Opinion ID: 2567352
Heading Depth: 1
Heading Rank: 4

Heading: adoption of ordinance 99-4 was a valid exercise of nkwd's police power authority

Text: NKWD argues Ordinance 99-4 was adopted pursuant to a valid exercise of police power authority granted to the district by Idaho Code §§ 42-4201 and 42-3212. Generally police powers consist of government conduct that has for its object the public health, safety, morality or welfare. 6A Eugene McQuillin, The Law of Municipal Corporations, Police Powers § 24.28 (3d ed 1997). A municipality may collect fees considered incidental to regulation and enacted pursuant to the municipality's police powers. Idaho Const. art. 12 § 2; Idaho Bldg. Contractors Ass'n. v. City of Coeur d'Alene, 126 Idaho 740, 742-43, 890 P.2d 326, 328-29 (1995) (citations omitted). Such municipal fees must be rationally related to the cost of enforcing the regulation and cannot be assessed purely as a revenue-generating scheme. Brewster v. City of Pocatello, 115 Idaho 502, 504, 768 P.2d 765, 767 (1988). Brewster distinguished between a fee enacted under a municipal's police power authority and one which operates as general tax on the public. Id. at 505, 768 P.2d at 768. A municipal corporation's taxes on the general public require specific legislative authorization. Id.; but see Kootenai County Prop. Ass'n v. Kootenai County, 115 Idaho 676, 680, 769 P.2d 553, 557 (1989). According to Brewster, a fee is a charge for a direct public service rendered to the particular consumer, while a tax is forced contribution by the public at large to meet public needs. Id. In Loomis v. City of Hailey, 119 Idaho 434, 807 P.2d 1272 (1991), a municipal water connection fee that created an equitable buy-in structure, whereby only users of the city's water services were charged connection fees, was upheld as a valid exercise of police power authority. Id. at 444, 807 P.2d at 1282. In Loomis the fees were segregated and used to repair and replace water system components used by the city. Id. at 443, 807 P.2d at 1281. Additionally, in City of Chubbuck v. City of Pocatello, 127 Idaho 198, 899 P.2d 411 (1995), the Court found a city's collection of revenues sufficient to cover the costs of operation, maintenance, replacement and depreciation for a local waste water treatment facility to be a valid exercise of police power authority. Id. at 202, 899 P.2d at 415. However, the Court struck down a municipal fee in Idaho Bldg. Contractors Ass'n v. City of Coeur d'Alene, 126 Idaho 740, 890 P.2d 326 (1995), finding that the impact fee assessed by the City of Coeur d'Alene operated more along the lines of a general tax and therefore required specific legislative authorization. The fee was for the benefit of the public at large and there was no way to control how the collected fees were spent by the city. Id. at 744, 890 P.2d at 330. In addition to having a regulatory purpose, a municipal fee must be reasonably and rationally related to the regulatory purpose. Sanchez v. City of Caldwell, 135 Idaho 465, 468, 20 P.3d 1, 4 (2001) (citation omitted). The burden falls on the party challenging the validity of a police power to show that it is either in conflict with the general laws of the state, unreasonable or arbitrary. Plummer v. City of Fruitland, 139 Idaho 810, 813, 87 P.3d 297, 300 (2004). Whether or not an ordinance is unreasonable or arbitrary is a question of law. Sanchez, 135 Idaho at 468, 20 P.3d 1 (citing Lewiston Pistol Club, Inc. v. Bd. of County Comm'rs of Nez Perce County, 96 Idaho 137, 525 P.2d 332 (1974)). Generally courts are not concerned with the wisdom of ordinances and will uphold a municipal ordinance unless it is clearly unreasonable or arbitrary. Id. State v. Clark, 88 Idaho 365, 373, 399 P.2d 955, 959 (1965). Similar to Loomis and City of Chubbuck, the capitalization fee assessed by Ordinance 99-4 is an exercise of the NKWD's police power. Idaho Code § 42-3201 states that the purpose of water and sewer districts is to serve a public use and . . . promote the health, safety, prosperity, security and general welfare of the inhabitants of said districts. I.C. § 42-3201 (2003). Idaho Code § 42-3212 grants municipal water service boards the authority to increase or decrease rates and fees as needed and to proscribe those actions necessary and proper to carry out their duties. I.C. § 42-3212 (2003). Pursuant to these statutory grants of authority NKWD adopted Ordinance 99-4. Similar to Loomis, Ordinance 99-4's capitalization fee created an equitable buy-in structure, with revenues delegated for repairs, replacement and maintenance of system components proportionally used by those within the water district's system. Additionally, the capitalization fee is reasonable and rationally related to the purpose of the municipal's regulatory function of insuring clean and safe water for those users of the district's system. The capitalization fee imposed by Ordinance 99-4 only applies to those who pay into the system and is reasonably related to public health. It is a valid exercise of NKWD's police power.