RATHDRUM - The draft Rathdrum city budget calls for a 1.5 percent tax increase.

The City Council will hold a workshop tonight at 6 at City Hall, 8047 W. Main St., to finalize the draft budget. A public hearing on the budget will be held on Aug. 17 at 6 p.m.

"The last four years we've done pretty well (with keeping tax increases to a minimum)," City Administrator Brett Boyer said, adding that the increase proposal may increase or decrease slightly after tonight's discussion.

The city had no increase three years ago, took a 1.92 percent increase two years ago and 1.9 percent last year. Cities are allowed to increase taxes up to 3 percent each year.

"Over the last four years we've only increased taxes a little more than 5 percent combined, so that's pretty low," Boyer said.

Boyer said the city does not anticipate dipping into its foregone tax balance this year to build the budget.

The city's total proposed General Fund budget is about $4.3 million, which is about $500,000 less than the current year.

Boyer said the proposed tax increase will be used to fund a spray water feature and other improvements at the future Majestic Park.

Infrastructure work is out to bid for the 11.9-acre park in the southeast part of the city, east of Meyer Road next to the water tower.

"Majestic Park is our big focus with parks," Boyer said, adding that additional garbage cans and tables are planned for other parks.

The council is considering salary increases of 2 percent, which matches the cost of living allowance increase as tracked by the Department of Labor, Boyer said. Salaries were frozen last year.

The council is expecting about a 7 percent hike in employee medical benefits.

More than $200,000 has been budgeted for road improvements. Sidewalk improvements with lights and trees on Second Street in front of the old restored jail is also anticipated.

Other budget highlights include replacing a telephone system that's 17 years old, a police vehicle and police software upgrade.

"Our total expenditures are down, but we still feel good about the projects we have scheduled during these difficult times," Boyer said.