Collection of city impact fees were up by more than $200,000 in fiscal year 2014.

Finance Director Dana Smith said impact fee collection increased over the previous fiscal year because of an increase in local construction activity.

“We are seeing the same thing continuing in the first and second quarter of this fiscal year,” she noted.

Total impact fees collected for 2014 was $738,000. This compares to $507,000 collected in 2013 and $340,000 collected in 2013.

Impact fees are one-time charges for new development that increases the demand for city services. It applies to new units in subdivisions as well as new homes built on single lots and some remodeling.

They city can spend the fees for public improvements, including, planning, site improvements, land acquisition, construction or engineering.

The city’s impact fees first went into effect in November of 2007. Since that time, the city has collected about $2.4 million in fees.

Since implementing the fees, the city has spent about $400,000, with much of that being used for the construction of the emergency service center.

Last year was the first year that wastewater impact fees were used in the amount of about $200,000 to fund capital projects. Money from the water impact fees were not used last year, Smith noted, but so far this fiscal year about $12,000 has been spent with more expected before the end of the year.

“We are starting to use those large amounts,” Smith said.

Money continues to be set aside in reserve for paved trails, stormwater and the construction of City Hall.

Last year City Council voted to keep impact fees as is, despite a recommendation from the city’s impact fee advisory committee that three of the seven fees be dropped.

At the time, the committee was concerned the impact fees might be hurting construction in the city because Whitefish’s fees were higher than those in other cities in the valley.