CANTON – Multiple and unexpected expenses have put the city of Canton in a position to exceed the tax cap for the first time in six years.

This is largely due to rising health insurance costs, contractual obligations and unexpected projects, combined with damage caused by a major flooding incident earlier this year.

Town Supervisor Mary Ann Ashley introduced the 2025 preliminary budget which, if approved, would see a 20 cents per $1,000 assessed value increase in the town’s tax rate.

“Twenty-twenty-five marks the seventh year that a proposed balanced budget has been presented to the Canton City Council. The city council is the custodian of the taxpayers’ money and the city supervisor is the chief financial officer/budgetary officer. For six years we have stayed under/up to the NYS comptroller’s tax cap. We have had one of the lowest tax rates in the county for several years,” Ashley stated.

“The reality of the 2025 budget is that we have to go over the tax ceiling. This is due to increased operating and health insurance costs, contractual obligations, unexpected costs of the Miner Street Road Project, Solar Pilot and host community agreements, the negative impact of Hurricane Debbie, the use of the fund balance and the city making a full shutdown. Revaluation of all city properties under contract with GAR Associates,” she added.

The original budget for 2024 was $3,794,137. There were amendments to the highway budget to add revenue to the state. The projected spending plan for 2025 is $4,042,094.84, making a spending increase difference of $247,957.80.

The tax rate for 2024 is currently $2.95 per $1,000, which raised $1,144,127 in property taxes. The city remained within the fiscal cap in 2024.

The proposed spending plan raises the tax rate to $3.15 per $1,000, raising $1,283,626 in property taxes.

“That’s an increase of 20 cents/1000 adding a total increase of an additional $61,125. We’re going to go over the tax cap,” Ashley noted.

The property valuation in the city went from $403,163,233 to $407,500,325. An increase in property assessment of $4,337,092.

A public hearing is scheduled for Monday, Nov. 4, at 6 p.m. in the council chamber of the municipal building.