What is an expected outcome of using impact fees?

Impact fees are charges imposed by municipalities on new developments to fund the infrastructure necessary to serve those developments. The primary intent of these fees is to ensure that the financial burden of growth does not fall disproportionately on existing residents and taxpayers. Instead, it allows developers to contribute to the cost of the public services and infrastructure required because of their projects, such as roads, water systems, parks, and schools.

By collecting these fees, municipalities can invest the funds directly into improving and expanding the infrastructure that supports new developments. This can lead to enhanced public services that benefit both new and existing residents, thereby facilitating sustainable growth and development in the area. Overall, one of the expected outcomes of using impact fees is indeed the improvement of infrastructure related to new developments. This helps create a more balanced approach to urban planning and development.

The other choices, while potentially beneficial outcomes of good governance and economic development policies, do not directly relate to the specific purpose and intended effects of impact fees. For example, while a reduction in overall tax rates may occur as a result of effective budgeting, it is not the primary function of impact fees. Similarly, while impact fees can lead to an increase in local business revenue as new developments attract residents and customers, this is more of a secondary effect