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Hayden OKs 3% property tax hike

by MADISON HARDY
Staff Writer | August 26, 2021 1:00 AM

Hayden City Council unanimously approved the $39.5 million 2022 budget Tuesday night, including a 3% property tax increase. 

Growing $13.2 million from 2021, the most significant increases come from:

• State tax revenue

• Grants 

• Unused 2021 dollars 

• $3.2 million in American Rescue Plan Act (ARPA) funding 

$2 million in ARPA funding is going toward the city sewer system, and the remaining is for future capital projects, City Administrator Brett Boyer said. 

"Those are things that can be moved around," Boyer said. "We will need to have some discussion and prioritize which projects to use the money."

The budgeted 3% property tax increase approved by council Wednesday night adds about $50,000 to overall revenue, Boyer said. Combined with new construction, the city's overall levied amount grew by about $86,000 in FY2022 — from $1.69 million to $1.76 million. The $1.76 million accounts for 24% of the Hayden budgeted revenues. 

"If you compare that with other cities in the area, Coeur d'Alene, Post Falls, and Rathdrum, their (new growth) numbers are probably three, four times ours," Boyer said. "Our levy rate is just $1 per $1,000, which is one of the lowest in the state." 

The low levy rate represents the interest of Hayden officials to be conservative when spending taxpayer dollars, Boyer said. 

Councilman Dick Panabaker said that while the numbers in the 2022 budget may look significant to the average citizen, they are "peanuts" compared to other cities. He commended the city for meeting needs with the low levy rate but said it has caused issues in funding large initiatives. 

"The problem with (the levy rate) is when there is a little bit of road construction that doesn't get done. If you don't do these things over a period of time, then you have to replace the whole road," Panabaker said. "As hard as we try, we're falling behind a little bit every year because we don't have enough money." 

After months of discussion with the Kootenai County Sheriff's Office, Hayden officials agreed to spend an additional $80,000 for law enforcement services. Since taking office, Sheriff Bob Norris has stated that the $323,353 Hayden public safety budget is insufficient to provide the needed personnel and equipment to support the city's growing population. 

Through the decades-old agreement between KCSO and Hayden, the city receives one seasonal and three full-time patrol officers. Boyer said officials are considering reconvening the city's safety committee to discuss ways to increase funding in the future. 

Council unanimously approved the $52 million Hayden Capital Improvement Plan, which targets about 70 projects between 2022 and 2026. 

Road projects received a $525,000 boost.

Hayden council also approved the highest cost-of-living adjustment for employee wages in recent history, a 4% COLA increase and a 1% merit uptick. 

"We've had a hard time with the current climate maintaining or being able to hire some employees," Boyer said. "I think this is a good way to help keep us in the market."