Nampa city budget sees $6.6M increase in wages and benefits for fiscal year 2026

The Nampa City Council convened on July 17, 2025, for a budget workshop that highlighted significant financial developments and challenges facing the city. The discussions centered on the city's growth, revenue projections, and the implications of various budgetary decisions for the upcoming fiscal year.

One of the key topics was the city's new construction and annexation revenue, which totaled $892,688, a notable decrease from over $1.8 million the previous year. This decline raises concerns about the sustainability of growth in urban renewal areas. City officials acknowledged that while growth has accelerated, it may pose ongoing challenges for future budgeting and resource allocation.

Sales tax revenue was another focal point, with officials reporting a conservative budgeting approach. The current year's state collections are ahead of the previous year but fall short of the state's budgetary proposals. A one-time increase of $513,919 was noted, which will not be repeated in the next fiscal year, indicating a need for careful financial planning moving forward.

Operational costs for the city are projected to rise by $2.4 million, primarily driven by the water renewal project and increased maintenance costs. The budget reflects a controlled increase of 0.7%, with significant expenses related to staffing and energy for the new wastewater treatment facility. Additionally, the city anticipates potential increases in electricity rates from Idaho Power, which could further strain the budget.

The council also discussed the implications of the American Rescue Plan Act (ARPA) funds, emphasizing the urgency to allocate remaining funds before the deadline. With approximately $5 million left to spend, city officials are cautious about ensuring these funds are utilized effectively to avoid losing them.

Wage and benefit reviews were a critical part of the discussion, with total wages and benefits projected to increase by $6.6 million. The council is considering a merit increase for employees, with discussions around how to balance competitive wages with the city's financial constraints. The average wage for city employees is approximately $31.19 per hour, which is competitive but still below some neighboring municipalities.

In conclusion, the budget workshop underscored the city's financial challenges and the need for strategic planning to address growth, revenue fluctuations, and employee compensation. As the council prepares for the upcoming fiscal year, the discussions will likely shape the city's financial landscape and its ability to meet community needs effectively. The council is expected to revisit these topics in future meetings, particularly as they finalize budget allocations and address the implications of ARPA funding.