City of Canyon Commission Meetings

AGENDA NOTICE OF SPECIAL MEETING Notice is hereby given that the governing body of the City of Canyon will meet at 4:30 p.m. on Thursday, the 15th day of August 2024 in the Commission Chambers of City Hall at 301 16th Street in the City of Canyon to discuss the following agenda items. The meeting is broadcast on YouTube. YouTube does provide closed captioning on the recorded video, it is not provided real-time. 1. Call to Order. 2. Invocation. 3. Pledge of Allegiance. 4. Public Comment – Comments from Interested Citizens. 5. City Manager Recognition of Ernie Rojas for 41 Years of Dedication to Canyon Upon His Retirement. 6. Consider and Take Appropriate Action On Ordinance No. 1213, An Ordinance Making Appropriations for the Support of the City of Canyon for the Fiscal Year Beginning October 1, 2024 and Ending September 30, 2025; Providing for the Appropriation of an Interest and Sinking Fund to Pay Interest and Principal on the City’s Indebtedness; Providing for the Adoption of the Annual Budget of the City of Canyon, Texas for the 2024-2025 Fiscal Year; Providing That Expenditures for Said Fiscal Year Shall be Made in Accordance with Said Budget; Authorizing Specific Budget Adjustment Authority to the City Manager; Providing for the Ratification of Budgeted Appropriation Transfers in the 2024-2025 Fiscal Year; Providing a Repealing Clause; Providing a Savings Clause; and Providing for Publication and an Effective Date. 7. Conduct Public Hearing, and Consider and Take Appropriate Action on Ordinance No. 1214, An Ordinance of the City Commission of the City of Canyon, Texas, Fixing the Ad Valorem Tax Rate and Providing for the Levying of Ad Valorem Taxes for the Use and Support of the Municipal Government of the City of Canyon, Texas for the Fiscal Year Beginning October 1, 2024 and Ending September 30, 2025 at the Rate of $0.410110 Per One Hundred Dollars ($100.00), and for Directing the Assessment Thereof; Providing for a Date on Which Such Taxes Become Due and Delinquent Together With Penalties and Interest Thereon; Providing for Repealing, Savings and Severability Clause; Providing for an Effective Date of this Ordinance; and Providing for the Publication of the Caption Hereof. 8. Adjourn Joe Price Joe Price, City Manager I certify that the above Notice of Meeting was posted on the bulletin board of the Civic Complex of the City of Canyon, Texas on the 12th day of August 2024. Gretchen Mercer, City Clerk City of Canyon AGENDA ITEM 6 AGENDA To: Joe Price, City Manager From: Joel Wright, Director of Finance, and Beau Boyer, Budget & Purchasing Manager Date: August 12, 2024 Re: Consider and Take Appropriate Action on Ordinance No. 1213 Adopting the FY 2024-2025 Operating Budget ONLY NEEDS TO BE CONSIDERED IF THE BUDGET IS NOT ADOPTED MONDAY AUGUST 12, 2024 During this regular meeting of August 12, 2024, the Commission will hold the required public hearing and introduce Ordinance 1213. All statutory requirements pertaining to the municipal budget process will be met after the conclusion of the Public Hearing. Upon final passage of Ordinance 1213, along with the subsequent ratification vote of the budget because of the increase in budgeted property taxes revenue of $567,943, the City of Canyon’s Operating Budget for the fiscal year beginning October 1, 2024 and ending September 30, 2025 will be complete. Justification for Property Tax Increases: 1) $250,233 - Increase to meet voter-approved annual debt service requirement. 2) $195,038 – Existing General Fund full-time employee merit salary increases. 3) $112,090 – 3 new firefighter positions for half the year. 4) $ 32,226 – required increase in General Fund full-time employee retirement contributions. 5) $ 25,920 – increase for firefighter retirement contributions (volunteer incentive). 6) $ 49,545 – Unreimbursed School Resource Officer (SRO) position costs. 7) $ 36,401 – Court Bailiff positions costs previously paid by Special Revenue Fund. 8) $ 27,500 – Safe Streets for All grant match. 