
08/04/2025
The cities of Amarillo and Canyon will hold budget work sessions this week: Canyon’s begins at 3:30 p.m. on Tuesday, and Amarillo’s will begin at 10:00 a.m. Tuesday and run through Thursday afternoon. In budget workshops, councilmembers and commissioners hear about the proposed budget for their cities, including projected changes to revenue and expenses. Department heads will deliver updates and make specific requests for funding for projects for the upcoming year.
The eventual outcome is to set property tax rates for the year once budget workshops are over. Tax rates are calculated on two sides: maintenance and operation (M&O) and interest and sinking (I&S). M&O funds day-to-day operations, like public safety, salaries, supplies and more. I&S funds interest and principal on bonds and other debts. The percentage from both sides are combined to form a decimal, and that decimal becomes the tax rate per $100 of valuation.
The first step to calculate the tax rate is receiving a certified appraisal roll or certified estimate of taxable value from the chief appraisers of Potter and Randall counties where applicable.
Truth-in-taxation, which is “a concept embodied in the Texas Constitution that requires local taxing units to make taxpayers aware of tax rate proposals and to afford taxpayers the opportunity to limit tax increases,” according to the Texas Comptroller, requires the cities and most taxing units to calculate two rates – the no-new-revenue tax rate and the voter-approval tax rate.
The no-new-revenue (NNR) rate would produce no new taxes on the same property taxed in both years. Using the NNR rate, the taxing entity calculates the voter-approval tax rate (VATR), which increases the M&O rate from the NNR side by 3.5%. With some exceptions, this is the highest tax rate a taxing entity can adopt without holding an election seeking voter approval for the rate.
Read more here: https://amarillotribune.org/2025/08/04/cities-of-amarillo-and-canyon-enter-budget-season/