From road projects and park improvements to sewer infrastructure and future staffing, Hayden’s proposed Fiscal Year 2027 budget offers residents an early look at where the City plans to invest public resources over the coming year.
During its July 28 meeting, the Hayden City Council reviewed the propoosed $36.3 million FY2027 budget, a spending plan that emphasizes transportation, public works, parks, sewer operations and long-term capital planning ahead of a public hearing scheduled for Aug. 25.
If adopted, the budget would govern City operations from Oct. 1, 2026, through Sept. 30, 2027.
Budget Amendment Addresses Capital Project Spending
Before discussing the proposed FY2027 budget, City Administrator Lisa Ailport explained why the City is also seeking to amend its current FY2026 budget.
The amendment is tied primarily to expenditures associated with the Ramsey Road and Honeysuckle Avenue intersection project. When the FY2026 budget was adopted, the City had not yet finalized its fund balances following a period of transition within the finance department. As a result, approximately $1.7 million in capital project spending now needs to be formally appropriated to avoid showing an over-expenditure in the City’s capital projects fund during the annual audit.
Ailport emphasized that the amendment does not represent new spending or additional taxes.
“We’re not creating money out of thin air or raising taxes. We’re just taking it from one bucket and putting it into another,” Ailport told the council while explaining the amendment process.
She noted that budget amendments near the end of a fiscal year are common and allow cities to adjust appropriations to reflect actual project timing and expenditures.
A Budget Focused on Long-Term Planning
Throughout the presentation, Ailport described the proposed budget as more than an annual spending plan. Instead, she repeatedly connected it to the City’s long-term planning efforts, including transportation improvements, capital projects, equipment replacement, facilities, parks and future infrastructure investments.
The proposal also continues the City’s effort to move away from reacting to immediate needs and toward planning several years in advance for major purchases and public improvements.
Proposed Staffing Additions
The proposed budget includes funding for several new positions intended to help the City keep pace with growth and increasing service demands.
Among the proposed additions are:
A Streets Department employee to address workload created after the department’s mechanic moved into a full-time maintenance position.
An additional Parks Department employee to support growing community events and park maintenance.
An Engineering Technician position to help reduce development review bottlenecks.
A proposed records clerk position was not included in the current budget. Ailport said that position is being deferred until the City completes its ongoing spatial needs analysis and determines long-term space and funding needs. In the meantime, the budget proposes additional overtime funding to help existing staff manage the workload.
Sewer Rates and Capital Improvements
The proposal also includes a 5% sewer rate increase, which Ailport said equates to approximately $3.25 per month per equivalent residential unit.
According to Ailport, the increase is driven primarily by higher Hayden Area Regional Sewer Board (HARSB) operating and maintenance costs, along with the City’s effort to build reserves for future sewer capital improvements rather than relying on larger rate increases in later years.
Council members also discussed the City’s sewer revenue bonds and ongoing investments in treatment infrastructure required for regulatory compliance.
Why the Published Tax Amount May Change
Another topic receiving council attention was the proposed property tax levy.
Ailport told council that a 3% property tax increase would generate approximately $81,000 in additional levy authority. However, she emphasized that the figure included in the published budget is not necessarily the amount the council will ultimately adopt.
Under Idaho law, cities must publish the maximum budget they may adopt following a public hearing. At the time of the meeting, Kootenai County had not yet provided Hayden with final new construction valuation figures. As a result, staff recommended publishing the budget using the maximum allowable assumptions so the City would retain the flexibility to adopt a lower amount once the county’s final numbers are received.
The council may adopt a budget lower than the published amount following the public hearing. However, adopting a budget higher than the published amount would require restarting the public notice process.
Public Hearing Scheduled Aug. 25
For residents, the July 28 discussion was not a vote to adopt the budget, but rather the council’s first public review of the proposal before a formal public hearing.
The council unanimously approved publishing notices for both the FY2026 budget amendment and the proposed FY2027 budget, allowing the process to move forward.
The public hearing is scheduled for:
Tuesday, Aug. 25, 2026
5:00 p.m.
Hayden City Hall
Residents will have an opportunity to comment on both the proposed FY2027 budget and the FY2026 budget amendment before the council considers final adoption.
Hayden Reporter will continue following the FY2027 budget process leading up to the Aug. 25 public hearing and final adoption.
Resources
City of Hayden Documents
Meeting Videos
Inside Hayden’s FY2027 Budget (Hayden Reporter video excerpt - 41:37)
Related Hayden Reporter Coverage