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Idaho Falls staff recommends Jan. 1, 2026 start date for updated impact-fee ordinance
Summary
City staff told the council the updated impact-fee ordinance and capital improvement study should take effect Jan. 1, 2026, to give developers notice and allow additional outreach; staff described an outreach plan ahead of planning-and-zoning and council hearings in September.
City staff told the Idaho Falls City Council they recommend that the city’s updated impact-fee ordinance and the accompanying capital-improvement and impact-fee study take effect Jan. 1, 2026, to allow developers and the public time to prepare for the new schedule and for staff to run additional outreach.
Margaret, a city staff member leading the work, told the council the later date would give the development community “some time to prepare for the new fees” and would avoid the end-of-season construction rush that can put pressure on plan review and permitting. She also said a later effective date would allow the city to publicize the new fee schedule and the capital-improvement study before fees begin to be collected.
Margaret said the council and staff have discussed dates with the city’s Impact Fee Advisory Committee and that committee asked for “plenty of notice” so stakeholders can transition. Margaret described outreach steps that staff plan to use: a newsletter targeted to the development community, a meeting with the East Idaho Homebuilders Association, posting the draft study on the city’s impact-fee web page, outreach at planning-and-zoning in September and a public hearing before the council in September, and further community education into the fall and new year.
Council members asked for a short outline of the outreach plan. Margaret said the city will also create materials highlighting capital projects paid for with impact fees and “brand” those projects to show how collected fees are spent. Council President Burton Shaw asked staff to share the outreach plan with council and with planning-and-zoning members; he said proactive communications would be useful.
Margaret noted one trade-off: waiting delays collection of the new fee schedule, and for some projects the new fee by square footage could be lower than current fees, which could draw criticism that the city is postponing revenue. She said staff and the advisory committee judged the outreach and smoother implementation outweighed that concern.
The council did not take a formal vote in this discussion; staff asked for direction on the date and received no objection during the meeting. Staff also indicated the draft ordinance and study will go to planning-and-zoning in September before the council public hearing.
