NAMPA — The city of a growing 120,000 population is in the process of setting its budget for the 2025 fiscal year.
At a budget presentation last week, city of Nampa employees painted its intricate budget in broad strokes, addressing highlights.
“Stewardship is a very important core value in our city,” Mayor Debbie Kling said at the budget presentation.
Kling said this entails spending money at the right time for the right reason.
For the eighth year in a row, Nampa has been named the “Best Run City in the United States” by Wallethub, a personal finance company. Kling attributed this to the city’s careful budgeting.
“What do we need to be doing, and how do we do that in the most cost-effective way?” Kling said about budgeting considerations.
Goals for Nampa’s 2025 budget include:
Reducing non-labor operating costs by 5%.Closing the budget “GAP” by budgeting closer to historical actuals.Training organization to better match budget capacity to project capacity.Increasing overall budget accuracy.
STAFFING
The city plans to increase its overall spending on staff by approximately $5.5 million. Most of these funds can be attributed to an increase in staffing proportionate to the city’s population growth.
Nampa’s population has increased by over 35,000 residents in the past decade. The city has maintained staffing levels at 5.8 full-time positions per 1,000 citizens since 2022, and plans to keep this ratio in 2025.
Kling said the city has struggled to retain city engineers and planners, as it can be difficult to compete with the private sector. Nampa also has to compete with other local municipalities when hiring.
This results in the use of contractors in cases where a full-time city employee would be more cost-efficient.
The city has focused on maintaining good work environments, employee benefits and retirement benefits.
“There has to be (an edge) to get people to stay, because let me tell you, we are in a competitive market,” Kling said.
The proposal of a $5.5 million increase includes increased spending on retirement systems by $1 million and an $800,000 increase of health insurance expenditures.
PROPERTY TAXES
According to Nampa Chief Financial Officer Doug Racine, property taxes account for 13% of city funding.
The majority of city-allocated property taxes go toward Nampa’s general fund at 80.1%. Parks and Recreation receives 6.6% of property taxes, while the libraries receive 6.4% and the Streets and Traffic Division receives 5.9%
Nampa taxing district’s net taxable value totaled at $15.3 million, an increase of $1.5 million. According to the budget proposal, this reflects the growth in commercial development and construction.
Racine said property taxes have seen continuous changes for a variety of reasons.
“The last three or four years have been dynamic — going into COVID, hitting inflation, coming out of COVID,” Racine said. “We haven’t had a moment to stand still and catch our breath.”
Changes made in the legislature have also contributed to tax adjustments. Racine attributed bills passed several years ago to shifting the city’s tax base.
“What most people don’t know is, because of the state legislature years ago… commercial real estate taxes are going down, and that valuation is shifting into the residential,” Racine said. “We could leave our budget exactly flat and that residential would still see an increase.”
Attendees at the budget presentation questioned how large of a role the city has in dictating property taxes. Kling and Racine were in agreement that most factors were beyond the city level.
“It’s a mess and it turned us upside down,” Kling said about ongoing changes surrounding property tax.
FORD IDAHO CENTER
The Ford Idaho Center is Nampa’s largest event venue. In March, automobile company Ford renewed its naming rights contract for another five years.
Costs have increased for the Ford Idaho Center, but the center has also seen an increase in revenue. When accounting for revenue and inflation, the city’s operational expenses for the center increased by .9% in 2024.
A similar increase is anticipated for 2025, with revenue offsetting increased expenses.
In 2024, the center saw a record-breaking number of concerts during its amphitheater season with 33 shows.
The budget also anticipates the possibility of creating Nampa’s Auditorium District in which a 5% tax would be applied to hotel stays.
This initiative will be on the ballot on Election Day in November. If passed, the center would receive over $1.2 million that would go towards expansion projects.
“The Auditorium District is key in creating a healthy, sustainable venue into the future,” the Nampa 2025 budget proposal says.
SCHEDULE
As Nampa continues to workshop its proposed budget, residents will have the opportunity to provide input.
Aug. 5: An updated budget proposal will be available to the public online at cityofnampa.us/finance .
Aug. 14: The deadline for submitting written public comments regarding the updated budget is at noon.
Aug. 19: Residents can sign up for the public hearing period beginning at 6 p.m. at Nampa City Hall.
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