COEUR d'ALENE - A records request shows that 58 percent of all city of Coeur d'Alene benefited employees were eligible to receive 5 percent merit pay increases in fiscal year 2009-2010.

That was the year the city agreed with its three employee bargaining unions not to give 3 percent Cost of Living increases to all of its employees - as the contracts between the entities outline - due to economic reasons.

So the 0 percent increase actually amounted to roughly $283,000 spread over 173 employees, out of 300.

The next fiscal year, FY 2010-2011, the city and the unions agreed to a 1 percent COLA pay increase, again decreasing from the 3 percent cap in light of the economic climate.

But 48 percent of all benefited employees were eligible to receive up to 5 percent more in merit pay increases that year, according to information provided by the city's Finance and Human Resources departments.

That equates to approximately $280,000 spread over 145 employees out of 300 at the time.

Between the two years the city and unions decreased COLA raises in the face of the economy, it paid around $563,000 in merit pay increases.

Merit increases are separated from COLA increases, and are capped at 5 percent raises based on service time thresholds, ranging from six months to nine years.

COLA raises are usually across the board 3 percent raises to compensate for year-over-year inflation.

The proposed FY 2012 budget, set to go to a public hearing Sept. 6, includes both COLA and merit increases for employees.

All of the city's 353.5 full time equivalent positions will receive a 3 percent cost of living increase if the proposed budget is adopted.

But 43 percent of the 294 benefited positions would be eligible for pay increases that would top out at 8 percent once merit pay is added to the COLA bump, according to the city's Human Resources department.

Merit pay proposed in the fiscal plan equals roughly $187,000. Added to the COLA increases, it brings the proposed increases to $815,600 in wages and benefits.

The public hearing on the budget will be at 6 p.m. Tuesday, Sept. 6 in the Community Room of the public library.