User fees and full cost pricing can help communities recoup the cost of providing road, parking, water, sewer, and other infrastructure. User fees should build on asset management, capital improvement planning, and other initiatives to ensure that infrastructure spending is a high priority to meet local needs and provide the strongest benefits. For example, some communities are addressing the increasing costs of stormwater management with dedicated taxes, stormwater utility fee( A user fee based on the demands property owners place on the drainage system, such as one based on ...
Read more)
, or special service areas, sometimes leveraging technical assistance from CMAP or other groups. Similarly, a number of communities have used CMAP’s Local Technical Assistance program to plan for and price their parking garages and metered spaces, making more effective use of tangible and fiscal assets.

All public utilities should adopt full cost pricing so they can sustainably fund operations and ongoing maintenance. While some local governments may choose to discount some services to meet local priorities, instead matching revenues to the cost of services will help the region’s communities achieve stable funding and greater resilience. These initiatives should provide options that account for the affordability needs of lower income residents.

Action 1

Develop stormwater utility fees to assess the true cost of stormwater infrastructure and improve flood control infrastructure.

Implementers

Local governments

Action 2

Implement user fees to fund transportation infrastructure improvements, such as local MFTs or fees to address freight needs.

Implementers

Local governments

Action 3

Approve statute changes that allow non-home rule governments to impose additional types of user fees.

Implementers

State of Illinois

Action 4

Assess infrastructure costs to calibrate fees and taxes on development, parking, water, sewer, and other needs, both to cover current expenses and to create stable funding for the long term.

Implementers

Local governments

Action 5

Consider consolidating services with a neighboring community to reduce overall costs and provide options for low-income residents, when faced with significant affordability barriers to full cost pricing of water and other utilities.

Implementers

Local governments