Home » News » Politics
July 02. 2012 8:19PM
$1.3 million in impact fees to be refunded
LONDONDERRY — Local developers and property owners could be refunded a collective $1.3 million in improperly collected municipal impact fees, Londonderry town officials said on Monday afternoon.
This week, Police Chief William R. Hart, the town's acting Town Manager, announced the town would be making significant changes in the way it administers its impact fees in order to comply with state law and town ordinances.
Like many other Granite State municipalities, Londonderry imposes impact fees to help defray the additional costs of the town's capital improvements.
In May 2011, Hart said it was first brought to the town's attention that Londonderry “may have improperly collected impact fees for improvements to state highways” and may have also failed to return impact fees found to be expired.
“While there has been considerable confusion over this issue, state law doesn't allow the imposition of impact fees for improvements exclusively to state highways located within the municipality's borders,” said Hart.
Additionally, if any portion of collected impact fees are not spent or otherwise bound to the project for which they were collected within six years, state law and Londonderry's ordinance provide that the unexpended or uncommitted funds are to be returned to the person who paid the impact fee or the current property owner.
Based on town records and an investigation into the town's impact fee practices, Hart concluded the town should refund the impact fees collected for improvements on state highways and the expired impact fees. The town's record-keeping, accounting and notification practices also have been revised to ensure that the errors do not happen again, according to Hart.
While a final accounting is not yet available, the town's best estimate of the total amount to be refunded is approximately $1.2 million to $1.3 million, including interest.
The overwhelming majority of the funds are available for return to developers or property owners, while the remaining money to be refunded will be derived from funds budgeted, but not spent, during the fiscal year that ended June 30, town officials said.
In the instances where the person who paid the impact fees remains the current record owner of the property or an agreement exists between the person who paid the impact fees and the current property owner, a refund should be made within two weeks, Hart said.
In instances where more than one person may have a claim to the refund, the money will remain in an interest-bearing bank account or paid into the Rockingham County Superior Court until the town is presented with an agreement between the parties or a court order is issued determining the correct recipient of the refund.
The topic of impact fees will be further addressed during next week's Town Council meeting. Scheduled for Monday, July 9, the meeting will begin at 7 p.m. in the Moose Hill Council Chambers at Londonderry Town Hall.
aguilmet@newstote.com
This week, Police Chief William R. Hart, the town's acting Town Manager, announced the town would be making significant changes in the way it administers its impact fees in order to comply with state law and town ordinances.
Like many other Granite State municipalities, Londonderry imposes impact fees to help defray the additional costs of the town's capital improvements.
In May 2011, Hart said it was first brought to the town's attention that Londonderry “may have improperly collected impact fees for improvements to state highways” and may have also failed to return impact fees found to be expired.
“While there has been considerable confusion over this issue, state law doesn't allow the imposition of impact fees for improvements exclusively to state highways located within the municipality's borders,” said Hart.
Additionally, if any portion of collected impact fees are not spent or otherwise bound to the project for which they were collected within six years, state law and Londonderry's ordinance provide that the unexpended or uncommitted funds are to be returned to the person who paid the impact fee or the current property owner.
Based on town records and an investigation into the town's impact fee practices, Hart concluded the town should refund the impact fees collected for improvements on state highways and the expired impact fees. The town's record-keeping, accounting and notification practices also have been revised to ensure that the errors do not happen again, according to Hart.
While a final accounting is not yet available, the town's best estimate of the total amount to be refunded is approximately $1.2 million to $1.3 million, including interest.
The overwhelming majority of the funds are available for return to developers or property owners, while the remaining money to be refunded will be derived from funds budgeted, but not spent, during the fiscal year that ended June 30, town officials said.
In the instances where the person who paid the impact fees remains the current record owner of the property or an agreement exists between the person who paid the impact fees and the current property owner, a refund should be made within two weeks, Hart said.
In instances where more than one person may have a claim to the refund, the money will remain in an interest-bearing bank account or paid into the Rockingham County Superior Court until the town is presented with an agreement between the parties or a court order is issued determining the correct recipient of the refund.
The topic of impact fees will be further addressed during next week's Town Council meeting. Scheduled for Monday, July 9, the meeting will begin at 7 p.m. in the Moose Hill Council Chambers at Londonderry Town Hall.
aguilmet@newstote.com