Safety and efficiency aren't cheap, the State College Borough Council said.
Attempting to maintain both for the more than 40,000 university students that overrun State College for most of the year costs a pretty penny.
And the borough says it may need more university dollars to pay for the extra police, fire and sanitation services a college town demands. But Penn State, citing the almost 775,000 it already pays the surrounding area, maintains the non-cash contributions a research university of its size and prestige gives back more than enough.
Council members, who discussed the issue again at a special meeting Nov. 29, asked borough staff to look at the annual budget and figure out what extra services exist because State College is a college town with a large student population.
Depending on what staff members find, the borough may ask Penn State to start paying more money per year than they already pay to cover the extra costs.
"We have more police due to the type of community we have," State College Police Chief Tom King said. "Staff should tell us what extra services exist because State College is a college town."
King said if the cost of providing extra police services is higher than what Penn State already contributes, the borough might ask for additional funding.
King said university-affiliated buildings downtown are tax-exempt because they are used for educational purposes.
In lieu of paying property taxes, Penn State gives the borough a lump sum -- called the PSU impact fee -- every year to cover governmental costs, such as sanitation and police, King said.
That amount, which stems from a 1992 negotiated agreement between the municipalities and the university, totaled $772,346.56 in 2006 and will be $803,803.11 in 2007. Each year the borough receives the majority of the total impact fee -- 57.19 percent -- because Penn State is located within the borough and receives the most student impact.
In 2006, that percent equaled $441,705, Borough Manager Tom Fountaine said. According to the borough's budget, in 2007, the borough will receive the lump sum of $459,695. The borough was estimated to have 39,728 residents in 2003, according to the last U.S. census data.
Centre County Commissioner Chris Exarchos said aside from the university and the State College Borough, Patton Township, Harris Township, College Township and the Centre County Commissioners also signed the agreement. Exarchos said the agreement was renegotiated in 2005 according to the Consumer Price Index (CPI), which takes into account the cost of living.
Fountaine said the amount, which is paid on or before Dec. 15, is adjusted annually according to the CPI. He added that the borough has always applied their portion of the impact fee to the Capital Improvement Program, which funds improvements of streets, parks, sewers, parking and information technology.
Dan Sieminski, associate vice president for finance and business and commonwealth operations, said Penn State pays for the impact fee through a variety of operations.
Sieminski said the impact fee is collected from university operations, like ticket sales for example, that people pay for and receive a service for in return.
He said the university collects a 50-cent fee on each ticket sold for entertainment events at the Bryce Jordan Center and theater events, as well as from purchases from the Penn State Bookstore and the Nittany Lion Inn.
Sieminski added that no funding for the impact fee is provided by student funds, like general funds or tuition.
Out of the borough's 2007 budget of $15,302,225, the State College Police Department is allocated $7,209,943. King said according to data from the most recent study, which was completed in 1995, Penn State students accounted for 51 percent of all arrests in State College. More recent results weren't available.
State College Mayor Bill Welch said there is an overlap between the age demographic most likely to commit crime and the age of students. He added that borough council needs to study other aspects about Penn State.
"You can't just say that Penn State is a problem because x, y or z costs us this ... you have to acknowledge the noncash contributions Penn State makes," he said. "State College would look more like Boalsburg if we didn't have Penn State. It keeps the rest of us younger."
Council member Tom Daubert said the borough has to provide a lot more services to the community because of the university, such as extra police at Beaver Stadium on game weekends, and the burden of paying for those services falls on the homeowners in the borough.
"We just have to keep the pressure on a little bit; people need to realize it costs money to run this town," Daubert said.
Penn State spokesman Bill Mahon said Penn State has always had a great relationship with the State College Borough and just signed a 10-year agreement with the borough in 2005.



