Finance staff: Boise has balanced outlook for FY2026 but ‘very little budget flexibility’ as personnel, PERSI and insurance costs rise

City finance staff presented a general-fund budget outlook that projects a balanced position entering fiscal year 2026 but warns the city faces constrained flexibility for new investments because personnel costs, retirement (PERSI) contribution-rate increases, software-maintenance growth and rising workers’ compensation/insurance costs are growing faster than general-revenue categories.

Alicia McAndrews, finance presenter, told the council: “The main theme that I hope you take away... is we don't have a deficit, but we have very little budget flexibility.” Eric (finance staff) and McAndrews laid out the forecast assumptions: property-tax forecasting assumes the statutory 3% base levy option but staff built in full new-construction growth and the effects of 2022 state growth-cap legislation (90% for new construction and 80% for expiring urban-renewal districts). They said sales-tax growth is uncertain and modeled at 1% for FY2026, and liquor-tax receipts had…