City Council - Regular Meeting

Good evening. It's September 15, 2026. This is a meeting of the Coeur d'Alene City Council, which I shall call to order. The clerk will take the roll.

English. Here. Gabriel. Here. Sheckler. Here. Wood. Here. Miller.

Here.

Evans. Very good. Is Don Duffy here? Very good. Could you come forward and give us our invocation? Everyone please rise.

Our dear Father in heaven, we're grateful to meet at this time. We're so grateful for this beautiful city in which that we live. We're grateful for the many city services that serve us and especially our first responders and pray that they will be blessed and protected from harm and danger. We're grateful for our mayor and city council. We're grateful for the efforts that they put forth for individuals and families in this community and pray that they will be blessed with wisdom and understanding as they exercise their responsibilities. We pray that thy Holy Spirit might be with us at this time throughout this meeting. In the name of Jesus Christ, amen.

Amen. Thank you.

Will you please join me in the pledge?

Ready? Begin. I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all.

You may be seated.

And I will correct the super from the last, from the invocation that was Don Duffy from the Church of Jesus Christ Latter-day Saints. There is a sign-up sheet in the back for the hearing. And that's on our budget amendment. If you want to comment on the Kratom ordinance, please sign up for public comments. There's a separate sign-up sheet for that. That is not a hearing, but if you want to say something, you can say it in public comments. Move on to item D, amendments to the agenda. Are there any amendments?

Mr. Mayor, I would like to make a motion to amend the agenda to remove item K, the executive session today, Due to the inability for some that needed to attend to be able to do that be there on short notice Motion a second any discussion all those in favor Any opposed?

Okay, the agenda is a mention is amended. Thank you Kiki. We'll move on to item e which is a presentation. It's a proclamation for October 2026 which is arts and humanities month and I shall read this proclamation and

with a little help.

The City of Coeur d'Alene recognizes that arts and humanities are essential to a vibrant, healthy and thriving community, enriching the lives of residents and visitors alike. And whereas the Coeur d'Alene Arts Commission actively promotes and supports visual arts, performing arts, literary arts and humanities programs that foster creativity, cultural understanding, and civic pride, and whereas artists, educators, students, organizations, and art supporters throughout Coeur d'Alene contribute significantly to the cultural, education, and economic vitality of our community, And whereas the annual Coeur d'Alene Arts Awards, now in its 30th year, exemplifies the community's commitment to recognizing excellence, leadership, and meaningful impact in the arts, and whereas the celebration of the arts encourages greater awareness, participation, and appreciation of creative expression in all forms, strengthening community identity and connection, and whereas the month of October provides a meaningful opportunity to highlight and honor the contributions of those who advance the arts and humanities in Coeur d'Alene And whereas the City of Coeur d'Alene values the role of arts and humanities in education, community engagement, and the overall quality of life for all who live in and visit our city, now therefore I, Daniel K. Gookin, Mayor of the City of Coeur d'Alene, Idaho, do hereby proclaim the month of October 2026 as Arts and Humanities Month in Coeur d'Alene, Idaho, and encourage all citizens to celebrate, support, and participate in the arts and humanities throughout our community. And we have Mary Lee Riva, who's chairman of our Arts Commission, who will come forward to accept this.

Thank you Mayor and Council for this wonderful proclamation. October is a special time for us to celebrate the incredible artists, musicians, writers, performers, historians, and cultural organizations that make Coeur d'Alene such a vibrant community. On behalf of the Arts Commission, we invite everyone to get out, participate, discover something new, and celebrate the arts and humanities with us throughout October. We're very grateful for the city's support. Thank you.

Thank you, Mary Lee. Now we're going to move on to item F, which is public comments. And again, if you haven't had a chance to sign up and you do want to say something, I will give you an opportunity after we go through this list. We'll start with Gina Rogers.

Good evening. My name is Gina Rogers. I live in Rathdrum, and I own a small business that sells natural kratom here in North Idaho. I'm here tonight to voice my support for Council Bill 26-1015 and to thank you for looking at a regulatory approach rather than treating all kratom-related products the same. My business began in Post Falls, later moved to Coeur d'Alene, and is now in Hayden. I've been involved with our local Chamber of Commerce, completed the River City Leadership Academy in Post Falls, and was honored as the Post Falls Chamber Business of the Month. I've worked with Kratom for nearly a decade and have both personally and professional experience with it. I'm not here to tell you that Kratom is completely harmless. Nothing out there is 100% harmless. But we don't require products to have zero risk before regulating them responsibly. I support age restrictions, appropriate testing and labeling standards, reasonable licensing, and I absolutely support removing high-potency manufactured 7-hydroxymitrogenine or 7-OH products from the market. Those products have been my biggest concern throughout this discussion because they are very different from traditional Kratom products. Natural Kratom contains primarily mitrogenine with only trace amounts of naturally occurring 7-OH. Manufactured 70H products concentrate that one alkaloid to levels that don't naturally occur in the traditional leaf. I have here a binder of over 100 independent lab tests for Kratom, and the average 70H across those tests is 0.00441. which is much lower than the 2% that we sometimes hear discussed. Federal regulators are now making the distinction between natural kratom and several synthetic products. The DEA has already placed synthetic MGM-15, MGM-16, and pseudoindoxyl into Schedule 1 effective August 26th. They've also begun the process for scheduling synthetic 7-OH beyond a specific concentration, much like this ordinance would do. I've also spoken with several of our state representatives about Kratom earlier this year, and they have expressed support for a Kratom consumer protection bill at the state level. I hope Idaho ultimately establishes consistent statewide standards so responsible businesses and consumers aren't faced with completely different rules from one city to the next. There's one provision in this ordinance that I would really appreciate clarification on. The prohibited product section says a Kratom product cannot be a confection or mimic candy. But then the labeling section specifically lists gummies and tells retailers how gummies must be labeled. Even though my shop is not in Coeur d'Alene, I would like clarification in hopes that we could get a countywide regulation ordinance in place. So under this bill, would properly labeled adult marketed gummies be allowed or does calling them a confection prohibit them? I completely support products that are designed, shaped, packaged, or marketed, or excuse me, I support prohibiting products that are designed, shaped, packaged, or marketed to appeal to children. But most of these questionable products I've seen in the past are actually the synthetic products we're trying to remove. I would just ask that this language be clarified so responsible retailers know exactly what they can and cannot sell. Regulation, testing, labeling, age restrictions, and accountability are reasonable solutions. I believe we can protect our community in a way that reflects Idaho's values. Personal responsibility, reasonable regulation, and decisions based on facts and evidence. Thank you for the opportunity to speak tonight.

Thank you, Gina, and thank you for providing us with such wonderful documentation. Next, we have Mark Mathis.

