Cd'A council to address budget

COEUR d'ALENE - The city of Coeur d'Alene's $77 million 2011 budget will go before the City Council tonight.

The city is seeking a 1.5 percent property tax increase, which it says is needed to maintain its current level of service for residents - a $237,675 request.

It's also seeking a 1 percent cost of living increase for its 300-plus employees.

That pay increase would equal $212,317, spread out over its 353 full-time equivalent positions, and must be agreed upon with the city's three unions. The city is contractually obliged to give annual 3 percent COLA raises to its employees, but renegotiated with the unions to the 1 percent offer this year.

Last year, it didn't give employees raises.

The property tax increases will go toward new capital purchases, which the city also didn't spend money on last year. This year, it plans to buy new police vehicles, a new $14,000 copier, $20,000 worth of library books, and new radios for the police department that are mandated by the federal government.

Without the property tax increase, the city said it would have to dip into its $4.1 million fund balance.

The city's overall assessed valuation, last totaled just under $4 billion, is forecasted to drop 15 percent. On top of that, the city is still looking at a budget gap partially due to a lack of new property annexations. Another budget change is that the city has forecasted $7.8 million in capital projects for the next fiscal year, a $5.8 million increase from last year.

Of that, $300,000 will be paid for by city impact fees, and $7.5 million is expected to be paid for with federal funds.

The public hearing on the budget will be at 6 tonight in the Community Room of the Coeur d'Alene Public Library.