Cd'A sets $109M preliminary budget

COEUR d’ALENE — The Coeur d’Alene City Council on Tuesday set a preliminary budget for fiscal year 2021-2022 of $109 million that includes 3% property tax increase.

Mayor Steve Widmyer emphasized that the budget is far from final. It will be discussed more on Aug. 17, and a public hearing is set for Sept. 7.

“There still is a lot of work to be done over the next month before we finalize that budget,” he said.

City Administrator Troy Tymesen said two workshops and many hours have already been spent on the budget.

The proposed budget includes a 3% increase in property tax revenue of $700,738 and new growth from property taxes of $322,260, but no foregone property taxes.

The current city budget is about $103 million.

Tymesen said last year, the city reduced property taxes by $5.5 million thanks to federal dollars.

He said the city has the largest amount of forgone property tax authority in the state of Idaho. Forgone is made up of anything less than the full 3 percent a taxing entity can increase annual property taxes.

“That means you have not been taking the 3%. It goes to a category called forgone, forgone is a taxing authority. Unfortunately, it’s not a bank account," he said.

This year's proposed property tax increase will help balance the budget. Budget revenues are projected $45.2 million for the next fiscal year, while expenses are budgeted at $46.4 million.

That would reduce the general fund balance to an estimated $7.3 million on Sept. 30, 2022, down from $8.6 million on Sept. 30, 2021. It was $9.8 million on Sept. 30. 2020.

Tymesen said the city's goal is to keep $7.5 million so it has two months of revenue on hand.

He said in the past 24 years, the city has never borrowed money to fund its payroll prior to property taxes coming in.

Under the budget plan, the city would receive $325,419 in new construction dollars in 2022 with the property tax hike. That’s the lowest in new construction in at least eight years and well below the $827,349 it received in 2016.

Significant expense changes are projected at $4 million, which include merit pay increases of $175,711, additional staff of $1.3 million, increase to service and supplies of $786,164 and cost of living adjustments of $666,882.

Proposed citywide personal changes total $828,612 and include three firefighters, two police officers, a police sergeant and an assistant street director.

Proposed capital purchases of $629,740 include vehicles and equipment for the police department, station flooring for the fire department and used surplus equipment for the street department.

Tymesen said he will return to the council with a “more refined budget” next month.

“We’re getting numbers in all the time as we update things,” he said.