Amarillo staff outlines property‑tax options, voter‑approval rate and effect of state law

Amarillo finance staff walked council through the technical calculation of the city’s property‑tax options under state law and the deadlines for public notices and hearings. Chief Financial Officer Laura Storrs told council the city’s no‑new‑revenue rate — the rate that would generate the same revenue on the same properties as the current year — was calculated at about 0.37355 (37.355¢). Storrs said the voter‑approval tax rate, the higher threshold that triggers the state’s automatic election if exceeded, is about 0.4307 (43.07¢) using current preliminary certification from the appraisal district.

Storrs reviewed key legal constraints. She reminded council that Senate Bill 2 (SB2) limited the amount a governing body may raise on the maintenance and operations (M&O) portion of the rate without an election (generally 3.5% annual increase plus unused increments from prior years). She also said the state comptroller’s “truth in taxation” process defines a multi‑step formula that the city must follow to calculate the no‑new‑revenue and voter‑approval rates.

Storrs recommended council consider setting the voter‑approval rate as the “not to exceed” rate when the required public‑notice packet is published, while noting that final certified taxable values from the Potter‑Randall Appraisal District (PRAD) could change some figures. She said the city must post notices and hold required hearings and that the council could approve a tax rate at or below the voter‑approval rate at adoption. Council members asked for additional time to review and discussed moving the “not to exceed” vote to a later date to allow more time for staff and council review before formal notice publication.

Storrs and the city manager also explained the relationship between proposed debt issuances and the tax rate: principal and interest for property‑tax‑supported debt increase the interest and sinking (I&S) portion of the rate and are included in the voter‑approval calculation. Staff said new proposed issuances for streets, fire apparatus and fleet would be reflected in the next year’s rate when the debt service begins. Storrs advised council that staff will return with the officially certified appraisal numbers and a final rate calculation and proposed timeline for the hearing and adoption sequence.

Speakers emphasized that the notice and hearings schedules are legally prescribed; the staff recommended a deliberate approach so council could finalize policy choices including COLA, merit, and any additional debt decisions before adopting a final tax rate.