Which type of fee is charged to help cover government costs associated with new developments?

Impact fees are charges levied on developers to help offset the costs that municipalities incur as a result of new developments. These fees are specifically designed to fund infrastructure improvements and public services that are necessitated by the increased demand from new residents or businesses. For instance, when a new housing development is built, it may create a need for additional roads, schools, parks, or utilities, and the impact fees collected from the developers are allocated to cover those associated costs.

Collectively, these fees play an important role in managing growth sustainably and ensuring that existing residents do not bear the financial burden of new infrastructure demands. By using impact fees, local governments can enhance their ability to maintain and improve public services in the face of growing populations, ultimately supporting balanced community development.

The other options do not pertain directly to the concept of covering costs associated with new developments. Limited Tax General Obligation Bonds relate to borrowing against specific taxes for funding. Revenue bonds are tied to specific revenue sources for funding various projects, while joint ventures or privatization involve partnerships between public and private sectors for various projects but don't specifically address the financing mechanism for costs incurred from new developments.