COEUR d'ALENE - The Coeur d'Alene City Council Tuesday night approved an $85.9 million budget, and at the last minute decided against an increase in property taxes.

The proposed budget called for increasing property taxes 1.75 percent.

"This is a great budget for this year," Mayor Steve Widmyer said during the budget hearing. "But it hasn't only taken this year to get there. It's taken a number of years why we're in the position that we're in."

The council decided to draw on the $6.1 million fund balance - or savings account - to hold the budget amount at $85.9 million without a property tax bump. The city will pull $134,000 out of the fund balance.

The approved fiscal year 2016 budget exceeds the current year's by $11.4 million.

Several major new expenses added to the increased budget, including a $5 million general obligation bond. A planned new fire station added $1.2 million.

Other additional expenses included a cost-of-living pay increase of 2 percent for full-time employees, which will cost $561,000. Merit pay increases for other employees will cost $427,000, and new positions will cost $868,000.

The budget calls for a total of 21 new full-time-equivalent employees, which includes nine firefighters and six new police officers.

"In my 15 years with the city of Coeur d'Alene we have never put up numbers like this in growing personnel costs," Troy Tymesen, city finance director and treasurer, told the council.

Not all the positions will be brought on Oct. 1.

New growth in the city is driving the need for additional employees, Tymesen said. New construction in the 2015 tax year added up to $827,000 in additional cash flow.