The Hayden City Council voted 4-1 Thursday to adopt its 2027 fiscal year budget with a voluntary 2.8% cap on the property tax levy increase, a measure that council members say will save the average Hayden homeowner approximately $65 annually compared to the state-allowed maximum increase. The decision reflects Hayden’s commitment to fiscal restraint even as the city experiences some of the fastest residential growth in Kootenai County.
Hayden’s population has grown from approximately 14,000 in 2018 to over 19,000 today, driven by new residential subdivisions along the Highway 95 corridor and the expanding commercial district near the intersection of Government Way and Prairie Avenue. The growth has increased demand for city services — particularly road maintenance, public safety, and parks — while simultaneously generating strong property tax and sales tax revenue that has given the city flexibility to limit levy increases.
What the Budget Funds and What It Holds Back
The $18.4 million general fund budget includes funding for two additional police officers, bringing the Hayden Police Department’s sworn strength to 24, and $1.2 million in road maintenance and improvement projects focused on Government Way and Strahorn Road. The parks department received a modest 3% increase to maintain existing facilities and begin planning for a new community park in the rapidly developing southeast quadrant of the city.
City Administrator Matt Stoll told the council the budget prioritizes public safety and infrastructure while holding the line on administrative costs. “We’ve found efficiencies in how we operate city hall that allow us to direct more resources to the services residents actually see and use — police, roads, and parks,” Stoll said.
The lone dissenting vote came from Councilman Rick Howard, who argued the city should invest more aggressively in infrastructure to keep pace with growth. “We’re going to end up paying more later if we don’t invest now,” Howard said. “Roads don’t get cheaper to maintain the longer you wait.”
Property Tax Impact on Hayden Homeowners
Under Idaho law, cities can increase their property tax levy by up to 3% annually plus an allowance for new construction. By capping the increase at 2.8%, Hayden foregoes approximately $180,000 in potential revenue. For a homeowner with a property assessed at $420,000 — close to the current Hayden median — the cap translates to roughly $65 in annual savings compared to a full 3% levy increase.
Property values in Hayden have increased an average of 8% annually over the past three years, meaning homeowners pay more in total dollars even when the levy rate holds steady. The Kootenai County Assessor’s office will release updated assessments in June, with appeal deadlines in late July.
What Comes Next
The final 2027 budget will be adopted in September following a public hearing. Residents can submit comments through the city’s website at haydenidaho.us or attend the budget hearing at Hayden City Hall. The Hayden City Council meets the second and fourth Tuesdays of each month at 7 PM.