Thank you very much for allowing me to speak. And I am going to speak on support of the Kratom regulation. And I am not a Kratom user. But I have a wife who has had spine fusions, back surgeries. a lot of health issues, and she uses the natural leaf kratom, and it has made a difference. I have a daughter, who you might hear from next, who has... We have struggled as a family, and we are that type of family that tries to eat organic and live healthy. You go to the doctor for whatever, and they prescribe opioids. You're like... All right, I'll take him just the first day, but I do not want, you know, so we're that type of family. And she has been battling her RA forever, and Kratom has, natural Kratom has definitely helped. I think we have all seen, you go to the convenience stores and the gas stations, and it's just junk Kratom. It's that high price. concentrated synthetic built-in labs, 7-OH. So I am against that, but I have seen what natural kratom can do. My wife has not become a kratom crack addict, nor has my daughter. They are actually more healthy. And so I know some people talk about bans or whatever, but we all know alcohol is legal and what that can do. I was at the Maverick across from Lake City High School and saw a 15, 16-year-old kid walking in with a vape in his mouth. So there are some products out there. And I would label 70H as definitely a product that needs to not be in our community. But I have seen natural kratom and what it has done for my wife and for my daughter. I've actually looked into the research and I definitely think there's a difference. So I'm honestly not super familiar with this. My wife could not make it. She's on crutches. She blew out her knee. So I am here to speak on her behalf. But bottom line is, I know it's made a difference for my family and we only do the natural stuff. We are not into all the chemical things. So I am asking that you take the junk out of the market, but still allow some good quality natural kratom to be sold in our community. Because honestly, my wife and daughter are going to suffer if it's not. So thank you so much for your time. I appreciate it.

Thank you, Mark. And Allie Mathis.

Hello, my name is Ali Mathis. I am 24 years old and I live in Coeur d'Alene. I'm here to share my story and voice my support for responsible regulation. When I was 21, I was diagnosed with an aggressive form of rheumatoid arthritis. RA is a chronic autoimmune disease. It's not normal arthritis. My immune system attacks my own joints and in my case, it has caused permanent irreversible damage. There is no cure for it and the disease can be incredibly painful and debilitating. At 21, I was supposed to be starting and living my life. Instead, I was waking up every morning in so much pain I was crying out to my mom to come help me get out of bed. It was humiliating, defeating, and heartbreaking to become so dependent on my own parents just to do the most basic things people take for granted, such as walking, feeding myself, and bathing. When this was recently discussed at the Post-False Council meeting, while talking about people who use natural kratom for pain, Dr. Duke Johnson said, quote, opiates are opiates. There are so many opiates, and you're going to find something that's going to take away the pain. So I think that's kind of a weak, weak story, quote. That weak story is my everyday life. And honestly, I don't understand how that can be considered a solution for someone like me. I have tried opiate after opiate, along with muscle relaxers, steroids, immunosuppressants, peptides, different diets, natural remedies, supplements, red light therapy, and major lifestyle changes. I've spent nearly three years trying to find an effective long-term treatment, and I am still actively working with my doctors because we have not found one yet. So when I hear, essentially, take another opiate, I have to ask, what is the point? Painkillers do not treat underlying inflammation that are currently destroying my joints as we speak. They may take the edge off some of the pain, but I can't move. And many of them impair me so much that I can't work. I cannot safely drive or function normally. I don't think anyone wants me driving to or from work in that condition. When I first tried Natural Kratom, I was honestly hoping for some relief. At that point, I had tried so many different things and was really struggling both mentally and physically. I wasn't expecting a fix for everything. But when I took it, I noticed that not only was I experiencing less pain, I was able to regain movement again. And that was life changing for me. It has helped me regain a level of mobility and independence that my disease has taken away from me for so long. It's not a cure and I still have difficult days, but that's why it's so personal for me. I take it because I want to have a life where I can take care of myself and not just merely exist. With that said, I absolutely support regulation of kratom. I believe there should be safeguards to protect consumers and ensure that people who responsibly use natural plain leaf kratom can access a safe, properly labeled, and tested product. There has also been a federal level of recognition of the important distinction between natural kratom and highly concentrated synthetic chemically altered products such as 7-OH. I believe regulation should focus on protecting consumers from potential harmful products while also preserving safe access to natural kratom for responsible adults like myself. Thank you for considering a regulation ordinance to protect responsible consumers like me. Thank you for your time.

Thank you, Ally. I have Mason, I believe Maidez, I apologize if I have murdered your last name.

Good evening. Thank you for the opportunity to speak. My name is Mason Valdez. I am 23 years old and I live in Coeur d'Alene. I'm here today to voice my support for Kratom regulation. A few years ago, I was involved in a very serious dirt bike accident that resulted in a severe collarbone injury, which required multiple surgeries to repair. Since then, I experience pain every single day from that accident. I also work in a full-time physical demanding blue collar profession that takes a toll on the rest of my body. Natural Kratom has helped me manage my chronic pain from a life-changing injury. I am able to be functional and continue being a productive, hard-worker member of our community. With that said, I do believe that we do need regulation. In my opinion, much of the negative attention surrounding Kratom today comes from the confusion between the natural, plain leaf Kratom and the newer, chemically altered, highly concentrated 7OH products. I think it is very important that we recognize the difference. Failing to do so could lead to misinformation, misguided policies, and could hurt responsible kratom consumers as myself. The FDA and now the DEA have acknowledged and made it clear that there is a difference between the two. The DEA is going to schedule 7OH, but I've made it clear that they are not targeting natural plain leaf kratom. I want to add, if public safety truly is the goal, we should recognize and acknowledge that alcohol remains available despite the very real, well-documented harm and danger it causes our communities. Idaho Public Health data recognizes excessive alcohol use as being associated with alcohol poisoning, cancer, liver disease, alcohol-related deaths, and much more each year. If public safety is truly the goal, we should be looking at what their greatest risks are, not taking away a natural product with comparatively lower documented risk, and that has genuinely and positively impacted people like me. Thank you for considering regulations that protect consumers without taking away access for responsible adults who benefit. Thank you for your time and your consideration.

Thank you, Mason. Does anyone else like to make public comment? I do have a couple of people who signed up for our hearing, but I think they really wanted to comment about Kratom. So we had Jeff from Virginia, who is for, I'm guessing he's supporting the ordinance. I'm just reading this into this. And Shannon from Massachusetts, who is neutral, but we'll be bringing that up again during the hearing, just in case they want to talk about balancing our budget. Moving on to item G, city council announcements. Anyone? Kiki.

I have actually three things I'd like to share. One is that at the North Idaho Building Contractors Association joint government meeting today, I attend those whenever I can. There was some presentations by Leon, well, actually conversations by Leon Deuce, who's the city administrator out at Rathdrum. And he also used to be the director of Association of Idaho Cities. The reason that's important is we had some information come to council regarding some of his efforts to educate and help fix House Bill 389, which caused some real consternation amongst municipalities across the area. So I'm just wanting council and staff to know that Leon is out there. I know I could get away. And he's doing some presentations, I believe, to the city clerks coming up and many others on some ideas that he's working on and they have in order to work on that. The other thing that I wanted to share with council and staff and everyone is that Lance Sayre, who's with the AIC organization as well, was going through things that their association, as they're moving into thinking about what's going to happen with the legislature, have talking points that were rising to the top. One of his very top ones was cybersecurity. So there's more happening out there than what, you know, we kind of tend to get a little lax sometimes. So I just want everyone to know that, you know, keep your company safe. Don't fall for the phishing scams. Don't open it. Don't click on it. And it's becoming more and more of a concern on the statewide level, too. So the third thing is I wanted to congratulate our community planning director Hilary Patterson, if you'd come up here just a second. Hilary received an award for outstanding leadership just this last week at the Joint Montana and Idaho Fall APA American Planning Association Conference. And this award recognizes individuals who provide exceptional leadership, commitment to good planning. And this award Hilary got not only for her dedication to the profession, but also her dedication to APA Idaho. Congratulations, Hillary. Love to hear a couple words about that experience.

