POST FALLS — Want to make taxing agencies smile during these tough budget times?

Surprise them with a check from surplus urban renewal funds, which doesn’t arrive too often.

The Post Falls Urban Renewal Agency on Thursday approved a rebate from its East Post Falls District totaling nearly $3.3 million for eight taxing districts.

The amounts and districts that received the funds include:

• City of Post Falls, $1,303,477;

• Kootenai County, $737,372;

• Kootenai County Fire and Rescue, $458,765;

• Post Falls School District, $294,634;

• North Idaho College, $254,765;

• Post Falls Highway District, $114,544;

• Community Library Network, $76,448; and

• Kootenai County Emergency Medical Services, $37,597.

The money was originally planned to help fund the Interstate 90 overpass or interchange project at Greensferry Road before the City Council decided to not extend the life of the East Post Falls District, which put the project on hold for the foreseeable future.

Ron Dorn, North Idaho College’s vice president for resource management, said the college plans to use its portion to prevent a property tax increase or keep it at 1 percent in a worst-case scenario.

“We’ll probably be looking at no increase,” Dorn said.

NIC staff-level budget talks earlier pointed toward a 2 percent tax hike. Agencies are allowed to increase property taxes up to 3 percent under state law.

NIC trustees are still considering a tuition hike of around 3 percent, which NIC officials say is modest compared to recent years.

Allocation of the surplus urban renewal funds is determined by state law and is based on the current levy rates of taxing districts.

Representatives from the other districts that received funds said possible ways of how the money will be used will be discussed by their boards.

“We intend to complete more of our strategic plan and priority-based budgeting process prior to determining how it will be used,” said Eric Keck, Post Falls city administrator. “This is one-time money that could be used for capital projects, vehicle replacement or other one-time initiatives. The public’s input to the National Citizen Survey and the strategic plan process will largely drive where the money will be allocated.”

Jerry Keane, school superintendent, said the funds will be needed to maintain current programs because cuts have been made for the past four years and more are expected.

“We will need to analyze this money in context to our budget development,” Keane said.

A rebate for $2.2 million through the East Post Falls District was issued to taxing districts in 2009, but such action with URAs statewide is considered rare.

“No, we can’t do this every month,” Post Falls URA Director Tom Lien jokingly told the taxing district reps after they received the checks.

East Post Falls, one of six URDs in Post Falls, expires in 2015. The Riverbend district is slated to close this year, which is also expected to help budgets.

In most urban renewal districts, a proponent or developer will use its own funds to install public infrastructure. The incremental taxes that are paid based on the higher assessed values after development are remitted to the URA and are, in turn, paid back to the proponent/developer for cost reimbursement for such infrastructure.