“Funding” is a revenue stream from a tax, fee, grant, or
other source that generates money to pay for an improvement. Local
governments typically dedicate some portion of property, sales, and other
jurisdiction-wide tax revenues to fund infrastructure. In a time of severe
fiscal constraints for many public entities, however, communities are looking
for ways to leverage traditional sources of local government revenue and
generate new sources to pay for TOD and smart growth infrastructure. Beyond
general property and sales taxes, the sources that local governments in
California use to fund infrastructure can be
grouped into three broad categories: user fees, value capture, and grants.
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