Coeur d’Alene Raises Impact Fees as Council Weighs More Increases

Coeur d’Alene’s development impact fees increased 3.9% on July 1, raising the cost tied to new construction as the city continues to grow. The city’s 2026 schedule lists a maximum total impact fee of $3.00 per square foot for a single-family home and $5,347.16 per multifamily unit.

The increase applies to impact fees that support categories including transportation, police, fire and parks. The actual amount charged can vary according to the project type, size and applicable fee category; the listed figures are maximum defendable fees, not a charge that applies identically to every project.

Additional fees were considered

The City Council held a public hearing Aug. 4 on a separate set of proposed changes involving building-department, planning, library and water fees. The hearing materials included possible changes to appeal fees, valuation tables, inspection and plan-review rates, expired-permit reinstatement, in-lieu parking fees and water user charges.

Those August proposals should not be confused with the July 1 impact-fee increase. The hearing record establishes that the proposals were presented for public consideration, but the approved city information does not establish a final vote or final fee schedule for every proposed charge.

Together, the two actions put several parts of the city’s development and service-fee structure in focus. Builders and property owners may face higher costs connected with permits, inspections, planning and development. Water customers may also see scheduled rate changes under the city’s previously approved water-rate schedule.

What the impact-fee schedule shows

The city’s 2026 impact-fee schedule breaks charges into residential and nonresidential categories and identifies components for transportation, police, fire and parks. For a single-family home, the 2026 maximum total is listed at $3.00 per square foot. For a multifamily unit, the maximum total is listed at $5,347.16 per unit.

The city also stated that incomplete applications submitted before the July 1 effective date would not qualify for the prior schedule. The packet does not say that the increase applies retroactively to complete applications, so the timing of a particular project’s fee remains dependent on its application status and the applicable city rules.

Water rates are scheduled to rise

The city’s posted residential water rates show a higher 2026 commodity rate than the 2025 rate under the previously approved schedule. For usage from 0 to 30,000 gallons, the rate is listed as $1.32 per billing unit in 2026, compared with $1.22 in 2025.

The water-rate page lists residential, commercial and irrigation rates from 2025 through 2030 and shows annual April 1 increases. The posted rates provide a scheduled cost change for water users, while the Aug. 4 hearing concerned proposed additional water-fee changes. The available information does not establish that every proposed August charge was adopted.

What happens next

The City Council is identified as the decision-making body for the Aug. 4 public hearing. The approved materials do not provide an aggregate annual revenue estimate for the fee increases or a final outcome for each proposal.

For residents, builders and utility customers, the immediate confirmed change is the 3.9% increase in development impact fees that took effect July 1. The broader question is whether the council ultimately approves additional changes affecting permits, inspections, planning, parking and water service.