This story has been updated with additional information because an earlier version included an inaccuracy.
CANYON — The annual budget process began for the Canyon City Commission on Tuesday night at their regular meeting.
Before the property tax rate for the 2025-26 tax year can be adopted, they must hold a public hearing, which must include a tax rate that has been approved by the commission with a recorded vote, according to Joel Wright, finance director of the City of Canyon.
“The approved tax rate can still be changed after the rate is approved but cannot exceed the approved rate. So, notice will be in the August 9 issue of Canyon News, and the proposed tax rate hearing would be scheduled for August 19,” he said.
The total proposed 2025 tax rate is $0.51181, which is an increase of $0.10170. The $0.08765 (86%) of that tax rate increase is related to debt payments, including the first payment for the $14 million 2025 Public Safety GO Bond approved by voters in May 2025.
According to figures provided, the tax rate would generate an increase in property tax revenue of $1.4 million, of which 77% would be used to service debt. The rate was approved in a 4-1 vote, with Commissioner Paul Lyons voting against the measure.
Sale of Certificates of Obligation nets $14 million for public safety projects
Jason Hughes with Hilltop Securities was online to present information on the sale of general obligation bonds (Certificates of Obligation, or COs). In the May election, Canyon voters approved the issuance of the $14 million COs for public safety related projects.
The bond sale was on Tuesday, Aug. 5, and they sold for $13,805,000 with premium and were able to net the entire $14 million to be delivered to the city. The final interest rate of 4.417% is a fixed rate, but it can be refinanced. Hughes said that the market had strengthened this week. ”There have been a lot of Texas, particularly in school district bonds, in the market over the past couple of weeks,” he said. “It’s been nice to see a very strong market with good demand, for that depth.”
The tax rate will be further discussed at the Aug. 19 meeting at the Commission Chambers at Canyon City Hall at 301 6th St. in Canyon.
