.
City Manager James Fisher provided a recap of the City’s CO’s process.
City staff presented an overview of the financial impact of the Wastewater Treatment Plant project on Monday, April 28. On Monday, May 5, Jason Hughes, Hilltop Securities, presented an overview of the city’s current debt status and discussed some options to consider in the award of the bid for the new Wastewater Treatment Plant project. In addition, the City is considering a $3 million bond issuance for the design and construction of a new Animal Services facility.
Following this memo were two spreadsheets; one that showed the current debt situation and one that showed repayment of debt utilizing the Interest and Sinking tax rate and utilizing water/sewer revenue. The spreadsheet discussed two projects for consideration: $3 million for a new Animal Services facility; and $7 million for the wastewater treatment plant (additional funds).
The City’s property tax provides approximately $3.7 to the General Fund. The Property Tax is measured by the value of a taxpayer’s property.
The property tax rate is made up of two parts, an interest and sinking rate (otherwise known as debt service rate) and a maintenance/operations rate (this funds the daily operations of the city).
Currently (FY 25), the City’s Property Tax Rate is .53500/$100 valuation, maintenance/ operations are .498729 and interest/sinking (debt service) is .036271. One penny of property tax generates approximately $76,000.
The proposed interest/ sinking (debt service) rate for FY is .0465/$100 valuation. This is an increase of .010229.
City Staff is also proposing to increase the Wastewater Improvement Fee from $21.62/ month to $27/month. The WWTP construction bid is $26,265,000. This amount is approximately $6,615,000 higher than projected. This fee will need to be reviewed in three years to determine if there is an additional increase needed to pay the debt service and to provide reserve funds within the Wastewater fund.
The 2022 Certificate of Obligation series (original WWTP construction bond) and the proposed 2025 Certificate of Obligation series (additional WWTP construction costs) have an estimated annual payment of $2,070,575. The city has approximately 5200 active utility accounts. The city receives approximately $320,000/year from the sale of effluent water. This leaves a shortfall of $65,775.
Fisher explained that the City will utilize WW Improvement Fee funds (reserve funds) to cover the difference. Once the WWTP comes online (Winter 2026), the City will review their financial status at that time.
The City Council will consider the authorization to issue CO’s for the Waste Water Treatment Plant Construction (additional funds) and for the Animal Services Facility on Monday, August 25.