Development Cost Charge Update
Revelstoke is growing and with growth comes the demand for infrastructure that serves our community.
Costs to service areas with roads, sanitary sewer, water and parkland can be partly funded through Development Cost Charges (DCCs). This provides a mechanism to support infrastructure projects and reduce the taxation burden. We are undertaking a comprehensive update of the Development Cost Charges bylaw.
What are Development Cost Charges?
Development Cost Charges (DCCs) are collected from land developers by a municipality to compensate for some of the infrastructure expenditures required to service the needs of new development. New development often requires the expansion of existing infrastructure or the installation of new infrastructure systems to support increased demand for utilities and services – this poses high costs to the public sector.
When a developer builds a new subdivision, they pay for the roads, sewer systems, water systems and other services inside the subdivision. But the City needs to use other tools to pay for things like expansions to the sewage treatment plant, putting traffic signals at an intersection a kilometre away, increasing primary water supply line sizes, and providing park expansions for the whole community. That is where DCCs come into play. Developers who build subdivisions and apartment buildings, business owners who pay to expand their buildings, and homeowners who build a secondary suite pay a Development Cost Charge to pay for the infrastructure needed to keep up with growth. DCCs are intended to assist local governments and facilitate development by providing a method to finance capital projects related to roads, sewers, water, and parkland.
DCCs can recover the cost of infrastructure including:
- Water
- Sanitary sewer
- Storm drainage
- Transportation
- Parkland and limited park development
- Solid waste and recycling facilities
- Fire halls and police stations
- Option in a Resort Region: DCCs for Employee housing to service the operation of resort activities.
Latest News
Staff presented an update to Council at the Committee of the Whole meeting on September 12, 2024, respecting the draft DCC rates. At the meeting, Council directed staff to proceed with public engagement to inform the community of the draft rates and gather feedback. As feedback is gathered, staff will work to prepare the formal bylaw that will ultimately be presented to Council for consideration.
A Background to DCCs in Revelstoke
The City’s existing DCC bylaw was originally adopted in 2005, with charges updated in 2008. The City attempted a major update in 2018, which did not proceed, and then completed a minor adjustment in 2021 which resulted in about a 4% increase in DCCs. The City currently has DCCs for Water, Roads, and Sanitary Sewer. This update will address these services and will add Parks.
More Information
If you're interested in this project watch the above video from Revelstoke's consultant, Joel Short (Joel Short Consulting Ltd.), that answers:
- What are DCCs?
- Why do we have to pay them?
- What can DCCs pay for in return?
- Who pays out that money?
- How are DCCs calculated?
Joel also breaks down the DCC process and timeline, the growth projects, projects and associated costs, the draft DCC rates and more.
