The Amarillo City Council Workshop held on August 5, 2025, focused on budget discussions for various departments, highlighting significant financial challenges and strategic planning for the upcoming fiscal year.

A primary topic of discussion was the Information Technology (IT) department's budget, which is facing rising software costs. The council noted that the average increase in software and hardware expenses has been around 38% this year, continuing a trend observed over the past three years. To address these challenges, the IT department is proposing to add new positions, including IT support specialists and security analysts, with an estimated cost of $257,000. The council emphasized the need to gradually rebuild IT reserves over the next three years rather than implementing a steep increase in departmental budgets all at once.

Additionally, the council reviewed the budget for the Human Resources (HR) department, which has remained stable. HR has successfully maintained a high employee retention rate, hovering between 88% and 92%, despite previous challenges. The department also manages various insurance policies, including workers' compensation and cybersecurity, which are funded through a risk management fund. This fund is projected to have a slight surplus, allowing for a potential transfer back to the general fund.

The meeting also touched on the city's health plan administration, which is currently self-insured. The council is preparing to review proposals for health insurance contracts, with recommendations expected in late August or early September. The city has not raised health insurance premiums for the past three years, thanks to favorable claims experience, but rising healthcare costs remain a concern.

Overall, the workshop underscored the city's commitment to addressing budgetary constraints while ensuring essential services and employee support are maintained. The council will continue to evaluate these financial strategies as they prepare for the next fiscal year.