Council reviews budget priorities including My Amarillo call center, 5% water‑and‑sewer bump, solid‑waste fee and civic center investments

Amarillo city staff delivered a working draft of next year’s budget on Aug. 11, telling the mayor and council they must choose among new positions, targeted rate increases and one‑time capital projects while finishing a multiyear capital program already in progress.

The City Manager’s office and departmental leads emphasized three near‑term choices: (1) formalize and expand “My Amarillo,” the city’s consolidated customer call center and digital intake; (2) hold a 5% increase to water and sewer rates that staff says will fund one‑time water/wastewater capital work and start rebuilding reserves; and (3) adopt a 7% increase to residential and commercial solid‑waste fees to pay for a long‑planned dumpster renewal program and a new in‑house demolition crew to remove dangerous vacant residential structures.

Why it matters: the proposals mix operating and capital responses to persistent service gaps—customer response times, aging wastewater facilities, and a backlog of vacant homes and worn trash infrastructure—while trying to limit recurring pressure on the city’s general fund and on ratepayers.

My Amarillo: separate fund, more staff

City staff described My Amarillo as a growing internal service that began inside utility billing and now supports many departments. Leaders asked council to approve creating a standalone internal service fund for the operation and to fund a substantial staffing increase. Staff said My Amarillo now houses roughly 18 dedicated employees transferred from utility billing and asked for 14 additional positions (roughly 32 employees when fully staffed) to onboard more departments and to absorb some non‑emergency public‑safety calls currently routed to the emergency communications center. Staff reported roughly $2.1 million in current revenues connected to calls and support work and noted utility billing presently carries the lion’s share of the cost.

Under the plan My Amarillo would bill client departments — water & sewer, streets, parks, public safety and the general fund — for its services rather than drawing those costs directly from water customers. Staff recommended an internal service fund as a best‑practice accounting model; councilors asked for a short memo comparing three options (standalone internal fund, remain in water & sewer, or house in general fund) and for a phase‑in option for the requested new hires.

Water and sewer: 5% rate increase and capital focus

Staff proposed a 5% across‑the‑board rate increase for both water and sewer for the coming fiscal year, saying the increase will fund roughly $5 million in one‑time capital projects next year and preserve flexibility to finance major wastewater work in future years. Staff emphasized that water and sewer revenues have been below budget this year because rainfall and usage patterns changed, and that many recent capital projects have moved from “in‑bank” bond proceeds into construction and are reducing interest income as proceeds are spent.

The utility directors described an aggressive program of repairs and upgrades at the Hollywood and River Road wastewater plants (headworks, dewatering, SCADA and blower overhauls) and asked council to approve limited project budgets that would allow staff to respond to failures and to maintain service while longer‑run expansion or replacement planning continues. Council’s staff said grant opportunities (federal and state) are still being pursued for larger plant work, but that the proposed 5% rate increase is intended to provide predictable local funds to pair with grants.

Solid waste and a city‑run demolition crew

Solid Waste staff sought a 7% fee increase for both residential and commercial customers, saying the revenue will fund (a) a continuing dumpster replacement program (city staff have been replacing aging roll‑offs and expect roughly 1,400 replacements next year), (b) additional landfill engineering work, and (c) equipment and personnel to run an in‑house program to demolish dangerous vacant residential structures. The package included a requested capital outlay of roughly $715,000 for the demolition equipment (excavator, trucks and roll‑off containers) plus initial staffing: an equipment operator, a roll‑off truck driver and an administrative/coordination position in the marshal’s office to run hearings and paperwork.

Staff said Amarillo receives frequent complaints about vacant, fire‑damaged or collapsing homes and that current contractor‑led removal is slow and administratively burdensome. Councilors asked for detail on expected monthly/annual demolition counts, program staffing, and whether the city could phase the positions instead of hiring all new staff at once. Staff agreed to supply a short memo with the enforcement and cost‑per‑demo estimates.

Civic Center and tourism‑funded capital

Staff asked council to approve a limited set of Civic Center investments funded with hotel‑occupancy taxes and venue district funds: a sales position for the Civic Center (a contracted sales role with incentive pay, aimed at attracting more touring shows), some immediate AV and facilities repairs, and funding to finish restroom and hospitality upgrades at the Pavilion. Staff said the Civic Center’s operations are subsidized from hotel‑occupancy taxes and the net operating shortfall is the intended revenue reservoir for improvements. Councilors supported adding a sales position but requested more analysis showing how the position’s commissions and ROI will be measured and reported; several councilors urged a broader, step‑by‑step plan for the Civic Center rather than large, one‑off capital requests until demand and return‑on‑investment are clearer.

Airport, fleet and other capital

Airport staff summarized a proposed $7.7 million capital package composed mostly of FAA‑eligible projects (terminal air‑handler replacement, parking‑plaza rehabilitation and environmental assessment work). The airport said roughly $4.8 million of the package would be airport‑funded while the FAA would contribute an estimated $2.9 million in grants. Staff said terminal improvements and parking upgrades are timed to benefit from FAA grant opportunities and to improve customer experience ahead of potential airline service discussions.

Fleet replacement funding and IT projects were also listed in the CIP; staff noted a planned vehicle/equipment debt issuance (estimated $7.5 million) and a Motorola radio replacement line for public safety.

Streets and CIP planning

Council reviewed a multiyear capital program and a proposal staff described as a recommended tax‑supported bond issuance later in the 2026 fiscal year. Staff reminded council that earlier voter‑approved street bonds and existing bond proceeds are already committed to projects in design and construction; the new proposal under discussion would issue additional debt in the next 18 months to sustain a multi‑year arterial reconstruction program. Staff asked council to expect two distinct steps: (1) approve the budget and adopted rate/tax assumptions, and (2) consider the specific debt authorizations and project lists during the next months when project bids and schedules are firmer.

What the council asked staff to follow up on

- A memo comparing My Amarillo governance and accounting options and a phased hiring plan for the call center positions - Additional detail from Public Works/Utilities on the specific wastewater plant projects that will be addressed with the proposed 5% rate increase and the grants being pursued - Detailed cost estimates and program metrics for the proposed in‑house demolition program (per‑demo cost, expected output, enforcement steps) - An itemized, easy‑to‑read table showing how proposed one‑time projects are funded (general‑fund transfers, bond proceeds, grant proceeds, utility rate revenue, venue funds) so council and the public can see which expenditures draw on reserves, which use grant/bond proceeds, and which will create recurring obligations - Civic Center follow‑up with clearer ROI metrics for the proposed sales position and a longer‑term facilities plan before committing additional hotel‑tax funding

Ending

Staff said they will return with the requested memos and refined figures; the council scheduled a continuation of the budget workshop to finish department reviews and to consider any adjustments to the proposed 43¢ tax rate and the operating/rate proposals. Several council members urged a cautious, phased approach to new staffing and recommended prioritizing items that reduce recurring operating costs or produce measurable revenue returns.

(Additional notes: staff repeatedly highlighted ongoing grant work — FAA, HUD, state emergency programs and opioid settlement proceeds — and emphasized that many special‑revenue funds are legally restricted for specified purposes. Councilors requested clearer, line‑by‑line bridges between restricted funding and proposed spending.)