9) $304,207 – Reduced budgeted Sales Tax revenue. The proposed major fund expenditures in the FY 2024-2025 Operating Budget total $26,875,121. This amount includes personnel costs, service operations, capital improvements, capital projects, and equipment purchases. The proposed budget has an $845,178 increase in budgeted expenses compared to FY 2023-2024. Staff recommends Commission’s ratification of the Proposed Budget for FY 2024-2025 regarding the property tax increase. City of Canyon  AGENDA RECOMMENDED MOTION: 2 separate motions - 1 on Budget Adoption and 1 on the Ratification of the Budget – due to the increase of property taxes): 1) I move that Ordinance 1213, making appropriations in support of the general operation of the City of Canyon for the year beginning October 1, 2024 and ending September 30, 2025, be adopted on final reading.” “RECORD VOTE REQUIRED” 2) Texas Local Government Code 102: Adoption of a budget that will require raising more revenue from property taxes than in the previous year requires a separate vote of the governing body to ratify the property tax increase reflected in the budget. A vote under this subsection is in addition to and separate from the vote to adopt the budget or a vote to set the tax rate required by Chapter 26, Tax Code, or other law. I move that Ordinance 1213, making appropriations in support of the general operation of the City of Canyon for the year beginning October 1, 2024 and ending September 30, 2025, be ratified with an increase of property tax revenue.” City of Canyon  ORDINANCE NO. 1213 AN ORDINANCE MAKING APPROPRIATIONS FOR THE SUPPORT OF THE CITY OF CANYON FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2024 AND ENDING SEPTEMBER 30, 2025; PROVIDING FOR THE APPROPRIATION OF AN INTEREST AND SINKING FUND TO PAY INTEREST AND PRINCIPAL ON THE CITY'S INDEBTEDNESS; PROVIDING FOR THE ADOPTION OF THE ANNUAL BUDGET OF THE CITY OF CANYON, TEXAS FOR THE 2024-2025 FISCAL YEAR; PROVIDING THAT EXPENDITURES FOR SAID FISCAL YEAR SHALL BE MADE IN ACCORDANCE WITH SAID BUDGET; AUTHORIZING SPECIFIC BUDGET ADJUSTMENT AUTHORITY TO THE CITY MANAGER; PROVIDING FOR THE RATIFICATION OF BUDGETED APPROPRIATION TRANSFERS IN THE 2024-2025 FISCAL YEAR; PROVIDING A REPEALING CLAUSE; PROVIDING A SAVINGS CLAUSE; AND PROVIDING FOR PUBLICATION AND AN EFFECTIVE DATE WHEREAS, on July 8, 2024, the proposed FY 2024-2025 Operating Budget was filed with the City Secretary, and made available for public inspection; and, WHEREAS, the City Commission has received the proposed Budget, appended hereto as Exhibit A, for the fiscal year beginning October 1, 2024 and ending September 30, 2025; and, WHEREAS, a public hearing was ordered by the City Commission, public notice of said hearing was caused to be given by the City Commission, said notice was published in the Official Newspaper of the City of Canyon, Texas, and said public hearing was held in accordance to said notice. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS: SECTION 1. That, the appropriations for the Fiscal Year beginning October 1, 2024 and ending September 30, 2025, for the support of the general government of the City of Canyon, Texas, be fixed and determined for said terms in accordance with the expenditures shown in the proposed Fiscal Year 2024-2025 Budget, a copy of which is appended hereto as Exhibit A. SECTION 2. That, there is hereby appropriated the amount shown in said budget necessary to provide for an interest and sinking fund for the payment of principal and interest and the retirement of the bonded debt requirements of Fiscal Year 2024-2025 of the City of Canyon, Texas. Ordinance 1213 Page 1 of 3 SECTION 3. That, the Budget, as shown in words and figures in Exhibit A, is hereby approved in all respects and adopted as the City of Canyon’s Budget for the Fiscal Year beginning October 1, 2024 and ending September 30, 2025. SECTION 4. That, the expenditures during the Fiscal Year beginning October 1, 2024 and ending September 30, 2025, shall be made in accordance with the Budget approved by this Ordinance unless otherwise authorized by a duly enacted ordinance of the City Commission of the City of Canyon, Texas. SECTION 5. That, specific authority is given to the City Manager to make the following adjustments to the City of Canyon’s Budget for the Fiscal Year beginning October 1, 2024 and ending September 30, 2025: 1. Transfer of appropriations budgeted from one account classification to another account classification within the same department. 