BOISE, Idaho — Boise residents may not see as large a property tax increase as city leaders initially proposed.
The city announced Tuesday that it has revised its proposed Fiscal Year 2027 budget after receiving new financial information that improved its fiscal outlook by approximately $2.9 million.
Just weeks ago, city leaders proposed what would have been the largest property tax increase allowed under Idaho law at 4%. Under the revised proposal, the city would raise the property tax by 2.7%.
WATCH: Why Boise is backing off a proposed property tax increase
Mayor Lauren McLean said stronger-than-expected new construction values, higher returns from an urban renewal district and lower-than-anticipated costs allowed the city to reduce the proposed increase.
"So after we wrote our budget, we learned that there's $2.9 million more coming to the city of Boise than we knew," McLean said. "And because of that, we're able to walk back the increase that we needed to make in property taxes."
The revised proposal comes after public concern over the original budget plan. In previous Idaho News 6 coverage, residents expressed frustration about the proposed increase as many households continue to face higher living costs.
Among them was Boise resident April Chainey, whose husband recently retired.
"We were absolutely shocked," Chainey said. "We had no idea it was coming down the pipeline."
According to city officials, new construction values came in significantly higher than forecast, while the amount of taxable value returning from an urban renewal district also exceeded expectations. Combined with lower projected costs, those changes improved the city's financial position by nearly $3 million.
McLean said public feedback influenced her decision to lower the proposed tax increase rather than retain the additional revenue.
READ MORE | Boise neighbors react to proposed maximum property tax increase for 2027
"What I did after hearing from the public, I really want to stress how important it was for me to hear from the public that we're all feeling the pinch right now," Mayor McLean said. "When I got the news that we had $2.9 million more revenue coming in than we had projected in our budget, I said to my team, I want to walk that back."
For Chainey, the discussion extends beyond the tax increase itself. She was among several residents who responded to previous Idaho News 6 coverage with concerns about city spending priorities, including city-funded rainbow-themed displays placed on Boise City Hall after the city removed its Pride flag following the passage of House Bill 561 earlier this year.
"I 100% support anyone to do anything they want in their private residence or home, but when you have taxpayer money on the line, you are to be a good steward of that money," Chainey said.
Mayor McLean rejected the idea that such expenses are driving budget pressures, noting that the city routinely spends money on community events, displays and celebrations, including America 250 activities planned this year. She said those expenditures represent a small portion of the overall city budget.
"It's part of what makes Boise such a vibrant place to live," McLean said.
Chainey said residents want reassurance that taxpayer dollars are being spent responsibly.
"I think when you are in public office and you are spending taxpayer money, you are a stewardship over that money and it is supposed to be spent for all and not just one group," she said.
The revised budget proposal will now move to the Boise City Council for consideration before a final budget is adopted later this summer.
