Proportionality in the context of impact fees refers to the principle that the fees charged to developers should be proportional to the impacts generated by their development projects. In other words, the amount of the impact fee should be directly related to the extent of the burden placed on public infrastructure and services by the new development.
For impact fees to be considered proportional, they must accurately reflect the costs associated with accommodating the increased demand for infrastructure and services resulting from the development. This requires a thorough analysis of the specific impacts generated by the development, such as increased traffic congestion, additional demand for utilities, or the need for expanded public facilities like schools or parks.
Proportionality ensures that developers are not unfairly burdened with excessive fees that exceed the actual costs imposed by their projects. At the same time, it ensures that the broader community is not left footing the bill for infrastructure improvements necessitated by new development.
Local governments typically assess proportionality through studies and analyses that quantify the impacts of development on public infrastructure and services. These studies help determine the appropriate level of impact fees based on the principle of proportionality.
Ensuring proportionality in impact fees is essential for promoting fairness, transparency, and economic efficiency in the development process. It helps strike a balance between the interests of developers and the broader community while ensuring that growth and development contribute to the sustainable provision of essential public services and infrastructure.