2. Transfer of appropriations budgeted from one department or activity to another department or activity within the same fund. SECTION 6. That, all provisions of the ordinances of the City of Canyon, Texas, in conflict with the provisions of this Ordinance be and the same are hereby repealed and all other provisions of the ordinances of the City of Canyon, Texas, not in conflict with the provisions of this Ordinance shall remain in full force and effect. SECTION 7. That, if any word, sentence, paragraph, subdivision clause, phrase or section of this Ordinance be adjudged or held unconstitutional, illegal, or invalid, the same shall not affect the validity of this Ordinance as a whole, or any part or provision thereof other than the part so decided to be invalid, illegal, or unconstitutional. SECTION 8. That, this Ordinance shall become effective after its publication, and the City Secretary of the City of Canyon, Texas, is hereby directed to publish in the Official Newspaper of the City of Canyon, Texas, the Caption, and Effective Date of this Ordinance as required by Section 52.013, Texas Local Government Code. Ordinance 1213 Page 2 of 3 PASSED, APPROVED, AND ADOPTED, on this the 15th day of August 2024, at a regular meeting of the City Commission of the City of Canyon, Texas, which meeting was held in compliance with the Open Meetings Act, Tex Gov’ t Code, § 551.001, et.seq. at which meeting a quorum was present and voting. For the Adoption: Against the Adoption: Abstaining: Absent: GARY HINDERS, MAYOR ATTESTED TO: GRETCHEN MERCER, CITY SECRETARY Ordinance 1213 Page 3 of 3 AGENDA ITEM 7 AGENDA To: Joe Price, City Manager From: Beau Boyer, Budget & Purchasing Manager and Joel Wright, Director of Finance Date: August 15, 2024 Re: Conduct Public Hearing, and Consider and Take Appropriate Action on Ordinance No. 1214, An Ordinance of the City Commission of the City of Canyon, Texas, Fixing the Ad Valorem Tax Rate and Providing for the Levying of Ad Valorem Taxes for the Use and Support of the Municipal Government of the City of Canyon, Texas for the Fiscal Year Beginning October 1, 2024 and Ending September 30, 2025 at the Rate of $0.410110 Per One Hundred Dollars ($100.00), and for Directing the Assessment Thereof; Providing for a Date on Which Such Taxes Become Due and Delinquent Together With Penalties and Interest Thereon; Providing for Repealing, Savings and Severability Clause; Providing for an Effective Date of this Ordinance; and Providing for the Publication of the Caption Hereof. The current tax rate is $0.39286 per $100 valuation which consists of a maintenance and operations (M&O) rate of $0.37907 per $100 valuation and a debt service (I&S) rate of $0.01379 per $100 valuation. Thus far these rates have generated an actual total amount of $4,413,509 in fiscal year 2023-2024. Staff is proposing adoption of a combined tax rate of $0.41011 per $100 valuation for the 2024 tax year. The proposed tax rate consists of a maintenance and operations (M&O) rate of $0.37635 per $100 valuation and a debt service interest and sinking fund (I&S) rate of $0.03376 per $100 valuation. The proposed tax rate is more than the no-new-revenue tax rate of $0.36660 as calculated in accordance with the provisions of the current Property Tax Code, and this thus a tax rate increase. In 2024 Market Values of property increased by 9% and Taxable Values increased by 10% as compared to the 2023 tax year. The proposed tax rate would generate a 13% increase in budgeted property tax revenue in the 2024-2025 fiscal year as compared to the 2023-2024 budget. One public hearing on the tax rate will be required, and the tax rate can be adopted at the conclusion. If a tax rate is not adopted following the public hearing, an announcement prior to adjournment must be made of the date, time and place at which the vote to adopt the tax rate will take place. This