Kootenai County finance director outlines $310,000 available to reserve as foregone taxes
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Summary
Finance Director Brandy Falcon told commissioners Dec. 9 there is about $310,000 available to reserve as foregone taxes after a 2.5% tax increase, and noted the county’s existing foregone balance of $11.4 million; commissioners declined to reserve it now and asked for no immediate action.
Brandy Falcon, Kootenai County finance director, told the Board of County Commissioners on Dec. 9 that roughly $310,000 would be available to reserve as foregone taxes in the FY26 budget cycle after the board approved a 2.5% tax increase.
Falcon said the county’s current foregone balance is $11,400,000 and explained how the foregone authority works: up to 1% of the base can be taken for ongoing costs, and an additional 3% for capital projects (the 3% capital option does not roll into the property tax base). Falcon said reserving the $310,000 would require preparation of a resolution and placement on a future business meeting agenda.
Commissioners asked how much 1% and 3% would represent against the current balance; Falcon estimated 1% at about $600,000 and 3% roughly $1.8 million. Several commissioners said they did not foresee using the foregone balance for routine needs and were reluctant to reserve additional authority that might be consumed by recurring 1% increases. The board signaled no immediate action to reserve the $310,000 and directed staff to leave the matter for future consideration if a specific need arises.
The discussion did not include a formal vote or resolution; Falcon said staff would prepare a resolution if the board later chose to pursue reserving foregone taxes.