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.
Lol they definitely did not take better care of infrastructure. They were freaking cowboys and a ton of municipalities got burnt on it. I work on lots of capital jobs that involve fixing problems that have been around since then.
So now they have much more stringent standards, which in turn means projects are more expensive. Add onto that the growing complexity - installing a water main down a street in 1980 when you have overhead hydro lines and no other utilities to work around is much easier than installation in a crowded right-of-way with buried gas, hydro, storm sewer, sanitary sewer, and existing water main that needs to continue to service residents.
As for how they were originally funded, idk. Don’t think they ever really asked residents what they wanted back then. Now there’s much more accountability, which is good but has drawbacks and costs.
I mean climate, but not specifically global warming, just the fact were a planet with finite resources.