later meeting must be held no later than August 22, 2024. City of Canyon  AGENDA General Fund Debt Service Fund TIRZ #1 Fund M&O M&O I&S I&S TIRZ #1 Total Tax Tax Year M&O I&S TIRZ #1 Tax Revenue Tax Revenue Revenue Rate Revenue Revenue Revenue Rate Increase Rate Increase Increase 2017 0.39083 $2,727,767 $264,767 0.06401 $441,153 $59,416 N/A N/A 0.45484 2018 0.39083 $3,035,567 $307,800 0.05659 $438,571 ($2,582) N/A N/A 0.44742 2019 0.37899 $2,843,120 ($192,447) 0.0591 $442,845 $4,274 N/A N/A 0.43809 2020 0.38084 $2,985,396 $142,276 0.05725 $448,780 $5,935 N/A N/A 0.43809 2021 0.38459 $3,290,263 $304,867 0.04159 $355,814 ($92,967) N/A N/A 0.42618 2022 0.37350 $3,727,373 $437,110 0.02666 $266,056 ($89,758) $7,574 N/A 0.40016 2023 0.37907 $4,198,732 $471,359 0.01379 $152,744 ($113,312) $13,853 $6,279 0.39286 Budget 2024 0.37635 $4,495,366 $296,634 0.03376 $403,251 $250,507 $34,655 $20,802 0.41011 Proposed PUBLIC HEARING Staff recommends the City Commission conduct a public hearing on the Proposed Tax Rate for Fiscal Year 2024-2025 to allow for public comment, and staff recommends adoption of Ordinance 1214, setting the ad valorem tax rate for the 2024 tax year. [HOLD PUBLIC HEARING] RECOMMENDED MOTION: Tax Rate Approvals: City council must separately approve the maintenance and operations component and the debt service component of the tax rate. TEX. TAX CODE § 26.05(a). 1. I move to approve the proposed 2024 Maintenance and Operations tax rate of $0.37635. 2. I move to approve the proposed 2024 Interest and Sinking tax rate of $0.03376. Tax Rate Adoption: The vote on the ordinance setting the tax rate must be a record vote and must be approved by at least 60 percent of the members of the city council. TEX. TAX CODE § 26.05(b). 3. I move that the property tax rate be increased by the adoption of a tax rate of $0.41011, which is effectively a 12 percent increase in the tax rate through the adoption of Ordinance 1214. “RECORD VOTE REQUIRED” City of Canyon  ORDINANCE 1214 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS, FIXING THE AD VALOREM TAX RATE AND PROVIDING FOR THE LEVYING OF AD VALOREM TAXES FOR THE USE AND SUPPORT OF THE MUNICIPAL GOVERNMENT OF THE CITY OF CANYON, TEXAS FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2024 AND ENDING SEPTEMBER 30, 2025 AT THE RATE OF $0.410110 PER ONE HUNDRED DOLLARS ($100.00), AND FOR DIRECTING THE ASSESSMENT THEREOF; PROVIDING FOR A DATE ON WHICH SUCH TAXES BECOME DUE AND DELINQUENT TOGETHER WITH PENALTIES AND INTEREST THEREON; PROVIDING FOR REPEALING, SAVINGS AND SEVERABILITY CLAUSES; PROVIDING FOR AN EFFECTIVE DATE OF THIS ORDINANCE; AND PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF WHEREAS, the City Commission hereby finds that the tax for the fiscal year beginning October 1, 2024 and ending September 30, 2025, thereinafter levied for current expenses of the City and the general improvements of the City and its property must be levied to provide the revenue requirements of the Budget for the ensuing year; and, WHEREAS, the City Commission approved on August 12, 2024 a separate Budget Ordinance for the fiscal year beginning October 1, 2024 and the 2024 assessments as equalized and approved by the Board of Directors of the Potter-Randall County Appraisal District, which assessments were delivered to the said Board of Directors by Chief Appraiser Jeffrey Dagley for the Potter-Randall County Appraisal District; and, WHEREAS, it is necessary that an ordinance be passed levying an ad valorem tax on all property, both real and personal, within the corporate limits of the City of Canyon, Texas in accordance with such Budget and the Texas Tax Code; and, WHEREAS, all statutory and constitutional requirements concerning the levying and assessing of ad valorem taxes have been completed in due and correct time; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS: SECTION 1. That, the findings set forth above are incorporated into the body of this Ordinance as if fully set forth herein. Ordinance 1214 Page 1 of 4 SECTION 2. That, there is hereby levied and ordered to be assessed and collected for the Maintenance and Operations