Paying for Planning

This briefing paper explains user fee programs, their history, appropriations, design, and recommendations at the federal level that can be applied to local user fees. As user fees should be based on market factors when possible and by the agency’s cost when not, they are transactional at the local level but must be for the public’s benefit. The most necessary components include transparency, equity in how it is needed and who is paying and who is benefiting, and utilization as a method of economic efficiency. Increased interest in user fee programs reflect the effects of deregulatory initiatives over multiple presidential administrations and in response, local governments must scrutinize how they are applied and understand that if public benefits are significant from the service, fees need not cover full cost of provision.