Amarillo City Council approves $557 million budget, raises property tax rate to fund public safety, streets, and infrastructure

Property taxes are set to rise for Amarillo homeowners following a decisive vote by the Amarillo City Council on Tuesday, Sept. 9. In a 4–0 decision, with Councilmember David Prescott absent, the council approved the first reading of a $557 million budget for the 2025–26 fiscal year. The spending plan represents a substantial increase from the previous year’s $499 million budget and comes with an adjustment to the city’s tax rate, aimed at covering higher salaries for first responders, expanded street work, and critical infrastructure upgrades.

The unanimous vote reflected weeks of debate over priorities — particularly how to balance essential services like police and fire protection with longer-term infrastructure investments. For many homeowners, the most immediate impact will be felt in property tax bills, which are expected to climb as part of the funding mechanism for the new plan.

Budget Overview: From $499 Million to $557 Million

The approved budget marks one of the largest single-year increases in Amarillo’s recent history, climbing nearly $60 million from the prior year. According to Chief Financial Officer Laura Storrs, the expansion was necessary both to maintain current service levels and to add capacity in key areas.

“This budget maintains service levels but also adds critical enhancements,” Storrs told the council. “That includes raises for our employees, more street work, and replacing fire trucks on a timely basis rather than running them until they break down.”

The budget covers every corner of city government, from police and fire to water and sewer operations, drainage, parks, solid waste, and the airport.

Public Safety as the Top Priority

Throughout the budget process, council members made clear that public safety was at the forefront. That priority is reflected in several major spending items:

Pay Increases: Police officers will receive a 4% raise, firefighters a 3% raise, and civilian employees merit-based increases of up to 2%.

New Positions: The city will add a firefighter and a school liaison officer who will serve Canyon ISD during the academic year and the wider city during the summer.

Equipment Replacement: The budget continues funding for a fire truck replacement program, ensuring the city no longer runs vehicles to the point of breakdown before purchasing new ones.

Civilian Workforce Adjustments: Partial implementation of a compensation study will bring salaries closer to competitive levels, alongside a cost-of-living adjustment for retirees.

Storrs emphasized the urgency of addressing first responder pay in the current labor market. “It’s tough to recruit and retain first responders when other cities are offering more,” she said. “These pay increases are essential if we want to keep our police officers and firefighters here in Amarillo.”

Other Key Budget Highlights

Beyond public safety, the budget allocates resources across multiple sectors:

Streets: More than $30 million is earmarked for improvements, including $28.2 million in planned debt issuance for major projects.

Water and Sewer: $36 million in capital projects are scheduled, with a 5% increase in rates anticipated for customers.

Solid Waste: An in-house team will be created to remove dangerous structures, dumpster replacement efforts will continue, and residents will see a 92-cent monthly increase on their bills.

Public Health: $1.4 million is set aside to continue operations at the women’s clinic run by the Public Health Department.

Grants and External Funding: Amarillo expects $25 million in state and federal grants for wastewater facility design and $5 million for a new emergency operations center. “Those are huge wins for us because they’re not coming out of local tax dollars,” Storrs noted.

Tax Rate Increase: What Homeowners Can Expect

To finance the expanded spending, the council raised the city’s property tax rate from 38.723 cents to 43.07 cents per $100 valuation. For a home assessed at $200,000, the city’s share of the tax bill will rise from about $774 to $861 — an $87 increase annually.

When factoring in appraisal growth, the average household is expected to see an increase of about $11 per month.

Storrs framed the increase in terms familiar to residents. “Just like everyone else’s household costs, the city’s costs are going up,” she explained. “This increase allows us to continue current service levels while also replacing aging fire trucks and taking on additional street projects.”

The tax rate adjustment passed without dissent, a reflection of the council’s alignment with staff on the necessity of the changes. A second and final vote, along with a public hearing, is scheduled for Sept. 16.

Mayor Stanley: Budget Focuses on “Essentials”

Amarillo Mayor Cole Stanley described the budget as a product of consensus and pragmatism.

“We don’t raise the tax rate lightly,” Stanley said. “But people expect us to respond in emergencies, keep streets safe and drivable, and protect them during storms. This budget is about essentials, and that’s what we funded.”

Stanley acknowledged that earlier debates within council focused heavily on whether to establish a dedicated street fund, an idea ultimately set aside. “We had disagreements earlier on — especially about how to fund streets — but what came out of that process was a recognition that our police and fire departments needed to come first,” he said.

For the mayor, the most significant development was securing outside funding for wastewater design. “The wastewater project alone would have been a major burden on taxpayers without the grant money. It’s not glamorous, but wastewater, drainage, streets — those are the bones of the city.”

Stanley also pointed to improved cooperation between city staff and the council as a reason for the smooth outcome. “We’ve had our disagreements in the past, but this time, council and staff were on the same page about what had to be funded. That cooperation made Tuesday’s vote possible.”

Drainage Projects: Tackling Flooding Challenges

Alongside the budget approval, the council greenlit design work for improvements at Lawrence Lake, part of roughly $42 million in ongoing drainage projects across Amarillo.

Assistant City Manager Donny Hooper explained that the upgrades include property acquisition, construction of a new pump station and force main, and stabilization of lake banks. “The new pump station will double the amount of water we can take out of there in the event of a storm,” Hooper said. “This is the biggest drainage project we’re taking on, and it will really help with flooding around the Western and Olson area.”

Construction is expected to be at least a year away as design work proceeds, but officials described the project as a cornerstone in Amarillo’s long-term flood mitigation strategy.

Broader Context: Rising Costs and Taxpayer Concerns

The council’s decision to raise taxes comes at a time when many Amarillo residents are already facing higher costs for housing, utilities, and everyday essentials. Inflation pressures have affected municipal budgets nationwide, pushing cities to boost spending on salaries, equipment, and infrastructure.

For Amarillo, the challenges are compounded by aging infrastructure, regional competition for police and fire personnel, and a growing population that demands reliable city services. The trade-offs have been clear: either increase revenues to meet these needs or risk falling behind on critical services.

While the council’s unanimous vote signals unity, residents will have a chance to weigh in during the Sept. 16 public hearing. Concerns about affordability are likely to surface, especially for homeowners on fixed incomes who may feel the squeeze of higher property taxes alongside rising utility rates.

Looking Ahead: Implementation and Accountability

The budget’s adoption marks only the beginning. City officials must now deliver on the promises embedded in the spending plan — from ensuring competitive pay for first responders to completing major street and drainage projects.

Accountability will likely be a recurring theme in future council meetings, with residents expecting transparency on how new revenues are used. For many, the measure of success will be visible: smoother roads, quicker emergency response, and fewer flooding incidents in vulnerable neighborhoods.

The final vote on Sept. 16 will formalize the plan, but the true test will come in the months and years ahead as Amarillo balances growth with fiscal responsibility.

Conclusion

The Amarillo City Council’s approval of a $557 million budget and accompanying property tax increase reflects a city at a crossroads: one determined to invest in its people and infrastructure, even at the cost of asking more from taxpayers.

From higher salaries for first responders to multi-million-dollar drainage projects, the spending plan represents both short-term relief for staffing challenges and long-term investment in infrastructure resilience. For residents, the increases in taxes and utility rates will sting, but council members argue that the trade-off is a safer, more functional city.

As Mayor Stanley put it, the budget is about “essentials.” The coming years will reveal whether those essentials are delivered in ways that justify the added burden on Amarillo homeowners.