of the municipal government of the City of Canyon and to provide an Interest and Sinking Fund for the Fiscal Year 2024-2025, upon all property, real, personal, and mixed within the corporate limits of said City on January 1, 2024 subject to taxation, a tax of $0.410110 on each one hundred dollar ($100.00) valuation on said property, said tax being levied and apportioned to the specific purposes hereinafter set forth: a. For the maintenance and operations support of the general government (General Fund), $0.37635 on each $100.00 of taxable valuation of property; and, b. For the Interest and Sinking Fund, $0.03376 on each $100.00 of taxable valuation of property. c. THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR’S TAX RATE 1. 0F d. THE TAX RATE WILL EFFECTIVELY BE RAISED BY 13.1 PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $43.51 2. 1F SECTION 3. That, the taxes assessed and levied hereby are payable any time after the approval and publication of this Ordinance, and not later than January 31 of the year following the year in which the taxes are assessed. The penalties and interest provided herein shall accrue after January 31 of the year following the year in which the taxes are assessed. However, if the entire taxes due as provided herein are paid in full by January 31 of the year following the year in which the taxes are assessed, no penalty or interest shall be due. SECTION 4. That, a delinquent tax shall incur the maximum penalty and interest authorized by Section 33.01, Texas Tax Code, to-wit: a penalty of six percent (6%) of the amount of the tax for the first calendar month it is delinquent, plus one percent (1%) for each additional month or portion of a month the tax remains unpaid prior to July 1st of the year in which it becomes delinquent. Provided, however, a tax that is delinquent on July 1st of the year in which it becomes delinquent shall incur a total penalty of twelve percent (12%) of the amount of the delinquent tax without regard to the number of months the tax has been delinquent. A delinquent tax shall also accrue interest at a rate of one percent (1%) for each month or portion of a month the tax remains unpaid. 1. Texas Tax Code, Section 26.05 (b)(1)(A) 2. Texas Tax Code, Section 26.05 (b)(1)(B) Ordinance 1214 Page 2 of 4 Taxes that remain delinquent on July 1st of each year in which they become delinquent shall incur an additional penalty of twenty percent (20%) of the amount of taxes, penalty and interest due; such additional penalty is to defray the costs of collection as authorized by Section 6.30, Texas Property Tax Code. All taxes shall become a lien upon the property against which assessed, and the Randall County Tax Assessor Collector as the collector for the City of Canyon is hereby authorized and empowered to enforce the collection of such taxes according to the Constitution and laws of the State of Texas and ordinances of the City, and shall by virtue of the tax rolls, fix and establish a lien by levying upon such property, whether real, personal, or mixed, for the payment of said taxes, penalty and interest, and, the penalty and interest collected from such delinquent taxes shall be apportioned to the General Fund of the City. SECTION 5. That, taxes are payable at the office of the Randall County Tax Assessor-Collector. The Randall County Tax Assessor-Collector shall have available all rights and remedies provided by law for the enforcement of the collection of taxes levied under this Ordinance. SECTION 6. That, the tax roll, as presented to the City Commission, together with any supplements thereto, is hereby accepted. SECTION 7. That, the City Commission held a public hearing to obtain comments and recommendations from Canyon taxpayers, ratepayers, residents, businesses, and other interested persons specifically on the City’s proposed ad valorem (property) tax rates for Fiscal Year 2024-2025. In compliance with the Truth-in-Taxation requirements, the required public “Notice of 2024 Tax Year Proposed Property Tax Rate of City of Canyon” was published in the Canyon Newspaper on August 7, 2024 and the notice was published on the City