What is the primary purpose of impact fees in land use planning?

• A. To fund public infrastructure and facilities necessitated by new development.
• B. To generate revenue for general city operations.
• C. To subsidize private development costs.
• D. To compensate existing residents for displacement.

Answer: (A)

Impact fees are charges on new development aimed at covering the extra capital costs the community must incur to provide infrastructure and facilities needed by that development. As a project adds people and activity, the city needs additional capacity for roads, schools, utilities, parks, and similar facilities. The main purpose is to ensure growth pays for itself and that new infrastructure is funded without placing the burden on existing taxpayers. These fees are typically one-time charges used specifically for capital improvements to serve the new development, not for general operating costs, not to subsidize private development, and not to compensate existing residents for displacement.