Okay. Well, thank you. And good evening, mayor and council. Yes, it was quite an honor and surprise. I was nominated by peers and they surprised me with, uh, letting me know that I'd received the leadership award. So it is quite an honor. It's given once a year and it can be given to elected officials. It can be given to community members and. those in the planning profession. So that was fantastic. And it was great to have been honored at the joint conference in Dillon, Montana. And I couldn't do the leadership work that I do without an excellent team that I have here at the city. The planning department staff are fantastic, as well as those that serve with me on the APA Idaho board. So thank you. Congratulations again.

Congratulations. Thank you, Hilary. Any other council announcements? Christy.

Thank you, Mr. Mayor. Last night, Park and Rec met for the first time in a few months. We really didn't meet much over the summer. A couple of things. First of all, there's a group of very passionate, involved citizens that are coming together to help us work on the city park and some... much needed upgrades there we'll probably be presenting to council at some point in time a public private partnership in that regard but meanwhile the park and rec is going to form an advisory committee and that will be done at a workshop by the end of the month and Some citizens will serve on that and our Park and Rec Commission, and then we'll come back to all of you at some point in time with some decisions to make and try to move forward to get needed repairs done in our city park, particularly the promenade that's in front of the seawall. And thanks to those in the community that's brought it to our attention. It's just one of those things that years and years and years of use, it's now time to address it. The other thing that was kind of exciting is Phil Boyd and Will from Ignite showed up, and they gave a quick presentation on what's a project that is slated for the remaining money in the River District before it closes in 2027. And there were some really great, I guess, concepts provided that show some much-needed upgrades to Johnson Park at Mill River. And so that will be coming to all of us soon too, but it was just first blush taken to Park and Rec where we looked at a beautiful POSSIBLE BEACH AREA WITH DOCKS AND UPGRADES WITH BATHROOM FACILITIES AND PARKING. AND SO GREAT USE OF THOSE URBAN RENEWAL FUNDS. AND SO LOOK FORWARD TO THAT COMING TO COUNCIL.

EXCELLENT. THANK YOU.

DAN ENGLISH. OKAY. WELL, TWO THINGS. AND ACTUALLY THE FIRST ONE TO TALK ABOUT. the park and rec and bathrooms, and we live in Coeur d'Alene Place, and my wife often takes our three and a half year old great grandson to the park there, the circle park there, and we have a beautiful brick, I mean, bathroom facility that has been, and I know Mayor Gookin is very much into good bathroom stuff, but that thing has been locked all summer. And then we've got, and so she has to take him to this, you know, to an outhouse and clear across the way. And so it's like, how in the world can, you know, we've got to do something. And I realize at some point there was vandalism, but, you know, there's stuff we can do. We've got to do something. We owe our people something. Better than that. And then the second thing is just that I know that I won't be here for the first meeting in October, just in case there's any issues for quorum and what's on there. And I unapologetically announce that, yeah, we're going to Maui. We are way overdue for a snorkeling adventure. So anyway, that's all I have for now.

Christy, you want to address that?

Yeah, thank you, Mr. Mayor. Council Member English, Adam's not here tonight, but he did give a nice presentation to us last night. There are some real... reasons why some of the bathrooms are closed, especially on the north end of town. The amount of vandalism has just been absurd. Just this week, one bathroom, and I'm trying to remember where it was, it might have been the Banshell area, there was $1,700 worth of damage done. And of course, Parks Capital doesn't have endless money to address that. And so what the Parks Department has done in some of these parks that are pretty far north and maybe not utilized as much because they're in neighborhoods they're closing them when staff leaves at 4 p.m and that has reduced the vandalism and the amount of money being spent to replace things significantly as far as your particular park I mean I would make a call to Adam I don't know why all summer but it probably has a lot to do

with the amount of damage and maybe not the funds identified to repair it yeah and i would you know and my response to that is that you know we're going to find that somewhere that's a very very highly used park up there and um you know with cameras and the different thing they do um And, you know, like I guarantee you there are enough parents and grandparents in there that if we did kind of like a, you know, if we did an education thing and like a block watch thing where people, you know, turn if they see something, you know, call it in or something. But, you know, there's got to be a way that we can do better. I think we owe our people that.

Any other council comments?

That's enough, okay.

I'd say we shoot him, Chief. I have a few announcements to go through. First of all, volunteer opportunities for the city. The city of Coeur d'Alene is seeking youth representation on city committees, boards, and committees' service. And these boards go to high school students who are aged 14 to 18. It's an unprecedented opportunity to learn about city government, special projects, and to become involved in the community. If you are interested in serving as a student representative on any of the following committees or know of a student who might be interested, visit the webpage, which is up there on the top. And the committees are Park and Rec, Ped Bike, Urban Forestry, and the CDATV Committee. We also have city opportunities for adults to serve on our Planning and Zoning Commission. This is one of the big ones. And we're looking for one commissioner to serve a, these appointments are six-year terms. The term of this commission will end on May 1st, 2029, as it's a replacement, or until a successor is appointed and qualified. The vacancy is open until September 18th, which is Friday at 5 p.m. You may apply by email, U.S. mail, or you can hand deliver that to City Hall. We have a vacancy on the Ped Bike Committee and this requires the applicant to be a member of our retired community water access school district 271 or a member of the legal community. Application period will remain open until the vacancy is filled. Urban Forestry Committee is seeking applications for two vacancies. One needs to be filled by an entomologist, which is a bug guy. Application period will remain open until the position is filled. Our Personnel Appeals Board is seeking members to fill one vacancy. This consists of six members appointed to four-year staggered terms by the Mayor and City Council, and members of the Board shall be residents of the City. and no person is appointed to this board who is a salaried officer or has employment with the city, the application period will remain open until the position is filled and the website address is up there if you would like to apply. Moving on. City of Coeur d'Alene would like to extend its deepest gratitude to Library Board Trustee Katie Saylor as she concludes an extraordinary 40 years of service on the Library Board. Since her appointment in 1986, Ms. Saylor has been a tireless advocate for libraries, championed equitable access to information, SUPPORTED STAFF AND LEADERSHIP, HELPED ESTABLISH THE LIBRARY FOUNDATION, AND PLAYED A PIVOTAL ROLE IN THE PLANNING, FUNDING, AND REALIZATION OF THE LIBRARY'S CURRENT HOME IN WHICH WE SIT. HER LEADERSHIP, DEDICATION, AND STEADFAST COMMITMENT TO THE CITIZENS OF CORDELAIN HELP SHAPE THE LIBRARY INTO A VIBRANT COMMUNITY RESOURCE IT IS TODAY. HER VISION AND SERVICE HAS LEFT A LASTING LEGACY. WE THANK MS. SAILOR FOR HER REMARKABLE CONTRIBUTIONS AND YEARS OF FAITHFUL SERVICE TO THE CORDELAIN COMMUNITY AND WISH HER ALL THE BEST IN THE YEARS AHEAD. Finally, and sadly, I'd like to acknowledge the passing of John Brummerling, who is a valued former employee of the City of Coeur d'Alene Streets and Engineering Department. Mr. Brummerling was a respected worker who had an unwavering work ethic, a genuine can-do attitude, and brightened every workplace he entered. He earned the respect of his colleagues, clients, and those with whom he worked on behalf of the city. We're grateful for close to eight years of service to our community and for the professionalism and integrity he brought to his work. As noted in his obituary, John leaves behind a large and loving family. On behalf of the city council and the city, we extend our sincere condolences to his family, friends, colleagues, and all who know and appreciate him. We're grateful for his service and we'll remember him with respect and appreciation. Thank you, John. Moving on to item H, which is our consent calendar.