of Canyon Internet Website’s Homepage. The required public hearing on the proposed 2024 ad valorem (property) tax rate for the City of Canyon was held by the City Commission on August 15, 2024 at Canyon City Hall located at 301 16th Street, Canyon, TX 79015. SECTION 8. That, all provisions of any ordinance in conflict with this Ordinance are hereby repealed; but, such repeal shall not abate any pending prosecution for violation of the repealed ordinance, nor shall the repeal prevent prosecution from being commenced for any violation occurring prior to the repeal of the ordinance. Any remaining portions of conflicting ordinances shall remain in full force and effect. Ordinance 1214 Page 3 of 4 SECTION 9. That, should any section, subsection, sentence, clause or phrase of this Ordinance be declared unconstitutional or invalid by a court of competent jurisdiction, it is expressly provided that any and all remaining portions of this Ordinance shall remain in full force and effect. The City hereby declares that it would have passed this Ordinance, and each section, subsection, clause, or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared unconstitutional or invalid. SECTION 10. That, this Ordinance shall become effective immediately from and after its passage. PASSED, APPROVED, AND ADOPTED, on this the 15th day of August 2024, at a regular meeting of the City Commission of the City of Canyon, Texas, which meeting was held in compliance with the Open Meetings Act, Tex Gov’t Code, §551.001, et.seq. at which meeting a quorum was present and voting. CITY OF CANYON, TEXAS ____________________________ Gary Hinders, Mayor ATTEST: ___________________________ Gretchen Mercer, City Secretary Ordinance 1214 Page 4 of 4 City of Canyon Major Funds Budgets 2024-2025 Proposed Budget General Fund Utility Fund Golf Fund Total 2023-2024 2024-2025 2023-2024 2024-2025 2023-2024 2024-2025 2023-2024 2024-2025 REVENUE Fund Revenues 14,191,261 14,564,436 9,310,827 9,632,084 1,208,643 1,223,981 24,710,731 25,420,500 Transfer from Utility Fund 735,357 811,738 - - 583,856 642,883 1,319,212 1,454,621 Total Budgeted Revenues 14,926,618 15,376,174 9,310,827 9,632,084 1,792,498 1,866,863 26,029,943 26,875,121 EXPENSES Personnel/Raises/Benefits 8,945,507 10,059,261 2,518,181 2,714,990 723,760 768,276 12,187,449 13,542,527 Supplies 930,843 986,826 454,144 490,140 261,290 261,900 1,646,277 1,738,866 Contractual Services 3,193,138 3,429,388 4,331,164 4,612,462 492,382 470,227 8,016,685 8,512,078 Capital Outlay 1,004,090 656,802 100,515 3,500 142,906 142,906 1,247,511 803,208 Transfers to CIP 801,869 243,897 587,610 356,370 - - 1,389,479 600,267 Loan payments 51,171 - - - 172,160 223,555 223,331 223,555 Transfers to Other Funds - - 1,319,212 1,454,621 - - 1,319,212 1,454,621 Total Budgeted Expenses 14,926,618 15,376,174 9,310,827 9,632,084 1,792,498 1,866,863 26,029,943 26,875,121 Surplus / (Deficit) $0 $0 $0 $0 $0 $0 $0 $0 City of Canyon Truth-In-Taxation Rates 2024-2025 Proposed Budget Truth-In-Taxation Rates Certified by Randall County Tax Office 2023-2024 Sec. 26.075 Tax De Minimis NNR Tax Rate VATR Rate Budget Staff Recommendation Rate Property Tax Rate (Per $100 of Value) 0.39286 0.36660 0.41011 0.43105 0.43539 Change in Tax Rate -6.7% 4.39% 9.7% 10.8% General Fund (M&O) Rate 0.37907 0.33284 0.37635 0.39729 0.40163 Debt Service (I&S) Rate 0.01379 0.03376 0.03376 0.03376 0.03376 Ad Valorem Revenue $4,365,329 $4,409,884 $4,933,272 $5,185,162 $5,237,369 General Fund (M&O) Revenue 4,198,732 3,975,655 4,495,366 4,745,487 4,797,326 Debt Service (I&S) Revenue 152,744 403,251 403,251 403,251 403,251 TIRZ #1 Revenue 13,853 30,978 34,655 36,424 36,791 $44,555 $567,943 $819,833 $872,040 Increase from 2024-2025 Budget 1.0% 13.01% 18.8% 20.0% -223,077 296,634 546,755 598,594 Increase in M&O Ad Valorem Revenue -5% 7% 13% 14% Average Residence Homestead Property Tax $921 $941 $1,053 $1,107 $1,118 % of Increase from 2023-2024 2% 14% 20% 21% Proposed Budget Surplus (Deficit) $ (519,310) $ 401 $ 250,522 $ 302,361 No-New-Revenue Tax Rate (NNR Tax Rate) The NNR tax rate enables the public to evaluate the relationship between