City considering property tax hike

COEUR d'ALENE — The city of Coeur d'Alene's 2023-24 preliminary budget is projected at $129.7 million, a slight increase from the current $123 million.

The tentative plan includes a 3% property tax increase.

"I don't ever recall ever raising taxes in an election year," said Councilman Woody McEvers. "Am I off base there?"

"They don’t raise property taxes in an election year when they like the people running," responded Councilman Dan Gookin, who is up for reelection, which drew a few laughs.

"For the record, I'm up this year, and I certainly support that," Councilman Dan English added later.

Mayor Jim Hammond, the City Council and department heads met for a 90-minute budget workshop Monday.

City administrator Troy Tymesen said it was a "pretty straightforward financial plan."

"For the most part it is really, really solid news," he said.

It was noted that the property tax hike, which is estimated to generate $767,514, may not mean property taxes will rise.

In the recent Kootenai County property value assessment notices that went out, many went down.

Tymesen said the city is waiting for numbers on new growth, the city's overall valuation and the levy rate, which dropped significantly last year.

"Even with a good-growing community, it's not generating a lot of property tax revenue for the city," he said.

And in the last session, legislators passed House Bill 292. Starting in July, it is projected to deliver over $350 million in property tax relief to Idahoans.

"We have to see what the state dollars will supplant," Tymesen said.

The budget includes no new positions except for two firefighters, which are being funded by Kootenai County Emergency Medical Services System.

Tymesen said the property tax increase is necessary to fund operations and pay personnel.

The preliminary budget says the total increase to personnel expenses is pegged at $2.2 million, which includes $1.7 million for the cost-of-living increases of 4.5% for police, 3% for fire and 4% for the Lake City Employees Association.

"We believe that the services are meeting the demands of the constituents," Tymesen said.

The budget plan includes $21.8 million for police, $13.6 million for fire and $7.1 million for streets and engineering.

Councilwoman Kiki Miller suggested the city consider funding positions outside public safety that she said has added nearly 50 positions in the past 10 years.

She said that historically, the city budgets the same way each year.

"I think it’s time to be a little bit more creative," Miller said.

The City Council is expected to adopt a final budget in early September.