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Storyline · 19 events · Oct 1, 2020 – Oct 2026

Amarillo's wastewater plants: failures, enforcement, expansion financing and rate increases (2022-2026)

Amarillo treats wastewater at two plants: Hollywood Road (south, 12 MGD) and River Road (north). From April 2022 the state regulator (TCEQ) recorded unauthorized discharges and equipment failures at Hollywood Road, and more spills followed during flooding in June and September 2023. The City funded about $17 million in repairs in 2023 and more than $10 million in December 2024. It hired Kimley-Horn for preliminary engineering (2024) and estimated up to $3 billion to replace Hollywood Road (May 2025), then said in August 2025 that a revised approach would cost under $1.5 billion, against a $2-3 billion single-plant concept; 2026 coverage put the full project at about $1.2 billion (all estimates). It received a $20 million state grant and a $60 million TWDB loan (August 2026) for planning and design of a 12-to-22 MGD expansion. TCEQ adopted a $330,260 agreed order, offset by an environmental project, in September 2026. The adopted FY2026/27 budget is reported to include an 11% water and sewer fee increase, 3 points of it for debt service on the loan.

A storyline groups dated events in order. It is a chronology, not an argument; it does not say why anything happened. All storylines

Where the story starts depends on the framing

  1. · Context

    3% water and sewer rate increase takes effect under a five-year plan

    Water and sewer bills rose 3% on October 1, 2020, described as the second-to-last year of a five-year rate plan. The increase funded about $28.5 million in capital projects, including a northeast interceptor, plant upgrades and repairs, and automated metering.[1]

    Laura Storrs

    • ✓ Verified

      Water and sewer bills rose 3% effective October 1, 2020, funding about $28.5 million in capital projects; the increase was described as the second-to-last year of a five-year rate plan.[1]

      Rate increase
      3%
      Capital projects
      $28,500,000
    • ✓ Verified

      Laura Storrs, Assistant City Manager: Assistant City Manager Laura Storrs said: "Our water and sewer system have about half a billion dollars in assets that we are required to maintain."[1]

  2. · Origin

    Hollywood Road discharges begin; TCEQ opens an enforcement case

    On April 24, 2022 the Hollywood Road Wastewater Reclamation Facility released about 820,000 gallons after effluent overflowed its filters, according to the City. A complaint was filed with TCEQ the same day. TCEQ's later enforcement summary lists unauthorized discharges from the plant's flow equalization basin into Playa Lake 40 from April 24 to June 9, 2022, and a 1.25 million-gallon discharge from Lift Station No. 33 on July 29, 2022.[2][3]

    • ✓ Verified

      The City reported that on Sunday, April 24, 2022, from about 3 p.m. to 7 p.m., about 820,000 gallons were released from the Hollywood Road Wastewater Reclamation Facility after effluent overflowed the filters; the water did not meet TCEQ total suspended solids requirements and may have exceeded permitted levels.[2]

      Gallons
      820,000
    • ✓ Verified

      TCEQ's enforcement summary lists a complaint dated April 24, 2022 alleging the City was discharging wastewater with too-high chlorine levels, followed by investigations from April 24 to June 1, 2022, September 15, 2022, and September 2023.[3]

    • ✓ Verified

      TCEQ's enforcement summary lists, as an alleged violation, unauthorized discharges from the plant's flow equalization basin into the Playa Lake 40 basin from April 24 to June 9, 2022, totaling an estimated 166.83 million gallons.[3]

      Gallons estimated
      166,830,000
      Start
      2022-04-24
      End
      2022-06-09
    • ✓ Verified

      TCEQ's summary lists as an alleged violation that the City notified local media only of the April 24, 2022 spill, not of other spills of 100,000 gallons or more between April 28 and June 9, 2022; it states the City put notification procedures and training in place by February 27, 2023.[3]

    • ✓ Verified

      TCEQ's summary lists an alleged discharge of about 1,250,000 gallons from Lift Station No. 33 (7945 South Osage) into a roadside drainage area on July 29, 2022.[3]

      Gallons
      1,250,000

  3. · Starting point

    Flooding overwhelms Hollywood Road plant; spills into a playa lake

    During citywide flooding, the Hollywood Road plant spilled untreated and partially treated wastewater into the playa lake on its grounds. A city press release put the June 2-3 spill at about 900,000 gallons untreated and 3,000,000 gallons partially treated; TCEQ was notified.[4][5]

    • ⚠ Sources differ

      Reported volumes for the early-June 2023 Hollywood Road flood spills differ by source and time window.

