Idaho continues to experience rapid growth. As a result, new highways, roads, bridges, sewer, water, fire, and police stations must be constructed. Often, existing public facilities must be improved to provide for the increased demands. Idaho citizens are asking for ways to ensure that “growth pays for growth.”

This legislation creates a financial tool to allow new growth to more expediently pay for itself through the creation of Community Infrastructure Districts (CIDs). A CID allows the formation of a taxing district comprised by the boundaries of a new development. Taxes and assessments applied only to lands within the new development will secure bonds. Those bonds can be utilized to fund and construct regional community infrastructure, inside and outside the district. Only infrastructure that is impact fee-eligible, such as highways, roads, bridges, sewer, and water treatment facilities, and police, fire, and other public safety facilities may be funded with bond proceeds generated by a CID.

The legislation also creates a mechanism for the prepayment of development impact fees. Impact fees are typically collected at the time of building permit issuance. Those are generally paid in arrears or collected after the need of funding and infrastructure improvement has occurred. The prefunding of developmental impact fees will allow for the construction of adequate public facilities prior to developmental growth, and in advance of the need for increased facility capacities.

A CID can only be formed within the boundaries of a city or within the boundaries of a city’s comprehensive planning zone and with the city’s consent. Only infrastructure that is publicly-owned by the state, county, or city and only impact fee-eligible projects may be constructed with the proceeds of a CID.

Submitted by: R. Gail Heist – Designated Broker – NAI Kowallis and Mackey LLC