Mr. Mayor, I would like to make a motion to approve the consent calendar as presented including resolution number 26-074 with a minor correction under item 6B, which should read approving a subdivision work agreement and strike the maintenance warranty agreement.

OK. Is that understood? Very good. We need a second?

Second.

Very good. Have a second. Any discussion on the motion and the modified resolution? Roll call, please. Evans.

No. Sheckler. Yes. Miller. Aye. Gabriel. Yes. English. Yes. Wood.

Yes. Motion is carried. We're on to item I1, other business resolution number 26075, proposed classification and compensation plan amendments to include building maintenance superintendent from pay grade 14 to 15, human resource specialist from pay grade 11 to 12, and street maintenance worker from pay grade 8 to 9. Staff report by Melissa Tosi, human resource director. Melissa.

good evening mayor and council the amendments tonight as you just mentioned are based on our recent class comp study and the findings with that so we're talking about these three specific classifications in streets hr and parks and rec just a little history on how we are to where we are tonight in january council confirmed a professional services agreement with best Best day HR to do a citywide class comp study. Uh, David Jepson here. He is, um, as nice to work with as his picture. Uh, he presented the overall findings to council on July 27th, um, with the basis that Coeur d'Alene is very competitive with our external market. Our compensation structure is sound. And we were ranked third overall with the 11 peer organizations that we used. And as a result, that's why we have a short list to bring forward tonight. So the main two classifications that were clearly below market were the streets maintenance worker and HR specialist. They both sat at approximately 71% below market with lots of good peer analysis data to compare them to. So the recommendation is they both move up one pay grade from where they currently sit. And the consultant used an at market around 85 to 115%. So you'll see positions within the study that went down to 85% or were above market up to 115%, but that would still be considered within a good market. The third position is the building maintenance superintendent. This position really had an increased scope of work from when it was originally approved by council. It is more involved in the budget. It's doing the day-to-day operations of building maintenance in parks and rec, overseeing all the contractors and vendors. And you'll see that classification present in front of council. and managing a lot of those contracts. In the last few months, kind of at the end of last year, I believe, we did approve the custodial classifications. We brought that back in-house. And so the building maintenance superintendent does supervise the lead and the other custodians for the city. So with those changes, it brings that building maintenance superintendent par with our other two superintendents in parks and rec which is the park and rec rec superintendents so the proposal there is to also move that up one pay grade to a 15 which would also make that position FLSA exempt so the financial analysis behind that there are four employees that are affected three classifications and The overall implementation for the amendment is $21,546. The implementation cost would either come from fund balance or if we have some savings and staffing throughout the fiscal year, we would try to pull it from that as well. And these changes would be effective October 1st. So we are budgeting that all in our next fiscal year. So the recommendation is to approve the class comp plan amendments specific to the three positions that I just discussed and happy to stand for any questions.

Are there any questions for Melissa?

Christy? Just real quick. Well, first of all, I'm all for it. We need to put them in their correct category. Just a quick question, though. It's a very small amount of money. And the financial analysis was that it would come out of fund balance. But I think Katie's going to bring forward some adjustments to the budget. Wouldn't it just be an ongoing thing where it didn't have to come out of the fund balance? Maybe that's not for you to answer.

Good Katie question. So happy to answer that. Uh, when we're looking at something added to the FY 27 budget, I want to be clear that with that budget built around a deficit, any additional costs that we budget could come from fund balance. And so I think it's really important to be transparent with that possibility. Hopefully in some of the departments there would be savings. We see a lot of savings from open positions throughout the year. there are some departments that are much smaller and do not have vacancies throughout the year. So I wanted to be clear that a department that didn't have any personnel savings to cover this would come as an amendment in the next FY 27 amended budget. Does that?

Yeah. And I think probably if this is approved in the 28 budget, it would just be built in. Correct. Yeah. Thank you.

Any other questions from council? Okay. We'll look for action on this.

Mr. Mayor, I would make a motion to let me get my glasses on. Okay, I'll try. These could be really something. Well, they're good. To approve resolution number 26075, approving the proposed classification and compensation plan amendments to include building maintenance superintendent from pay grade 14 to 15, human resources specialist from pay grade 11 to 12, and street maintenance worker from pay grade 8 to 9. Second.

Second. Motion and a second. Discussion on the motion. Okay, roll call.

Miller? Aye. Gabriel? Yes. English? Yes. Wood? Yes. Sheckler?

Yes. Motion is carried. We're on to item I-2. Which is, was it I2 or H2? Well, whatever. This is council bill number 261015, which is approving creation of municipal code chapter 927, entitled Regulation of Kratom. Staff report by Randy Adams, City Attorney Randy.