      Reported value 1[4]

      Untreated gallons
      900,000
      Partially treated gallons
      3,000,000
      Window
      2023-06-02 4:30 p.m. to 2023-06-03 8:00 a.m.

      City press release as reported by KFDA, June 4, 2023.

      Reported value 2[5]

      Gallons
      3,900,000
      Date
      2023-06-05

      Amarillo Globe-News (Sept 2023) refers to a 3.9 million-gallon spill on June 5 during the early-June flooding.

      Reported value 3[6][7]

      Gallons
      over 100,000

      KFDA retrospective figure for the 2023 flood-related spill (June and December 2024 articles).

    • ⚠ Sources differ

      The Hollywood Road plant has a capacity of 12 million gallons per day; sources give its construction year as 1963 or 1965.

      Reported value 1[5][8]

      Built
      1,965

      Amarillo Globe-News (2023) and City of Amarillo news release (Sept 2025).

      Reported value 2[9]

      Built
      1,963
      Original capacity mgd
      4.5

      ABC7 (May 2025): built in 1963 to treat 4.5 MGD.

      Reported value 3[10]

      Built
      1,963
      Upgrades
      1977-2022

      TWDB project funding request (Aug 2026): built in 1963 with upgrades and expansions between 1977 and 2022.

  4. · Context

    Council discusses a proposed 5% water rate increase

    During budget talks, a 5% water rate increase was under consideration. Assistant City Manager Floyd Hartman cited higher electricity costs and needed construction. The report does not mention sewer rates or the wastewater plants.[11]

    Floyd Hartman

    • ✓ Verified

      In August 2023 budget talks, a 5% water rate increase was under consideration; Assistant City Manager Floyd Hartman cited higher electricity costs and needed construction.[11]

      Proposed rate increase
      5%

  5. · Related development

    More Hollywood Road spills in September 2023; City lays out $17 million in repairs

    Spills from Hollywood Road into Playa Lake 40 occurred over several days starting September 20, 2023. Assistant City Manager Floyd Hartman attributed the plant's condition to decades of deferred maintenance, the plant's age and the 2023 flooding. He had presented six critical projects to council on September 12, and said about $17 million in budgeted cash had been put toward repairs.[12][13][5][3]

    Floyd Hartmanblower-upgrade-projectdissolved-air-floatation-daf-dewatering-projecthollywood-road-wwtf-second-treatment-train-design

    • ⚠ Sources differ

      Reported volumes for the September 2023 Hollywood Road spills into Playa Lake 40 differ by source.

      Reported value 1[12][13]

      Gallons
      275,000

      City figure for a spill that began Wednesday evening (Sept 20) and was contained early Thursday, as reported by KFDA and ABC7.

      Reported value 2[5]

      Gallons
      940,000
      Events
      3

      Amarillo Globe-News: more than 940,000 gallons of partially treated wastewater in three spills from Wednesday to Friday.

      Reported value 3[3]

      Gallons
      971,955
      Events
      4
      Start
      2023-09-20
      End
      2023-09-23

      TCEQ enforcement summary: four unauthorized discharge events, September 20-23, 2023.

