The Amarillo City Council Workshop held on August 6, 2025, focused on budget considerations and departmental changes, particularly regarding the proposed creation of a new department and adjustments to the water and sewer utility rates.

The meeting began with discussions on the potential phasing of budget changes. Council members suggested that instead of hiring 14 new employees at once, the city could consider a gradual approach over the next few years. Concerns were raised about the current workload and whether existing personnel could manage the demands without additional hires.

A significant topic was the proposed establishment of the "Miami Rilla" department, which would require its own budget and revenue share. The council debated the implications of housing this department within the general fund versus the water and sewer funds. The recommendation leaned towards creating a standalone fund, which would align with best practices for accounting. The council was tasked with considering the pros and cons of each option before making a decision in the following week.

The Director of Utilities presented a proposal for a 5% rate increase for both water and sewer services, aimed at funding approximately $5 million in one-time capital projects. This increase would be assessed annually to determine future needs and potential debt issuance for wastewater facilities. The council noted that current revenues were trailing behind budget projections due to weather conditions affecting water usage.

Further discussions highlighted the dissolution of the Central Stores operation within the utilities department, which would lead to changes in how services are billed and managed. The council also reviewed the financial implications of transferring funds between the water and sewer departments and the general fund, with a total of around $14 million expected to be paid back to the general fund from water and sewer operations.

The meeting concluded with a focus on upcoming budgetary needs and the importance of maintaining sufficient funding within the water and sewer departments to address future projects and operational costs. The council plans to reconvene next week to finalize decisions on the proposed budget changes and departmental structures.