Rathdrum considers lower impact fees
LOREN BENOIT/Press File Rathdrum is proposing to discontinue its development impact fee for public safety for the first time since the fees were implemented in 2005. The city council will hold a public hearing on the fees on Jan. 11. If the fees are approved, they will be effective Jan. 12.
RATHDRUM — Rathdrum might eliminate one of its development impact fees for the first time since they were implemented in 2005 and reduce two other fees.
Under a proposal by the city's Development Impact Fee Committee, the City Council on Jan. 11 at 6 p.m. will consider discontinuing the public safety fee of $154.54 per new residence and $35.47 per 1,000 square feet of new commercial space.
State law says development impact fees, which are charged by agencies to fund future growth, must be spent on capital improvements that have a useful life of 10 years or more.
"For now, we can't think of any improvements to spend that kind of money on," said Leon Duce, city administrator.
Duce said the city couldn't spend the funds on cars, personnel and weapons as they don't meet the criteria. He said previous funds from fees were used to purchase land designated for the future city hall and police station.
Duce said if the city doesn't spend the fees collected, it would have to refund the money to whomever paid them.
"We don't want to go through that process either, so we believe it's better to discontinue it," he said.
The proposal also seeks to reduce the parks impact fee from $1,385.22 to $1,236.18 and the street impact fee from $1,427.90 to $1,344.
"Our growth rate has increased and when the fees are spread out over more homes, each person has to pay less," Duce explained.
He said he believes builders and homeowners — whomever pays the fees when the building permits are taken out — will be pleased with the proposals because it drives home costs down and should spur growth.
"We'd like to encourage good managed growth in the city of Rathdrum, and we believe this will help," Duce said.
If the city council adopts the fee proposal after a public hearing on Jan. 11, the changes would take effect on Jan. 12.
The fee proposal is based on an estimated 3.5 percent annual growth rate. Rathdrum's population, according to the 2015 Census that became available last July, was 7,538.
Duce estimates the new city campus will be built in five to 10 years.
Rathdrum purchased 30 acres off Lancaster Road in 2015 for that purpose.