City outlines $84M water capital plan and new debt service through 2032

In the heart of Coeur d'Alene's city hall, council members gathered on June 3, 2025, to discuss the financial future of the city, focusing on a comprehensive forecast that spans the next eight years. The meeting highlighted key assumptions and projections that will shape the city’s budget and capital projects through fiscal year 2032.

City officials outlined a strategic approach to budgeting, beginning with the 2025 fiscal year as a baseline. They anticipate a steady growth in customer base, projecting an annual increase of approximately 1.15%, which translates to around 300 new housing units each year. This growth is expected to boost annual fee revenue from $7.9 million to about $8.6 million over the forecast period.

As the council delved into the details, they emphasized the importance of maintaining a financial reserve. The target is to achieve a reserve equivalent to 90 days of operational and maintenance expenses, estimated between $1.4 million and $1.8 million. This reserve is crucial for managing cash flow fluctuations throughout the year.

Expense forecasts also took center stage, with officials predicting an annual inflation rate of about 3.5% for city expenses. This figure will vary depending on specific line items, such as professional services and labor costs, which may increase at different rates.

A significant portion of the discussion focused on the city’s ambitious capital plan, which outlines $84.3 million in identified projects over the next eight years. To fund these initiatives, the city plans to introduce a new debt service of approximately $736,000 annually, which will generate around $5 million in proceeds over a ten-year payback period. Additionally, the council is considering updating capitalization fees, which are charges for new users joining the city’s water system, with a phased approach to reach calculated maximums over three years.

As the meeting concluded, the council presented various funding scenarios for the capital plan, emphasizing the need for a balanced approach that includes rate revenues, capitalization fees, and the anticipated lease proceeds. The discussions set the stage for a financially sound future, ensuring that Coeur d'Alene can meet the needs of its growing community while maintaining essential services and infrastructure.