Amarillo City Council voted 5-0 on the first hearing of an ordinance for a new tax rate of property taxes to be increased by 2.3%. The property tax rate proposal the council is weighing for the 2022/2023 budget would be $0.40628, as discussed during a special meeting held Tuesday afternoon.
During the meeting, the counsel weighed the difference and impact on the community between the initially proposed tax rate approved on Aug. 2 of $0.49086, versus a secondary proposed rate of $0.40628.
More:City, county boards looking at different tax rate proposals for 2022-23 fiscal year
The original approved rate of 0.49086 in comparison to the 2021 tax rate of $0.44334 leaves a $4 per month increase on a $100,000 home. The adjusted rate of $0.40628 in comparison to the 2021 tax rate leaves a $3 per month decrease in monthly payment for a $100,000 home.
During the meeting, the city council also discussed the proposed budget for the upcoming fiscal year approved for both tax rates; the new budget is expected to be a $71.3 million increase from its current 2021/22 approved budget of $419.5 million. The city’s budget is proposed to total $490.8 million for the new 2022/23 fiscal year.
According to Assistant City Manager Laura Storrs, some highlights of the city’s budget include the changes made to include inflation costs of fuel, material and utilities; the adding of a cash funding for a 14th fire station, which includes 15 new staff members and a new district fire chief; the addition of four new police officers (two for the school district and two for the city), their equipment and vehicles; funding for neighborhood plans; and additional pay adjustments and incentives for city employees.
“Our budgeted increase for fuel alone is $577,000 for next year and on utilities is about $1.2 million, so as I mentioned, we are seeing lots pressure same as everyone else is seeing in those rising costs,” Storrs said during the meeting.
“I just want citizens to know that inflation is impacting this city, as well as all of our personal business and household budgets,” said Amarillo Mayor Ginger Nelson.
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Based on the original 0.49086 tax rate, $400.4 million of the current year’s city revenue is approved for the budget, with $55 million in additional revenue identified to bring the city to the 2022/23 proposed revenue budget of $455.4 million. Due to the counsel approving moving forward with the option for the 0.40628 tax rate, the additionally identified revenue will need to be reconfigured to determine a new revenue budget, otherwise similar to the originally proposed rate.
The 2022/23 budget and tax rate will be adopted and approved during the city council’s upcoming special meeting on Thursday.
