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Councilors and staff discuss impact fees, capital timing and infrastructure needs as growth continues
Summary
Councilors pressed staff about using impact fees to fund new capacity — e.g., fire stations or recreation facilities — and planning requirements under RSA 674:21; city staff said impact fees can finance new capacity but must be tied to specific capital projects and used within statutory timeframes.
Council members asked city staff about impact fees and whether Concord should expand or resume their use to help pay for capital needs driven by growth, such as new fire stations, school expansions or recreation facilities.
City staff reminded councilors that New Hampshire statute limits impact-fee use to new capacity for growth and that a municipality must either spend collected fees within the statutory timeframe or refund them. Planning staff explained impact fees can be collected for proposed capital projects included in the city’s capital-improvement plan (CIP) or to recoup the cost of capacity upgrades already financed, but fees cannot be used to replace existing capacity on an apples‑to‑apples basis. “You can only collect them for proposed, either past investments in the community that expanded capacity… or you can do it to preplan for investments that you will make,” a planning staff member said, and referenced RSA 674:21.
Councilors noted examples from other New Hampshire cities that use impact-fee schedules tied to categories such as schools, police, fire and recreation. Staff said Concord currently collects some recreation impact fees and that the planning board is reviewing the city’s impact-fee ordinance; planning expects to report recommendations to the council in July or August. Staff also explained constraints that limit school‑related fees when school districts have no planned capacity increases.
Councilors asked whether fees can be collected in advance for a planned project (for example, a new fire station) and staff confirmed that is possible so long as the fee is tied to a documented capital plan and statutory timelines are observed. No ordinance changes or fee increases were approved at the meeting.
