Sure, the city captures some tax base at the edges, and jobs accompanies that growth, but the city has to supply its new land mass with municipal services, and roads, along with police, fire, lights schools and sewers, are right there at the top.
That's not to say that there should be zero growth at the borders, but the more that growth can be focused where infrastructures is in place, the fewer new tax dollars have to be poured into road construction and repairs.
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