Proposed Post Falls budget has no tax hike
POST FALLS - Post Falls has built its proposed fiscal 2015 city budget without a property tax hike.
The City Council will hold public hearings on the proposed budget and fee increases tonight at 6.
"The proposed budget for fiscal 2015 was constructed by using conservative revenue and expenditure forecasts to fund city services along with funding city reserve accounts for future replacements," said Jason Faulkner, finance director.
The last time the council approved a tax increase was for fiscal 2012 with a 2 percent hike. Government agencies can approve tax hikes as high as 3 percent under law.
The city's current General Fund budget amount is $18.7 million. The fiscal 2015 budget is proposed to be $19.9 million. Faulkner said the increase is largely due to the budget proposal including grant-funded expenditures.
Faulkner said he was directed to build the budget without using any of the city's foregone tax balance. The last time it did that was in fiscal 2009.
The proposal includes an across-the-board 2 percent cost-of-living adjustment (COLA) increase for all city employees. Some employees will also receive a merit pay increase as large as 2 percent.
Another proposal supported by the council during the workshop was reducing the maximum number of paid-time off (PTO) hours that can be accrued by an employee from 330 to 290.
Large expenditure requests in the budget proposal include:
* The $550,000 Seventh Avenue modernization project, which will be funded by multiple sources
* $74,000 worth of safety improvements to Mullan Avenue and Idaho Street, a grant-funded project that requires a $4,500 match from the city
* The $800,000 Highway 41 trail project from Seltice Way to Mullan Avenue, which is grant- and urban renewal-funded
* A $49,000 citywide signal timing system, which is grant-funded with a $2,670 city match
* Three new police cars valued at a total of $130,000.
The only new position proposed is a senior lieutenant for the police department.
Property taxes generated from 2014 new construction occurring in Post Falls will add an additional $240,959 to the budget.
* In other business, the council will hold its second public hearing on fee increases.
Sewer rates are proposed to increase 14.5 percent on Oct. 1, while water rates are planned to jump 2.5 percent.
For the average residential user with 5,000 gallons of water use per month, the wastewater fee will increase from $33.79 to $38.69 per month and the water fee from $5.10 to $5.25.
The wastewater fee also increased 14.5 percent last year.
Faulkner said the fee increases are based on engineering recommendations to fund operating and capital expenditures such as wastewater upgrades required by the U.S. Environmental Protection Agency.
Post Falls, Coeur d'Alene and the Hayden Area Regional Sewer Board discharge treated wastewater to the Spokane River.
Post Falls' wastewater fee is proposed to increase 10 percent, 9 percent and 7 percent in the next three years as part of a five-year plan to fund upgrades. By the end of the plan, the fee would rise to $49.63 per month.
No change in the street light fee of $3.85 is proposed.