The City is entering the final stages of the process to complete a new Development Cost Charges Bylaw. An update of the current bylaw got underway last year with an across-the-board increase of 25 per cent to the 2007 rates to bring them more in line with current costs of construction while a full review of the bylaw proceeded. This review is now complete and at their meeting on April 12, Council directed staff to begin consultation with the stakeholders and the community on the proposed draft rates before preparing the new bylaw for Council’s consideration.
“Development Cost Charges are the main funding source available to help with the costs of infrastructure related to growth that does not come from existing residents through property taxes or utility user fees,” said Penticton’s Mayor John Vassilaki. “The increase of 25 per cent last year was a good first step to bring our charges in line with current costs of construction and with this review complete, we are well positioned to introduce a new bylaw that will ensure the costs of infrastructure related to growth are shared fairly. We are pleased to see the progress on this Council Priority.”
Under the Local Government Act, municipalities are authorized to charge developers a portion of the costs for infrastructure projects related to growth which benefit their development. These Development Cost Charges can be used to pay for upgrades to roads, water, sewer, and storm water services as well as parks. DCCs cannot pay for operations and maintenance, or projects that serve the existing population. They also cannot be used to fund things such as new libraries, pickleball courts or fire halls. DCCs are paid at the time of subdivision for residential lots, or at issuance of building permits for multi-family, commercial, industrial or institutional developments.
“Over the past two years, the City undertook an extensive planning process to understand what infrastructure projects would be required to serve both our existing and new population over the next 10 years,” said the City’s General Manager of Infrastructure Kristen Dixon. “The information provided by the new Integrated Infrastructure Master Plan makes it possible to look ahead at how we can fund these projects including opportunities to equitably distribute the costs between new development and existing residents, such as through a current Development Cost Charges Bylaw.”
The new bylaw will identify the list of transportation, sewer, water, storm water and parks projects that are related to growth and are eligible for funding through Development Cost Charges. It will also provide cost estimates for these projects that can be used to calculate the amount to be shared by new development. Before the bylaw is drafted for Council to review, the City is seeking feedback about the updates from the community and key stakeholders, including developers, builders and the business community. The City has prepared a “Get to know your DCCs” quiz at shapeyourcitypenticton.ca to inform the community about this work and gather their feedback. Stakeholders will be notified directly and invited to participate in information sessions. Citizens who would like to attend a presentation in person or discuss the DCCs with staff are invited to attend an Open House on May 19, 2022 at the Penticton Trade and Convention Centre between 4 pm and 7 pm. Copies of the draft rates and list of eligible projects can be viewed at shapeyourcitypenticton.ca. Feedback will be collected through to May 29, 2022.