June 11, 2025
Pocatello Property Taxes
By: P.A.G.E. Co-founder Lydia Noble
Property tax misunderstandings are astoundingly common. Especially regarding how they are determined and how much city, county and school district budgets impact property taxes. Some elected leaders depend on this ignorance to try shifting blame to the County Assessor’s Office. Yet only taxing entities (city, county and school district) set “tax asks” based on budgets. After taxing entities finalize budgets (spending needs) and account for available revenue sources (incomes like fees and shared state sales/liquor taxes, etc.), property tax asks are the extra revenue needed from taxpayers to balance budgets. As budgets grow, so too can property taxes. Separately, the Assessor’s Office (under state direction) only establishes property “assessed values” based on current sales prices.
Our elected leaders apparently have an equally astounding (intentional?) misunderstanding of their role as our representatives during budgeting. They are supposed to be our questioners. The “voice of reason” regarding spending decisions and budgeting. Instead, our Council defers many decisions to “city experts” and mayor—dodging their responsibilities to probe for facts to confirm prudent spending decisions on behalf of constituents.
City legal settlements can impact property taxes, too. Yet elected officials deliberately downplay our numerous lawsuits. Intentionally ignoring their responsibility to identify and address core issues leading to lawsuits. Especially the recent one with real potential for a large settlement—plus two pending civil lawsuits in federal court, and other lawsuits filed in just these last five years including a $1.6M settlement in 2024 “celebrated” by City officials as being lower than expected. City insurance has limits (like our own), and premiums reflect claims.
Pocatello is terrific at introducing upward drivers of budgets and property taxes, but terrible at building corresponding revenue, population and business growth offsets. The ARPA windfall of $10.7M produced many one-time-only benefits like a new Ross Park slide. But ARPA funds are now fully committed, so why do elected officials continue spending freely, refuse to budget sustainably, and intentionally rely on: 1) grants to build potentially unsustainable new infrastructure instead of maintaining old; and 2) risky interest revenue to balance the budget? Because it’s too difficult to actually manage escalating City costs while maintaining popularity and untarnished images during election years! Easier to delude themselves (and us) by spending freely (rebranding, recycling center) to create the illusion of a successful city rather than to actually do the difficult (often unpleasant) job of controlling City spending.
Simplistically, property tax drivers include excessive employees, vehicles, buildings, amenities, services, assets, etc. Pocatello has them all. Reducers include keeping spending in line with revenues, sound budgeting, centralized purchasing, and seeking adjustments wherever possible. Reducers also include building reasonable City revenues—park user fees, permit fees, etc. Helpful, too, are shared state sales and liquor taxes (and other shared revenues), but those aren’t city-controlled. If the gap between City spending and revenues grows, property taxes typically increase to close that gap. But Idaho caps city/county/school district levy “tax ask” increases at 3%, excluding foregone. Foregone being the sum of “untaken” portions of that 3% cap from previous years which are tracked, summed and remain available for taxing entities to tax us for (if needed) in future years. Basically, taxing entities have the ability (within statutory guidelines) to exceed their 3% cap if/when additional funding is needed.
Pocatello, “who’s minding the store?” Even as our ARPA funds and grant money are expended, NOT ONE Council member bothers asking how we will maintain newly created infrastructure (like the new skate park and expanded greenway trails.) Look around—this City clearly struggles to maintain existing infrastructure. Deferred maintenance alone (plus inflation) must approach $25M-to-$30M. Since property taxes can’t cover the magnitude of these costs, should we taxpayers anticipate a huge City bond ask soon?
Current city elected officials base spending decisions on “what improves my public image and wins me the most votes” rather than on proven, sound financial planning principles. Why? 1) no one holds them accountable for irresponsible spending decisions; 2) low voter turnout helps ensure their re-election; and 3) they have NO incentive to practice sound financial planning if doing so might require unpleasant, image-tarnishing actions. Easier to let taxpayers suffer the consequences. But sound financial planning, no matter how difficult or unpleasant, is also necessary—just like at home.
As deficits climb, our Mayor and Council delude themselves (and us) into thinking that city spending (budgets) can grow “indefinitely,” while they intentionally ignore clear indications of very real revenue limits. Many in our community are capable and willing to serve on Council, but they are not elected. We must STOP electing and re-electing Council members who willingly ignore the seriousness of our budget deficits and knowingly portray City prosperity as overly positive simply to maintain untarnished political images.
Consider voting-in an entirely new group of fiscally responsible City leaders. Pocatello needs “questioners” more concerned with managing City finances responsibly and sustainably than with untarnished political images. A Council conducting routine evaluations, providing citizens with proof that their decisions are fiscally responsible, and working toward reducing budget deficits. We need a mayor who supports Council with all necessary information to make informed decisions, accepts (not circumvents) those decisions, and represents constituents by protecting Pocatello best interests. Only then will outsiders take Pocatello seriously and finally see our potential as both a wonderful place to live and a place for businesses to thrive.
