Charlaine Carter realized something about her property taxes recently.

They won't go down just because her property values did.

In fact, she has noticed a pattern over a few years, she said, that while values dropped on the rental properties she owns in Coeur d'Alene, her property bills went up.

"I was surprised," Carter said.

And she was a little angry, she confessed.

"Everyone is so confused about assessments relating to the dollar tax amount," she said.

It does seem that at least a fair number of folks are confused.

Some property owners in Kootenai County don't realize their property taxes are calculated by both their property values and the levies set by taxing districts, said Treasurer Tom Malzahn.

"The budgets set by the taxing districts are the driver of what taxes are," Malzahn said.

And little do many realize, they can throw in their two cents during the process.

Folks can kick in their opinions about how districts set budgets and levy rates at upcoming budget workshops and hearings.

"Can the public influence those processes? Absolutely," Malzahn said. "It's very important that people understand that their job is to basically understand what the budget process is."

Many districts report they are facing tough times, and will likely be taking a levy increase this next fiscal year.

"When I ran to be commissioner, I thought there might be avenues we could cut considerably, and I didn't find that at all," said Terry Sverdsten, commissioner for the East Side Highway District. "I found the district was really very conservative in its approach to all its expenditures."

How this works into property taxes is a little tricky to explain.

Property taxes are figured by multiplying an individual's property value by the sum of the levies of all the taxing districts the property is in.

Confused yet?

There are 45 taxing districts in Kootenai County, which include cities, highway districts, fire districts, water districts, school districts, the county and more.

"Most of the properties have (are located in) between six to eight taxing districts, but there are some that are up to 14," said Rich Houser, chief deputy assessor of the county.

Each district sets a budget every fiscal year.

A district's levy is then determined by dividing the budget by the net value of all properties in the district, after exemptions have been subtracted.

If exemptions are lower, the levy rate will be higher, Malzahn explained.

The levy equation also indicates that if a district budget stays the same and values drop, the levy rate has to go up, he added.

"That's simple mathematics," he said.

If values drop and a budget drops, well, the levy might go down, he said.

But folks can't predict levy rates by looking at values alone, Malzahn said.

"You can't just look at one little piece of the pie and equate that to the entire pie," he said.

The county Auditor's Office confirms levy rates, which must be approved by the state Tax Commission.

Finally, the county calculates property taxes by multiplying individual property values by districts' levy rates.

The Treasurer's Office collects property taxes and distributes them to taxing districts.

Districts can only raise levies a maximum of 3 percent each year.

Folks can still learn more from districts about the directions they're heading on levies, Malzahn said.

"If people don't like the budget, they can talk to those folks who are making the decisions," he said.

East Side Highway District will likely have to take the full 3 percent levy increase at its August budget hearing, said Commissioner Terry Sverdsten.

Highway district revenue is declining every year, he said.

"I think we're around $7,000 a mile per year for maintenance and snow removal," Sverdsten said. "Some districts are up around $22,000 to $23,000, so there's quite a disparity."

He encourages folks to communicate with the district about the budget, he added, and to attend the budget hearing.

"We do get some criticism for the way we handle funds," he said. "Very seldom does anybody come to a budget hearing to see what revenue we have and how we plan the budget."

Marv Lekstrum, Lakes Highway District commissioner, predicted the district's budget won't see much change at the August budget hearing.

Although the price of basic materials is shooting up, he explained, that's somewhat balanced by lower bids on transportation projects.

"It (the budget) will be pretty much like it was," Lekstrum said.

He still expects the levy rate to increase the full 3 percent, however.

The net value of the district has dropped significantly over the past two years, he pointed out.

"The levy rate will shoot up because home values are dropping down," he said.

The district can't make enough budget cuts to keep the levy rate from going up, Lekstrum added.

"It's impossible," he said. "We'd have to cut out all services."

The Post Falls city council would prefer not to take any levy increase at its August budget hearing, said council member Ron Jacobson.

The city is grappling with budget issues, however, as revenue has dropped $2.7 million over the past two years.

The city can't provide the same level of service as expenses rise, Jacobson said.

"I don't think anybody's made up their minds yet," he said. "I'd love to not see an increase, but we realize we've got to address issues now, or be playing catch-up for years."

Northern Lakes Fire District is facing a 50-50 chance of a levy increase, said Commissioner Larry Clark.

Since merging with Rathdrum Rural Fire in 2000, he said, the district has struggled to keep up with the cost of fuel and other basic supplies.

"We don't like increasing taxes any more than we have to," Clark said, adding that the district hasn't set its budget hearing date yet. "By the same token, we've got to keep equipment up and be ready to provide service 24/7 as far as EMS is concerned."

The city of Coeur d'Alene, which will have its budget hearing in September, is seeing declining revenues, said Finance Director Troy Tymesen, especially from building fees.

Some early retirees have helped with savings, he said, but there are still necessary costs.

"We need to acquire police cars, we do need some street maintenance equipment," he said.

The city will have to take at least some levy increase because of dropping values, Tymesen added.

But the council members will try to set the budget to minimize that, he said.

"They will be extra cognizant of that," he said. "We will do everything not to add more burden to the levy."

If folks want to be heard, the dates of budget hearings are listed on assessment notices.

To attend budget workshops preceding the hearings, individuals must call up their taxing districts.

"None of the workshops are (advertised)," Malzahn said.

Folks should study up on budgets before the hearings, advised Laurie Thomas, chief deputy treasurer with the county.

"You would be hard pressed to walk into a budget hearing, as complicated as they can be, and grasp it in 15 to 20 minutes," Thomas said.

Besides attending workshops, she said, folks can walk into district offices and ask to look over budget documents.

"Educate yourself on what's going on, and be an active participant in the system," she said.