ASSEMBLY, No. 2004







By Assemblyman DALTON, Assemblywoman Turner, Assemblymen Gusciora, Wisniewski, Assemblywoman Friscia and Assemblyman DeSopo



An Act concerning capital improvement programming and amending and supplementing P.L.1975, c.291.


    Be It Enacted by the Senate and General Assembly of the State of New Jersey:


    1. Section 20 of P.L.1975, c.291 (C.40:55D-29) is amended to read as follows:

    20. a. The governing body may authorize the planning board from time to time to prepare a program of municipal capital improvement projects projected over a term of at least 6 years, and amendments thereto. Such program [may] shall encompass major projects being currently undertaken or future projects to be undertaken, with Federal, State, county , municipal and other public funds or under Federal, State or county supervision. The first year of such program shall, upon adoption by the governing body, constitute the capital budget of the municipality as required by N.J.S.40A:4-43 et seq. The program shall classify projects in regard to the urgency and need for realization, and shall recommend a time sequence for their implementation. The program may subdivide the municipality into geographic sectors according to the need for municipal capital improvement projects in each sector and the urgency of their realization. The program [may also] shall, to the extent possible, contain the estimated cost of each project and indicate probable operating and maintenance costs and probable revenues, if any, as well as existing sources of funds or the need for additional sources of funds for the implementation and operation of each project. The program shall, as far as possible, be based on existing information in the possession of the departments and agencies of the municipality and shall [take into account public facility needs indicated by the prospective development shown in] be consistent with the master plan of the municipality [or as permitted by other municipal land use controls].

    In preparing the program, the planning board shall confer, in a manner deemed appropriate by the board, with the mayor, the chief fiscal officer, other municipal officials and agencies, and the school board or boards.

    Any such program shall include an estimate of the displacement of persons and establishments caused by each recommended project.

    b. In addition to any of the requirements in subsection a. of this section, whenever the planning board is authorized and directed to prepare a capital improvements program, every municipal department, authority or agency shall, upon request of the planning board, transmit to said board a statement of all capital projects proposed to be undertaken by such municipal department, authority or agency, during the term of the program, for study, advice and recommendation by the planning board.

(cf: P.L.1975, c.291, s.20)


    2. Section 30 of P.L.1975, c.291 (C.40:55D-42) is amended to read as follows:

    30. The governing body may by ordinance adopt regulations requiring a developer, as a condition for approval of a subdivision or site plan, to pay his pro-rata share of the cost of providing only reasonable and necessary street improvements and water, sewerage and drainage facilities, and easements therefor, located outside the property limits of the subdivision or development but necessitated or required by construction or improvements within such subdivision or development. Such regulations shall be based on the capital improvement program adopted pursuant to section 20 of P.L.1975, c.291 (C.40:44D-29) or, where the municipality has not adopted a capital improvement program, on the circulation and comprehensive utility service plans pursuant to subsections 19b.(4) and 19b.(5) of this act, respectively, and shall establish fair and reasonable standards to determine the proportionate or pro-rata amount of the cost of such facilities that shall be borne by each developer or owner within a related and common area, which standards shall not be altered subsequent to preliminary approval. The regulations may include a formula which is used by the municipality to determine a developer's appropriate share of off-tract water, sewer, drainage or street improvement costs given the remaining infrastructure capacity and the estimated cost of accommodating the particular development. Where a developer pays the amount determined as his pro-rata share under protest he shall institute legal action within 1 year of such payment in order to preserve the right to a judicial determination as to the fairness and reasonableness of such amount.

(cf: P.L.1975, c.291, s.30)

    3. (New section) In addition to those provisions which may be included in an ordinance requiring approval by the planning board of either subdivisions or site plans or both as authorized under the provisions of section 29.1 of P.L.1975, c.291 (C.40:55D-39), any municipality which has adopted a capital improvement program which is consistent with the master plan of the municipality pursuant to section 20 of P.L.1975, c.291 (C.40:55D-29) may include in such a subdivision or site plan ordinance provisions that require as a condition for local municipal approval that the proposed subdivision or site plan can be accommodated by existing transportation, water, sewerage and drainage facilities and standards governing the granting of approval if some or all of those facilities require improvement or expansion as set forth in the capital improvement program including, but not limited to, conditions under which (a.) a developer may be requested to contribute towards the amelioration of the public facility in order to accommodate the proposed development; (b.) approval may be granted over a period of years if developer contributions are not sufficient to overcome the limitations of the public facilities and the benefits conferred thereby do not justify general improvement financing; and (c.) the planning board may request that the development be considered as a planned development and that the application be resubmitted, if necessary.


    4. This act shall take effect immediately, except that section 2 shall take effect 180 days following enactment.




    This bill would provide a linkage between municipal capital improvement programming, the municipal master plan, and major subdivision and site plan approval.

    Under current law, a municipal governing body may authorize the planning board to prepare a program of municipal capital improvement projects; however, there is but a limited requirement that this plan be consistent with the municipal master plan. Additionally, a municipal governing body is authorized to adopt an ordinance requiring a developer to pay his pro-rata share of the cost of providing street, water, sewerage and drainage facilities; however, there is no provision which ties the imposition of such a charge to a municipal capital improvement program, where one has been adopted by a municipality.

    Any municipality which has adopted a capital improvement program which is consistent with its master plan is authorized, under the terms of this legislation, to condition subdivision or site plan approval or both on the ability of the existing infrastructure to accommodate the development or, if necessary, to slow down the development if developer contributions are not sufficient to overcome the deficiency in the local infrastructure.




Authorizes certain municipalities to condition development approval on the capacity of existing infrastructure to accommodate the proposed development.