The Coeur d’Alene City Council on Tuesday is scheduled to consider a budget resolution that includes a potential tax increase of up to 3% of the allowable increase, plus 1% of foregone taxes from prior years.  

Katie Ebner, finance director, said a percentage change in taxes levied does not correspond to the tax charge for citizens.

“When there is growth in the city, as we’ve seen steadily over the past four years, tax charges for the city of Coeur d’Alene have gone down in some cases, or, if there is an increase it is minimal for those with assessed values increasing with the market average,” she wrote in an email to The Press on Friday. 

The Fiscal Year 2024-25 financial plan to be considered by the council includes a high-dollar amount in expenditures of $139.4 million. Fiscal year 2023-24 expenditures totaled $130.5 million. 

City revenue in the proposed budget includes $28.7 million in property tax revenue, an increase of $1.3 million over the previous year. The increase includes new growth of $225,000 and a 4% increase over taxes levied this fiscal year of $1,063,023. 

Ebner wrote that traditionally, revenues from growth have contributed between 2% and 3% to the city’s levy revenues annually, “providing vital support for the needs of our expanding community.  

“However, the city is currently experiencing a deficit due to a 70% reduction in new growth revenues. This decline is not due to a slowdown in growth, but rather the limitations imposed by the property tax formula,” she wrote. “This challenge is not unique to the city of Coeur d’Alene, as many cities across Idaho are grappling with the same tax formula limitations.” 

To address the revenue shortfall, the city is proposing a 3% tax increase plus 1% capture of foregone to replace the lost revenues that were once available, Ebner wrote. 

“A 3% to 4% increase in the city’s levy total is expected to have a minimal impact on the average taxpayer’s property taxes while ensuring financial stability for the city’s budget to continue serving the community effectively,” she wrote. 

Of the $60.9 million in general fund expenditures in the proposed spending plan, $25.8 million is for police; $14.5 million for the fire department; $6.6 million for streets/garage; $3 million for parks; $1.8 million for the finance department; $1.4 million for the legal department and $1 million for building inspection. 

Ebner said approving the budget resolution does not set the levy amount. The specific levy amount will be determined during a budget hearing in September and may be lower than the resolution presented. 

Tuesday’s city council meeting is scheduled for 6 p.m. in the Coeur d’Alene Public Library Community Room.