Amarillo City Council advances multiple debt measures for water, street and park improvements

The Amarillo City Council moved forward Tuesday with a series of debt-related actions intended to support major infrastructure improvements across the city, including long-planned upgrades to water service, key roadway corridors and local park amenities. The decisions mark the early stages of a multiyear investment strategy aimed at keeping pace with Amarillo’s growth while maintaining essential public services.

City staff briefed council members on preparations for issuing $6 million in water and sewer revenue bonds. These bonds will support the extension of a new water main on the northwest side of Amarillo, beginning near Broadway close to the Tascosa Country Club and stretching south toward Western Street. The extension is designed to meet demand from current neighborhoods and future developments, an area where homes and commercial projects have been increasing over the past decade.

According to city officials, the line will strengthen the reliability of water service, improve pressure for households that have experienced intermittent challenges, and provide the backbone needed for responsible expansion. Financial advisors noted that the municipal utility stands on solid financial footing. Revenue from water and sewer customers is expected to cover the full cost of repayment over the 30-year lifespan of the bonds, leaving property taxes untouched.

Council members also approved $8.52 million in Certificates of Obligation tied to earlier project authorizations. Staff reported that Amarillo’s top-tier AAA credit rating continues to benefit residents by attracting strong investor interest. A competitive sale drew a dozen bids, ultimately producing a winning interest rate a little above 3 percent. City financial officers said the favorable rate environment will help lower long-term borrowing costs and free up capacity for future improvements.

In a separate unanimous vote, the council authorized the publication of a formal notice of intent to issue up to $30 million in additional Certificates of Obligation. This larger package would be directed toward a mix of street and park projects spread throughout the city. Planned uses include street resurfacing, reconstruction of selected arterial roadways, and enhancements to park infrastructure such as recreational amenities, lighting and accessibility improvements.

Publishing the notice begins a required waiting period before the City Council can take final action. The notice will be posted on the city’s website, allowing residents to review the proposal and understand the purposes of the planned debt. City administrators emphasized that the timeline aligns with a broader financing plan scheduled for early 2026.

A final decision on the proposed street and park debt is slated for February 10, 2026, when the city expects to receive and evaluate competitive bids on several bond issuances. Before that date, staff will work to refresh the city’s credit ratings, assemble financial documents and prepare for the bidding process. Officials said this sequence ensures transparency and allows the city to position itself to secure the most advantageous borrowing terms available.