How does new development pay for itself without raising taxes on existing residents?

In Dixon, new development is generally structured so it pays for both the cost of city staff and consultant time associated with the processing of applications, as well as infrastructure and services it requires instead of relying on funding from our existing residents.

One of the main ways this happens is through development impact fees. These are one-time payments from developers, averaging $70,000 per new single family home, that help cover the cost of infrastructure needed to support growth like roads, sewer systems and public safety services.

In some new neighborhoods, there are also Community Facilities Districts, sometimes called CFDs or Mello-Roos. These are special taxes paid by property owners in those specific areas to fund and maintain local improvements such as parks, streets and other neighborhood infrastructure.

New development also contributes ongoing revenue through property taxes and increased local spending at businesses. Over time, this helps support City services more broadly.

There are also costs associated with the review and processing of applications, which are fully funded by an applicant or developer. This includes staff or consultant time to review proposals, coordinate with other agencies and manage the entitlement process.

Together, these funding tools are designed to make sure new growth pays its own way. This approach helps avoid shifting costs to existing neighborhoods so local services and maintenance in older areas are not reduced or redirected to support new development.