Canada

Unfortunately some municipalities have used development fees incorporated into their normal budget, whether directly or indirectly, rather than solely using them to account for the increased costs in maintenance, which is what they should be for. Often times I've worked on capital projects (repair ones) where the funding has come directly from development.

For example, one municipality I work closely with has the salaries for all their development staff and the salaries for their capital design staff paid by development fees, plus some allocations for expansion of other services to account for more citizens.

Edit for clarity: Municipalities can also skirt this use by doing things like the following: a long stretch of road from a highway is in poor condition and needs to be repaired in the next 2 years. But a development is going in on the road, and they can force the developer to pay for the reconstruction of the road, despite the fact that it is in poor xondition and needs to be redone anyway. Ditto for sewer, or water main replacement.