County plans wage hikes

Kootenai County is increasing the amount of taxes it collects, but property owners probably won’t see a hike in their tax bills next year.

For the first time in years, the county is taking forgone taxes in an effort to make county wages more competitive and stop the employee exodus. The county is tapping $870,000 in property taxes that until now it has opted not to collect so it could leave more cash in property owners’ pockets.

County commissioners said they desperately need all the money to solve ongoing wage woes that have hit sheriff deputies and 911 center workers the hardest.

So far, commissioners haven’t heard too many complaints, although using their full taxing authority is never popular.

The county will hold a public hearing Tuesday on its proposed $58 million budget for fiscal year 2004-2005, which begins Oct. 1.

“Because taxes are going down, it may be mitigating the concern,” county Finance Director David McDowell said.

The owner of a $130,000 home and lot, including exemptions, is expected to pay about $13 less in taxes next year than this year.

That’s because the county is receiving $1 million in property tax relief thanks to the voter-approved local-option sales tax. Half of that half-cent sales tax goes toward paying for the county jail expansion while the remainder goes toward property tax relief.

The large number of new homes and businesses and an increase in assessed property values have expanded the county’s tax base, meaning individual property owners may pay less tax because the burden is being spread over more people.

The county estimates net property values increased about $873 million this year, bringing the county total to about $7.7 billion. New development in Kootenai County added about $213 million to the tax base, which is up $63 million from 2003.

A California-based consultant recently started a wage and benefit study to compare county employees’ wages with those for workers in similar jobs in the Northwest. The commissioners will use those recommendations, which are expected in January, to distribute the $870,000 in forgone taxes to county employees.

McDowell says he is banking on that being enough cash to fix the wage discrepancies. If not, the county will look at other options not yet determined.

The county budget also includes nearly $776,000 to give all employees up to a 3 percent performance raise. Department managers and elected officials will determine who gets raises and how much.

“We want to get off the bottom rung and at least be hanging off the second-to-bottom rung with everyone else,” McDowell said.

The commissioners didn’t return phone calls Friday.

The proposed budget is a lot sunnier-looking than this year’s budget, which was so bleak that employees got no salary increases, no new hires were included and property taxes went up about $60 for the average property owner.

Now, besides making the salary increases, the county plans to hire for 12 positions, bringing its total employment up to 672 employees.

If the county hadn’t taken the forgone taxes, employees wouldn’t have gotten much of a salary increase because the county is struggling with a $700,000 – or 20 percent – increase in health insurance costs and a $500,000 jump in indigent-care bills.

Kootenai County Sheriff Rocky Watson takes credit for getting commissioners to take the forgone taxes. He touted the plan as increasing property owners’ taxes by only about $1.19 per household, which, he said, is less than the cost of a latte.

Watson wasn’t available for comment Friday, but Undersheriff Gary Cuff said commissioners made the right decision to end the crisis of deputies leaving for higher-paying jobs in Spokane.

It has been estimated the turnover has cost the county about $3.3 million a year in lost productivity, training and corporate knowledge.

“It’s a good start,” Cuff said. “We need an ongoing commitment in the next few years to carry through with it.”

The 7 p.m. public hearing Tuesday will be in the County Administration Building, 451 Government Way.

For more information, call (208) 446-1600.