Boise City outlines tight FY27 budget; proposal leans on 3% property tax cap and $2M foregone levy for public safety

Boise — City officials on May 20 told the City Council that the proposed FY27 budget is built under tight structural limits, and asked the council to prioritize maintaining current services while investing strategically in public safety and key capital projects. The budget office is proposing to take the full 3% allowable property-tax increase and to use about $2.0 million of foregone levying capacity to support public safety equipment, operations and transit commitments.

Alicia McAndrews, senior manager for the budget office, said state law and recent legislation reduce the city's ongoing revenue base and leave the general fund with only about 1% annual flexibility.

"Under House Bill 389," McAndrews said, "only 90% of new construction growth and 80% of the Westside urban renewal adjustment are incorporated into the ongoing base," a constraint she said reduces the ongoing base by about $579,000 versus what would otherwise have been allowed. She added the FY27 recommendation focuses on operational stability and one-time investments rather than new ongoing commitments.

Why it matters: property-tax constraints and rising compensation and operating costs. City leaders told council members that most general-fund resources are already committed to salaries and benefits and that rising compensation pressures require careful prioritization. The proposal includes a 3% base salary increase, targeted market adjustments for high-need positions, and a recommended 3% increase in employee health-care contributions. The budget office also proposes eliminating a one-time performance pay in favor of higher base pay and ongoing flex rewards.

Public safety and staffing requests. Council heard sizable public-safety requests during the work session. Chief Chris Dennison outlined continued investments in patrol deployment, detective units for domestic violence and fraud, and a technology modernization tied to a new records-management system. Dennison said the department is requesting $800,000 to address overtime pressures driven by special events, demonstrations and near‑full staffing levels.

Fire Chief Aaron Hummel described a FY27 approach of "running the business" for the department while pursuing federal SAFER grant funding to add three engines staffed at four personnel each on a cost‑share basis. "The SAFER grant is a multiyear cost-sharing grant for the first three years, with the city assuming full cost in year four," Hummel said; the city would identify a long‑term funding source if awarded the grant.

Utilities, fees and capital: trade-offs and rates. Public Works Director Steve Burgos told the council the city expects to accelerate capital execution after years of planning. For water renewal, the department is proposing a 9.9% rate increase (about $5.70 per month) to cover rising operating and capital costs; materials-management (trash/recycling/compost) adjustments would include a residential increase around 9.5% and a smaller commercial increase to better align cost-of-service. Burgos also flagged a pipeline-replacement gap: the system contains about 1,000 miles of pipeline and is currently replacing roughly 2–3 miles per year, while a lifecycle replacement rate of 75–100 years implies a replacement need closer to 10 miles per year.

Major capital programs continue. The airport director briefed the council on a multi‑year capital program, including a consolidated rental-car facility opening this fall and ongoing runway and apron projects. The airport described roughly $375 million in capital activity this year and early planning for a terminal and Concourse A program phased toward an anticipated 2030 completion window.

Other department priorities. Planning & Development Services highlighted $20 million in city gap financing leveraging more than $200 million in other housing funds to support about 700 affordable units. Parks and Recreation described progress toward the "10-minute walk to a park" goal and capital work including Whitney Pool; library leaders discussed downtown renovation work that will expand youth space and said digital-e-book and audiobook prices have risen to $120–$170 per title, forcing new purchasing caps and tiered strategies.

What comes next. Council members asked for follow-up details on the total general-fund expenditures, the pipe‑replacement plan, timeline for Whitney Pool design and construction, and precise long-term costs if the SAFER grant covers initial staffing. Several department directors said they would return with more granular forecasts and implementation plans. The work session reconvened after lunch for the regular council meeting and will resume department presentations afterward.

The session produced no final votes; the itemization and requests will be folded into upcoming budget hearings and decisions later in the budget process.