State Law On Impact Fees Urged

Posted: August 30, 1990

Almost a year after approving their own local ordinance on impact fees, Montgomery Township supervisors have recommended that state legislators adopt a similar law.

Impact fees are typically charged to offset the extra burden that new developments put on local services.

On Monday night, supervisors passed a resolution, recommended by the State Association of Township Supervisors, urging a state law to allow municipalities to charge the fees.

"To keep up with development, (municipalities) need these funds," said Supervisors Chairman Robert R. Kuhn. The supervisors amended the association's resolution to specify which improvements should be financed with the fees - sewer and water lines, parks and recreation facilities, and police and fire departments.

Under a local law approved in November to offset some of those costs, township officials charge $500 for each residential unit built and $500 per 3,000 square feet of commercial or industrial development.

Before passing the ordinance, township officials had negotiated similar payments through land development agreements.

Impact ordinances have faced legal challenges by developers around the state, and township officials hope that a state law would ensure that their local law won't be overturned.

In other business, supervisors approved a 30 percent pension increase for the township's two retired police officers. It will cost the township about $4,200 annually.

It was the first pension increase for former police chief Bruce Bailey, who retired in 1984, and former Sgt. Harry Bach, who retired in 1982. It was also the biggest and the last increase allowed by state law, according to Township Manager Daniel P. Olpere.

State law allows cost-of-living increases for pension payments, Olpere said, but only permits a total increase of 30 percent from the base year amount. The 30 percent increase reflects a cumulative cost-of-living increase since Bailey and Bach retired.

"They've been riding the inflationary trends for too long," said Supervisors Vice Chairman Richard H. Gebelein. "It's about time we approved this."

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