Impact Fees
Municipal Implementation Tool #005

Impact Fees

Product No.: MIT005
Date Published: 05/2004

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As cities and communities grow, the demands on the infrastructure and the costs to maintain or expand that infrastructure rise. Historically, the government funded infrastructure improvements because of its public purpose. However, due to rising cost, the funding stream for these capital improvements has dwindled and communities must find innovative ways to finance development. Local officials face the challenge of finding creative and equitable ways of funding infrastructure through methods such as impact fees, special taxing districts, and tax increment financing. This brochure provides a national perspective on impact fees and issues regarding their usage in New Jersey and Pennsylvania as a means to support new growth.

Geographic Area Covered: Nine-County Delaware Valley Region (Bucks, Chester, Delaware, Montgomery, and Philadelphia counties in Pennsylvania and Burlington, Camden, Gloucester, and Mercer counties in New Jersey)

Key Words: Impact fees, development, capital improvement programs, comprehensive master plans, quality-of-life, zoning ordinance, infrastructure, fees, rational nexus, and finance.

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