The Idaho Falls Planning and Zoning Commission on Nov. 5 reviewed a proposed replacement of the city's 2021 capital improvement plan and development impact-fee study and voted to forward the 2025 update to City Council for consideration and an additional public hearing. The consultant, Colin of Tishler & Associates, told the commission the study updates levels of service and reworks methodology so residential fees are charged by square footage rather than by housing type.

Why it matters: The change to square-footage-based residential fees shifts the distribution of costs across dwelling sizes, lowering fees for many smaller homes while increasing fees on larger homes and some nonresidential categories. Developers and some residents said that change could steer development toward higher-density housing and raised questions about fairness, fund accounting and statutory limits on how fee proceeds can be used.

What the study says: Colin said the study follows a three-part nexus (need, benefit, proportionality) and applies state rules that generally require fee-funded projects to be spent within eight years. He presented sample outputs: "for a 2,500-square-foot home, that would be the impact fee per home per unit of $5,699," and said the study shows decreases for smaller homes and increases for the largest homes. On parks the study presents a 10-year CIP total of $10,000,000 with projected impact-fee revenue of about $9.3 million under the study's assumptions, leaving a gap the city would need other revenues to close. The transportation component showed a 15.5 lane-mile program with a $25,000,000 estimated cost and projected impact-fee revenue substantially below that amount.

Public reaction: Builders and members of the advisory committee pressed the commission to slow the process. "These don't have to be updated until 06/01/2027," said TJ Onstead, an advisory-committee member, and urged a pause so stakeholders could study the 100-page report. Multiple builders and residents argued the proposal to count unfinished basements toward square footage would overcharge on construction that does not immediately generate additional usage or trips. One commenter said the city's previous rollout of impact fees prompted a lawsuit and urged more stakeholder engagement before adoption.

Staff responses: Pam Alexander, municipal services director, told the commission that the city maintains dedicated special-revenue accounts for each impact-fee category and that quarterly and annual reports (and external audits) track collections and expenditures. "We actually report on those fees separately as designated funds on our quarterly report to City Council," she said, adding that the advisory committee receives finance reports and the consultant's annual summaries.

Commission action and next steps: Commissioners recorded the public comments and, after discussion, moved to forward the 2025 CIP and development impact-fee study to City Council for their consideration and an additional public hearing. The motion passed by voice vote. The City Council will receive the study and public record when it considers whether to adopt the updated fees and associated ordinance changes.

What remains unresolved: Commenters asked for clarification on several technical points (how permit growth links to population growth, precise definitions for finished vs. unfinished basement area, the projection assumptions that drive fee levels, and the treatment of credits and existing fund balances). The commission noted those as matters for City Council and the advisory committee to consider, and the study will proceed through that formal adoption process.