COEUR d'ALENE - Kootenai County commissioners released their 2014 budget proposal on Tuesday, which is down roughly $3.5 million from last year but will require a 1.5 percent property tax increase to implement.

The total proposed budget is $75,570,821. While that is technically a decrease from the $79 million they budgeted for this year, the 2013 budget included a one-time $6 million expansion of the county's solid waste program.

With the 2013 expansion costs removed, the 2014 budget has actually increased by roughly $2.5 million. The county intends to cover that increase with a 1.5 percent increase in property taxes, which would generate $585,133. The county will also collect $699,145 in new growth revenues.

They will also spend $2.6 million of reserve money to cover one-time capital projects, such as motor fleet upgrades and maintenance projects.

"We have a philosophy of only using fund balances (or reserves) on capital projects because they are one-time expenses," said Commissioner Dan Green. "You wouldn't want to fund salaries with that because that is an ongoing expense."

Overall, Green said the county's elected officials requested $6.9 million more than the commissioners planned to spend this year. Capital requests alone exceeded $4.3 million.

"They recommended that we take the full 3 percent, and the board said no," Green said, adding this is the first time in three years that the commissioners have had to raise taxes.

Some larger increases have to do with salaryadjustments that the commissioners are considering. They have hired a human resource consultant to analyze the county's pay structure and make recommendations on how to fix it.

The consultant found that the county's wage compensation was 16 percent below the market average. They recommended raising wages to 3.5 percent below the market average to retain employees, who could earn more elsewhere.

The county has proposed $931,096 for wage increases, but most of that - $569,000 - would be spent to get wages in line with market averages if the commissioners decide to do that.

Green said commissioners will have to decide whether to give the elected officials the money and let them hand it out to who they see fit, or follow the consultant's advice.

The county will add 3.5 new positions next year as well. The county has a total of 764 full-time employees.

Some of the wage money may go to pay step increases for sheriff's deputies and emergency communications officers. All that still has to be decided, Green said.

"And some people will potentially get nothing," he added.

The county will also pay for a mandated $283,277 payment to the Public Employee Retirement System of Idaho. Green said they will also add $133,333 to the county's self-funded health insurance program to maintain medical benefits.

Green said this year the county is going to push for greater participation in the employee wellness program. The program has been in place for a couple of years.

This year employees who participate in the wellness program will have no additional out-of-pocket costs for health insurance premiums. For anyone who chooses not to participate, the employee's contribution will double from $38.50 a month to $77, and an employee plus spouse contribution will increase from $128.48 per month to $205.48.

"Both the employee and the spouse have to participate to get the lower rates," Green said. "If they choose not to, they will go out-of-pocket an extra $924 a year."

Green said the wellness program requires employees to visit their doctor to be tested for cholesterol, blood pressure, weight and smoking.

"Those are some of the biometrics they check," Green said. "We pay for those wellness visits."

Green said the wellness program saves the county money in its self-funded health insurance program. The county spends about $6.8 million a year on claims. Green said that 15 percent of those enrolled in the program account for about 90 percent of those claims.

"If someone chooses to keep smoking, we shouldn't have to pay extra for them," he said.

If approved, the budget will provide funding for a variety of departments. The county commissioners will control a big share of the budget, slightly over $31.3 million. The Kootenai County sheriff will control $25.4 million. The county clerk will control $10.2 million. The assessor will control $3.7 million. The prosecutor will get $3.4 million. The treasurer will get $608,005, and the coroner will get $325,529.

The commissioners have scheduled a public hearing to take input on the budget. That meeting will be held Aug. 28 at 6 p.m. in meeting rooms 1a and 1b of the Kootenai County Administration Building, 451 Government Way.

For more information contact the county commissioners office at 446-1602.

Editor's note: This online story has been updated to reflect the following correction. Fifteen percent of those enrolled in the county's insurance program account for 90 percent of the claims paid.