The Canton City Council has approved a nearly $94.7 million city budget that boosts investments in capital projects while also reducing property taxes. The budget passed unanimously and sets the city’s millage rate at 5.25 mills, down from 5.4. The new rate is below the “rollback” rate of 5.288 mills, which would have kept property tax revenues flat compared to last year.
Mayor Bill Grant praised city staff and council members for their work, calling the new rate the lowest in the city’s 190-year history. “I feel like we should have confetti coming from our sprinklers tonight,” Grant said. “When you can deliver the highest quality possible service and amenities to our citizens at the lowest possible rate, we are accomplishing a lot.”
Impact on Homeowners
For a home valued at $500,000 without exemptions, the tax at 5.25 mills will be $1,050. Homeowners with a valid senior exemption would see their assessed value reduced, resulting in a $462 bill.
Budget Breakdown
The total $94,698,927 budget includes:
- $30.5 million for the general fund
- $36.4 million for the water and sewerage fund
- $17.2 million from the Special Purpose Local Option Sales Tax (SPLOST)
- $5 million in impact fees
- $1.2 million in hotel/motel tax revenues
- $3.7 million in unassigned fund balance
Beyond property taxes, revenues will be supported by sales tax receipts, state and federal grants, franchise fees, service charges, and interest income. The city also projects modest growth in building permit fees and utility revenues due to ongoing development.
General Fund Priorities
The general fund, up $2.7 million from last year, includes a 2.5% cost-of-living raise for all employees, anniversary adjustments, and funding for seven new positions: a procurement manager, a land development administrator, a special events coordinator, and the annualization of four public safety ambassador roles. Each role is justified in the budget with workload and service delivery data.
The general fund also allocates significant resources to public safety, community development, and parks and recreation. Public safety alone accounts for over half of the general fund, reflecting the city’s emphasis on law enforcement staffing, equipment upgrades, and facility improvements.
Capital Projects and Long-Term Plans
Nearly $42 million will be dedicated to capital projects in FY 2026, many of which are part of the city’s Five-Year Capital Improvement Plan (CIP). Funding will come from SPLOST, impact fees, and grants, with some projects partially financed through bonds and corresponding debt service payments.
- Expanding the Water Pollution Control Plant
- Designing Highway 140 improvements in north Canton
- Constructing South Canton Park and Ridge Pine elevated water tank
- Collaborating on North Street redevelopment
- Resurfacing streets citywide
- Improving the water treatment plant
- Building the Etowah River Pedestrian Bridge
- Infrastructure enhancements in Hickory Flat Highway and Marietta Road
- Installing a traffic signal at Prominence Point Parkway
- Constructing the West Main to Mill Pedestrian Corridor
- Rehabilitating the downtown fire station
- Upgrades to the Public Safety and Municipal Court Complex
Several of these projects will continue into FY 2027 and beyond, with multi-year contracts and phased construction timelines.
Reserve Policy
The budget draws about $3.7 million from reserves, but the city maintains its minimum fund balance policy to ensure fiscal stability in future years. Officials noted that using reserves this year allows major projects to move forward without additional tax increases.
The full FY 2026 budget is available online at tinyurl.com/ypuauune.