Public hearings for city budgets for Post Falls and Rathdrum are tonight at 6.

Post Falls, which is not seeking a property tax increase for fiscal 2014, is proposing a 3 percent across-the-board raise for employees.

Rathdrum's proposal includes a 2 percent cost of living increase for employees, a 1 percent property tax hike and raises for the city council and mayor.

Cities are allowed to increase taxes up to 3 percent per year under state law.

The Rathdrum tax hike proposal would mean a $9-per-year increase for the owner of a $150,000 home. The increase would raise $19,911 for the city budget.

Post Falls' budget is proposed to be $37.96 million, about $1 million more than the current budget.

Building permit revenue is helping the city's budget outlook. Those funds were expected to be $300,000 this year, but $484,000 had already been collected through the end of June.

Post Falls raised taxes once - 2 percent - in the past four years.

The pay raise proposal comes on the heels of merit increases of up to 4 percent last year for some employees and a 5 percent hike for sworn police officers and emergency communication officers. No pay raises were given in 2010 and 2011.

The 3 percent pay raise proposal for the upcoming budget equates to $345,000 for employees paid under the General Fund.

There will be no cost of living increases.

The budget plan calls for adding two new police positions - a records evidence technician and a school resource officer position that will be partially funded by the school district.

Rathdrum's budget is proposed to decrease from $4.9 million this year to $4.4 million.

City administrator Brett Boyer said the reasons for the overall budget decrease include an expiring agreement with Avista associated with the plant at Boekel and Meyer that brought in $160,000 per year over the past several years, a $117, 000 grant for Majestic Park that increased the current budget and the city not filling one of two building inspector positions.

The across-the-board cost of living increase for employees equates to $30,000. No merit salary hikes are proposed.

Over the past five years, Rathdrum has increased taxes by an average of just over 1 percent per year.

Boyer said the council does not plan to take any of the city's foregone tax balance to help the budget. The account will have more than $200,000 after the current budget year.

Boyer said it has been nine years since city council members and the mayor have received pay increases.

The mayor currently receives $850 per month and city council members $400. The proposal is to raise the mayor's pay $300 a month and the city council $200 per month.

All are part-time positions with no benefits involved.

Boyer said the pay proposal will put Rathdrum competitive with other similar-sized cities in the area, yet still lower than larger cities.