Development Cost Municipal Government

Finally, the municipal government relies on development costs to generate revenue. The basis for assessing development costs is driving the low density and it plays role in car-centered development. However, this requires investment and more expensive municipal infrastructure. Development costs are an important cost that can affect development locations, time schedules, and other decisions. Development costs may affect land resource consumption and community design, and are increasingly being used as revenue sources and growth management tools. Therefore, more municipalities should consider better adjustment of their development cost design and growth management policies. Developers pay development fees to the government for the infrastructure

The root cause of the spread is identified as the average cost of development and municipal services. Like low density zoning development, water and sewer connections, or even seemingly ordinary service of average cost pricing makes lower costs in cheap construction. If there is no adjustment to meet the current more nervous and compact city planning objectives, the precious growth management tools would be wasted, and they missed the opportunity to reduce infrastructure costs in the future. In order to stimulate a more compact urban growth model, development costs can be adjusted according to exchange rates or time. In the reform development cost structure, the municipal authorities can make efforts to increase their income by raising the integral development cost income or revenue neutrality by reducing or remitting development costs, and loss of any income was offset by higher development costs of higher income. However, to prevent future fiscal shortfalls and avoid market distortions, development costs should not be lower than the level required to pay for infrastructure