City of Amarillo proposing tax increase to service bond debt

City of Amarillo officials are proposing a tax increase for the 2018 / 2019 budget year. Amarillo Deputy City Manager Michelle Bonner said the increase is needed to service the debt on bonds approved by voters in 2016.

"The proposed tax rate for the City of Amarillo is increasing slightly over last years. The proposed tax rate of 0.36838 is an increase over last year's tax rate of 0.36364.

"In November of 2016, our voters approved Proposition I and Proposition II. So the city could issue bonds to enhance streets and public safety. In 2018, we issued our second bond issue on that proposition and that increase in the tax rate is associated with the debt service.

"What the voters approved was how much the city could issue in bonds for Prop I and Prop II. So the voters approved the bonds, and then based on the bond issue, there's debt service. This allows us to increase the taxes so we can pay the annual debt service payment," Bonner said.

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