COEUR d'ALENE - The city of Coeur d'Alene finance department is recommending the city adopt a $77.8 million budget for fiscal year 2014.

The budget won't ask for a 3 percent increase in property taxes, although it would ask for property taxes on new growth inside the city. It includes two new police vehicles, a 2 percent cost of living increase for employees, merit pay for employees, seven more full time equivalent positions, and a lease agreement for four front loaders for the street and water departments, City Finance Director Troy Tymesen said Tuesday during a workshop on the financial plan.

The valuation that new growth has brought into the city is $93.6 million, which would bring in $600,000 of property tax revenue should the city choose to tap it. The proposal doesn't ask for a 3 percent increase from last year's property taxes, which cities are authorized to take. That total is roughly $524,000.

The city is able to consider forgoing the property tax increase in part because building revenues have exceeded projections, and the city could slow hire five retiring department head positions.

"That would tighten things up," Tymesen said. But "at the same time, I'm comfortable."

The 7.6 FTE increase in personnel would be to match increased demand for services, Tymesen said. The city hasn't add positions since the recession, and four police officers would be added with the help of grants. The building department would add two positions, one being an electrical inspector.

"We're up to our eyeballs in work now," said Ed Wagner, building services director.

Other part time positions would be bumped to FTE in preparation for the Affordable Care Act, commonly known as Obama Care, set to kick in next year.

"That will give us an extra year to look at it," Tymesen said. "We have chosen in this plan at looking ahead."

The COLA amounts breaks down to roughly $500,000 for city employees, and merit pay equals about $300,000. The plan also accounts for a 4.6 percent bump in insurance costs.

A public hearing on the proposed budget is Sept. 3.