By BRIAN WALKER

Staff Writer

RATHDRUM — The Rathdrum City Council on Wednesday night unanimously approved a $22.6 million fiscal 2019 city budget that includes a 1.92 percent property tax increase, two new positions, a 2.5 percent cost-of-living wage adjustment and merit salary hikes of up to 2.5 percent.

The tax hike will generate about $49,000. The city estimates the owner of a $250,000 home would see an increase in the city portion of their overall property tax bill of about $15 per year. Cities are allowed to take a tax increase of up to 3 percent per year under law.

This year Rathdrum's income from new growth will be $149,000.

"New growth keeps our level of service level," City Administrator Leon Duce said, adding that those funds will pay for a new police officer and new parks worker.

Duce said the property tax increase will pay for the city's increased cost of doing business such as fuel and utility increases.

He said residents' valuations of their homes will ultimately determine whether they see an increase in the city portion of their taxes from the current year.

Rathdrum resident Les Paloesay said he wanted to know if sufficient funds are being set aside for the new City Hall project in the future. Duce said the city has set aside more than $200,000 for the project, including $80,000 in the upcoming budget.

"We put in a little each year," Duce said.

Paloesay questioned whether COLA hikes in addition to merit raises are a wise use of taxpayer funds.

"To just sit in your seat and automatically receive a 2.5 percent increase seems like an old-school approach," he said. "I don't get a COLA."

The 2.5 percent COLA and merit pay increases (if all employees received the maximum based on evaluations) equate to $48,000 each.

Equipment purchases planned include: a dump truck for Public Works, $50,000; truck for Parks, $25,000; and three fully-equipped police cars, $180,000 for all three.

Paloesay said he is pleased with how the city is run overall.

Resident John Kester agreed.

"You try to keep the expenditures down as much as you can and I thank you for that," Kester told the council and staff.

The city will see a health insurance cost increase of less than 1 percent, Duce said. The city pays 100 percent of the insurance benefits for employees and 80 percent for dependents.