Larry Spencer wants to shed light on fees vs. taxes.

The Kootenai County resident and executive director of the non-partisan Idaho Property Owners Association wonders why Coeur d'Alene, Post Falls, Rathdrum, Sandpoint and Spirit Lake are among the cities that continue to charge for street lights as a fee on utility bills rather than fund the expense through taxes held in the general fund.

"I simply don't think any city officials other than attorneys understand what can and can't be paid for with a fee," Spencer said. "This can be switched with really no harm."

Spencer, who plans to speak to the Post Falls City Council tonight and Coeur d'Alene in the near future, cites court cases behind his reasoning. He sent an email to city officials on Friday asking them to rescind street light fees and pay for the expenses with taxes in the general fund.

The U.S. Supreme Court in 1974 distinguished fees from taxes under the principle that a fee provides the fee payer with a "benefit not shared by other members of society."

"In other words, a fee is only legitimate if the person paying the fee is the only one receiving a benefit from it," he said. "When you pay your water bill fee, it is related to your water use. The public at large does not receive any benefit from it."

Spencer said a person traveling through this area would benefit from street lights if he or she were driving on the roads.

"This is why there are no fees supporting the police or fire departments," he said. "The police department provides a benefit that the public collectively share, so it must be paid for from property taxes or grants, but never a fee."

The question was raised in Idaho in the case of Brewster vs. the city of Pocatello in 1988. Pocatello tried to charge a fee for street repair and lighting, but the Idaho Supreme Court shut the idea down.

"The privilege of having the usage of city streets which abuts one's property is in no respect different from the privilege shared by the general public in the usage of public streets," the decision reads. "We agree with appellants that municipalities at times provide sewer, water and electrical services to its residents. However, those services, in one way or another, are based on user's consumption of the particular commodity, as are fees imposed for public services such as the recording of wills or filing legal actions.

"In a general sense, a fee is a charge for a direct public service rendered to the particular consumer, while a tax is a forced contribution by the public at large to meet public needs."

Other cities, including Kuna, are following suit with changing street lights as a fee to a general fund item. Chris Engels, clerk for that city, said the switch was made three years ago without any hurdles.

"Council repealed the issue and absorbed the costs within the general fund," Engels wrote in an email to The Press.

The residential street light fee in Coeur d'Alene is $2.58 per month, $3.85 in Post Falls and $1 in Spirit Lake.

Rathdrum charges a fee of $2.35 per month and also pays for a portion of the lighting cost with its general fund. The total paid for street lights last year was $78,038. All but $5,000 of that amount was paid with the fee.

Spencer said he believes the switch from a fee to the general fund would make city councils more accountable toward those dollars as a result, as general fund dollars are generally scrutinized more than flat fees.

"It would be a huge benefit to the public and government to make sure everyone has a clear understanding of this - even if it means taking foregone taxes (to pay for the lights)," he said.

Coeur d'Alene City Councilman Dan Gookin said he supports making the switch.

"My observation is that it will be about a wash," Gookin said, referring to the net effect on the taxpayer. "The amount on your utility bill will go down, but your property taxes will go up a similar amount. We'll figure out a way to handle it and properly fund it."

City administrators for both Coeur d'Alene and Post Falls said they'll discuss the proposal with their city attorneys. Coeur d'Alene city attorney Mike Gridley said on Monday he hadn't had time to analyze Idaho case law on the matter, while John Cafferty of Hawley Troxell, with which Post Falls contracts for legal services, directed questions to city staff.