Growing city, growing budget

Post Falls starts budget hearings Aug. 4

Post Falls isn’t a sleepy little river town anymore. For proof, look at its proposed fiscal year 2021 budget, which is approaching the $100 million mark.

It won’t stay there, however, said Finance and Support Services Director Jason Faulkner during Tuesday’s City Council meeting.

Set at $97,300,893, the budget includes a proposed 3% property tax increase, which Faulkner says won’t be accepted long term.

“The council hasn’t taken the 3% increase in property taxes for 10 years,” Faulkner said. “Instead, they’ll probably take the revenue from new construction and annexation and add that to the budget.”

According to Faulkner, Post Falls City Council has been adamant about allowing new growth and annexations to pay for themselves. However, studies show that growth is not actually paying for growth.

“There’s been a lot of studies on whether new growth pays for itself and ironically it does not,” Faulkner said. “There are ways to offset the cost of new growth but it does not always pay for itself.”

Unlike Kootenai County, Post Falls’ proposed 2021 budget is up from last year due to increased capital expenditures and new personnel positions. The main capital expense stems from the Post Falls Wastewater Treatment Plant that has been under construction for several years.

“We’re starting phase two, and we ended phase one probably a couple of years ago,” Faulkner said. “We have about $25 million in capital planned for 2021, so it’s a big project.”

Besides the plant, Post Falls is looking to hire two full-time police department employees and invest about $900,000 in street maintenance.

“We have been very fortunate to not experience a big budget crunch like some neighboring cities in Washington,” Faulkner said. “Our revenues are still coming in strong. Our sales tax has taken a slight dip but it is not as much as I anticipated.”

Based on the Public Employees Retirement System of Idaho, Post Falls’ cost of living adjustment for full-time city employees is set at 2%. City Council salaries are not included in this bracket as councilors vote on their pay according to a salary survey taken every two to three years.

The first hearing for the Post Falls 2021 budget is set for the Aug. 4 City Council meeting at City Hall. The public is welcome to join in person, via Zoom or watch the Facebook broadcast.