Canyon adopts 2025-26 budget ordinance that raises property tax rate to cover new public-safety bond debt

The City Commission of Canyon on Aug. 5 held a public hearing and adopted Ordinance No. 12-39, approving the city’s fiscal 2025–26 budget and a property tax rate increase intended primarily to service recently issued general-obligation bonds for public-safety facility improvements.

City staff told commissioners the proposed budget includes $6.3 million in property-tax revenue, an increase of about $1.4 million over the current year driven largely by debt-service needs tied to the public-safety bond program. Staff said about $1.0 million of that increase is needed to cover debt service for bond proceeds tied to the Series 2025 issuance.

The budget and tax-rate discussion centered on the city’s sale of general-obligation bonds following voter approval earlier this year. Staff reported Hilltop Securities obtained bids for the city’s 2025 bond sale; the city sold $13,805,000 in general-obligation bonds as a result of the sale, and staff said net proceeds available for construction are expected to be $14,000,000. The repayment schedule included in staff materials shows annual debt-service payments of roughly $1,060,000 over the next 20 years, with the first payments scheduled in the fiscal year covered by the ordinance.

Why it matters: staff said the tax-rate change will affect the average homeowner’s annual bill. Using…