    • ✓ Verified

      Floyd Hartman, Assistant City Manager: Assistant City Manager Floyd Hartman named three reasons for the plant's condition: lack of maintenance going back decades, the plant's age, and the 2023 flooding, which he said "magnified these weaknesses."[5]

    • ✓ Verified

      Floyd Hartman, Assistant City Manager: Hartman said about $17 million in budgeted cash had been put into Hollywood Road repairs. On September 12, 2023 he presented six critical projects to council: blowers, headworks, site electrical, influent pump station, north secondary clarifiers, and sludge. Full upgrades were estimated at that time in the hundreds of millions of dollars.[13][5]

      Repairs
      $17,000,000
    • ✓ Verified

      The City's 2023-2028 Capital Improvement Program programs $309,000,000 for 'Hollywood Road WWTF Second Treatment Train Design' ($9M FY2024, $45M FY2025, $105M FY2026, $105M FY2027, $45M FY2028), plus $1,000,000 for a Hollywood Road blower upgrade and $4,500,000 for a dissolved air flotation (DAF) dewatering project, both in FY2024. These are programmed amounts, not spending.[14]

      Second treatment train
      $309,000,000
      Fy2024
      9,000,000
      Fy2025
      45,000,000
      Fy2026
      105,000,000
      Fy2027
      105,000,000
      Fy2028
      45,000,000
      Blower upgrade fy2024
      $1,000,000
      Daf dewatering fy2024
      $4,500,000

  6. · Related development

    October 2023 discharges lead to a $44,625 TCEQ penalty

    About 322,670 gallons of wastewater discharged from Hollywood Road to Playa Lake 40 on October 2 and October 4, 2023. TCEQ issued a notice of enforcement on November 22, 2023, and its expedited agreed order (published in the Texas Register October 4, 2024) assessed a $44,625 penalty, of which $35,700 was paid.[15]

    Cole StanleyGrayson Path

    • ✓ Verified

      TCEQ's enforcement summary (Docket No. 2024-0022-MWD-E) lists about 322,670 gallons of wastewater discharged from the Hollywood Road WWTP to Playa Lake 40 on October 2 and October 4, 2023, under TPDES Permit No. WQ0010392003; investigation October 31, 2023; notice of enforcement November 22, 2023.[15]

      Gallons
      322,670
    • ✓ Verified

      The 2024-0022 agreed order assessed a $44,625 penalty; $8,925 was deferred for expedited settlement and $35,700 was paid to General Revenue. It required a root cause analysis of high organic loading, cleanup of affected areas of Playa Lake 40, and measures to reduce or eliminate unauthorized discharges.[15]

      Penalty assessed
      $44,625
      Deferred
      $8,925
      Paid
      $35,700

  7. · Context

    City says 75% of identified Hollywood Road problems repaired; moving toward replacement

    The City said 75% of the problems identified a year earlier had been repaired and that an additional $300,000 had been awarded on top of $17 million for repairs. Interim City Manager Floyd Hartman said the plant is in a flood plain and the City is moving toward completely replacing it. City officials said the City had not been fined for the overflow.[6]

    Floyd Hartman

    • ✓ Verified

      In June 2024 the City said 75% of the problems identified a year earlier had been repaired and that an additional $300,000 had been awarded on top of $17 million allocated for repairs after the floods.[6]

      Additional
      $300,000
      Prior allocation
      $17,000,000
      Share repaired
      75%
    • ✓ Verified

      In June 2024, City officials said the City had not been fined for the overflow; TCEQ declined to comment. TCEQ's 2024-0022 order assessing $44,625 for the October 2023 discharges was published in the Texas Register on October 4, 2024.[6][15]

    • ✓ Verified

      Floyd Hartman, Interim City Manager: Interim City Manager Floyd Hartman said: "Out in the floods last year there was some severe damage to the wastewater plant and out of that many overflows." He said the plant is in a flood plain and that the City is moving toward completely replacing it.[6]

  8. · Related development

    Council hires Kimley-Horn for preliminary engineering of a new wastewater plant (~$6M)

    The council voted to have Kimley-Horn and Associates begin preliminary engineering for a plant to treat 24 million gallons of sewage a day, the first of three phases, under a contract of about $6 million.[16]

