The Coeur d’Alene City Council is currently grappling with a projected budget deficit for the upcoming fiscal year 2025-2026, and a key discussion point is a proposed 4% property tax increase. The council met on July 21, 2025, to review the preliminary budget and discuss strategies for ensuring the city’s long-term financial sustainability. Here’s what you need to know about the proposed tax increase and its potential impact on your wallet:
- The Proposed Increase: The preliminary budget includes a request for a 4% property tax increase, along with an anticipated $185,000 in new revenue from market growth. According to the information provided, the city is legally allowed a 3% increase as well as an additional 1% based on forgone amounts from previous years.
- Why the Increase? The city faces “structural revenue challenges,” where costs continue to increase while revenue growth is limited.
- What Will It Cost You? The agenda packet includes preliminary estimates of the annual increase based on several property types and assessed values. For example:
- A residential property with a taxable value of $268,240 could see an annual increase of $6.44 or $0.54 per month (if 1%) or $2.15 per month (if 4%).
- A commercial property with a taxable value of $1,862,436 could see an annual increase of $44.66, which translates to an increase of $3.72 per month (if 1%) or $14.89 per month (if 4%).
- A residential rental property with a taxable value of $961,425 will see an annual increase of $23.05. That equates to $1.92 per month (if 1%) or $7.68 per month (if 4%).
- Council Concerns and Considerations: The council must weigh the need for increased revenue against the potential burden on taxpayers. The council is likely to debate the necessity and fairness of the proposed increase, exploring alternative solutions to address the budget deficit. It is worth noting that Coeur d’Alene is not alone in this as other Idaho cities face similar pressures.
- What’s Next? The city council will continue to discuss the proposed budget and tax increase in the coming weeks. Public input will likely be a crucial factor in their decision-making process. The packet indicates the next steps involve conservative wage increases and strategic position holds.