Post Falls city leaders unanimously approved a budget this week that raises property taxes by 7 percent over two years, combining a 4 percent increase in the ongoing levy with a one-time 3 percent boost funded through the city’s property tax balance. For owners of a home assessed at $650,000, the first-year increase amounts to $2.14 per month, dropping to 97 cents monthly in subsequent years. The additional revenue designated in year one—$549,821—will support the Police Department’s expansion project, a growing priority as Post Falls continues its steady population growth in North Idaho.
The council’s decision reflects mounting pressure on municipal finances across Kootenai County and the broader Panhandle. Post Falls faces a shrinking revenue picture: state revenue sharing is expected to decline by approximately $714,000 in fiscal year 2027 due to transportation funding cuts and changes in liquor sales tax distribution. Meanwhile, inflation has risen 47 percent since 2017, eroding the city’s purchasing power and widening the gap between revenues and operational costs.
Legislative Action and Long-Term Tax Burden
The property tax landscape in Post Falls has shifted significantly since the state legislature passed House Bill 389 in 2021. That measure reduced the taxable value of new construction to 90 percent of market value, a policy designed to encourage development but one that limits the city’s ability to capture revenue from growth. Since 2009, Post Falls has increased its cumulative ongoing property tax revenues by 7 percent—a modest rise that has failed to keep pace with inflation and leaves the city struggling to fund basic services without turning to taxpayers for relief.
Councilman Nathan Ziegler acknowledged the tension during council deliberations, noting that inflation itself has become the “biggest driver” of the increase. He expressed frustration that legislative decisions aimed at stimulating construction have inadvertently constrained the city’s ability to manage its own finances. Deputy City Administrator Warren Wilson presented the financial data underlying the council’s decision.
Public Input and Future Cuts Ahead
Randall Hildebrand was the only resident to testify before the council on the budget, voicing opposition to the tax increase. His lone dissenting voice underscores the political challenge facing municipal officials as property owners across Post Falls and the wider Kootenai County region absorb successive levy increases.
Mayor Randy Westlund has signaled that tax increases alone will not solve the city’s structural budget problem. On Monday, he published a “Plan to Save Local Government” to the city website, outlining cost-containment strategies including the potential sale of city properties, implementation of priority-based budgeting, and across-the-board service reductions. Speaking to the council, Westlund stated that “we do have a plan, that we are working on this and there are going to be some significant structural changes and probably service cuts that won’t be popular.”, as first reported by the Coeur d’Alene Press
That warning suggests city officials are preparing residents for harder choices ahead. The tax increase approved this week provides temporary breathing room for critical projects like police expansion, but Westlund’s comments indicate the city recognizes that revenue adjustments and service reductions will be necessary to stabilize finances over the longer term.
Pressure Mounting Across North Idaho
Post Falls’ decision reflects a wider trend in North Idaho, where cities across Kootenai County are turning to property tax hikes as budget pressures mount. The combination of state revenue sharing cuts, infrastructure demands tied to growth, and the ongoing effects of inflation has forced elected officials to choose between raising taxes, cutting services, or both.
The city’s budget challenges were set in motion in part by earlier mayoral action. Post Falls Mayor Westlund unveiled a plan to address a $16.8 million budget deficit, signaling the scope of the financial crisis facing the municipality.
What Comes Next
Post Falls residents should expect the mayor’s structural cost-reduction measures to take shape over coming months. City officials have committed to pursuing property sales, reordering departmental priorities, and evaluating which services can be trimmed or eliminated without compromising public safety and essential infrastructure. The 7 percent tax increase buys the city time to implement those changes, but Westlund’s public statements make clear that neither tax hikes nor one-time revenues can permanently resolve the underlying imbalance between what Post Falls spends and what it collects.