Boise Eyes Maximum Property Tax Hike and Higher Fees as City Budget Tightens
The City of Boise is proposing to raise property taxes by the maximum amount allowed under Idaho law, increase a range of service fees, and tap into previously uncollected tax authority as Mayor Lauren McLean’s administration works to close a tight general fund budget for fiscal year 2027. The proposals were presented to the Boise City Council during a budget workshop Tuesday and will require council approval before taking effect.
What Boise Taxpayers Could Face
Under the plan presented by city budget officials, Boise property owners would see a 3% increase in property taxes — the ceiling permitted under Idaho state law. The city would also levy additional taxes equal to 90% of the assessed value of new construction added to the rolls, likewise the maximum allowed by law.
Beyond the annual increase, the McLean administration intends to collect $2 million in so-called “foregone taxes” — authority to tax that the city chose not to exercise in prior years but retained the legal right to claim later. That additional levy would come directly from existing taxpayers.
The city will also benefit from the expiration of the Westside Urban Renewal Area. When urban renewal districts sunset, the incremental taxable value built up over their lifespan flows back onto the general tax rolls. In Boise’s case, that means roughly 80% of the incremental value accumulated over the past three decades returns to the city’s tax base.
City officials said a property tax rebate program targeting $900,000 in assistance to qualifying lower-income residents would remain in place.
Looking further ahead, the city is exploring asking voters to approve a bond or levy to fund public safety and facilities needs, and is considering higher impact fees on new residential and commercial development.
A Budget Described as Constrained
McLean’s chief of staff, Hannah Brass Greer, said the city’s general fund — its primary source of day-to-day operating revenue — remains under pressure from multiple directions.
“We continue to be constrained in the general fund,” Brass Greer said. “Some of the factors that go into that are beyond the city’s control. We have state limitations on our revenue through House Bill 389. And we have what everyone across the country is facing — rising operational and compensation costs.”
She said the budget’s core goal is to preserve existing service levels and finish previously committed projects, not to expand the scope of city government.
State law requires all Idaho government entities, including municipalities, to adopt balanced budgets each year.
Mayor McLean, in remarks at the workshop, pointed to population growth as a driver of increased demands on city services. According to Idaho Department of Labor data sourced from the U.S. Census Bureau, Boise added approximately 699 residents between 2024 and 2025, reaching a population of roughly 238,249. Much of the broader metro area’s growth, however, has concentrated in surrounding communities including Meridian, Eagle, Star, and Kuna.
New Positions and Spending Priorities
The budget proposal calls for adding 16 general fund positions, among them six new Boise Police officers, two criminal attorneys, a pool maintenance technician for the upcoming Whitney Pool facility, a new librarian at the Hillcrest branch of the Boise Public Library, and a security officer. Four of those 16 positions would be partially offset by outside revenue sources.
Non-union city employees would receive a 3% pay increase, with some positions receiving an additional 0.5% market adjustment. The city also plans to dedicate 1% of total wages to an employee rewards program and maintain what Brass Greer described as a “rich benefits” package for staff.
The city is separately pursuing a federal SAFER grant — Staffing for Adequate Fire and Emergency Response — that could fund nine additional firefighters if awarded. Cities are required to match SAFER funds, but the grant would allow Boise to move toward four-person engine crews at additional fire stations.
Outside the general fund, the city’s enterprise operations — including Boise Airport, water services, and golf facilities — would add 25 employees, with 19 of those positions tied to airport operations.
The Department of Planning and Development Services is also proposing a $2 million renovation of its City Hall office space, which department director Maureen Brewer said would improve both staff safety and public-facing service.
What Comes Next
The budget proposals presented Tuesday are recommendations from McLean’s staff and are not yet final. The Boise City Council must review, amend, and ultimately vote to adopt a final budget. Residents interested in weighing in on the city’s tax and spending plans can attend upcoming council budget sessions or submit public comment to the council directly. Ada County homeowners tracking local tax and government decisions should watch for additional public hearings as the fiscal year 2027 budget process moves forward in the coming weeks.