The city of Bonners Ferry’s proposed $12.9 million budget calls for the traditional 3-percent property tax increase.

Based on assessed values from December, the tax increase means the owner of a $200,000 property — minus the homeowner’s exemption — would pay $450 for city services.

City clerk Kris Larson noted that adjusted assessments are expected this month. In Bonners Ferry, assessments are expected to increase, which means taxes go down.

“There’s more value to spread it out on,” Larson said, noting a $450 tax bill would be reduced.

Law allows the city to raise taxes 3 percent annually, Larson said. The city usually does. The tax increase is expected to give $15,000 more to the city for a total of $471,348 generated from property taxes.

Next year’s proposed budget does not eliminate or add any services. No new jobs will be created and no layoffs are expected. The proposed budget includes 3 percent pay-raises for the city’s 30 full-time employees.

The city also is studying its sewer, water and garbage rates, which council could increase later into the fiscal year, which begins Oct. 1, Larson said.

Council two weeks ago increased rates for electricity by $2 a month beginning in August or September. For residential users, base rates within city limits will go from $7.65 to $9.95.

Three-phase commercial users will experience a larger increase, with base rates jumping from $24 to $31.20 for those within the city limits.

The city expects a 6 to 11 percent increase in health insurance premiums for employees, who pay 10 percent. The figure will not be known until after the budget approved, so Larson said she budgeted the 11 percent.

A public hearing for the proposed budget will be held 7 p.m. Tuesday, Aug. 19, at city hall. Council will then act on the budget.