BOISE, Idaho (AP) — A federal judge has ruled that local Idaho governments can't charge developers annexation fees greater than the actual cost of annexing the land. The Idaho Business Review reports that U.S. Bankruptcy Court Judge Jim J. Pappas filed the 71-page decision in December.

The case stems from a challenge filed by Mountain West Bank and a development called Old Cutters against the city of Hailey. Hailey charged $3.8 million in annexation fees in a contract, though a study found the annexation would cost only $788,000. Pappas ruled that Hailey used powers it had not been granted in Idaho when it created the contract.