ABSTRACT
Several municipalities have placed absolute ceilings–cap rates–on population. While theoretically cap rates are very appealing, their practical application has been less impressive. First, it is questionable to what degree of precision future population projections can be derived. Even if they can be reasonably precise, flexibility or the capacity to respond to changing circumstances is severely limited. Typically, the levels articulated are in response to impressions of an appropriate ceiling. The practice has been that the cap rate is set and the controls are then devised to support the system. Obviously, this is a highly questionable approach. However, a more significant flaw in the use of cap rates is the lack of any timing device. The assumption is that growth occurring within the jurisdiction will be uniform and continuous. However, demand may increase to the extent that the municipality is unable to accommodate it.
