Amarillo City Council Chambers/Photo by Noah Dawson
Amarillo City Council will consider several budget-related items during their upcoming September 9th City Council Meeting, including votes on the city’s budget and tax rate. Several other local entities with budgets requiring approval from Amarillo City Council are on the agenda as well.
City Budget
The city budget, which has taken up much of the council’s time over the last month, will be funded by an increase in property taxes as well as several other charges, including solid waste, certain permits, annual swimming pool passes, golf fees, and water meter rates.
The property tax rate, if passed as proposed, will be the highest rate allowed under state law without an election being called. It will also be the highest rate set by the city since 2022.
The council will also consider the budgets for the Amarillo-Potter Events Venue District, and the Amarillo Hospital District, the Tax Increment Reinvestment Zones.
Amarillo Economic Development Corporation
Before those items, however, the council will discuss (but not yet take action) on the budget for the Amarillo Economic Development Corporation.
The AEDC and its budget have been engulfed in controversy after it was revealed that the organization, which is required by state law to have its expenses approved by Amarillo City Council, moved money between line items to grant initial funding to the RANGE Foundation without consulting with City Council. After Amarillo City Council launched an investigation, a majority of AEDC board members resigned.
The proposed AEDC budget includes an $11 million decrease in “company projects” line item, with the largest decrease being for Unmanned Systems, Inc., which has its line item cut from $20 million to $10 million. The AEDC budget also includes a proposed $2 million cut for TIRZ #3 infrastructure line item.
Amarillo-Potter Events Venue District
The Amarillo-Potter Events Venue District is funded by car rental and hotel occupancy taxes, and is expected to see revenues rise by about $275,000, per the budget proposal. Major changes from the current budget include an additional $374,000 on “Ama Tri-State Participation” under the “Other Professional” and $637,000 decrease in the “Civic Center Improv” line item under the “Operating Transfers” category.
Amarillo Hospital District
The Amarillo Hospital District, which is tasked with funding indigent healthcare, is expected to see a decrease in operating revenues and a slight increase in operating expenses. The district is largely funded by the remaining funds from the sell of Northwest Hospital in the 90s, which allowed the district to cease collecting taxes. However, with decreasing funds, there have been recent discussions about the district once again levying a tax. Under current state law, the district would be required to hold an election to resume collecting taxes. Some, however, have begun pushing for state lawmakers to carve out an exception for the district.
Tax Increment Reinvestment Zones
Center City TIRZ #1 is requesting a $366,000 increase in expenses, with the bulk of the increase coming from increased spending on the “community projects” line item. Notably, the actual spending for the item projected for 2024 is $612,388, which is almost double the amount allocated under the 2024 budget. The proposed 2025 budget sets the line at $610,000, nearly matching the actual 2024 expenses.
The East Gateway TIRZ #2 proposed budget includes a similar expense increase, with a $100,000 increase to the “community projects” line item accounting for the majority of the overall $132,000 budget increase.
The South Gateway TIRZ #3 proposed budget, by contrast, does not include much of a change from the existing budget, with the main change being a $16,000 increase in bond principal payments accounting for most of the $18,000 expense increase. The overall budgeted expenses for the South Gateway TIRZ is notably smaller than the two others, with its expenses under the proposal topping at $55,600, compared to the $521,725 for the East Gateway and $1.7 million for Center City.
Meeting Info
The meeting will be held on the third floor of Amarillo City Hall beginning at 3:00 pm on Tuesday, September 9th. The full agenda and agenda packet can be found at the city website, Amarillo.gov.