    Kimley-Horn and Associates

    • ✓ Verified

      On August 13, 2024 the council voted to have Kimley-Horn and Associates begin preliminary engineering, the first of three phases, for a plant to treat 24 million gallons of sewage a day; the contract was about $6 million.[16]

      Contract usd approx
      $6,000,000
      Planned capacity mgd
      24
    • ✓ Verified

      The City check register records 142 payments totaling $16,096,869.02 to Kimley-Horn and Associates between July 5, 2022 and May 21, 2026, across all City projects (FY2025: $7,948,212.62). The register does not identify which payments relate to the wastewater plants.[17]

      Total
      $16,096,869
      Fy2022
      398,808.19
      Fy2023
      3,175,933.22
      Fy2024
      1,460,569.82
      Fy2025
      7,948,212.62
      Fy2026
      3,113,345.17

      See the payments in the check register →

  9. · Related development

    Council approves more than $10 million to replace aging Hollywood Road equipment

    The council approved more than $10 million to replace equipment at the Hollywood Road plant, to be used only to keep the existing plant in regulatory compliance. The headworks system was reported to be operating at 50%. Mayor Cole Stanley said, "Everything at this point is an emergent repair."[7]

    Cole StanleyMichael Price

    • ✓ Verified

      In December 2024 the council approved more than $10 million to replace aging equipment at Hollywood Road; the money is to be used only to keep the existing plant in compliance. The headworks system was reported to operate at 50%.[7]

      Amount usd min
      $10,000,000
      Headworks operating
      50%
    • ✓ Verified

      Cole Stanley, Mayor: Mayor Cole Stanley said: "Everything at this point is an emergent repair." He estimated a newly built facility within four to five years at almost double the current capacity.[7]

    • ✓ Verified

      Michael Price, Director of Utilities: Director of Utilities Michael Price said: "It is important that we maintain our equipment and replace it as it reaches its end of life."[7]

  10. · Related development

    City estimates up to $3 billion to replace the Hollywood Road plant

    Assistant City Manager Donny Hooper called the up-to-$3 billion figure a rough estimate based on similar-sized facilities and cited TCEQ's 75/90 capacity rule; the plant was operating at 75% of capacity. City Manager Grayson Path said the City was considering bonds or low-interest loans. A rate study was expected by November 2025.[9]

    Donny HooperGrayson Path

    • ✓ Verified

      As described by the City in May 2025, TCEQ's 75/90 rule requires a city to plan for expansion or upgrades when average daily flow reaches 75% of capacity for three consecutive months, and to get TCEQ permission to begin work at 90%. Hollywood Road was reported operating at 75% of capacity and unable to be shut down for long periods for maintenance.[9]

    • ✓ Verified

      Donny Hooper, Assistant City Manager; Grayson Path, City Manager: Assistant City Manager Donny Hooper said: "I know these are sticker shock numbers" and "The only path forward that we can find is to replace Hollywood Road." City Manager Grayson Path said: "There's not really any free money out there."[9]

    • ✓ Verified

      ABC7 reported in May 2025 that June 2023 flood damage had cost the City over $4 million so far; groundbreaking on Hollywood Road II was planned for 2027 (projection), and a rate study was expected by November 2025.[9]

      Flood damage cost usd min
      $4,000,000

  11. · Related development

    Staff drop the single new plant concept; estimate falls below $1.5 billion

    The City gave an update following "regular and numerous malfunctions at the plants." Staff proposed rehabilitating or repurposing parts of the Hollywood Road plant, building a smaller facility, and assessing River Road, in place of one new centralized plant. Staff said the cost would fall from a high estimate of $2-3 billion to under $1.5 billion.[18][8]

    Donny HooperDavid Prescott

    • ⚠ Sources differ

      Sources give the River Road plant's construction year as 1922 or 1927. The City said it is being assessed for operational modifications and expansion for future growth.

      Reported value 1[9]

      Built
      1,922

      ABC7, May 2025 (described as 103 years old and at the end of its useful life).

      Reported value 2[8]

      Built
      1,927

      City of Amarillo news release, Sept 2025.

