The Canyon City Commission took its first official step toward finalizing the city’s 2025–26 budget Tuesday night by proposing a higher property tax rate, primarily to cover a significant increase in debt service related to public safety improvements.
According to city documents, the proposed total tax rate for the upcoming fiscal year is $0.51181 per $100 of taxable property value. That marks an increase of $0.10170 over the current rate — a roughly 25% hike. Of that increase, $0.08765 is earmarked specifically for debt service payments, including the first installment of the $14 million Public Safety General Obligation Bond approved by Canyon voters in May 2025.
Finance Director Joel Wright emphasized that the commission must hold a public hearing before the rate can be officially adopted.
The city plans to issue up to $14 million in new debt, which will primarily fund upgrades to fire and police department facilities. As a result, the debt service category in the city’s budget will rise significantly — from this year’s $400,000 to an estimated $1.4 million next year.
The proposed tax rate would generate an additional $1.4 million in property tax revenue, according to city estimates. About 77% of that new revenue would go toward paying down debt.
Commissioners voted 4-1 to move forward with the proposed tax rate. Commissioner Paul Lyons was the lone dissenting vote.
The next step in the budget process will be a public hearing, the date of which has yet to be set. Residents will have the opportunity to voice their opinions on the proposed rate and budget before the commission votes to adopt the final numbers.
In the meantime, city officials are urging residents to review the proposed budget and stay informed about how the increased tax revenue would be used.
