Amarillo council adopts $557 million budget, raises city tax rate to 43.07 cents

The Amarillo City Council on Sept. 16 adopted a $557 million city budget for fiscal 2025–26 and approved a property tax rate of 43.07 cents per $100 of assessed value, a move the council said will raise more property tax revenue for operations. The votes were recorded as unanimous, 5-0.

The budget increase and tax-rate action fund a package of priorities city staff outlined during the public hearing: a new police officer and a new firefighter; a 4% wage increase for police and a 3% increase for firefighters; roughly $30 million in street capital projects; $36 million in water and sewer projects (including $25 million in grant funding to begin design of wastewater facilities); and continued funding for parks and a new women's clinic at the public health department. City staff said civilian employees would receive a 2% merit increase and a partial pay-study implementation, and retirees would receive a 70% TMRS cost-of-living adjustment.

Council and staff stressed that large pieces of the revenue increase are grant funds, not local tax dollars. City Secretary Mrs. Storrs said $25 million of the $36 million in water and sewer projects is grant funding to begin wastewater design work, and another $5 million in grant funding is proposed for a new emergency operations center.

The…