EDITORIAL: City must take a hard look at spending

The city of Coeur d'Alene, to make up a budget deficit, is considering another property tax increase for fiscal year 2026. This would be the third straight year of property tax hikes. 

This current proposal calls for the allowable 3% property tax increase and 1% of forgone taxes. The 3% is projected to bring in $835,702 and the 1% in forgone taxes is set to collect $278,567. The $1.1 million will help clear up the city's financial picture.

Now, we are not absolutely opposed to property tax increases. In these days of rising costs, the city has one way to bring in more money, and that's by raising property taxes. And, as we have said before, we believe the city runs a fairly tight ship as it has experienced leaders at City Hall and on the City Council and in the mayor's office.

But it is using the general fund to supplement revenues and support operations to the tune of $2.2 million in fiscal year 2025 and $2.5 million in the FY26 budget. That is a big concern. It does not want to use the general fund to cover deficits.

That said, we point to what city finance director and treasure Katie Ebner recommended as the budget process continues: The city must keep wages conservative, which means do not give out large pay increases; and leave some unfilled positions alone if it can be done without impacting core services.

We also like Ebner's suggestion that department heads review ways to trim 1% from their proposed budgets. If the city is going to ask citizens to pay more in property taxes, it should in turn hold the line on spending, if not reduce spending. We understand this is easier said than done, but it can be done.

An initial look at department budget requests for fiscal year 2026 finds only two asking for less money: The planning department's requested budget amount is $810,231, a 1.3% decrease from $820,717, while the police department is asking for $21.5 million, down from $25.8 million, attributed to changes in capital expenditures, not staffing or services.

The rest of the departments are requesting more money in the coming year, from 2.4% in administration to 21% for building maintenance. 

Now, perhaps every dollar each department is requesting is perfectly justified. Could be. Still, it would be prudent of the city to demonstrate to taxpayers it is doing all it can to limit spending, and it can start by doing as Ebner suggests: Keep wages conservative and try to reduce spending. This would be a show of good faith, that the city is not just asking taxpayers to pay more, but is making do with less through hard work and good planning.