    • ⚠ Sources differ

      Published cost estimates for replacing or expanding the wastewater plants have changed over time. All are estimates; the City has said the actual cost will not be known until bids or the design phase.

      Reported value 1[9]

      Estimate usd max
      $3,000,000,000
      Date
      2025-05-28

      Up to $3 billion to replace Hollywood Road; Assistant City Manager Donny Hooper called it a rough estimate based on similar-sized facilities.

      Reported value 2[18]

      0
      2,000,000,000
      1
      3,000,000,000
      Revised usd max
      $1,500,000,000
      Date
      2025-08-26

      Original single-plant high estimate $2-3 billion; staff said revised approach would cost under $1.5 billion.

      Reported value 3[19]

      Estimate
      $1,500,000,000
      Total needs
      $1,800,000,000
      Date
      2026-05-01

      Rate-study coverage: a planned $1.5 billion plant within about $1.8 billion in water and wastewater needs.

      Reported value 4[20]

      Estimate
      $1,200,000,000
      Date
      2026-08-06

      About $1.2 billion for the full project (KFDA); a council member referred to $1 billion-$1.2 billion for Hollywood Road and River Road combined.

      Reported value 5[21]

      0
      860,000,000
      1
      1,300,000,000
      Date
      2026-08-07

      Projects of similar scope elsewhere were estimated at $860 million to $1.3 billion (Amarillo Tribune).

    • ✓ Verified

      In August-September 2025 the City moved away from a single new centralized plant toward improvements and expansion at Hollywood Road, a smaller new facility, and an assessment of River Road's functional capacity; staff estimated five to six years for the project.[18][8]

    • ✓ Verified

      KFDA reported that the City's August 2025 update followed "regular and numerous malfunctions at the plants."[18]

    • ✓ Verified

      The City said the two plants are "almost a combined 160 years old" and neither had a major upgrade in more than 20 years.[8]

  12. · Related development

    Council accepts a $20 million state grant for the wastewater plants

    The council approved a resolution to obtain $20 million the 89th Legislature appropriated for Amarillo's wastewater treatment plants, administered by the Texas Water Development Board. TWDB staff recommended the grant agreement at the board's December 16, 2025 meeting.[22][23]

    Floyd Hartman

    • ✓ Verified

      The 89th Texas Legislature appropriated $20,000,000 (HB 500 / SB 1) to upgrade Amarillo's wastewater treatment plants, administered by TWDB as Project No. 21906. The council approved a resolution to obtain it in late October 2025, and TWDB staff recommended the grant agreement for the board's December 16, 2025 meeting; the commitment expires August 31, 2027.[22][23]

      Grant
      $20,000,000
    • ✓ Verified

      Floyd Hartman, special adviser to the City of Amarillo: Special adviser Floyd Hartman said of the grant: "It's a direct reduction on their future costs" and "upgrading that plant is essential for growth of Amarillo."[22]

  13. · Related development

    Public meeting and draft environmental review for the Hollywood Road II facility

    The City held a public meeting on the proposed Hollywood Road II Wastewater Treatment Facility, a 10 MGD expansion next to the existing plant, and the council discussed the draft Environmental Information Document. The notice put planning and design at about $74 million, about $60 million of it from a TWDB Clean Water State Revolving Fund application.[24][25]

    David PrescottKimley-Horn and Associates

    • ✓ Verified

      The City's notice put the total estimated planning and design cost of the Hollywood Road II project at about $74 million, about $60 million of it to be funded through the TWDB Clean Water State Revolving Fund. The project is a 10 MGD expansion on City property next to the existing plant, with a TCEQ discharge permit amendment needed before construction.[24]

      Planning design
      $74,000,000
      Twdb cwsrf
      $60,000,000
      Expansion mgd
      10
    • ✓ Verified

      Projection: the City's notice said an average user rate increase of $1.66 per month could be required to finance the planning and design project, raising a typical resident's average monthly bill from $41.59 to a projected $43.25.[24]

