Liquor revenues drop, creating hole in Kootenai County's budget

COEUR d’ALENE — Kootenai County commissioners looked to trim about $19,000 from the budget for Fiscal Year 2025 after the county’s share of liquor revenues fell short of expectations. 

The board agreed Aug. 1 to publish a $131 million budget for fiscal year 2025 with a 2% tax increase. County finance director Brandi Falcon told commissioners Monday that she has since learned from the Idaho State Liquor Division that the county’s liquor revenues will be about $173,000 lower than expected. 

“Our general use liquor revenues are going down because total liquor sales statewide are going down for the first time in 15 years,” Falcon said. “The liquor board’s revenue is down $3 million. Our magistrate liquor revenues are down because our liquor citations have decreased by 20% as a total of liquor citations statewide.” 

With a 2% tax increase, Falcon said, the decreased liquor revenue would leave the county about $19,000 in the hole.

Commissioners accepted a request from Kootenai County Assessor Béla Kovacs not to renew a “mobile assessor” vendor contract, which will save the county about $42,000. 

“We are now in the black, so to speak,” said Commissioner Leslie Duncan.

Duncan and Bruce Mattare agreed to publish the adjusted budget. Bill Brooks voted against it, reiterating his general opposition to the budget. 

“I’m not happy with the budget anyway,” he said. “We don’t have a 3% tax increase, which we sorely need, and the employees don’t have a 3.5% (cost of living adjustment). 

The proposed budget includes a 2.5% cost of living adjustment for county employees, amounting to about $1.7 million. Employees will also receive a step increase on their anniversary date, amounting to about a $709,000 increase across all employees. 

The board has signaled that the proposed tax increase will likely land around 1.9%. The total levy amount is about $61 million. 

The community will have the opportunity to weigh in on the budget at a public meeting scheduled for 6 p.m. Aug. 28 at the Kootenai County Administration Building. Commissioners are expected to adopt the finalized budget the following day.