What is the maximum performance guarantee percentage for improvement costs that may be required by a municipality?

The maximum performance guarantee percentage for improvement costs that a municipality may require is set at 120%. This standard is established to ensure that the municipality has adequate financial assurance that the required improvements will be completed properly and to the satisfaction of local regulations. The 120% figure provides a cushion beyond the anticipated costs of improvements, addressing potential cost overruns or additional expenses that might arise during the completion of the project.

By requiring a performance guarantee at this level, municipalities can better manage the risk of incomplete or unsatisfactory work, ensuring that their community planning and development goals are met without burdening public resources. This practice aligns with best practices in urban planning, allowing local governments to protect the interests of residents and maintain the integrity of community development.

Lower percentages might not sufficiently cover unexpected increases in costs, while higher percentages could be seen as excessive and discourage development in the area. Thus, the 120% guarantee strikes a balanced approach that safeguards municipal interests while still promoting responsible development.