During the 2021 session, the legislature passed House Bill 389. The expressed purpose was to provide property tax relief while limiting the ability of local taxing districts to increase their budgets. For local taxing districts, it reduces the amount of valuation available to tax new construction and annexation, creating a total cap of 8% in any budget year. Consequently, to understand the implications of this bill, requires an explanation of tax increment financing (TIF). TIF separates property tax revenues into a base value and an increment. The base value stays with the taxing entities. Whereas the incremental valuation is allocated to the urban renewal agency to pay off public infrastructure. Consequently, with the passage of HB 389, URD revenue could drop by 20%. “It’s quite a significant decrease in the value of tax increment you will receive this year,” Fountain said.
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Also, find videos of past Club meetings at KootenaiCountyDemClub.com/Meeting Videos.
Post Falls Urban Renewal Agency
The City of Post Falls established its Urban Renewal Agency in 1991. It currently manages eight active URDs. The newest are Downtown and Pleasant View.
Downtown is a revamp of a district created by Post Falls in 1994. At that time, the focus was to promote a mixed-use city center through street improvements and the construction of several city buildings. Now, the city is revisiting the idea of a “downtown corridor” that serves as a gathering place with commercial businesses and residential opportunities.
The key aspect of Pleasant View is job creation and industrial development. For example, they are expecting to entice (Kenworth Sales Co.) to Post Falls from their current location in Washington state. If successful, “They will bring about 1,200 jobs and $250 million in revenue to the state of Idaho. Estimated payroll is about $78 million. Other companies and developments have also expressed interest in parcels within the Pleasant View URD.
Diane Fountain, Executive Director
Diane started out as an Executive Assistant for the Agency in November 2009. Then, she served as Interim Executive Director from June 2016 to April 2017. Finally, the commission promoted her to Executive Director. In addition, she also serves as a commissioner for Lakes Highway District. Diane holds the distinction of being the first woman in Kootenai County to serve as a highway district commissioner. She was elected to the position in 2015. She and her husband, Jeff have two children and three grandchildren.