Thank you, Mr. Mayor. Good evening, Mayor and council. Before you tonight is the opportunity to enact an ordinance which governs a product commonly called Kratom. The draft ordinance is fairly comprehensive, governing production, distribution, dispensing, and possession of Kratom and Kratom products. Council, as with any ordinance brought to you, is free to adopt it in whole or in part or reject it completely. In addition, Municipal Services is still working on a license application form to be used. And council will also have to adopt a license fee by resolution. So at least the licensing part of this ordinance would not go into effect immediately. It would be pending the other items that we need to take care of. However, other parts of the ordinance could still be enforced. Back in April, police and legal were asked to look into the possibility of regulating Kratom, and the mayor authorized the legal department to draft an ordinance for council consideration. I worked with both police and the chief prosecutor for the city to draft an ordinance. I also reached out to city attorneys throughout Idaho to see what they were doing with it. The concern was uniform, the solutions were not. Kratom refers to the leaf of the Mitragyna speciosi tree, which is native to Asia. It's been used historically as an herbal remedy. Locally, kratom is found in convenience stores, gas stations, smoke shops, and other specialty botanical stores. It's sold in a variety of forms, including capsules, powder, liquids, and edibles. Its sale is not currently restricted in Idaho, meaning that children can legally purchase, possess, and use it. And most often, the products are not secured behind a counter or in a locked display case, even when energy drinks, as you can see in this photo, are placed in locked display cases. In fact, Kratom is sometimes packaged in a way that appeals to youth with flavors and gummies. In July of this year, Dr. Duke Johnson, the Kootenai County Coroner, sent a letter to the mayors and city councils in Kootenai County warning of the dangers of kratom. A full copy of this letter is in your packet. He said that his office is processing an increasing number of deaths in which kratom is a factor. Now kratom leaf naturally contains trace amounts of an opiate, which is known as 7-OH, which is 13 times more powerful than morphine. However, some manufacturers process kratom in such a way that their products intentionally concentrate or increase the opiate to a great degree. And this, of course, increases the chance of addiction and harmful health consequences. Dr. Johnson went on to say that drug rehabilitation groups in Kootenai County are seeing a tremendous increase in kratom addiction, leading some to call it gas station heroin. And he noted that the FDA has stated, quote, there are no prescription or over the counter drug products containing kratom or it's known alkaloids that are legally on the market in the United States. The FDA's position is simple and direct. There's no evidence that Kratom is safe or effective as a medication for treating any condition and has not been shown to have any positive effect on mental health. The Panhandle Health District issued a Kratom warning in February of this year due to its addictive and overdose potential. It observed that there have been deaths in North Idaho associated with Kratom. And it noted that at low doses, kratom produces a mild stimulant effect, causing increased alertness and energy. But at higher doses, kratom has sedative properties similar to opioids. Despite the growing concern and experience with the effects of Kratom, cities in Idaho seem reluctant to regulate it even to a minimal degree. Sandpoint recently punted on a ban on the sale of Kratom because, according to one council member, it's too complex a matter for municipalities to handle. Kootenai County also recently discussed a proposed kratom ordinance, but has taken no final action on it. Kootenai County's ordinance prohibits the sale or distribution of kratom to anyone, but does not criminalize or prohibit the possession of it. Thus, a Kootenai County resident can purchase Kratom elsewhere and bring it back here and consume it. Of course, that never happens with other controlled substances, so we may not have to worry about that. On the other side of the coin, in April, Kellogg did pass a ban on the sale of Kratom, becoming the first city in Idaho to enact such a ban. Other cities such as Post Falls, Idaho Falls, and Garden City are considering regulations. Earlier this year, Spokane banned the distribution or sale of kratom entirely. Eleven states have banned kratom. Alabama, Arkansas, Connecticut, Indiana, Kansas, Louisiana, Massachusetts, North Dakota, Tennessee, Vermont, and Wisconsin. California has a de facto commercial ban following administrative action. Thirteen other states regulate Kratom to some degree. Our own state of Idaho considered two Kratom bills in 2026, one of which would have listed it as a Schedule I controlled substance. and the other which would have imposed statewide regulations including banning sales to persons under 21, labeling requirements, and prohibiting the artificial increase or concentration of 7-OH, the opioid contained in natural kratom. In July of this year, the DEA announced temporary Schedule I control of synthesized and highly concentrated kratom products. So what is the ordinance that is proposed tonight? What does it do? First of all, what it doesn't do, it does not prohibit the sale, possession, or use of kratom by adults. This ordinance is focused on protecting miners from the unrestricted purchase of an addictive and possibly harmful product that has no controls regarding its manufacturer or labeling. It also doesn't prevent distribution, or this ordinance also does not prevent distribution pursuant to a valid prescription to anyone. The proposed ordinance does require a license to produce, distribute, or dispense kratom in the city. Licensing performs a necessary function in regulating distribution to minors in that a licensed seller can lose that license if found to be in violation of the regulations. Again, the license fee will be set by this council pursuant to a resolution at a later time. The proposed ordinance prohibits the distribution of kratom to or possession by persons under the age of 21, which is not uncommon throughout the United States. That is the age that most regulations set. And it prohibits the marketing of kratom in forms designed to appeal to minors. The proposed ordinance seeks to regulate the levels of the opiate in kratom that are induced artificially so that it doesn't function as gas station heroin and it requires common sense labeling. Labeling is one of the common denominators of many of the regulations throughout the country to one degree or another. The ordinance would also require kratom to be secured behind a counter or in a locked display case. In this city, we have already had miners shoplift kratom that was found sitting out on a counter in a convenience store. The ordinance provides for graduated penalties ranging from a simple civil penalty to an infraction to a misdemeanor as well as to license revocation for sellers who violate the ordinance more than once in a given period of time. Now that of course raises the issue of enforcement. Currently there's no field test to determine if something is kratom. The labeling requirement may help with that but the ordinance we believe will at least act as a deterrent for the most vulnerable members of our community, youths. In addition, the ban on sales and marketing to minors is easily enforced at the point of sale. And a field test will likely be developed in the future. I've asked the police chief to be here tonight, so if you have any questions regarding enforcement, either I or he should be able to answer. And I thank you for your attention.

Thank you, Randy. Any questions for Randy?

Yeah, but I'm going to go first. And so I will be mindful of that.

Sure, Kenny. Go ahead.

Well, first of all, the public testimony was very powerful. Thank you for sharing your stories. And clearly, you are seeing some benefit for natural kratom. And so for you to come and tell us how important that was is very compelling. Gina Rogers had a question that we should now ask you for her. What about clarifying the language on candy-looking gummies.

That's certainly an option. A confection is defined as something with a high sugar content. It could be a cake or a candy or something like that. Something that mimics a candy product.

Gummies can be considered, but gummies are actually used by adults.

Correct. and the packaging on those would probably identify that this is not a candy. So we can certainly tweak the language to address those concerns.

And then I guess for the Chief of Police? Welcome Chief.

Good evening.

I believe, I think you have a detective that actually does presentations on controlled substance and this might be one of the substances that they do a presentation on, which is great. But I guess maybe just anecdotally, what kind of abuses are you seeing from minors in the schools?

Yes, our SROs have found items that are usually suspected to be kratom because as you would imagine by the time it makes it into the school, it's not usually in the original packaging, whatever it was in prior. So they will find capsules each week somewhere and they usually just end up disposing of that. As our city attorney mentioned, there's no field test for us to determine right on the scene, but if it was part of a larger issue, not something like just a moment in school, there are tests at the state level that we can do, say if this was part of a DUI, some kind of a felony case, something like that. So in this case, we have seen some of it in the schools. We have seen one medical incident where the school nurse's opinion was that the student was intoxicated by kratom. But it is not something where we've seen some overdoses or things like that in our schools, and we do know about the use in our community and the theft of Kratom products in our community.

Okay, thank you.

Any other questions? Yes, Keith.

Chief, just if you know, is Narcan effective on Kratom overdoses?

So there have been some scientific studies that have shown that it is effective at times, but it is not 100% reliable. So it is not something that we can rely on even though our officers carry that.

