Council reviews delayed annual impact fee report; staff says fees are being tracked and projects planned

City staff presented the annual impact fee report for 2023–2024 at the Nov. 3 meeting and described the statutory requirement to present the report to the Impact Fee Review Board (Planning & Zoning Commission) before council review.

Staff walked council through collections and capital expenditures over a five‑year window and explained the FIFO (first in, first out) eight‑year spending rule that governs impact fee accounting. The presentation showed that the city collected approximately $5.3 million in 2024 and expended about $3.5 million that year; earlier years showed larger capital expenditures (for example, reimbursement contracts for the Fenicus Prairie roundabout and park work such as the Black Bay project). The presenter said the report shows a multi‑year balance across all fee accounts (presented as about $16 million in the meeting slide) and emphasized that the amounts roll forward year to year as projects are budgeted and designed.

Council members asked how impact fees are allocated and whether the city has projects that meet the statutory timing to use the funds. Staff explained that a single fee paid by a residential developer is split across accounts (roads, multimodal, parks, public safety) according to the fee schedule; staff said the city also collects on behalf of Kootenai County Fire and remits those funds appropriately. Staff said they are updating the transportation master plan and will follow with workshops and an updated impact fee analysis tied to the master plan’s project list.

Police and finance staff said public safety projects such as a planned police‑station expansion and parking‑lot work are on the list for impact fee funding, and staff said they track the timing of projects to avoid missing the allowable expenditure window. Council asked staff to return with project lists and timelines to ensure timely use of fee revenue.