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From wisegeek.com;
"If it is determined that lower speed limits are needed, particularly for safety reasons, then a sample is taken of the existing speeds of free flowing vehicles traveling the road. This sample is obtained by using the same type of radar or laser gun that police use to enforce speed limits that are already determined.
The minimum sample cannot be less than 100 vehicles. After the sample is taken, the speed that 85% of the vehicles are traveling at or below will be the proper speed limit for that particular road. The vehicles traveling above that speed can be singled out and ticketed."
In order to reduce the speed limit, you would typically need a supportive speed survey, unless there is a budget crisis and you really, really, need more government revenue.
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