New Capital Improvement Plan and Impact Fees are anticipated to take effect on March 15th

Published: March, 3 2023

The City of Driggs has thoroughly reviewed and updated the Capital Improvement Plan and Development Impact Fees. The process included working with a consultant, TischlerBise, convening an Impact Fee Committee, and ultimately review and approval by City Council. During a public hearing on February 21, City Council moved to adopt the new Capital Improvements Plan and Development Impacts Fees. The new Plan and Fees are anticipated to become effective on March 15. 

What are Development Impact Fees?

Impact fees are one-time payments charged to new building permits used to construct system improvements to accommodate new development. An impact fee represents new growth’s fair share of capital facility needs. By law, impact fees can only be used for capital improvements, not operating or maintenance costs. Impact fees are subject to legal standards, which require fulfilling three key elements: need, benefit, and proportionality. First, to justify a fee for public facilities, it must be demonstrated that new development will create a need for capital improvements. Second, new development must derive a benefit from the payment of the fees (i.e., in the form of public facilities constructed within a reasonable timeframe). Third, the fee paid by a particular type of development should not exceed its proportional share of the capital cost for system improvements.

The State of Idaho regulates Development Impact Fees in Title 67 Chapter 82 of Idaho State Statute. The intent of this Chapter is to (1)  Ensure that adequate public facilities are available to serve new growth and development; (2)  Promote orderly growth and development by establishing uniform standards by which local governments may require that those who benefit from new growth and development pay a proportionate share of the cost of new public facilities needed to serve new growth and development; (3)  Establish minimum standards for the adoption of development impact fee ordinances by governmental entities; (4)  Ensure that those who benefit from new growth and development are required to pay no more than their proportionate share of the cost of public facilities needed to serve new growth and development and to prevent duplicate and ad hoc development requirements; and (5)  Empower governmental entities which are authorized to adopt ordinances to impose development impact fees.

Read the full Capital Improvement Plan and Development Impact Fee Study .