The Coeur d’Alene City Council on Tuesday unanimously approved a resolution setting a high-dollar amount of $139.4 million in expenditures for the 2024-25 fiscal year financial plan and also set a public hearing on it for Sept. 3. 

While the plan includes a potential tax increase of up to 3%, plus 1% of foregone taxes, Mayor Jim Hammond emphasized tax bills will not necessarily increase that much. Rather, when accounting for new growth revenue, the levy rate and other considerations, it might remain stable or rise slightly.

“If the council takes 3% or even 4%, that does not correlate with your taxes going up 3 to 4%,” he said during the meeting in the Coeur d’Alene Public Library Community Room. 

Katie Ebner, finance director, said when it comes to property taxes, there are many factors in play. 

“It’s not just your situation. It's everyone in the market’s situation,” she said. 

The city's growing population of about 55,000 can have tax advantages.

“More taxpayers means the burden is less for everybody," Ebner said.

City revenue in the proposed budget includes $28.7 million in property taxes, 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 $1.1 million, according to a staff report. 

Councilwoman Christie Wood said other government entities are in the same situation, with new growth no longer providing enough money to keep up with financial demands.

“Every city and county is struggling with this,” she said. 

Coeur d'Alene has received more than $800,000 in new growth in years past, Ebner said, so the tax increase would compensate for the projected decline.

Wood said if the city does take the additional 1% in foregone taxes, she would like to focus it on public safety. 

“I would feel a lot better about that," she said.

The city’s valuation had climbed dramatically over the last decade to nearly $12 billion last year, but this year it remained “pretty flat,” said city administrator Troy Tymesen. 

As well, assessed value of many homes remained flat or decreased after several years of surging higher.

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.

The council can budget less than the $139.4 million figure it set Tuesday but can’t go above it. Approving the resolution did not mean higher taxes, Ebner said.

“A vote tonight is not going to affect taxes," she said.