The Canyon City Commission officially kicked off its 2026-27 budget season Tuesday afternoon, beginning what will be several weeks of discussions over city spending before adopting a final budget and property tax rate later this summer.
With certified property values still pending, it's too early for city leaders to determine a proposed tax rate. Instead, commissioners spent the workshop reviewing an early draft of the budget, hearing department funding requests and offering feedback to staff. No votes were taken, as the workshop was designed to help shape the budget before a final proposal returns for approval.
City Manager Joe Price called the budget one of the city's most important responsibilities and encouraged commissioners to ask questions throughout the process. Like recent budgets, he said, this year's proposal prioritizes public safety.
Budget and Purchasing Manager Beau Boyer presented a preliminary spending plan totaling nearly $28.8 million, about 4% higher than the current fiscal year's budget based on current revenue and expenditure estimates.
On the revenue side, property tax collections are projected to increase roughly 4.2%, while sales tax revenue is expected to climb 7%. Franchise fee revenue, however, is forecast to decline about 6%.
Much of the additional spending is tied to personnel, particularly within the police and fire departments.
The proposal includes nearly $500,000 in added public safety payroll costs, covering a 3% merit increase for civilian employees and full-time firefighters, wage adjustments for police officers and funding for additional firefighter staffing.
The coming fiscal year would also mark the second year of Canyon's step-based pay scale for police officers, part of an effort to make the department's salaries more competitive with neighboring Amarillo.
Not every department request made the first draft.
Boyer said several major equipment purchases have been postponed while the city continues building reserves in its capital equipment fund. The goal is to have enough cash on hand for larger purchases expected next October, meaning those requests aren't ready to move forward yet.
Beyond personnel, the budget also invests in infrastructure.
The proposal includes transfers for water and wastewater line projects, along with $100,000 to begin setting aside money for a possible future expansion of the city's wastewater treatment plant.
While the current facility has enough capacity today, city officials say they're evaluating long-term expansion options to stay ahead of future regulations and accommodate continued growth.
One of the longest discussions Tuesday focused on staffing at the Canyon Fire Department.
The preliminary budget funds one full-time firefighter for six months. At the same time, city officials are pursuing grants that could help pay for three additional firefighter positions over the next three years.
The conversation comes a year after the department switched to 24-hour shifts.
Fire Chief Dennis Gwyn said each shift currently operates with four firefighters, meeting the department's minimum staffing policy but leaving little room when someone is sick, on vacation or injured.
Because volunteer firefighters are often unavailable during weekday business hours, the department regularly relies on Amarillo career firefighters who volunteer while off duty. When volunteers can't cover open shifts, the city must pay overtime to maintain minimum staffing.
The department has grown considerably in recent years.
In 2020, Canyon had just three full-time firefighters. Today, that number has climbed to 14.
Even so, Boyer estimated it would take about 12 years to add the six firefighters the department has requested if the city continues its current practice of funding only half of a new position each year.
Mayor Gary Hinders questioned whether that timeline is realistic, suggesting the city consider funding one full firefighter position annually instead.
Several commissioners shared concerns that waiting more than a decade to reach desired staffing levels could make it increasingly difficult to cover absences while keeping overtime costs under control.
The proposed budget also sets aside $50,000 to help the city comply with federal Environmental Protection Agency lead and copper regulations.
The funding would support work required under new EPA rules that require cities nationwide to inventory their water service lines by fall 2027 as part of a long-term effort to identify and replace lead and galvanized pipes where necessary.
Tuesday's workshop was only the first step in the annual budget process.
Certified property values, which will determine the city's proposed tax rate, are expected by July 25. State law requires Canyon to adopt its tax rate by Aug. 24.
Commissioners also discussed holding a public hearing on the proposed budget Aug. 10 at 4:30 p.m., giving residents an opportunity to review the spending plan and provide feedback before it's finalized.
Following the workshop, commissioners moved into their regular meeting, where they approved a funding agreement with the Canyon Economic Development Corporation to continue downtown revitalization efforts and authorized staff to pursue a major state water infrastructure grant.
The city plans to apply to the Texas Water Development Board for approximately $19.75 million through a program created during the Texas Legislature's 89th session. Canyon is eligible to seek as much as $21 million, and if awarded, the funding would support major water system improvements, including additional storage capacity and new transmission lines to meet future growth.
