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Boise council receives FY25 third-quarter report showing stable finances, development fees ahead
Summary
City finance staff told the Boise City Council the general fund remains stable through the third quarter of fiscal 2025, with development-fee revenue driving a projected $8 million positive variance while liquor taxes lag about $800,000.
Boise City Council on Sept. 9 reviewed the city's fiscal year 2025 third-quarter financial report, which showed general fund revenues and expenditures tracking within expected ranges and a net projection that the city will finish the year with higher-than-budgeted revenues.
Alicia McGandridge, presenting the report for the budget office, said, "the city's financial position remains stable," and noted that the city had collected 61% of budgeted revenues through the third quarter. She identified three revenue variances she said the council should note: development-fee revenue, liquor tax revenue and sales tax collections.
The report attributes strong development-fee receipts to several large commercial projects, including Micron expansion work funded in part by the CHIPS Act and a large hospital project; McGandridge said development fees are projected to finish the fiscal year at least $8,000,000 above budget. Liquor-tax receipts, by contrast, are running below budget; the report projects about $800,000 less than budgeted and notes that the FY26 budget was adjusted downward to reflect that trend. McGandridge also said Boise will record roughly a $500,000 increase in sales-tax receipts resulting from a 9.9% distribution received in July and therefore reflected in the city's end-of-year numbers.
On spending, the city is within historical benchmarks through the third quarter. McGandridge said personnel costs are underspent relative to a 75% benchmark, driven by vacancies; she reported a 5.3% vacancy rate for the quarter. She added that some large maintenance-and-operations contracts may still post in the fourth quarter.
McGandridge summarized the outlook: "I reason reasonably expect that the city will end the fiscal year with higher than budgeted revenues and lower than budgeted expenditures," and warned of remaining unknowns, including police overtime, contract ratifications and rebudgets. She told council staff would continue to refine expenditure forecasts and that she would bring a more refined unallocated general fund figure to council by way of the December IBC reporting year-end FY25 numbers.
Council members praised the clarity of the materials and presentation and asked staff to continue monitoring development-fee trends linked to Micron and other large projects so the council can assess long-term sustainability.
The presentation did not result in a formal council action; staff will return with refined year-end figures in December.
