What could be a reason for the regulation to establish criteria for application fees?

Establishing criteria for application fees is essential to ensure fair compensation for services provided during the review and processing of applications. When municipalities charge application fees, these funds typically support the costs associated with processing applications, including administrative work, staff time, and other overhead expenses. By setting criteria for these fees, regulations aim to establish a standard that reflects the true cost of providing these services, ensuring that the fees collected are reasonable and justified in relation to the services rendered.

This approach helps to maintain equity among applicants, as everyone pays a fee that correlates to the level of service they receive. By safeguarding the principle of fair compensation, municipalities can operate more effectively and transparently, which contributes to public trust in the application process.