The City of Canton held its first public hearing regarding the proposed millage rate for 2024, with city officials emphasizing the importance of property taxes as a significant revenue source. City Finance Director Ms. Forrester presented an overview of the millage rate process, noting that property taxes account for 18% of the city's total revenues, which is crucial for maintaining city services.

For the upcoming fiscal year, the staff recommends maintaining the millage rate at 5.4 mills, the lowest rate that can sustain current services and reserves. This decision comes amid rising property assessments, which are expected to generate an additional $639,000 in tax revenue if the rate remains unchanged. However, the city faces uncertainty regarding the county's fire tax, which is anticipated to increase, potentially impacting the city's budget.

Residents voiced concerns during the public hearing, with Chris Everett highlighting that the proposed tax increase of 5.82% exceeds the Social Security cost-of-living adjustment, raising questions about the city's revenue needs. Thomas Weaver echoed these sentiments, expressing worries about the implications of a potential increase in the county's fire millage rate on city finances.

City officials acknowledged the challenges posed by rising costs and the need for transparency in the budgeting process. They indicated that further public hearings will be held on July 11 and July 18 to discuss the millage rate and gather community input before finalizing the budget for fiscal year 2025.

The council is also considering the impact of a compensation study that could require an additional $700,000 to $1 million in payroll expenses, further complicating budget discussions. As the city navigates these financial challenges, officials aim to balance the need for adequate funding with the desire to minimize the tax burden on residents.