CALDWELL, Idaho (AP) – The rapidly growing town of Caldwell in southwestern Idaho is halting all new residential development for four months as city leaders say new law on property taxes could put its citizens at “imminent danger” by straining public security services. Officials say other cities are considering similar measures.

Idaho Gov. Brad Little enacted the property tax bill last week. The bill restricts municipal governments to recognize only a percentage of new developments in tax districts rather than the total amount; grants significant new tax breaks to businesses and developers; increases the owner’s property tax exemption by 25%; caps the growth of the local government property tax budget at 8%; and includes other provisions. Lawmakers passed the bill in three days just before the end of the session.

City leaders often seek to make ‘growth pays for growth’, trying to capture 100% of the assessed value of new developments so that existing residents are not unduly charged with paying for public safety services enlargements necessary to accommodate new residents.

Under the new law, either growth will be reduced or services will be compromised, said Kelley Packer, executive director of the Association of Idaho Cities.

“It’s not a threat. It has to be one or the other, ”Packer said. “We can’t just grow if we can’t meet the service needs of that growth. And if we do, then the service will be negatively impacted – it’s just one or the other.

Packer said Caldwell isn’t the only one considering stopping his growth. Emmett, Rathdrum, Nampa, Kuna, Star, and other towns in Idaho are also taking a close look at what impact the new law will have.

Caldwell grew by around 26% between 2010 and 2019, and it is one of many cities in the region already facing a housing deficit.

City attorney Douglas Waterman said the moratorium on new residential development would give the city time to develop a budget that ensures city services can meet the needs of future residents.

“The long-term goal is not to stop growing altogether, but to grow as much as possible to make sure people have police and firefighters,” Waterman said.

Some developers say the moratorium will further increase the value of already rising homes in the region, exacerbating a housing crisis.

“I suggest you don’t make the same mistake the governor made when he signed this,” said Tim Mokwa, a development manager for Hayden Homes who had approved 57 residential lots earlier in the meeting. “You inherited a very difficult situation. I’m just suggesting that you don’t jump into what you think is a solution too early.