Any other questions for the Chief? Thank you, Chief. Thank you. Any discussion on the ordinance? Dan, English.

Well, I have initially two feedbacks. And I do appreciate the people who came and shared their stories. And we got a ton of emails on this. You know, I've been telling people that, man, I think this is the most, you know, it's kind of running in competition for some of the core terror annexation stuff. And but it's, but this is a very real thing. I mean, this is a complex issue on one hand, but also for me, it's going to be a very easy vote to vote to support this. Some of, you know, in Randy's presentation, they were, and I couldn't find it right where it was, but were the, you know, the reports that people couldn't, you know, that there's not scientific proof or studies that it, you know, you can't prove that it benefits people, but, you know, But frankly, if people, whether it's physiologically doing something or psychologically, whatever, there is no disputing that people can report that they take it and they feel better. And that it's made their life-changing stuff. So, I mean, that works for me. And I also really take exception to the... There was some statement about, you know, counselors reporting and stuff, no mental health benefits. Well, I'm not sure who wrote that, but I'm an actual licensed professional counselor for about 40 years. And I can tell you that it's, you know, there are definitely benefits to people. And, you know, the difference between having debilitating, you know, pain and that kind of thing and produces anxiety and just, shrinks you down to a bubble and then the ability to have a doorway where you can do something and somebody reported you know it's not perfect not all the time but it's a night and day difference so anyway I'll be glad to hear the rest of it but one of the I guess final thing is I really appreciate this ordinance and the work. I don't think it would be the right thing to just do a total ban, but I like this that it's, you know, it's regulating, it's getting the kids stuff out, and I like that it's kind of a tiered system of the sanctions on it, and So, you know, and then removing it. So just like with cigarettes and alcohol, you know, they check ID, whatever. And so I think this is a great place to start. And that's the beauty of an ordinance. We can tweak it as you go. Very good. Dan Sheckler.

Thank you, Mr. Mayor. I really appreciate the work the police department and Randy did on this. Our legal counsel did a great job. I think it's a pressing problem for the community to protect our most precious asset, and that's our children. And I think we need to focus on the harm in a way that's regulatorily smart. And what I really like about this is the tiered system that he has. I would offer some things that we should be aware of, I think, as a municipality. I think as a municipality, there's many different jurisdictions in the state of Idaho. And if we start creating our own labeling standards or if we start creating our own what types of product, maybe it's this sugar content or that sugar content, I think that gets into a level of regulatory conflict with other jurisdictions that might not be wise at our level. I think that's probably better resolved at the state or federal level. I think what we should focus on is prohibiting the sale to minors. And so my inclination is to recommend that staff remove the labeling provisions and remove the provisions regulating the confections and that part of it, and focus strictly on prohibiting the sale to minors. And on that, I think we've heard a lot of testimony about the you know, way it's used medically. And I think when we're a government, we want to be careful to, the government that governs best governs least. And I think we might want to be cautious before we restrict liberty where people might be using this in a way that benefits their health. And so for that reason, I would suggest maybe changing it from 21 to 18, so that parents who are in charge of their kids' medical decision making can still make the medical decisions. I think there's a provision for a prescription in here that I saw. But what about the age of 18 to 21? They don't have really a parent to look out for them. That was my thought on maybe changing it to 18 instead of 21 so that once they do turn 18, they are in charge of their medical destiny. I think that's a good conversation to have at the state level or a federal level to maybe go to 21. But for where we're at here, I think in a local level, we should maybe stick to just 18 because it doesn't get into the complex medical decision making. And I think we might want to be cautious about creating these labeling standards and regulating it that way. And maybe just kick it back to fine tune those couple issues. But other than that, I think this is an awesome idea. I think we need to protect kids. I just think we've got to do it incrementally and cautiously.

So we can do that here. We don't have to send it back if you want to make that change. You just say we're going to change it from 21 to 18. I think there's only three parts of the ordinance that mention the age, and we could just do that right now if that's what you want to do. In other words, we don't have to send it back. I also want to hear from my other council members. Let's hear from Kiki first.

Okay. Thank you, Mr. Mayor. Dan I agree with you on the we don't need to get into the weeds on labeling and confection and all of that I don't this isn't the last we're gonna hear of this I mean the feds are already looking at you know regulation states looking at it other cities are looking at it and so there's gonna just be change after change and if we try to get down into the detail of that part right now I don't think it will be helpful I don't agree with you on the 18 year old aspect to it because there's a lot of 18-year-olds that are still in school. So they're going to be able to bring it into the schools with them. That just makes the policing harder for SROs, for whoever's selling it and all of that. So I'd really like it to stay at 21 with those simplifications. And I think that the differences between the types of Kratom that there are isn't really for us to decide. I want to see it kept away from kids, put behind the counter, ID'd for 21, and then that tiered system of infractions. So that's where I'm at with it. Thank you.

Kenny. Thank you, Mr. Mayor. Question for Randy. You had mentioned that on your research that many of the other municipalities or states use 21 as the guideline. Is that correct?

That is correct. I don't think I've seen any that have picked 18, but there may well be some out there.

And I also agree, not to state the obvious, but I don't know how we could even get into the middle of labeling. I think that would be very difficult for us to regulate that. So I agree with that as well.

And we could pull that part out of the ordinance if that's what council wants. Christy.

Thank you. I just have a quick question on that. I guess I thought, Randy, the reason you put the labeling and marketing language in here was to give some guidance to the people that are selling it legally.

The labeling usually comes from the manufacturer, and most of the distributors probably obtain their kratom from manufacturers. And so it is an idea of trying to encourage them to buy from reputable manufacturers that provide the product with adequate labeling, showing what's in it. whether it's been enhanced, that it's not intended for minors or people under 21.

And isn't the other part of that to clearly identify that it's natural kratom and you're trying to remove the synthetics from being on the market?

Right. It would certainly indicate whether there was an increase or concentration of the opioid in that, the 7-OH.

Okay. Well, I think I'm good with it as written. It seems like it's been very thoughtfully put together with police and our city attorney.

Dan English. That's where I'm at, too. I think that 21 makes sense. I mean, if, you know, 18, you know, difference between cigarettes and alcohol and what we're saying for the dangerous stuff is it's more like alcohol than alcohol. So 21 makes sense. And frankly, I really like the labeling part of it. I think that's a strength of it. And, you know, they do it for the cigarette stuff. And so I'm yeah, I'm and we'll see where it goes. But I'm with keeping it as it is.

Stan Schickler. One of the things I would offer on the difference between cigarette labeling is that's done at the federal level. And manufacturers can comply with a uniform federal standard by going to one standard and doing it. If we create section 9.27.40 with A, B, C, D, E, F, G, somebody will be committing a crime if they didn't have something on their product that says, this product is not intended to diagnose, treat, cure, or prevent any disease, for example. And Rathdrum may create a different labeling standard that says they need it to say something else. And you take that and multiply it by 1,000 different jurisdictions, and you may not find a manufacturer that has complied with the city of Coeur d'Alene's manufacturing labeling standards if they're unique to the city of Coeur d'Alene. So I think we're dealing with a regulation of an issue that's by its very nature economic and therefore much broader than just our jurisdiction. So my thought is to be cognizant of how could somebody actually comply with this They're not manufacturing it just for Coeur d'Alene. They're manufacturing it nationally or perhaps internationally. And we really ought to be focused on having an ordinance that protects children but enlists businesses in helping us comply by not Driving them out of business, Randy.

