What are impact fees intended to address?

Impact fees are intended to address the costs associated with the increased demand on public infrastructure that results from new development. When a developer constructs a new residential or commercial project, it typically leads to a higher need for services such as roads, water supply, schools, and other public facilities. Impact fees are designed to ensure that developers contribute to the cost of the additional infrastructure required to accommodate the growth they are generating.

By charging these fees, municipalities can effectively distribute the financial burden of new development equitably, ensuring that existing taxpayers do not have to absorb the costs of necessary public improvements. This mechanism allows for better planning and management of resources as communities grow, while promoting sustainable development practices.

The other options do not align with the primary purpose of impact fees. Local tax reductions, funding for educational programs, and revenue generation from the sale of municipal assets focus on different areas of financial management and do not specifically address the infrastructure impacts of new development.