The Catch 22 of Impact Fees

Impact fees are the little known fee that is charged to a developer to pay for the impact of a new home and new the residents that live in that home. There are several different fees that are included under that larger umbrella of "impact fees." These can include Park impact fees, transportation impact fees, environmental impact fees, and so on.
The purpose of these fees are to help the city to mitigate the impact and the added expense of new residents in the city limits. They help pay for parks, roads, environmental damage etc. Duvall recently raised both the park impact fee and the transportation impact fee. There were several reasons given by members of the city council including: It is time for the developers to pay their fair share, it's someone else's turn to pay for these improvements, and we just can't afford to pay for more out of the city budget. While i was glad to hear these candid remarks I started to look deeper into the issue and I came to a realization while listening to the debate.
The real impact, pardon the pun, was realized at a recent city council meeting. Two developers came to testify during a public hearing on the transportation impact fee. Both assured the City Council that these fees would be added to the cost of the new home and the people actually paying for the fee would be the residents who purchase the home. The argument included talk of how this caused the price of a home to increase and by extension the assessed value increased for the new home as well as the homes nearby. The long term effect being that all our taxes would be raised because of this.
Here is where the catch 22 comes in. What is the council to do? If they raise the fee, and by extension the taxes, it may slow development and all citizens pay indirectly. If they do not raise the fee then when the city can not afford park improvements or transportation improvements they will have to come to you and ask you to pay for it directly in the form of more taxes.
So here is the question to ponder: Would you rather have the government just take care of it for you and increase the fee or would you rather have them bother you by asking for another tax increase?
You tell me.