The Amarillo City Council Workshop held on August 5, 2025, focused on the upcoming budget for the next fiscal year, highlighting significant changes and allocations within the general fund. The proposed budget is set at approximately $65.4 million, an increase from the current budget of $59.4 million, reflecting a growth rate of about 9%.

A key point of discussion was the allocation of the general fund, with public safety accounting for nearly 50% of the total expenditures. The current year's approved budget for the general fund stands at $277.7 million, which will see a reduction of about $6.2 million for the next year, bringing it down to approximately $271.5 million.

Several factors contributed to this budget adjustment. Notably, there will be an 8.6% raise for employees in the general fund, which includes fire, police, and civilian staff. Additionally, there are reductions in street maintenance operations and a one-time capital improvement project (CIP) budget cut of $1.1 million. The council also discussed a reduction of $3 million in one-time working funds from the previous year's budget, which will not carry over into the next fiscal year.

The council clarified that the reduction in one-time funds is due to the depletion of reserves that were utilized in the previous budget cycle. This year, the city will need to reestablish a 90-day reserve, which has increased due to the significant raises given to police and fire personnel last year.

Overall, the workshop underscored the city's financial planning challenges as it navigates budget constraints while addressing employee compensation and essential services. The council will continue to refine the budget in the coming weeks, ensuring that it meets the needs of the community while maintaining fiscal responsibility.