      Current avg bill
      $42
      Increase
      $2
      Projected avg bill
      $43
    • ✓ Verified

      David Prescott, City Councilmember (quote): Staff said the draft Environmental Information Document found the project would not affect wetlands or flood plains; written comments were accepted through May 5, 2026, after which the final document goes to TWDB. Councilmember David Prescott said: "The cost we know is going to be high and it's going to be a challenge."[25][24]

    • ✓ Verified

      The public notice directs written comments to a Kimley-Horn office in Dallas or directly to TWDB.[24]

  14. · Related development

    Rate study recommends a phased 8.37% water and wastewater adjustment (preliminary)

    A water and wastewater rate study presented to the council recommended a gradual 8.37% adjustment toward about $1.8 billion in needs, including a planned $1.5 billion wastewater plant. The study projected that debt service could rise 238% by FY2036. The figure was described as preliminary; the council agreed to continue the study.[19]

    • ✓ Verified

      A water and wastewater rate study recommended a gradual 8.37% rate adjustment toward an anticipated $1.8 billion to fund the planned wastewater plant and other Capital Improvement Plan water projects; the 8.37% was described as a preliminary estimate that may change, applying to residential, commercial and industrial customers.[19]

      Recommended adjustment
      8.37%
      Needs
      $1,800,000,000
    • ✓ Verified

      Projection (rate study, as reported): annual debt service could rise 238% by FY2036; utility expenses could reach $257.2 million by FY2036 against revenues of about $129.5 million; Amarillo's Canadian River Municipal Water Authority cost could rise from $14.3 million (FY2026) to $39.5 million (FY2036).[19]

      Debt service increase pct by fy2036
      238
      Fy2036 expenses
      $257,200,000
      Fy2036 revenues
      $129,500,000
      Crmwa cost fy2026
      $14,300,000
      Crmwa cost fy2036
      $39,500,000

  15. · Related development

    Phase Two engineering agreements for Hollywood Road II and River Road II go to council

    Phase One (master planning, preliminary engineering report, permitting analysis and facility assessment) was reported complete. The Phase Two professional engineering services agreement for Hollywood Road and River Road was scheduled for council approval on July 28, 2026. A June 2026 agenda planner listed Kimley-Horn awards of $9,397,700 (Hollywood Road II) and $12,874,250 (River Road II).[26][27]

    Cole StanleyLes SimpsonKimley-Horn and Associates

    • ✓ Verified

      Cole Stanley, Mayor; Les Simpson, Councilmember: Phase One (master planning, preliminary engineering report, permitting analysis and facility assessment) was reported complete in July 2026; Phase Two covers pre-design, conceptual design and construction-manager-at-risk coordination. Mayor Cole Stanley said, "We are on time overall," toward a 2031 goal; Councilmember Les Simpson said construction could start around 2028.[26]

    • ✓ Verified

      A City Council agenda planner (as of June 24, 2026) listed Phase 2 professional engineering services awards to Kimley-Horn & Associates of $9,397,700.00 for Hollywood Road II and $12,874,250.00 for River Road II, funded from a 'Wastewater Treatment Expansion Phase 1 - Design Grant'.[27]

      Total
      $22,271,950
      Hollywood road ii
      $9,397,700
      River road ii
      $12,874,250
    • Unverified

      Whether, and in what amounts, the council approved the Phase Two engineering agreements on July 28, 2026 has not been confirmed from a fetched source.[26]

  16. · Peak

    TWDB approves $60 million loan for planning and design of the Hollywood Road expansion

    The Texas Water Development Board considered and approved $60 million from the Clean Water State Revolving Fund for planning and design to expand the Hollywood Road plant from 12 MGD to 22 MGD. The City pledged waterworks and sewer system revenues. The planned schedule runs to design completion in June 2028 and construction completion on December 31, 2031.[10][20][21]

    Donny HooperDavid Prescott

    • ⚠ Sources differ

      The planned capacity of the new or expanded Hollywood Road facility is stated differently over time.

