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Council directs staff to begin review of town impact fees after decades without reanalysis
Summary
Councilors asked the town administrator to develop an RFP and begin the statutory reanalysis of the town's development impact fee schedule, a review the transcript shows hasn’t been done in decades and that is required to justify fees under state law.
Councilors asked town staff on March 24 to begin the process of reanalyzing Tiverton’s development impact‑fee schedule following questions about compliance with state requirements and the fee’s allocation.
Councilor Hayden said the town is required under state law to reexamine and justify impact fees approximately every five years; she said the town has not performed that analysis for decades. The council directed the town administrator to work with council members and draft a request for proposals for a consultant to perform the required legal and fiscal analysis.
Solicitor and council members noted why consultants are typically used: state law requires that an impact fee be demonstrably proportionate to the growth-related capital cost it is meant to offset. The current ordinance directs impact-fee receipts to school capital (bond) obligations; councilors discussed whether updated analysis would affirm that allocation or suggest different uses or fee levels.
A council member emphasized that while towns may collect one‑time development fees, such collections do not substitute for recurring operating needs (for police, fire or other services). The immediate direction to staff was limited to preparing procurement materials and to explore whether the town should pursue a consultant to produce the requisite study and legal support.
Why it matters: Impact‑fee calculations affect what developers pay and how the town funds capital improvements tied to growth. State law requires a defensible nexus between fees and the capital projects they fund.
What’s next: Town administration will draft an RFP for consulting services and report back with proposals and cost estimates.
