Actual FACT: True! Developers pay for the initial cost of installing road, sewer, electric, water systems, etc. However, the risk is that the developer gets part way through the process and files bankruptcy (like Suncrest) and/or they don't pay for the additional services a development in that area may require, such as requiring an additional fire station or police substation because their distance from existing stations would lead to a lower-than-acceptable response time. Additionally, paving roads and maintaining water systems going up elevations and steeper grades is generally more costly.
Another issue is that even in the best circumstances, the infrastructure is sometimes not installed to standard and the city is left on the hook for repairs. A recent example is 5600 West. There was no included warranty and the city wasn't allowed to request one because of the funding source. Parts along the shoulders of the road failed and the city was left with substantial repair costs. Similarly, with Suncrest, the developer had installed sub-par infrastructure but the city ended up footing the bill when the developer filed bankruptcy. The challenge is developers argue they should be able to build a home as soon as that home or street has all the service it needs, not that all the surrounding development is done. They argue that having to install all infrastructure up front is an unreasonable burden. In fairness, they want to recover their costs by selling the home(s) and using those proceeds as capital toward the next part of the project. The problem occurs for the city that if, for whatever reason, there are failures which occur after a home is occupied (like a shoulder sinking, which wasn't evident when it was first inspected), or if they abandon the project (bankruptcy, like Suncrest) the city would then need to provide service to that resident equivalent to the service any other resident receives. Ideally the full buildout of roads and infrastructure would be done up front and the city would wait until it was obvious there were no defects in the infrastructure installation, but in practice that's not the way it happens.