The Amarillo City Council took the first formal steps toward adopting a new property tax rate during its regular council meeting Tuesday, signaling the next stage in shaping the city’s 2025-2026 fiscal budget.
City leaders have spent weeks reviewing spending needs and potential revenue sources through a series of budget workshops. Those discussions have centered on how to cover steadily rising operating costs while revenues lag behind. Council members have asked staff to identify additional funding opportunities, even exploring the possibility of dipping into the city’s reserves to close any remaining gaps.
On Tuesday, Laura Storrs, the city’s Chief Financial Officer, outlined the process that now lies ahead. She explained that state law requires Amarillo to formally notify residents about the proposed tax rate and hold a public hearing before final adoption. Storrs recommended that the council proceed with what she described as the “voter-approved tax rate.”
Currently, Amarillo’s property tax rate is $0.38723 per $100 of taxable value. Under state law, the highest rate the city may adopt without triggering a special election is $0.43070. If adopted, the increase would have a modest impact on most households. According to Storrs, the maximum rate would translate to less than $4 more per month for a home valued at $100,000, or about $11 more per month for the average Amarillo home.
While the dollar amounts appear relatively small on a month-to-month basis, officials said the increase is necessary to maintain city operations and fund essential services. Like many municipalities across Texas, Amarillo has faced the dual challenge of rising costs for personnel, infrastructure, and public safety, while revenues such as sales and property taxes have not grown quickly enough to match those demands.
During the presentation, Storrs formally proposed that the council adopt the $0.43070 rate, which would provide the maximum revenue allowed without going to voters in a special election. City staff have emphasized in recent weeks that adopting anything less would leave Amarillo struggling to meet its budgeting goals for the upcoming year.
The timeline for adopting the new tax rate is already set. The council is scheduled to hold its first reading and vote on Sept. 9. A second public hearing will follow on Sept. 16, along with the second and final reading and vote. At that point, residents will have another opportunity to weigh in on the proposal before a final decision is made.
This step comes at a time when Amarillo is also considering significant infrastructure projects, including wastewater system improvements discussed at Tuesday’s meeting. While those projects are funded through separate mechanisms, they add to the overall financial picture council members must weigh as they balance the city’s long-term needs against residents’ tax burden.
Storrs’ remarks underscored the city’s legal obligations in the process, but they also highlighted the administration’s effort to be transparent with residents. Public hearings, required notices, and the two-step voting process are designed to ensure taxpayers are fully informed before any changes take effect.
Although council members did not cast their final votes Tuesday, their discussion signaled a consensus that maintaining city services and financial stability will likely require approval of the higher rate. Officials have noted that holding the line on property taxes below the proposed level could force service reductions or require greater reliance on reserves—something the city has so far been reluctant to do.
The upcoming hearings will give residents the chance to voice their opinions directly. City leaders have said they expect a range of views, from those concerned about rising costs of living to others who believe the increase is justified to support public safety, infrastructure, and city services.
