LCDC proposes 2015 budget

COEUR d'ALENE - The Lake City Development Corp. has approved a draft budget for 2015, which shows a total reduction of $4.4 million in spending from 2014.

A public hearing will be held on the proposal Aug. 20. If approved, it will be remitted to the city of Coeur d'Alene by the Sept. 1 deadline.

The draft budget - which will cover fiscal year 2015 from Oct. 1, 2014, to Sept. 30, 2015 - proposes total spending of $7.8 million. LCDC Executive Director Tony Berns estimates the urban renewal agency will take in $8 million in revenues over the same period of time.

"This is based on 2013 levy rates," Berns told the LCDC board of directors last week. "So it is a conservative estimate."

Berns said property values in the agency's Lake District increased by $20.7 million, which will generate $4.3 million in tax increment revenue. Valuations in the River District increased by $16.3 million, which will generate revenues of $1.9 million.

Other revenues include property rental receipts, interest income, a line of credit and capital acquisition financing.

By comparison, fiscal year 2014 budget allocated a total of $12.2 million in expenses, and $13 million in revenues.

The new budget, if approved, will significantly decrease spending in LCDC's Lake District, and slightly increase spending in the River District.

In the Lake District, LCDC is proposing to spend a total of $6.3 million, or $4.9 million less that it spent in the 2014 budget. That district will also generate about $5.2 million less in revenue than it did in 2014, for a total of $6 million.

In the River District, LCDC is proposing to spend $1.5 million, which is about $500,000 more than the agency spent in 2014. The district will also collect about $100,000 more than it did in 2014 for a total of $1.9 million.

Berns told the board his budget reflects a $1.25 million bond draw from a line of credit at Washington Trust Bank.

"Bond proceeds can be used for expenses such as land acquisition and capital improvements associated with a project such as the Four Corners," Berns told the board.

On the expense side of the balance sheet, Berns said LCDC has budgeted $86,739 for public art in the Lake District and $38,939 for public art in the River District.

Berns also budgeted for planning expenses, including $90,000 for the Four Corners Project in the Lake District, and $250,000 that will be spent on engineering improvements to Seltice Way in the River District.

Other special projects LCDC is proposing for 2015 include the possible demolition of two homes on Young Avenue in the Lake District, and demolition of properties in Midtown if the Workforce Housing Project is approved next year.

Berns also set aside $250,000 to help construct the Citylink Bus Plaza in Riverstone, and $100,000 to potentially expand Johnson Park in the Mill River area.

The budget also reflects a $2 million bond payment to Washington Trust Bank, and $43,750 for the Coeur d'Alene Downtown Association.

Board member Deanna Goodlander made the motion to approve the budget for publication prior to the public hearing. It passed unanimously.