Residents press town on impact fees; staff points to exactions and development agreements

At the public session a resident asked why Londonderry stopped collecting traditional impact fees. "We used to have them," the resident said, explaining the town had repaid funds in the past. Town Manager Sean Mulholland responded that earlier fees were mismanaged and that state law allows a planning board to impose exactions — off-site improvements such as road, drainage, water and sewer work — subject to a six-year spending window or else the funds must be returned.

Mulholland distinguished exactions from operating-cost funding: "Exactions are only for roadway improvements, water, sewer, and drainage," he said. He added that operational costs such as permanent increases in police and fire staffing are not recoverable through exactions and must be addressed in development agreements or other revenue tools. The town said it provided a white paper on options for impact-fee alternatives to the council earlier in the year and that the council will decide whether to pursue changes through the budget process or policy votes.