taxes for the prior year and for the current year based on a tax rate that would produce the same amount of taxes (no new taxes) if applied to the same properties that are taxed in both years. When appraisal values increase, the NNR tax rate should decrease. Voter Approval Tax Rate (VATR) The voter-approval tax rate is the highest tax rate that a taxing unit may adopt without holding an election to seek voter approval of the rate (with some exceptions for cities with a population below 30,000). It is intended to include a 3.5% increase to the NNR M&O Tax Rate and provide for necessary debt service. Section 26.075 Tax Rate When calculating their VATR, Special Taxing Units include an 8% increase to the NNR M&O Tax Rate, as opposed to the 3.5% used for cities. However, when deciding when an adopted tax rate can be petitioned for an election, Texas Tax Code 26.075 allows for cities with a population below 30,000 to use the greater of this Special Taxing Unit rate or the VATR if the VATR is below the De Minimis Rate. De Minimis Rate Cities with a population below 30,000 may adopt a tax rate above the VATR but below the De Minimis Rate without automatically requiring an election. However, voters could petition to hold an election. The De Minimis Rate is calculated by adding the NNR M&O Rate, the I&S Rate for debt service, and the rate that will raise $500,000. City of Canyon Debt Service Fund History 2024-2025 Proposed Budget Actual Actual Actual Budget Budget % of Revenues FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 Change Ad Valorem I&S Tax 448,780 355,814 266,056 152,744 403,237 164% Delinquent I&S Taxes (414) 2,155 999 2,000 - 0% Penalty and Interest 1,634 1,610 1,145 1,600 - 0% Interest on Investments 407 4,274 14,978 9,000 8,000 -11% Other Income - - - - - n/a TOTAL REVENUES: 450,407 363,854 283,178 165,344 411,237 149% Actual Actual Actual Budget Budget % of Categorical Expenses FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 Change GO Series 2016 – Principal 245,000 250,000 260,000 265,000 275,000 4% GO Series 2016 – Interest 137,025 129,600 121,950 114,075 105,975 -7% Administration fees 450 500 500 - - n/a TOTAL EXPENDITURES: 382,475 380,100 382,450 379,075 380,975 1% Actual Actual Actual Budget Budget % of Fund Balance FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 Change ENDING FUND BALANCE 325,560 309,314 210,041 (3,690) 26,572 820% Debt Service Fund 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Revenues Expenditures City of Canyon Ad Valorem Budgeted Revenue Calculation 2024-2025 Proposed Budget Values, Taxable Values, Exemption provided by PRAD Ad Valorem Freeze Adjusted Taxable Value 2024 TIRZ Adjusted Total Taxable Value $1,301,070,868 2023 TIRZ Adjusted Total Taxable Value $1,188,400,429 Increase/(Decrease) $112,670,439 % of Change 9.48% 2023 M&O Actual Collection $4,198,732 2023 M&O Tax Rate $0.37907 Reverse Calculated $1,107,640,278 2023 Taxable Value Taxable Value % of Change 9.48% 2024 Taxable Value used for $1,212,653,969 Budgeting Ad Valorem Tax Budgeted Revenue Calculation M&O I&S TIRZ #1 Total 2024 Tax Rate 0.37635 0.03376 0.41011 Calculated Revenue $4,563,823 $409,392 $35,183 $5,008,398 Conservative Estimate Adjustment 98.5% 98.5% 98.5% Budgeted Revenue 4,495,366 403,251 34,655 4,933,272 2023 Actual Revenue 4,198,732 152,744 13,853 4,351,476 Increase in Revenue 296,634 250,507 20,802 581,796 % of Change 7.1% 164% 150% 13.4% City of Canyon Tax Rate History 2024-2025 Proposed Budget Truth in Taxation Calculated Rates Adopted/Proposed Tax Rate Fiscal No-New- Voter- Adjusted Voter General Fund Debt Service Sales Tax De Minimis % of Year Tax Year Revenue Approval Approval Tax (M&O) Tax (I&S) Tax Tax Rate Adjustment Rate Change Tax Rate Tax Rate Rate Rate Rate 2018-2019 2018 No-New-Revenue, Voter Approval, and De Minimis Rates were not calculated at this time 0.39083 0.05675 0.44758 2019-2020 2019 No-New-Revenue, Voter Approval, and De Minimis Rates were not calculated at this time 0.37899 0.05910 0.43809 -2% 2020-2021 2020 0.43229 0.57087 -0.12107 0.44980 0.62844 0.38084 0.05725 0.43809 0% 2021-2022 2021 0.42319 0.54875 -0.13428 0.42618 