Canyon city commissioners approved the maximum property tax rate the city can adopt without requiring a voter approval election during Tuesday's meeting, moving the city's proposed 2026/2027 budget one step closer to adoption.

The proposed tax rate is $0.53413 per $100 of taxable valuation, which is expected to generate about 4% more property tax revenue than last year. City officials estimate the owner of an average-valued home would pay about $1,448 in city property taxes, an increase of less than $90 a year, or less than $8 a month.

Commissioners could still adopt a lower tax rate when they approve the budget later this month, but they cannot adopt one higher than the rate approved Tuesday.

City staff said the proposed rate was developed based on the needs of city departments and the commission's priorities.

One of the proposed additions to next year's budget is three part-time positions in the fire department to improve the city's wildfire preparedness efforts.

"We are looking to add on three part-time positions for the fire department, part of a program to preemptively prepare for wildfires," said Beau Boyer, budget and purchasing manager for the City of Canyon. "It's been a very big topic here recently. We want to make sure that we are instituting programs and communicating with the public what we can all do together in preparation to avoid those wildfires from happening again in our community."

The proposed budget totals about $28.8 million, roughly 4% more than last year's budget. It includes nearly $500,000 in additional public safety personnel costs, including a 3% merit increase for civilian employees and full-time fire department staff, along with wage increases for police department employees.

Under Texas law, property tax rates are made up of two components: maintenance and operations, which pays for day-to-day city services, and interest and sinking, which covers debt payments.

Because Canyon has fewer than 30,000 residents, the city is allowed to use the state's de minimis tax rate calculation. For 2026/2027, that rate is $0.54862 per $100 of valuation, meaning the proposed rate falls below the threshold that would require a tax ratification election. Residents may still petition for an election seeking a lower tax rate.

Commissioners approved the proposed tax rate on a 4-0 vote.

The proposed budget and tax rate will each be considered during separate public hearings before commissioners vote on final adoption. The budget hearing is scheduled for Aug. 10 at 4:30 p.m., and the tax rate hearing will be held Aug. 18 at 4:30 p.m. at Canyon Commissioners Court.