Moscow council adopts $139.6 million FY2026 budget, OKs tax levy and foregone recovery

The Moscow City Council on Aug. 4 adopted the city's fiscal year 2026 appropriation ordinance, approving a $139,578,442 budget and authorizing the mayor to certify a total tax levy used for next year's property tax collections.

The vote followed a formal public hearing led by Bill Beltknap, who presented details of the proposed budget, and included staff responses to public questions. Council members then approved a foregone tax recovery resolution, suspended the rules to adopt the appropriation ordinance by summary, and authorized the mayor's signature on the L-2 property tax certification form.

Beltknap said the appropriation ordinance frames expected revenues and the city's spending priorities for the Oct. 2025'Sept. 2026 fiscal year. "The budget is a very important policy action by the council. It is our fiscal plan," he said during the hearing.

The budget package highlights and context

- Total appropriation: $139,578,442 (ordinance read and approved by title as "annual appropriation ordinance appropriating $139,578,442"). - Property tax certification (L-2): council authorized the mayor to sign a certification in the aggregate amount of $9,088,502. - General fund and priorities: the city plans to continue a multi-year emphasis on capital reinvestment and public safety; the police department represents the single largest general fund operating cost. Council and staff identified roughly $37 million in general-fund capital needs over the next 10 years, largely for roadways and public facilities. - Cost-of-living and compensation: the budget includes a 4% cost-of-living adjustment for employees and a 3% pay-for-performance pool; the city also continues a multi-year plan to increase dependent health coverage from 60% toward 80%. - Capital and projects: the budget funds nearly $3.4 million to complete the city shop project (new 16,000-square-foot addition plus renovation of the existing shop); just over $3 million is allocated to roadway improvements (including TAP grant projects on Mountain View North and South and a South Main pedestrian underpass); $335,000 is included for an alternate water supply study (exploring a Clearwater River option); $250,000 for downtown streetscape design work; and $923,000 for park improvements, of which $885,000 is for East City Park staging. - Utilities and enterprise funds: projected water, sewer and stormwater capital transfers are maintained (Water Capital Fund transferring about $2.4 million to capital; Sewer Capital Fund transferring about $3.3 million). Fund balances account for roughly 47% of total budgeted resources across funds; the city noted this reflects long-term capital reserves rather than one-year operating cash. - Staffing and unfunded requests: staff reclassified a legal assistant to paralegal, increased a part-time recreation coordinator to full time, and included three paramedic-firefighter positions continued in partnership with the volunteer nonprofit that funded them initially. Two requested positions (a Fire Department student-resident program manager and an additional fleet mechanic) were not funded for FY2026.

Why it matters

Council and staff stressed that the appropriation ordinance directs city operations and funding priorities for the year and that constrained revenues and prior legal rulings have limited flexibility. Beltknap described a 2024 legal ruling affecting municipal finance that reduced some revenue flows and has kept certain positions unfilled and pay increases constrained in recent years.

Votes at a glance

- Foregone tax recovery resolution (adds 1% of foregone to levy): Moved by Julia (mover identified in the hearing), seconded (unspecified). Roll-call: Julia ' Aye; Bryce ' Aye; Gina ' Aye; Hailey ' Aye; Sandra ' Aye; Drew ' Aye. Outcome: approved. - Annual Appropriation Ordinance (Ordinance No. 2025-08): Motion to adopt under suspension of rules and read by title; roll-call: Bryce ' Aye; Drew ' Aye; Gina ' Aye; Hailey ' Aye; Sandra ' Aye; Julia ' Aye. Outcome: adopted. - L-2 property tax certification (aggregate amount $9,088,502): Motion to authorize the mayor's execution; roll-call: Gina ' Aye; Bryce ' Aye; Julia ' Aye; Sandra ' Aye; Hailey ' Aye; Drew ' Aye. Outcome: authorized.

Discussion highlights and clarifications

During the hearing Beltknap reviewed revenue composition (property tax comprises under 7% of total city revenues but about 39% of general-fund revenues), sales tax sharing trends, and the impact of assessed valuation shifts among property types (residential vs. multifamily vs. commercial) on who bears the tax burden. He noted House Bill 389'related limits on levy increases and explained how the city plans to use up to 1% of foregone levy capacity and levy for new construction and annexation values under state limits.

Council asked clarifying questions about new-construction valuation timing (hits the tax rolls when a certificate of occupancy is issued for single-family homes), landfill/transfer-station closure planning (discussed as a long-term liability over a roughly 30-year horizon), sanitation and miscellaneous tipping fee changes, and how budgeting fund balances affects year-to-year budget comparisons with other cities.

What's next

The ordinance was adopted the same night as the hearing; staff will proceed with the FY2026 implementation and year-start accounting. Council and staff noted continued emphasis on pursuing grants and balancing operating demands with long-term capital needs.

Speakers relevant to this article

- Bill Beltknap, staff member, presented the budget and answered technical questions. - Sarah Decker, finance head, participated in preparation and was named at the hearing as finance staff. - Victoria Seaver, resident, provided public-support testimony during the hearing. - Gregory Soderberg, resident, offered public comment earlier in the meeting in support of council work. - Council members recorded in roll-call votes: Julia (council member), Bryce (council member), Gina (mayor/council member), Hailey (council member), Sandra (council member), Drew (council member).

Authorities cited in the hearing

- Idaho State Code (public hearing procedures): referenced by the mayor at the start of the budget hearing. - House Bill 389 (Idaho legislature): referenced by staff as affecting levy recovery/foregone adjustments. - Ordinance No. 2025-08 (Annual Appropriation Ordinance): adopted by council on Aug. 4, 2025. - L-2 (Property Tax Certification form): execution authorized by council.

Proper names mentioned

Moscow City; Moscow Volunteer Fire Department; University of Idaho; Latah County; Bill Beltknap; Sarah Decker; Victoria Seaver; Gregory Soderberg.

Clarifying details extracted from staff presentation

- COLA: 4% cost-of-living adjustment included in budget. - Performance pool: 3% performance increases budgeted. - Alternate water supply study: $335,000 budgeted to explore Clearwater River option. - City shop completion: ~$3,400,000 budgeted for new shop addition and renovation. - Roadway improvements: just over $3,000,000 budgeted, including TAP grant projects. - General-fund identified capital needs: ~$37,000,000 over next 10 years. - Budget total: $139,578,442 (appropriation ordinance amount).

Provenance

- topicintro: {"block_id":"seg_609.115","local_start":0,"local_end":462,"evidence_excerpt":"Thank you, your Honor. So obviously we're here to review next year's fiscal year's budget that'll begin here in October. But the budget is a very important policy action by the council. It is our fiscal plan. It sets out our anticipated revenues and our anticipated expenditures for the operation of the municipal corporation.","reason_code":"topicintro"} - topfinish: {"block_id":"seg_4463.96","local_start":0,"local_end":302,"evidence_excerpt":"In ordinance entitled annual appropriation ordinance appropriating $139,578,442 for the purposes of defraying all necessary expenses and liabilities of the city of Moscow, Latoc County, State Of Idaho for the 2026 fiscal year beginning the October 2025 and ending the September 2026 and allotting resources by fund for set appropriation for the objects and purposes set forth in this ordinance, providing that the provisions of this ordinance be deemed severable, providing for this ordinance to be in full force and effect from and after its passage, approval, and publication according to law. Okay.","reason_code":"topicfinish"}