City Council Discusses $2.7M Budget Needs and Employee Pay Raises

The Amarillo City Council held a special meeting on August 15, 2025, to discuss critical budgetary issues, including employee compensation and infrastructure projects. The council focused on the need for a pay study to address salary disparities among city employees, particularly in public safety roles.

During the meeting, council members expressed concerns about underfunded projects outside the Capital Improvement Plan (CIP), highlighting over $200 million in identified needs for water, sewer, and drainage projects that have yet to receive funding. The discussion emphasized the importance of prioritizing these projects while also considering the financial implications of proposed salary increases for police and fire personnel.

City Manager Grayson Path outlined the current budget situation, noting that the council must decide on a proposed tax rate by August 26 to facilitate public hearings and budget approvals in September. The council is considering various options for employee pay increases, including a potential 5% raise for police and fire staff, while also exploring ways to fund a pay study that could help address compensation issues.

The council acknowledged the need for efficiency in budget management, with discussions around trimming expenses to accommodate salary increases. Members agreed to revisit the budget next week to finalize decisions and ensure that the proposed budget aligns with community needs and expectations.

As the council prepares for the upcoming budget deadline, they aim to balance the need for infrastructure improvements with fair compensation for city employees, reflecting their commitment to both public service and community welfare.