New development frequently requires higher maintenance and operational funds for surrounding public infrastructure or even new capital costs for extension of public services. Expanded roads, new traffic signals, extended sewer lines, new drainage facilities and parks are all examples of public upgrades necessitated by new private development. These cost burdens are typically borne by taxpayers and can become fiscally draining especially as development stretches further from the core community.
In 1993, Lancaster, CA sought to counterbalance this phenomenon with a set of development impact fees specifically designed to defray the public costs that occur due to new residential, commercial and industrial projects, especially when those projects are located far from existing infrastructure.
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