It's that simple:
And punish those who use cars. Also punish those who move to new developments in the suburbs, as it makes no sense why someone in the city should pay the same rates for water and electricity as someone living in a new house outside the city's established grid. The expense of building basic infrastructure away from what is already built has a huge impact on public resources, and this cost should be reflected in the utility bills suburbanites pay. Those who live in the city, and therefor live more efficiently (and sanely), need to stop subsidizing those who are bent on living the impossible American dream. Life in the city should be rewarded at every opportunity.