The Impact of Municipal Finance and Governance on Urban Sprawl
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Published: 2013
Total Pages: 0
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DOWNLOAD EBOOKIf residents of the outlying areas are charged the higher marginal cost of services provided to them (the cost of resources to society of producing an additional unit of the good or service) and residents of the central, more densely populated areas are charged the lower marginal cost of services provided to them, the result will be an efficient pattern of development. [...] Where the benefits of services (such as water and sewers) to a particular property are not fully charged to it, the difference between the benefits and the costs will be capitalized into the land value. [...] The calculation of the development charge cannot be based on a level of service that exceeds the average level of service provided in the municipality over the last ten years. [...] In the absence of a development charge, the developer considers only the private costs and benefits of alternative locations and does not consider the impact of the development on the municipality's costs of providing services. [...] A development charge that is the same amount per unit regardless of the where the unit is located will not reflect the true costs of the development to the municipality and will not lead to efficient development decisions.