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Boise officials say FY25 first-quarter revenues, spending generally on track; liquor tax dip flagged
Summary
City budget staff told the Boise City Council that general fund revenues and expenditures were within expected ranges after the first quarter of fiscal year 2025, while the liquor tax is trending lower and will be monitored during Q2.
Alicia McAndrews, the city's new budget manager, told the Boise City Council that general fund revenues and expenditures were generally within expected ranges after the first quarter of fiscal year 2025 (OctoberDecember 2024), but staff are watching a decline in liquor tax receipts.
McAndrews said the city has not yet received major annual revenue streams such as property taxes, sales taxes and state liquor-tax payments, which are expected in the second quarter. She said timing explains much of the apparent seasonality in collections and that, based on current information, the city projects overall general fund revenues and expenditures will end the fiscal year close to budgeted levels.
The presentation noted personnel spending was slightly under par because of vacancies, but that underspending was partially offset by one-time compensation and overtime. The average vacancy rate in Q1 was 6.9%, down from 10.75% in the same quarter the prior year.
On the liquor tax specifically, McAndrews and staff said Idaho Department of Finance conversations and statewide trends show changing consumption patterns for liquor sold through state liquor stores (beer and wine are not included). The city's initial estimate is the liquor-tax category could finish the year about $500,000$600,000 below budget; staff will return with a Q2 update.
Council members asked for clarification on internal charges and the makeup of those costs; McAndrews said the line reflects the city's cost-allocation plan and reimbursements from enterprise funds and that a one-time pay disbursement in Q1 slightly pushed the figure above its par level (28% vs. 28.2% reported). Council asked staff to continue monitoring vacancy trends, liquor-tax receipts and to return with updated figures at the next quarterly update.
Questions and brief discussion also highlighted Boise's low unemployment (3.1% to 3.3% in Q1), a year-over-year gain of about 7,000 jobs in calendar year 2024 and an increase of roughly 81,000 airport passengers in the first quarter of fiscal 2025 compared with the same quarter in 2024. McAndrews noted these indicators are tempered by higher inflation and reduced consumer confidence.
McAndrews said more detailed financial information is available on the city's OpenBook portal and on the finance department's website, and that staff will return with any substantive changes after Q2.
