NAMPA — Nampa’s proposed budget for fiscal year 2020, up more than $20 million from fiscal year 2019’s original budget, includes a 2% increase in property taxes.
Nampa City Council is holding a budget workshop Tuesday and Wednesday, where council members will review the proposed $192 million budget for FY20. The council must hold a public hearing on the proposed budget before it can be finalized.
Nampa approved a $172 million budget for FY19 last year, which was eventually amended to a $182 million budget, according to a budget summary from the city’s finance department. Nampa Finance Director Doug Racine said the extra $10 million was used for multiple purposes, including the purchase of the First Interstate Bank building for more city office space, and for wastewater and water projects.
Some of the increases to the FY20 budget will also cover wastewater upgrades. The city is proposing an additional $8.5 million in funding for wastewater construction projects, totaling more than $30 million in the overall budget. Other increases will cover an increase in public safety investments, including an extra $2.5 million for Nampa’s streets.
The Nampa Police Department and Nampa Fire Department would also each receive three new personnel under the proposed budget. About $1 million of the proposed budget would cover increased health care costs for city employees, Racine said.
City Council has the ability to raise property taxes up to 3% each fiscal year, and the FY20 budget is proposing a 2% increase. The property tax levy is also projected to decrease from $791 per $100,000 of taxable property value in FY19 to $704 per $100,000 of taxable property value in FY20. Racine said this is because Nampa’s property values are going up faster than the rate the city is increasing taxes.
The added property taxes combined with new construction, annexation and shared state sales tax revenue will generate an additional $2.6 million in the upcoming fiscal year, Racine said. Fiscal year 2020 takes effect in October.