County OKs budget with tax hike

COEUR d'ALENE — Upon further review, Kootenai County's fiscal 2018 budget will include a 1.5 percent tax hike as proposed and one commissioner's salary will be decreased by the same percentage.

Commissioners revisited and finalized the budget on Tuesday as the numbers temporarily changed, due to a proposed cut that earned support after last Thursday's public hearing.

About $161,000 was slated to be cut from the proposed $88 million budget due to a sheriff's office reorganization that will eliminate two sergeant positions. The cut would have slightly reduced the tax increase.

However, it was later revealed the positions won't be eliminated until fiscal 2019, causing Commissioners Bob Bingham and Chris Fillios to support and approve the budget as presented.

"I haven't heard anything that would cause me to change my mind," Fillios said before a vote was taken on the budget. "We're trying to be prudent while taking into consideration demands being made on the county."

Taxing agencies are allowed to take tax increases up to 3 percent under state law.

Bingham said more than $12 million worth of new requests were made at the start of the budget season. That number was trimmed by the board to $664,401.

Bingham said he didn't feel comfortable making more cuts, especially when he isn't an expert of the departments and is just eight months into the job.

"We are at a compromise," he said. "Over the next several months I hope to have more time to dive deeper into the budget. I'd like to have more time to do more in-depth cutting. I want less regulations and spending. I think we'll have more opportunities in the next couple months in both areas."

Bingham will take a 1.5 percent pay cut — $1,090 — in the next fiscal year to fulfill a promise to voters.

"My intent was not to raise taxes, but if I did, I'd cut my salary by the same percentage," he said.

For residents, the tax hike equates to an average of $4.37 per year.

Bingham said the Kootenai County portion of some residents' taxes will actually still decline because the levy rate is going down.

Commissioner Marc Eberlein was the lone board member who did not support the budget as proposed.

During Thursday's meeting, he recommended slicing $360,000 from a salary increase pool, $137,000 for a new mapping system, $28,000 to Jobs Plus and $15,000 to Heritage Health.

The budget includes merit salary increases up to 3 percent for most employees.

The commissioners unanimously decided to not add the foregone tax balance of $664,401 to the existing foregone fund of $9.1 million. Boards can use such funds, but in doing so would tax residents.

A new state law allows taxing agencies to not accept the foregone tax amount for the upcoming fiscal year. By rejecting the amount, the county's foregone balance will not be increased from the amount that had built up over the years.

Kootenai County is one of several taxing agencies that show up on residents' overall tax bills.

For example, the cities of Post Falls and Coeur d'Alene are both not taking a tax increase.

Rathdrum adopted its budget with a 1.92 percent property tax increase, which will increase revenue $45,691.

Hayden took a 3 percent tax increase that represents a $39,969 increase to the budget.

"Hayden is in a more unique situation in that its levy rate is significantly lower than most other municipal entities to fund municipal services and so taking the 3 percent results in a much lower comparative amount," said Brett Boyer, city administrator.

North Idaho College, meanwhile, took a 1 percent increase, which will generate $145,691.