      Reported value 1[16]

      Capacity mgd
      24

      Preliminary engineering scope reported when Kimley-Horn was hired, August 2024.

      Reported value 2[24][10][20]

      Capacity mgd
      22
      Expansion mgd
      10

      2026 Hollywood Road II plan: a 10 MGD expansion of the 12 MGD plant to 22 MGD.

    • ✓ Verified

      On August 6, 2026 the Texas Water Development Board approved $60,000,000 in Clean Water State Revolving Fund financing (Project No. 74008), through the proposed purchase of City of Amarillo Waterworks and Sewer System Revenue Bonds, Series 2026, for planning and design of expanding the Hollywood Road plant from 12 MGD to 22 MGD; the City pledged waterworks and sewer system revenues (first lien).[10][20][21]

      Loan
      $60,000,000
      From mgd
      12
      To mgd
      22
    • ✓ Verified

      TWDB's project budget for the $60 million allocates $38,697,340 to design, $13,709,800 to planning, $698,624 to special services, $5,882,861 to fiscal services (including a $4,645,919 bond reserve fund and a $1,031,941 loan origination fee) and $1,011,375 to contingency.[10]

      Total
      $60,000,000
      Design
      $38,697,340
      Planning
      $13,709,800
      Special services
      $698,624
      Fiscal services
      $5,882,861
      Contingency
      $1,011,375
    • Pending

      Projection (TWDB project schedule): loan closing November 15, 2026; engineering feasibility report June 30, 2027; design completion June 30, 2028; start of construction December 1, 2028; construction completion December 31, 2031.[10][20]

    • ✓ Verified

      Projection (TWDB illustrative schedule, subject to change at closing): 30-year maturity to March 1, 2056 at a net interest rate of about 2.87%, total interest of $30,385,126, and estimated savings of $18,125,768 over the life of the financing.[10]

      Net interest rate
      2.869%
      Total interest
      $30,385,126
      Savings
      $18,125,768
      Final maturity
      2056-03-01
    • ✓ Verified

      TWDB's financial review states that the water and sewer system's FY2025 debt service coverage ratio was 0.93x against a 1.0x requirement; it projected rate increases totaling $2.66 would be needed by 2028, and noted the City implemented a $4.39 rate increase in October 2025 that staff expect to mitigate the need for further increases to cover current debt.[10]

      Debt service coverage fy2025
      0.93
      Required coverage
      1
      Oct2025 rate increase
      $4
    • ✓ Verified

      TWDB's funding request states that Hollywood Road is operating above 9 MGD, exceeding 75% of its 12 MGD capacity, and that TCEQ requires utilities to begin planning for expansion once flows reach 75% of permitted capacity.[10]

    • Pending

      The City has applied for a second $60 million TWDB loan for planning and design at the River Road plant; no decision had been reported as of August 7, 2026.[21]

    • ✓ Verified

      Donny Hooper, Assistant City Manager: Assistant City Manager Donny Hooper said: "We're going to look at every cost-saving measure that we can absolutely find."[21]

  17. · Resolution

    TCEQ adopts a $330,260 agreed order over 2022-2023 Hollywood Road violations

    The TCEQ commissioners adopted an agreed order with the City of Amarillo (Docket No. 2022-1576-MWD-E) covering 16 alleged violations at the Hollywood Road plant from 2022-2023. The $330,260 penalty is offset in full by a supplemental environmental project (screw pump installation), and the order requires further repairs within set deadlines.[28][3]

    Cole StanleyGrayson Path

    • ✓ Verified

      On September 23, 2026 the TCEQ commissioners adopted the agreed order in Docket No. 2022-1576-MWD-E (City of Amarillo, Hollywood Road WWTP) by unanimous agreement.[28]

    • ✓ Verified

      The order assesses a $330,260 penalty, fully offset by a supplemental environmental project titled 'Screw Pump Installation (Compliance)'; $0 is paid to General Revenue.[3]

      Penalty assessed
      $330,260
      Sep offset
      $330,260
      Paid to general revenue
      $0
    • ✓ Verified