0.47708 0.38459 0.04159 0.42618 -3% 2022-2023 2022 0.38226 0.50764 -0.12427 0.38337 0.42943 0.37350 0.02666 0.40016 -6% 2023-2024 2023 0.36649 0.49139 -0.11929 0.37210 0.40755 0.37907 0.01379 0.39286 -2% 2024-2025 2024 0.36660 0.51548 -0.10537 0.41011 0.43539 0.37635 0.03376 0.41011 4% Proposed Tax Rate History 0.61000 0.56000 0.51000 0.46000 0.41000 0.36000 2020 2021 2022 2023 2024 No-New-Revenue Tax Rate Voter-Approval Tax Rate Adjusted Voter Approval Tax Rate De Minimis Rate Tax Rate City of Canyon Tax Rate Comparison 2024-2025 Proposed Budget 2023 Taxable Estimated 2023 Adopted 2023 Calculated 2024 Proposed City Value Population* Tax Rate Levy Tax Rate Canyon 1,194,469,446 16,171 0.39286 4,692,593 0.41011 Other Panhandle Cities Amarillo 18,410,093,440 202,408 0.39195 72,158,361 Plainview 1,131,807,941 19,420 0.76160 8,619,849 Pampa 749,479,405 16,543 0.76000 5,696,043 Hereford 943,452,518 14,752 0.27500 2,594,494 Dumas 862,736,125 14,291 0.48063 4,146,577 Borger 604,045,625 12,115 0.64750 3,911,195 0.65665 Texas Cities with Similar Population Hewitt 1,474,189,427 16,691 0.54674 8,059,924 0.54399 Sulphur Springs 1,352,988,858 16,564 0.44000 5,953,151 Humble 2,878,747,540 16,237 0.24535 7,063,036 Gatesville 656,505,027 16,148 0.56000 3,676,428 0.56000 Highland Village 3,194,493,106 16,100 0.50139 16,016,997 Mount Pleasant 1,611,610,590 16,055 0.34478 5,556,559 Texas Cities with Similar Total Taxable Value Granite Shoals 1,240,596,348 5,451 0.50800 6,302,229 South Houston 1,237,773,161 15,808 0.55266 6,840,665 Kennedale 1,222,931,565 10,052 0.70619 8,636,220 0.69227 Kingsville 1,175,759,235 7,075 0.76000 8,935,770 Mineral Wells 1,174,796,473 15,454 0.59390 6,977,116 Groves 1,171,712,342 16,764 0.60969 7,143,813 0.61276 *Estimated populations provided by Texas Demographic: https://www.texas-demographics.com/cities_by_population Tax Rate Comparison 0.80000 2023 City Tax Rate 2024 Proposed City Tax Rate 0.70000 0.60000 0.50000 0.40000 0.30000 0.20000 0.10000 0.00000 City of Canyon Assessed Property Valuation 2024-2025 Proposed Budget Fiscal Tax Total Appraised Total Taxable Total Valuation % Of Year Year Market Value Value Less Tax Ceilings Increase 2015-2016 2015 901,757,759 630,787,444 511,155,368 2016-2017 2016 920,774,623 648,437,743 523,721,274 2% 2017-2018 2017 1,005,854,306 733,655,658 598,686,568 14% 2018-2019 2018 1,094,545,063 817,010,622 673,796,202 13% 2019-2020 2019 1,172,800,032 796,876,550 645,188,975 -4% 2020-2021 2020 1,257,062,259 829,999,961 669,309,131 4% 2021-2022 2021 1,347,216,214 902,008,702 743,621,186 11% 2022-2023 2022 1,600,704,651 1,051,119,607 868,798,556 17% 2023-2024 2023 1,882,109,107 1,191,760,109 979,768,527 13% 2024-2025 2024 2,047,362,361 1,309,549,392 1,076,183,184 10% Assessed Property Valuation 2,250,000,000 2,000,000,000 1,750,000,000 1,500,000,000 1,250,000,000 1,000,000,000 750,000,000 500,000,000 250,000,000 - 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total Appraised Market Value Total Taxable Value Total Valuation Less Tax Ceilings City of Canyon Comparison of Residence Homestead Value 2024-2025 Proposed Budget Values, Taxable Values, and Averages by PRAD 2024-2025 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 Proposed Average Residence Homestead 149,839 155,530 161,768 193,722 236,690 262,210 276,342 Appraised Value Average Exemption Amount** 2,537 3,777 4,201 4,652 Average Taxable Value of a 149,839 155,530 161,768 191,185 210,385 235,184 256,714 Residence Homestead Property Tax Rate 0.44742 0.43809 0.43809 0.42618 0.40016 0.39286 0.41011 (per $100 of value) Average Residence Homestead 670 681 709 815 842 924 1,053 Property Tax Percent of Increase in Average 2% 4% 15% 3% 10% 14% Residence Homestead Property Tax **Average Exemption Amount figures were not provided by PRAD prior to 2021 tax year. Average Residence Homestead Property Tax 1,200 1,000 1,053 924 800 842 815 709 600 670 681 400 200 - 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 Proposed 2024-25 Increase in Average Residence Homestead Property Annual Monthly Tax M&O Increase $ 74.63 $ 6.22 I&S Increase $ 54.23 $ 4.52 Total Increase $ 128.87 $ 10.74