The Post Falls and Rathdrum city councils will hold public hearings on the fiscal 2012 budgets tonight at 6.

Post Falls will consider four budget proposals, including with no tax increase, a 1 percent tax increase, 2 percent jump and 3 percent hike.

Rathdrum's proposal calls for a 1 percent increase.

Cities are allowed to increase taxes up to 3 percent under law.

The majority of the members from both councils said they're leaning toward supporting a tax increase during budget workshops based on city staff input.

Post Falls members said they are inclined to support a tax hike because there's nothing left to cut, costs have increased, the city is being asked to maintain service levels and some employees, including police officers who are costly to train, are seeking greener pastures.

The city's budget has been reduced by more than $2.7 million over the past three years. The city has not increased taxes the past two years and there has been a salary and hiring freeze for the past three. No new positions are proposed for the upcoming budget.

Merit raises, maintaining service levels, street maintenance and vehicle and facility replacement funds are among the ways discussed earlier of how a tax increase may be spent.

A 1 percent tax hike would mean a $4.03 per year increase for the owner of a $150,000 home and $7.81 increase for the owner of a $250,000 home. A 3 percent tax increase would raise taxes $12.08 per year for the owner of a $150,000 home and $23.44 for the owner of a $250,000 home.

Rathdrum's 1 percent tax increase would generate $18,000 and go toward Majestic Park improvements and projects such as street maintenance and pathways. For the owner of a $200,000 home, it would mean an increase of about $1 per month.

Majestic Park is an 11.9-acre site east of Meyer Road next to the water tower. It will be Rathdrum's first park since Stub Myers was built in 1982.

Over the past five years, including this year, Rathdrum's tax increases have totaled 5.82 percent, averaging a little more than 1 percent each year.

No raises and no new positions are proposed.