Nampa City Council addresses declining levy rates and rising operational costs

The City Council of Nampa, Idaho, held a Community Budget Open House on June 26, 2025, where officials discussed the city's financial strategies and challenges. A key focus was the steady decrease in the levy rate, which has dropped significantly from 2014 to 2025. This decline has raised questions about its implications for local taxes and city funding.

City officials clarified that the levy rate does not directly determine taxes; rather, taxes influence the levy rate. The total property tax revenue is divided by the total taxable assets, which this year amounts to approximately $16.6 billion. As property valuations have surged—some years seeing increases of nearly 40%—the levy rate has correspondingly decreased. This trend has been further impacted by House Bill 389, passed in February 2022, which limited revenue growth from new property taxes, complicating budget forecasts.

The council noted that the city is currently missing out on an estimated $5.8 million annually due to these legislative changes, which has strained resources for essential services like public safety. As a result, the financial burden is shifting back to existing homeowners, raising concerns about affordability and service provision.

In response to rising costs, including healthcare and operational expenses, the city has implemented strict cost control measures. Departments were challenged to maintain zero growth in operational budgets, despite inflationary pressures. The total healthcare budget alone increased by $1.4 million this year, driven by new hires and rising premiums.

Despite these challenges, the city has managed to reduce operational expenses by $2.3 million and capital budgets by $4.2 million, largely due to the completion of a new wastewater treatment plant. This facility is expected to yield long-term savings through reduced chemical usage and improved efficiency.

As Nampa's population is projected to grow from 84,000 in 2014 to 127,000 by 2026, city officials emphasized the need for proactive financial management to address the increasing demands on infrastructure and services. The council's commitment to transparency and cost control aims to ensure that Nampa can continue to provide essential services while navigating the complexities of a growing community.