Idaho Falls is one step closer to adopting impact fees for growth and development projects
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CLARIFICATION: An earlier version of this story reported a meeting to discuss passing an ordinance implementing impact fees was the next step. That is incorrect. We have amended the story and apologize for the confusion.
IDAHO FALLS – The Idaho Falls City Council unanimously adopted an impact fee study and capital improvement plan during a public hearing Thursday night.
Four of the city’s council members also voted for an ordinance putting the fees in place. The no votes were from John Radford and Jim Francis.
The city partnered with a Boise-based fiscal, economic and planning consulting firm last spring to determine the long-term growth outlook and how impact fees could be applied to help fund a variety of infrastructure improvement projects.
An influx of people moving into the area over the last several years has created a need for upgrades to high-traffic streets and additional housing, along with improvements to the city’s parks and recreational areas. Additional resources are also needed for the fire and police departments to keep up with the massive increase in the number of calls.
RELATED | Impact fees could become a way to fund growth and development projects in Idaho Falls
Public Works Director Chris Fredericksen provided an overview of the $48,000 study during Thursday night’s meeting, which determined the maximum fee amount that can be applied for each individual project. Fredericksen explained a portion of these improvement projects can be funded through federal aid. The rest of it will be paid by the contractors and developers.
Members of the public had a chance to weigh in, some of which expressed concern that the cost of growth being placed solely on developers would have an adverse effect on development, particularly in regards to buying a home.
“I would love to have my neighbors pay my mortgage,” one man commented. “You’re going to have the builders pay for services that all of us should be paying for. I hope that you will consider that.”
Other concerns were focused on whether property taxes could cover development costs instead of impact fees.
City councilwoman Lisa Burtenshaw noted the city’s tax levy rate is lower even though home prices are going up.
“I don’t think the tax base, as it (grows outside of town), is able to compete in the market of capital improvement,” Burtenshaw said at the meeting. “It’s a burden for our current tax base. I care about them as well as the increased cost of housing. I know (the impact fees) are going to get passed on to homeowners and the idea is that they gain something from it because they’ve chosen to live here.”
Though the city adopted the study and the ordinance, another meeting will need to be held to determine how much the fees for individual projects will be. The date for that meeting is unknown.
To watch the hearing, click here.