HAYDEN — The Hayden City Council voted Tuesday night to approve a $42.8 million budget for fiscal year 2026, without taking a property tax increase.

The council voted 3-1 in favor of adopting the proposed budget. Councilor Sandy White cast the dissenting vote. 

In the weeks leading up to Tuesday’s decision, the council had debated whether to take a tax increase of 1%, 2%, 3% or none at all. 

During a special meeting immediately before the regular meeting Tuesday night, Councilor Ed DePriest proposed approximately $68,700 in line-item cuts from departments including administration, community development, engineering and public works, asserting that the cuts would enable the city to balance the budget without a tax increase. 

With the cost of contracted law enforcement services provided by the Kootenai County Sheriff’s Office expected to increase annually, DePriest said he believes Hayden will need to go to voters for a “reset” of the base tax rate, sooner rather than later.

“They intend to get us up to $3 to 4 to 5 million or they will cut services,” he said, referring to county commissioners and the sheriff’s office. “We are going to have to go to (Hayden voters) with whatever the numbers may be and ask them to approve it. The people will determine what quality of services they want to pay for.” 

White criticized the proposed cuts, noting that the council had already agreed to reduce the amount it would offer the sheriff’s office for law enforcement services in fiscal year 2026. She previously favored a 2% property tax increase. 

“These budget cuts are going to reduce the taxes people pay, but it does nothing in maintaining our bargaining power with the county over the sheriff and our contract,” White said. “I feel like we’re putting the cart before the horse by cutting out what we can bargain with the sheriff or can offer him in order to say zero taxes. I don’t agree with it.” 

Councilor Tom Shafer suggested it would be “counterintuitive” to take no property tax increase at all. 

“I don’t like paying taxes any more than anybody else here,” he said. “I loathe paying them to the federal government, partially less to the state. But I think it’s really important that we support the city so that it can run its operations and meet the expectations that everybody has as far as delivering the basic services that make this a good community.” 

The council split on DePriest’s proposed cuts, with DePriest and Matt Roetter voting in favor of them and White and Shafer opposing them. 

Hayden Mayor Alan Davis broke the tie in favor of the proposed cuts, with an air of resignation. He suggested the council ought to take a 3% property tax increase and said the cuts represent about $3.50 in savings over the course of a year to the median Hayden homeowner. 

“My opinion of that is that it’s a ridiculous stunt, so if the council truly wishes to support the emotional reasons for cutting taxes, then my vote is yes,” Davis said.