COEUR d'ALENE - Breaking ground on the McEuen Field redevelopment project is one of the bigger anticipated expenses Lake City Development Corp. expects to fund in fiscal year 2012.

The urban renewal agency penciled in around $6.4 million for anticipated capital projects, namely the McEuen Field redevelopment project, in its 2012 financial plan.

The proposed budget anticipates collecting $5.1 million in tax increment revenue between its two districts. The $6.4 million amount would be taken from the $16 million the agency borrowed from Washington Trust Bank for projects inside its Lake District, in which the downtown park sits.

The $6.4 million total, like the entire budget, isn't set in stone. It could change as the McEuen Field project moves along or stalls. But the park's phase one design and two months of phase one construction is written in the plan as an anticipated expense.

"If we don't spend it, we don't spend it," said Tony Berns, LCDC director, on anticipating the amount after meeting with project officials on the park plan's progress. "But I wanted to give the board some leeway in case the project did move forward."

The fiscal year begins Oct. 1.

Adding tax revenues and the borrowed amount totals more than $11 million, and the agency expects roughly $13.7 million in expenditures. With an anticipated starting balance of $6.6 million, LCDC still expects to close the year with $4.7 million in hand.

A public hearing on the plan is at 4 p.m. Wednesday in the Community Room of the Coeur d'Alene Public Library.

It also includes dropping the agency's contribution percentage to public art from 3 percent down to 2 percent.

The anticipated tax increment revenues are up from the $4.5 million it expects to collect this fiscal year, but down from the $5.6 million in FY 2010. Down too are valuations inside both districts, with the River District dropping $10 million in valuation and the Lake District dropping $26.2 million. All anticipated tax revenues were computed without any increase in levy rates; a conservative approach, Berns said.

Levy rates are set in the fall.

Also Wednesday, the board will amend its 2010-2011 budget to include construction costs related to the education corridor construction project.