      The executive summary lists 16 alleged violations, including unauthorized discharges (2022 and September 2023), effluent limit exceedances for ammonia nitrogen, total suspended solids, CBOD, chlorine residual and E. coli, and equipment found out of service: aeration basin air leaks, inoperable clarifier arms and rakes, full and non-operational sludge digesters, an inoperable DAF unit, three of five blowers out of service, and one of two bar screens operational.[3]

    • ✓ Verified

      The summary lists completed corrective actions through April 27, 2026 (including repair of all four digesters by September 11, 2025, compliance with all permitted effluent limits by November 30, 2025, and DAF replacement with a rotary drum thickener by April 27, 2026) and requires removal of excess solids within 60 days and aeration basin and clarifier repairs within 180 days.[3]

  18. · Related development

    FY2026/27 budget adopted with an 11% water and sewer fee increase

    The council adopted the FY2026/27 budget 4-1 (Councilmember Les Simpson opposed). The budget includes an 8% increase to water and sewer fees for capital improvements and a 3% increase for debt service on the $60 million Hollywood Road loan. Mayor Cole Stanley asked for a possible decrease if the consultant's study finds the full increase is not needed.[29][30]

    Cole StanleyLes SimpsonDonny HooperDavid Prescott

    • ⚠ Sources differ

      Reported water and sewer fee increase in the FY2026/27 budget.

      Reported value 1[29]

      Increase
      11%
      Capital
      8%
      Debt service
      3%

      Adopted budget, per Amarillo Tribune (Sept 30, 2026): 8% for capital improvements plus 3% for debt service on the $60 million Hollywood Road loan.

      Reported value 2[30]

      Increase
      8%

      Proposed budget as previewed by ABC7 the day before the vote (Sept 28, 2026), to finance capital projects.

    • ⚠ Sources differ

      Reported monthly bill impacts for a 10,000-gallon residential user differ by the rate assumed.

      Reported value 1[29]

      Water increase
      $5
      Sewer increase
      $5
      Basis
      11%, smallest meter

      Tribune: at 11% the water fee rises $4.89-$60.61 and the sewer fee $4.50-$11.88 per month depending on meter size.

      Reported value 2[30]

      Water from
      $45
      Water to
      $48
      Sewer from
      $41
      Sewer to
      $44
      Basis
      8%, 5/8-inch meter

      ABC7 preview: combined about $6.83 more per month.

    • ✓ Verified

      The council adopted the FY2026/27 budget and a $0.4307 tax rate, each by a 4-1 vote with Councilmember Les Simpson opposed. Staff identified $247 million in water and sewer projects beyond the wastewater treatment facility projects.[29]

      Vote for
      4
      Vote against
      1
      Other ws projects
      $247,000,000
    • ✓ Verified

      Donny Hooper, Assistant City Manager; David Prescott, Councilmember: Assistant City Manager Donny Hooper said: "Do as much as we can this year, try to come up with a new budget next year." Councilmember David Prescott said: "We have to be able to weather all economic conditions with the most valuable resource we have."[29]

  19. Scheduled

    Consultant's water and sewer rate study expected back at an October 2026 council meeting

    The rate consultant's study was expected to return at an October 2026 meeting. The Mayor asked that it show whether the 11% increase could be reduced.[29]

    Cole Stanley

    • Pending

      Mayor Cole Stanley asked for a possible rate decrease if the consultant's study finds the 11% increase is not needed; the study was expected to return at an October 2026 council meeting.[29]

    • Pending

      The agenda posted for the October 13, 2026 City Council regular meeting does not list the consultant's water and wastewater rate study; its utility items are two water/wastewater capital budget transfers and a Lift Station 19 engineering contract. As of October 10, 2026 no presentation of the study had been reported.[31]

Related storylines: Amarillo's property tax rate and voter-approved debt (2016-2026)Amarillo's utility billing transition and the 2026 billing crisisAmarillo's sewer collection system: reported overflows and main and lift station work (2017-2026)