COEUR d'ALENE - More than 40 percent of all city employees could be eligible for pay increases up to 8 percent under the 2011-2012 financial plan.

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 Sept. 6, 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 increases are separated from COLA increases, and are capped at 5 percent increases based on service time thresholds, incremented in years ranges from six months to nine years.

Positions also have a maximum salary, so the percent jump is cut off should it reach that ceiling.

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.

That total could drop by $115,000 as the city continues to work with its insurance provider, Group Health, for a 0 percent increase in its rate. In the plan, the rate is penciled in at 3.09 percent.

City officials said this week it was a goal of the city's to uphold the contracts it has with its three collective bargaining agencies.

Two years ago, the city negotiated with its three unions to forego a COLA increase with the condition that the city avoid layoffs, which it did, and last year it reworked those contracts to drop COLA to a 1 percent raise.

Both years, merit pay was not reduced. Those totals are being requested by The Press, but weren't available Friday.

Not included in the proposed 2011-2012 plan is a property tax increase. The city is allowed to request a 3 percent increase from the previous year, but is not asking for a raise. A 3 percent request could have netted the city nearly $500,000.

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