The Amarillo City Council opened the first of three budget workshops on Tuesday, diving into a proposed $569.9 million budget for the 2025/26 fiscal year. After nearly six hours of presentations and discussion, city staff laid out a detailed financial blueprint touching on critical areas such as public safety, infrastructure, rising operational costs, and employee compensation.
The proposed budget reflects a 14.1% increase from last year’s $499.3 million plan.
Key Budget Highlights
The budget plan presented by city staff outlines significant investments across several departments, with public safety topping the list of priorities. The proposal includes:
New positions in police, fire, and Animal Management and Welfare
A 5% pay raise for police and a 4% raise for firefighters
Continued funding for capital projects, including street maintenance and early design phases for new wastewater treatment facilities
A $25 million grant secured to support the wastewater facility planning
Fleet leasing and replacement of fire apparatus and heavy equipment
City departments also face rising costs across multiple sectors, such as commodities, construction, software, and materials. In response, the budget incorporates measures to maintain cybersecurity and IT infrastructure.
For civilian city employees, the budget proposes a 2% cost-of-living adjustment (COLA) and a 2% merit raise, along with the implementation of a city-wide pay study. Retirees would see a 70% COLA under the current plan.
Property Tax Rate Could Increase
The proposed tax rate of $0.43070 per $100 valuation marks an increase from last year’s $0.38723 rate. If adopted, it would result in an $11 increase in the average Amarillo homeowner’s property tax bill, based on the city’s portion of taxes.
While the proposed budget is still subject to change, it provides a starting point for the council to debate priorities and consider adjustments.
“We anticipate the Mayor and City Council may have some changes. This is something that staff put together that we worked with our departments, you know, we engage with our citizens all the time. We know what we can and can’t do, and then we work to formulate a proposed budget,” said Laura Storrs, chief financial officer for the City of Amarillo.
Public Transparency and Impact
City officials emphasized the importance of transparency throughout the budget process, noting that every dollar affects Amarillo residents directly.
“What we want our citizens to know ultimately is this is time well spent because for the next year we’re going to live underneath kind of the performance of this job. And so, the budget is one of the most important things that we can affect,” said Mayor Cole Stanley.
“Our citizens don’t get a choice that they pay these tax dollars and these fees to us, so therefore we want to make sure they understand what are those dollars going toward and what are some of the thought processes and decisions that went into making this budget,” Storrs added.
What’s Next?
This initial presentation marks only the beginning of the city’s budgeting process. The council will continue discussions over the next two days, with public hearings and formal adoption expected in the months ahead. Adjustments and recommendations from council members are anticipated as they weigh community needs, financial realities, and long-term priorities.
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