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Boise City staff present FY2026 proposal, recommend 3% property tax increase and foregone recovery
Summary
City staff told the Boise City Council at a budget workshop that a proposed FY2026 budget is balanced but must rely on a 3% property tax base increase, foregone recovery and use of reserves to address rising costs driven by pensions, software and insurance.
Boise City staff presented a proposed fiscal year 2026 budget at a council workshop that they described as balanced but constrained by rising costs and new state limits on growth. Staff recommended taking the maximum 3% base property tax increase, using foregone recovery and drawing on capital reserves to maintain services and invest in major repairs.
The recommendation was framed as an effort to "prioritize urgent needs while preserving and building future capacity," Eric, who led the budget overview, told the council. He said the budget aims to mitigate risk, invest in employees and address capital needs while preserving flexibility for future years.
Why it matters: Staff said cost growth — in particular PERSI retirement contributions, software subscriptions and insurance claims — is outpacing available revenue. At the same time, state changes to property tax treatment of…
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