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Levy rates going up

by Alecia Warren
| October 25, 2011 9:00 PM

Levies for most taxing districts in Kootenai County have increased this year, according to a list of levy stats just approved by the state.

That doesn't mean that the county's 44 districts are trying to rake in cash, said David McDowell, Kootenai County finance director.

The across-the-board hikes are only due to plummeting property values, he said, pointing out that the county's overall assessed value dropped $897 million from 2010.

"The levy rate is a product, not an answer or a solution," he said.

Levy rates are determined by dividing property tax dollars by the value of the district, he said.

"When the value of the district decreases, you can see in the formula, it's going to make the levy rate go up," he said.

Taxing districts, which include schools, cities, fire districts and highway districts, did still have the opportunity to take up to a 3 percent tax hike, McDowell noted.

But only 26 took the maximum increase, he said.

"Most of the districts seem to be more conservative this year as a whole," he said. "I think they're acknowledging the economic times. Everybody's challenged, so districts are behaving accordingly."

The impact levy increases have on individual property taxes will depend on each property owner's assessed value, McDowell added.

Kootenai County itself, as well as the city of Coeur d'Alene, decided against tax hikes, though the county's levy nudged from .29 percent to .31 percent. The city's also rose from .57 to .62 percent.

Northern Lakes Fire District took the full 3 percent tax raise, said Dep. Chief Ralph Kramer.

"Our financial status is we're struggling, I'll be honest," he said.

The district has seen dwindling revenue with new construction down, Kramer said. In spite of that, the volume of calls is up 12 percent.

To manage, firefighters have been reorganized to focus on runs above all other priorities, Kramer said. That means spending extra to rely on outside help investigating fires and testing equipment.

"We're still providing services, but are we providing with the same personnel as we did in the past? No, not this year," he said, reminding folks to dial 911 for emergencies, not the station itself.

The district's levy increased from .12 percent to .13 percent.

Post Falls Highway District, which saw its levy rate rise from .04 to .05 percent, also needed the full 3 percent tax increase, said Road Supervisor Kelly Brownsberger.

The top priority is keeping up the same services while revenue diminishes, he said.

"My board has told me we want to make sure we keep up our winter services, so our roads are as safe as we can possibly make them," Brownsberger said.

Funding is down, particularly from federal forest reserves, he said, which gave the district about $140,000 three years ago but only roughly $80,000 this year.

"We're just trying to keep up with the rising cost of doing business and buying materials," he said.

Lakes Highway District didn't take any tax increase, said Commissioner Marv Lekstrum.

The district has kept up with costs after undergoing massive reorganization, he said, which resulted in crew reduction and conducting more in-house engineering.

"Our burn rate was a lot less," he said.

The district's levy is still .07 percent.

Kootenai Fire and Rescue also slid through the budget cycle without a tax hike.

Thanks to an undivided commitment to long-term planning, said Chief Ron Sampert, the district had stowed away enough over several years to fund recent projects like a new drill tower, a new truck and a new office building.

"That's one thing that sets our fire district apart from other taxing entities, that we've been able to do that," Sampert said of storing up dollars. "Some folks don't have that opportunity, they've been operating on a shoestring budget to start with. So when the economy tanked, so did they."

The district's levy has remained at .2 percent.

It's not so hard to prepare for projects down the road, he added.

"It's like your family budget," he said. "If you know you're going to buy a car in three years, you start setting money aside for three years. If you're smart about your money, that's what you'll do."