New Home Charge To Pay For Basic Services

This article reports on why cities, such as Elk Grove, are beginning to charge owners of newhomesannual assessments, which will pay for basic transportation and safetyservices. Under the Elk Grove plan, when the city approves newsubdivisions, the City Council will force developers to agree to roughly$275 in charges on each new homeowner's tax bill. City planners acrosstheSacramento region predict that if Elk Grove's plan works, other citiesmight not be far behind. The article notes, "Because state ruleseffectively prevent cities from raising property taxes, the budgetcrisisis forcing them to find creative revenue sources."