Canyon Commission adopts 0.51181 tax rate, a 30% increase to cover bond debt and operations

The Canyon City Commission adopted Ordinance No. 12 40 on a 3-1 vote to set the city's 2025 ad valorem tax rate at 0.51181 per $100 of valuation.

City staff said the rate combines a maintenance and operations (M&O) rate of 0.3904 and an interest-and-sinking (I&S) or debt-service rate of 0.12141. Staff told the commission the combined rate will generate about $6,346,000 in property tax revenue for the 2025 tax year, about $1,413,000 more than the prior year.

The increase is driven primarily by debt service on recently issued general obligation bonds approved by city voters in May. Joel (staff member) told the commission the city sold Series 2025 general obligation bonds with a par/principal amount of $13,805,000 and that annual debt payments on that issue will be approximately $1,060,000 over the next 20 years. Joel said roughly 77% of the revenue increase is associated with servicing those bonds.

Why it matters: The tax increase funds both the new bond debt and…