Thank you. I I did not make these labeling requirements up by myself. These are called from a number of jurisdictions that have established these labeling restrictions, so I would assume that there are. It may not be an industry standard. They may not be an industry standard, but it's certainly common in the states and jurisdictions that have regulated it.

Randy, when you wrote this, did you look at any kratom to see if any of these items are still currently on the product?

I have not looked at any kratom in our local stores, no.

Okay. I'm going to ask Gina if she can come forward since she sells it, if she could offer her input on the labeling requirements.

Thank you, Mayor, Council Members. Yes, so most stores, and I speak for my own, but I would say most stores are bringing in products from multiple manufacturers. Most of those should have things like that statement that says this product is not intended to treat, cure, prevent any disease or illness. It should say on there as well that pregnant or nursing women should not be consuming Kratom products. It should have a age limit on it that will depend on what state that product is manufactured from. Most of the products in our store, some are, I would say, are variety. They're 18 or 21. I don't think any of them say nothing. But we've just been self-regulating since the beginning because there was no regulation yet. But I would say a lot of things will say the serving size, and they definitely will say the 7-OH or 7-hydroxymetrogeny level in either a natural product or even just an extract. An extract just simply means a different form, but it can be a little bit stronger. you won't find a natural product that has the 708 level any higher than 2%. So I did notice that in the ordinance that there was a 2% limit on that and I believe a 1% per serving. And that's pretty normal and reasonable. I wouldn't think that there should be anything higher than that because also the federal standard is probably going to be that 2% when they release that final information.

Is there anything in the ordinance in the labeling portion that would hinder your business?

Um, personally, a little bit, the, the, the gummy part only because I do sell some gummies. They are not marketed towards children in any way. Um, but they are Kratom gummies. Um, so I would be concerned about selling that because of the way it's written that it's, um, where it says that it, it, it's prohibited, but then there's, it kind of describes that in, um, Section G of the labeling it kind of it gives a Labeling guideline for capsules gummies packaged single serving units in similar forms, so I would Have you know questions on that if I were in the city limit selling it I Think I think These are pretty standard across the board on products. I mean, the term all natural, I mean, it is natural kratom. I think if that one could kind of go either way. Because I understand why it was put in there that, you know, implying that something is all natural if it isn't. And I think that when we're looking at like these concentrated synthetic products, They do try to miss market that sometimes and say all natural, but when you flip that package over, that tells a different story of what's actually in that package. So the all natural part I would, personally for me, that one could be an issue with some of the products because I think they might say that on a few. Let's see. Yeah, I think all of these other ones are pretty consistent with most products from most manufacturers.

Kiki, did you have a question for Gina?

Yeah, I just am trying to get a read here. So it sounds like for you and your store, if the words gummies were taken out of the ordinance, you would feel comfortable with whatever products you're purchasing from manufacturers and selling them under this as it's proposed.

Absolutely, yes. They all fall within these guidelines.

Mr. Sheckler. I would just comment that I think that what we just saw is an example of a industry that's fairly self-regulating when it comes to labeling and micromanaging that I don't think is wise if they're already self-regulating it. We should just focus on the children is my opinion. Okay.

I think that's good. Thank you, Gina. I do appreciate all your information.

Thank you.

Christy.

Mr. Mayor, I wonder if a happy medium for Mr. Sheckler, because you're right, it's going to come forward probably someday at the state level, but this is pretty good for us. We could always come back and adjust whatever the state does, and maybe AOC, or not AOC, AIC, AIC would spearhead some of that, and you could work with Kenny. It could be Coeur d'Alene that's the leader in that, but For tonight, I think it's probably pretty good, and it gets us started.

Mr. Sheklar, did you want to? I would just make a motion. OK. I would move to adopt. Let me pull out my thing here.

We need to be careful because there's an order of operations here with we suspend the rule first, or we dispense with the rule, and then we move to adopt. So if you want to modify the ordinance, it would have to take place after we suspend the rule.

Mr. Mayor, I'd move to dispense with the rule and read Council Bill No. 26-1015 once by title only.

Second.

Motion to second. Any discussion on this motion? Roll call, please.

Miller?

Aye.

Gabriel? Yes. English? Yes. Wood? Yes. Sheckler?

Yes. Motion carried. Clerk will read the title.

Council Bill No. 26-1015, an ordinance adding a new Chapter 9.27 regulation of Kratom to the Municipal Code of the City of Coeur d'Alene, Kootenai County, Idaho, repealing all ordinance and parts of ordinance in conflict herewith providing a severability clause providing for the publication of a summary of this ordinance and effective date hereof.

Very good. Mr. Sheckler, make your sausage. Thank you.

I would move to adopt Council Bill 26-1015 with the amendment to strike under prohibited acts section 9.27.030 subsection D only. relating to the description of the products and 9.27.040 subsections A, B, C, D, E, F, G, and H and their relevant subsections therein.

So that would be the entire section in 927.040? Yes. Okay, so the motion is to strike under 927.30 prohibited acts section D, which says that a Kratom product that is a confection, mimics a candy product, or is manufactured in a way to appeal to children. And then also 927.040, which is the entire labeling section. Is there a second to the motion? Motion dies for lack of a second.

Mr. Mayor.

Yes, Christy.

I would offer a similar motion. I completely agree with section D. So let me see if I can figure this out. Wash your glasses out. I would make a motion to adopt council bill. Council Bill 26105 with the amendment of removing Section D that refers to the gummies. And that's it.

Okay, so this motion is to adopt council bill with removing under prohibited acts 927-030, section D, which again talks about creative products that are a confection, mimic a candy product, or are manufactured, labeled in such a way that would appeal to children.

Second. Second.

A motion and a second. Any discussion on this motion, Kenny? I'm sorry, Christy gets first shot.

Sorry, sorry. Well, I just, I want to be clear. I like the words about not appealing to children. I think we're just trying to address the gummies because gummies are used by adults. And so is there a way, Randy, to just remove the word gummies?

Well, gummies doesn't appear in that subsection D, but I would suggest that what you're asking is to remove section D subsections 1 and 2 and leave subsection 3 about the packaging to minors.

That's exactly right. Thank you.

Do you want to modify your motion?

To that, yes.

The motion is modified to remove subsection D1 and 2. Does the second concur?

Yes.

Very good.

