Rathdrum agrees to 1 percent increase

RATHDRUM - Rathdrum residents should expect a 1 percent property tax increase during fiscal 2012.

The City Council unanimously approved the bump on Tuesday night while approving a $4.6 million General Fund budget.

For the average homeowner, the increase will cost an additional $6.30 per year.

"It's a reasonable and pretty conservative amount to keep services going and get some projects done," said Brett Boyer, city administrator.

The tax hike will generate $18,000 and go toward Majestic Park improvements and projects such as street maintenance and pathways. The park is an 11.9-acre site east of Meyer Road next to the water tower. It will be Rathdrum's first park since Stub Myers was built in 1982.

No salary increases and no new positions are planned for next year.

No one from the public commented during the public hearing.

"Hopefully that's a sign of confidence in what we're doing," Boyer said.

The 1 percent increase was proposed before the hearing by staff and the council after four budget workshops were held.

The city will spend $300,000 in street maintenance projects, including $225,000 in overlays.

Pathways along Highway 41 and Meyer will cost $60,000 and landscaping and street lights along Second Street to match those of downtown $20,000.

The city has budgeted $100,000 toward continuing to replace old water meters with new automated ones.

Over the past five years, including this year, Rathdrum's tax increases have totaled 5.82 percent, averaging a little more than 1 percent each year.

"It's steady as opposed to taking 3 percent during tough times," Boyer said.