POST FALLS - Post Falls' proposed city budget calls for no property tax increase and a 3 percent across-the-board raise for employees.

The City Council on Tuesday night is expected to approve a resolution that will cap the total fiscal 2014 budget amount at $37.96 million, about $1 million more than the current budget.

"I'm pleased that we're able to bring forward a balanced budget with no tax increase," said Ron Jacobson, council member.

A public hearing on the proposed budget will be on Aug. 20 at 6 p.m.

Helping the budget will be more building permit revenue than originally projected and the recent paying off of debt, said Jason Faulkner, the city's finance director.

The City Hall building was paid off with a $690,000 payment this year, while the police station was paid off with a $2.35 million payment from funds that were carried over.

"These payments eliminated the construction debt related to these two facilities," Faulkner said.

Building permit revenue was expected to be $300,000 this year, but $484,000 had already been collected through the end of June.

"We hope that trend continues," Faulkner said, adding that last year's building revenue also exceeded expectations.

Post Falls raised taxes once - 2 percent - in the past four years. Faulkner said the consensus during the two budget workshops and staff retreat was for no tax hike for the upcoming budget.

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 increase proposed 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 does not call for taking any of the $1.6 million in foregone taxes.

The budget proposal 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.

Other items included in the budget are: three patrol cars, $132,000, Taser stun guns, $16,000; a new roof for the parks shop on Third Avenue, $35,000; and fleet replacement, $110,000.

The city's street reconstruction fund is expected to increase from $129,000 this year to $269,000. Catching up on street repairs has been a priority for the city in recent years and continues to be, Faulkner said.

The budget includes an estimated 10 percent increase ($211,000) in insurance for employees and their families.

In an online citizen survey taken by 57 residents that was used during the budget process, public safety was rated as the most important service the city offers.