To Mike's point, the first step is municipalities need a grenade. They are all broke. Unless someone wants to privately fund a $100M temple to hockey, they should be steel buildings with steel truss roof and no windows like all the 80's arenas that are still kicking. Cut municipal stupidity by 90% and you can reduce dc's by almost as much. For municipal buildings, no more net zero, no more green, no more LEED. Those are all just buzzwords to send budget to the moon with little positive effect other than a certificate on the wall and a press conference. Sure install heat pumps instead of boilers if that makes economic sense but chasing LEED points by washing dumptrucks at the construction site is beyond bonkers.
Aging infrastructure should be covered by property tax. If it's not, property taxes are wrong. DC's should cover additional infrastructure required to accommodate the additional dwellings.
EDIT:
Connection fees are also a way for unscrupulous builders to screw buyers. While the contract to build your dwelling has a price, it often has "plus connection fees". Most don't have wording about cost or cost plus ten or . . . Unscrupulous builders can pay a 10K hydro connection fee and tack 100K onto the final invoice for your house. Your choice at that point is pay or break the contract which would have you lose your deposit and face a potential lawsuit if the builder gets less than you agreed to pay.