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35 <br /> RURAL BUFFER IMPLEMENTATION MEASURE <br /> MEASURES USED BY OTHER JURISDICTIONS <br /> Municipal Service Pricing <br /> Definition <br /> Municipal service pricing is basically a method of <br /> allocating the cost of providing public services to various <br /> components of the community. Components such as new resi- <br /> dents, service users, or the entire community. As a growth <br /> management measure, municipal service pricing policies as set <br /> so that fees or charges collected from new developments are <br /> higher if that development is not consistent with a previous- <br /> ly determined development pattern. The intent is that having <br /> to pay such higher fees will discourage inconsistent develop- <br /> ment. <br /> AppliCaltiaa <br /> Pricing policies can be established to not only penalize <br /> development that is inconsistent with desired development <br /> patterns, but also to encourage desirable development. A <br /> higher than usual fee would penalize inconsistent develop- <br /> ment. A lower than usual fee could be charged in areas where <br /> development is desired, thereby providing an incentive. <br /> This type of pricing strategy may not always influence <br /> the location of development. A number of factors will affect <br /> the ability of a pricing strategy to do so. It will not <br /> affect the location of development if the fee can be passed <br /> onto the home buyer by raising the price of the house. It <br /> will not have an effect if land values drop to offset the <br /> fee. The fee will be effective only to the extent that other <br /> factors such as these cannot adjust to offset the fee. To <br /> the extent that they cannot and the fee is sufficiently large <br /> compared to other development costs to affect potential <br /> profits, it will influence development location. The charac- <br /> teristics of the local development market will determine if a <br /> pricing policy will be an effective growth management mea- <br /> sure. And, if sop how high the fee must be in order to be <br /> effective. <br /> References <br /> "Municipal Service Pricing: Impact on the Spatial <br /> Location of Residential Development", David De Ferranti, <br /> et al. National Science Foundation, November 1975 <br />