Discussion? Kenny. Mr. Mayor, thank you. Council Member Sheckler, I agree. Less is more. And I think that this will be coming through the state level this year, and I think that we will bring it back if we need to. And if there's an opportunity to, to where we don't have to be the regulatory agent, and I think that's going to happen. So I don't disagree with what you're saying. I think what's been presented here today is a good step forward for us.

dan english yes thanks uh i would just say that um i do believe that time is of the essence this is i mean there's a real awareness of this issue in the community and so um and i think this is a good starting point so yeah if we can do something now and then we can modify but i think yeah it's good to do something tonight appreciate that any other discussion

I would just like to add that I don't get to vote unless there's a tie. And there won't be a tie tonight because there's five of them. But I would concur with Mr. Sheckler in removing the labeling requirements. I think that would be a little too confusing. But unfortunately, we're not going to get there tonight. But I appreciate counsel's input. Gina, thank you for all you've done and the marvelous write-up in here. We understand that we are... The motion has been made to adopt Council Bill 26-10-15. We're removing Section D, Subsection 1 and 2, so Subsection 3 will remain. Very good. Roll call. Gabriel? Yes. English? Yes. Wood?

Yes.

Sheckler? Yes. Miller? Aye. Motion carries. Thank you so much, everyone. Appreciate the input and all the feedback. We're on to item J, which is our public hearing. There is a sign up sheet in the back if you want to testify. This is a legislative hearing to amend our physical year 2526 annual appropriation. Staff report by Katie Ebner, our finance director, Katie.

good evening mayor and council um tonight i come with to you with the culmination of the current fiscal year all the resolutions that were passed when we build a budget we look forward to a fiscal year we do our best to project and estimate and then the year happens events happen, costs arise and revenues can change as well. So we try to, um, at the end of the fiscal year, put together an amended, um, budget appropriation ordinance in order to ensure that the final budget, as far as reporting purposes is, uh, encompasses all those changes that council has, has supported over the, um, prior fiscal year. So tonight, I bring to you a budget ordinance that increases expenditures by approximately $3.1 million, or excuse me, $3 million. And a quick overview of those items, just as a reminder, We have a few a handful of increases throughout department budgets to account for the voluntary separation incentive program. So when we talked about that program, we knew there would be upfront costs and then any savings that come along would be in subsequent fiscal year. So we are amending to account for those payouts. in the fiscal year, FY26, when those were incurred. And if we look at, we have our municipal services line item, we're requesting a carryover of 196,309 The rationale between some of these budget line items that should be carried over, or I support carrying them over, are when there's a multi-year project, it's really difficult to adhere to all the accounting rules as to which fiscal year a cost should land in. And so I bring forward that amendment to add prior year carryover for our IT software citywide automation program. Looking down at, we had a handful of amendments for building maintenance department. We have some HVAC system recalls, so those were added to the amendment. They may or may not be able to be completed in the current fiscal year, but we're just being prudent capturing those additional expenditures in case the work can be done in this fiscal year. Looking at our police department, we had a resolution for purchase of three patrol vehicles. And the discussion was that there were some savings in personnel costs that could support that. And I, um, want to clarify when we talk about the addition to the expenditures, um, or in the addition to revenues, we're not taking into account any savings in department budgets with the budget amendment. Um, that's a method that the city has used in the past. And so the net impact of this is going to be much less than, um, sort of the additional appropriations, um, net with additional revenues. Going into our fire department, we talk about our constant staffing each year. And our amendment amount would be adding $648,000 to that figure. While that is a significant expenditure, in the prior year, we were over $1 million in our constant staffing line item. the reduction in that that budget overage can be attributed to hiring more firefighters and that that way we're not paying the overtime rates we're just able to have sort of straight time when possible to cover for for leave We had a reorganization in the fire department that added $83,000 and a number of grant line items in the fire department. So station one has a generator grant that we're accounting for $112,469. So when we receive a grant in the fiscal year, we also would adjust for the expenditures that are associated to that grant. Streets, we are requesting a $345,000 carry forward from the prior fiscal year. The rationale behind that is construction is really hard to get the timing right in the proper fiscal year, and so there's support from my position to allow for carryover when that occurs. And we also received a grant from ITD for $170,000, so we're recognizing those expenditures. On the revenue side, I'm doing things a little backwards. I just jumped right into expenditures. On the revenue side, we're accounting for $1.1 million in additional revenues. The largest line item there would be our fees and licenses increasing by $444,000. And that is just based on what our customers, what sort of fees and licenses they come to us for. So that figure can change. based on the volume of work we have. And our property taxes, while our levy is not increasing, we are budgeting for an additional $108,000 in property taxes. That is a reflection of those fees, or excuse me, the fines and forfeitures that come from the county. We're just adjusting to actuals. So I will stand for any questions.

Any questions for Katie?

Just a comment.

Not a question. I think you've done a fine job rectifying all this. But I do think it's important for me to clarify a statement that I made during the budget discussions. And that was way back in the workshops. And we were talking about separation incentives. And at that time, I had said the benefit package that goes with that, whether it's vacation, sick, that wasn't what I wanted to focus on. I wanted to look at the salary savings. But I need to be clear that I know that benefit package is an ongoing liability that we're paying out one way or another. And when you hear from one council person, it's an opinion. When the full council speaks with a motion, it's a directive. And that did not occur. There was no directive directing our finance department not to share that information with council. And so I just want to be clear with that. It's not a criticism at all of you. I just want to make clear that there was never a directive from one council person to minimize what the liabilities were with our benefit package.

Thank you for clearing that up. Appreciate it. Any questions for Katie? Okay, this is a legislative hearing, and I will open the hearing. No one has signed up. Is there anyone in the room who would like to testify on our budget amendment? I have two people who signed up online, but again, I think these people were more interested in the kratom. But yet I shall read them into the record. Jeff Reagan from Virginia is in favor of our budget amendment. And Shannon Lee from Massachusetts is neutral. And with that, I will close the public testimony and look for council action.

Mr. Mayor, I'd make a motion to dispense with the rule and read council bill number 26-1016 once by title only. Second.

Motion and a second. Any discussion on this motion? OK, roll call.

Gabriel? Yes. English? Yes. Wood? Yes. Sheckler? Yes. Miller?

Aye. Motion is carried. The clerk will read the title.

Council Bill No. 26-1016, an ordinance amending Ordinance 3761, the annual appropriation ordinance for the fiscal year beginning October 1, 2025, appropriating the sum of $154,901,816, which sum includes additional monies received by the City of Coeur d'Alene in the sum of 2,956,341 repealing all ordinance and parts of ordinance in conflict herewith providing for the publication of a summary of this ordinance and providing an effective date hereof.

Very good. Now we move to adopt the council bill.

Mr. Mayor, I would make a motion to adopt council bill 26-1016. Second.

Motion and a second. Any discussion on this motion? Very good. Roll call. English.

Yes.

Wood.

Yes.

Evans. Sheckler.

Yes.

Miller.

Aye.

Gabriel. Yes. The motion is carried. We are skipping our executive session, and seeing that all our business is concluded, we're looking for adjournment.

Mr. Mayor, make a motion to adjourn.

Second. Motion and a second to adjourn. All those in favor? Aye. We are adjourned. Thank you.

Thank you.