NPC passes budget that doesn’t raise property taxes

Citing growth in the tax base and property values, along with fiscal discipline by department heads and staff, the Nez Perce County Commission unanimously passed a $46 million budget Tuesday with a 0 percent increase in property taxes.

County Commissioner Douglas Havens trumpeted the lack of a tax increase as a win for property owners who have been hit by the economic fallout wrought by the coronavirus pandemic.

“My view is the businesses and citizens have been hurt enough,” Havens said before Tuesday night’s budget hearing. “And I didn’t think the county should be piling on.”

County Auditor/Recorder Patty O. Weeks said if the county took the full 3 percent annual property tax increase allowed under state law, it would have increased revenue by about $557,000. Without the increase, county property owners will see their taxes decrease by about $16 per $100,000 of taxable assessed value.

And while the 0 percent increase was good news for county property owners, it could have been better. Earlier this summer, the commissioners decided against sending a nonbinding notification to Gov. Brad Little’s office to reserve a spot in his $200 million property tax relief program backed by federal coronavirus aid in the CARES Act.

Local governments had to reduce their fiscal 2021 property tax levies an equivalent amount and spend the money on salaries and benefits for public health and public safety employees, such as firefighters and law enforcement, to qualify for the program. At the time, commissioners cited Idaho Attorney General Lawrence Wasden’s opinion that he couldn’t offer a definitive conclusion regarding the legality of the governor’s proposal, but advised that “caution should be exercised.”

But late last week, the U.S. Department of the Treasury issued new guidelines regarding CARES Act funding that gave many elected officials confidence that the governor’s program is, in fact, legal. For instance, the city of Lewiston officially opted into the program Tuesday, paving the way for a $2.8 million infusion that will reduce city property taxes by 12 percent. By not reserving a spot, the county will apparently not be able to join the program.

Weeks said she would have rather seen the commissioners at least reserve a seat at the table.

“A letter (to Gov. Little) would have given the county more options,” Weeks said. “It wasn’t a commitment, and we could have made the decision later whether we were in or out. Every elected official has their own agenda and perspective. But we are fortunate enough to meet our needs and not take a tax increase.”

The county left about $2.6 million on the table by not opting into the property tax relief program, she said.

One of the biggest factors in the budget was the elimination of a potential 9 percent increase to the county’s health insurance plan for its employees. Havens said that instead of just accepting that number from Regence BlueShield of Idaho, the county shopped around and ultimately switched to Blue Cross of Idaho, which held the line on insurance costs. Weeks said the switch saved the county about $220,000.

Havens also touted the county’s full funding of the $550,000 request for operating and capital funds from the Lewiston-Nez Perce County Airport, the continued savings of money for an upcoming project to replace the county courthouse, and the coming expansion of the Justice Services building to provide more office space.

The overall county budget rose by about $2.6 million over last year. Weeks said that is accounted for by an increase in the money set aside for the courthouse project ($500,000 last year versus $2.5 million this year) and $600,000 in wage increases for county employees.

Mills may be contacted at jmills@lmtribune.com or (208) 848-2266.