The Amarillo City Council addressed several major infrastructure, financial and operational issues during its June 23 meeting, including a proposed $1.2 billion regional water project, concerns surrounding utility billing, and ongoing scrutiny of landfill operations. Council members also reviewed the city's annual financial audit, discussed potential economic development opportunities, and approved a number of contracts and budget-related items. Most agenda items were approved on unanimous 4-0 votes. Councilmember Don Tipps was absent from the meeting.

Council Approves MOU for Proposed CRMWA II Water Pipeline

The council voted 4-0 to approve a non-binding Memorandum of Understanding between the City of Amarillo and the Canadian River Municipal Water Authority (CRMWA) regarding development of a proposed second groundwater pipeline known as CRMWA II.

Drew Satterwhite, general manager of CRMWA, presented plans for a proposed 70-mile groundwater pipeline running from Roberts County to CRMWA member cities. City Manager Grayson Path said the project is part of ongoing efforts to address regional water needs.

Created by the Texas Legislature in 1953, CRMWA serves 11 member cities, including Amarillo, through a 322-mile aqueduct system that transports water from Lake Meredith. Satterwhite said CRMWA is also the largest holder of groundwater rights in Texas and uses groundwater to reduce the salinity of Lake Meredith water. He noted that chloride levels are primarily a taste and aesthetic concern rather than a health concern.

The proposed CRMWA II project would include 70 miles of 72-inch pipeline, additional groundwater wells and two pump stations. Water would be delivered to Amarillo's reservoir on the northeast side of the city before continuing through the regional system.

Satterwhite said the project would help eliminate drought risk from a supply standpoint and bypass approximately 25 miles of pipeline installed in 1968 with newer, more reliable infrastructure. If approved by all member cities, the project is expected to take about eight years to complete.

The estimated cost is $1.2 billion, with Amarillo's share projected at approximately $450 million. Satterwhite said Amarillo currently uses about 55 percent of CRMWA's water supply.

The memorandum of understanding is non-binding and is intended to establish expectations among member cities as they evaluate and plan for the project.

Council Takes No Action on Appraisal District Letter

The council considered a proposed joint letter that was previously approved by the City of Canyon encouraging continued cooperation between the Potter-Randall Appraisal District boards.

The boards are currently discussing revisions to a decades-old agreement that grants greater authority to the Randall County board than the Potter County board.

Potter County Tax Assessor-Collector Thomas Warren III addressed the council during public comment, stating that no one involved in the discussions has advocated separating the appraisal districts. Instead, he said the boards are attempting to renegotiate the agreement to better align it with state law.

Warren also said misinformation has created the impression that Potter County seeks to split the district and create significant costs for taxpayers.

Mayor Cole Stanley expressed concerns about formally approving the letter.

"I don't like the letter being just sent with a vote behind it. I think it would be better served to take no action on this letter form, and pursue one-on-one conversations, and further try to assist the, say, the reconciliation, or whatever needs to happen between the other party," Stanley said.

Following discussion, the council took no action on the letter.

Council Files Annual Financial Report Following Audit Presentation

The council ultimately voted unanimously to file the City's Annual Comprehensive Financial Report for the fiscal year ending Sept. 30, 2025, with the City Secretary after an earlier motion to accept the report resulted in a tied vote.

Chief Financial Officer Lola Ogunremi introduced Scott Krchnak and Chris Kessler of CliftonLarsonAllen LLP, the city's independent auditor, to discuss the report. The item had been tabled at the previous meeting because not all council members had completed their review.

Krchnak reported that the city finished the fiscal year with a positive variance of approximately $1.5 million, meaning revenues exceeded projections or expenditures came in below budget.

Auditors identified nine findings involving federal and state grants, including one significant finding involving an airport grant. Krchnak said the issue involved requirements to identify capital assets purchased with federal funding, but auditors were unable to determine which assets had been federally funded.

Councilmember Les Simpson asked whether there were any issues council members should monitor going forward. Krchnak suggested improving communication regarding expenditures and budget amendments throughout the year. Kessler recommended regularly reviewing corrective action plans associated with audit findings.

A separate document detailing the findings and corrective action plans is expected by the end of the month.

The discussion also included approximately $43 million identified within the Community Investment Program fund that staff said could be allocated by the council during the upcoming budget process following project closures and reserve recalculations. City staff recently completed the closeout process for 159 projects.

Several public commenters requested a forensic audit of city finances. Mayor Stanley asked council members whether they were interested in pursuing such an audit. Members generally expressed support for exploring the idea but said they first wanted to understand the potential cost.

The council's initial vote to accept the report resulted in a tie. Councilmember Tim Reid, who voted against acceptance along with Stanley, said his concern was that the report did not include findings. After discussion about state requirements and city ordinances, Stanley moved to file the final draft report with the City Secretary, and that motion passed unanimously.

Possible Expansion of TIRZ #2 Under Review

The council received a presentation regarding a potential expansion of the East Gateway Tax Increment Reinvestment Zone No. 2 near Interstate 40.

Assistant Director of Planning Drew Brassfield explained that the zone was established in 2016 with goals that included redevelopment around the Big Texan Steak Ranch area as well as encouraging retail, entertainment, hotel and residential development.

Brassfield said nearly two-thirds of the existing zone remains vacant or undeveloped. He said several developers expressed interest in projects near the zone late last year, prompting the TIRZ board to direct staff in February to study possible boundary expansions.

Staff examined approximately 2,100 acres surrounding the zone and found property values increased from about $70 million in 2018 to more than $115 million in 2025.

According to Brassfield, expanding the zone could help support projects that have already expressed interest in the area. The city plans to consult with other taxing entities regarding their interest in participating in a potential expansion.

Landfill Projects Approved Amid Continued Attention on Operations

The council voted 4-0 to approve a contract worth approximately $1.27 million with Landmarc Environmental Services to expand and repair the Amarillo Landfill's gas collection and control system.

The system is required under the landfill's Texas Commission on Environmental Quality permit and must be expanded as the landfill grows. The infrastructure collects and combusts gases generated through the natural decomposition of waste, helping the city maintain compliance with state and federal regulations.

The project comes as landfill operations continue to receive heightened scrutiny following the May Stinky Fire, which damaged or destroyed dozens of homes in Potter County. Since the fire, city officials have launched internal reviews, sought outside evaluations from state and other agencies, and discussed the possibility of an independent operational assessment of the facility.

The council also voted 4-0 to approve the purchase of a Finn LF120 Hydroseeder for landfill operations. The equipment will be used to apply Alternative Daily Cover, reducing the amount of soil required each day and preserving valuable landfill airspace.

Budget Amendments Approved

The council voted 4-0 to approve an ordinance adopting budget amendments for Fiscal Year 2024-2025.

The amendments apply to the previous fiscal year budget covering the period from Oct. 1, 2024, through Sept. 30, 2025.

Utility Billing Review Contract Approved

The council voted 4-0 to approve a contract to conduct a review of the city's utility billing data and processes.

The city launched a new utility billing platform in late March. By late April and early May, many residents reported unexpected increases in recorded water usage and monthly utility bills.

City officials have been reviewing the system and exploring options for independent evaluations and potential corrections. The approved contract is intended to advance that review process.

Clearview AI Contract Renewed

The council voted 4-0 to renew an existing contract for Clearview AI, an investigative platform used by the Amarillo Police Department.

The software assists investigators in identifying individuals from images and video by comparing them with publicly available online sources, including news media, mugshot websites and public social media content.