COEUR d’ALENE — Kootenai County commissioners voted Wednesday night to approve the county’s fiscal year 2026 budget, which includes levying 2.5% more taxes.

Commissioners voted unanimously in favor of the $144 million budget. The budget is about 10% larger than the budget for fiscal year 2025. 

In a surprise move during Wednesday night’s public hearing, commissioners moved the roughly $1.3 million budgeted for law enforcement services in Hayden to the sheriff’s patrol budget, citing unresolved contract negotiations. 

The city of Hayden contracts with the sheriff’s office to provide law enforcement services. That contract has been a point of contention in recent months, with some Hayden leaders expressing concern about rising costs and some county commissioners asserting that Hayden isn’t paying enough for the services it receives. 

Commissioner Bruce Mattare said the contract expires Sept. 30 and the parties have not mutually agreed on the terms of a new contract. 

“I don’t know why the city would think they have a contract with us, because it does not auto renew,” he said.  

Mattare said Hayden has proposed paying the county a little more than $1 million for law enforcement services in fiscal year 2026. He said the cost of the city’s desired personnel plus overhead is about $1.8 million and suggested the county would be subsidizing law enforcement services in Hayden if it accepted less than that. 

“They have known for years that they have been getting a fantastic deal,” Mattare said. 

Commissioner Marc Eberlein agreed that Hayden ought to pay more. 

“I think it behooves Hayden to choke up some more cash,” he said. “What’s that old saying? Pay to play?” 

Hayden City Councilor Sandy White addressed the commissioners, emphasizing that she was not speaking on behalf of the City Council. 

“I’m speaking for the taxpayers who have shown good faith in the sheriff’s department,” she said. “I would like to ask that you reconsider and give us a little more time to work on a contract. I believe we can come to some kind of arrangement.” 

During the public comment period, Coeur d’Alene resident Donna Mills urged commissioners to view Hayden as part of a countywide community. 

“I would hope there are enough resources for our entire county and that we won’t discriminate between Athol and Hayden and Bayview,” she said. 

Commissioner Leslie Duncan said the county benefits from Hayden paying for deputies within city limits. She said more data should be gathered in order to calculate a fair and accurate rate for law enforcement services. 

“I think we need a lot more metrics to determine like-for-like services,” she said. “If we’re going to charge Hayden and say that Hayden needs so many deputies per thousand, I want to make sure that it’s an apples-to-apples comparison about how many deputies are in the unincorporated areas versus calls for service.” 

Money from the county’s savings will be used to replace the $1.3 million that was included in the county’s published budget. If the county enters into a new contract with Hayden, the revenue from that contract will replace those funds. 

Numerous community members urged commissioners not to allocate funds for automated license plate reader software for patrol vehicles, citing concerns about privacy rights and surveillance. 

Last December, commissioners voted 2-1 to approve a one-year contract with Motorola for the software, which is used in 48 sheriff’s office patrol vehicles. In July, commissioners declined to budget the $24,000 it would cost to renew the contract for fiscal year 2026. Money for the contract was not included in the county’s final budget and the Motorola contract is expected to expire at the end of the year. 

Personnel costs make up the bulk of the county’s budget, about $94 million. This includes a 2.5% cost of living increase for all employees except for elected officials, a total of $1.7 million, as well as roughly $704,000 budgeted for step increases on employee anniversaries. 

The county saved about $1.3 million in personnel costs by halving the funding for vacant positions that had been open for more than 100 days. 

Health insurance costs for the county will increase about $890,000 next year. Premiums from the county’s insurer, the Idaho Counties Risk Management Program, will increase by 11% next year, equating to $140,000. 

Commissioners also voted unanimously Wednesday night to approve proposed budgets for the Aquifer Protection District and the Kootenai County EMS System.