The City of Cranbrook is updating its Development Cost Charges (DCCs) and in partnership with Urban Systems, is hosting two virtual meetings on Tuesday October 26, 2021.
DCCs pay for roads, sewer, water, drainage, and parks infrastructure required to service future growth. DCCs are generally paid at subdivision for single detached lots or at building permit for new commercial, industrial, institutional, or multiple unit residential buildings.
The DCCs were last updated in 2004, and projects and costs have changed since then. These proposed changes are important to maintain the financial sustainability of the City. You can review the City's Development Cost Charges Update For Stakeholders, by downloading the document here.
Two virtual meetings will be held:
• Development & Construction Community – Tuesday October 26, 2021 – 2:00pm to 4:00pm MT. To register for the developer meeting, visit - https://www.eventbrite.ca/e/186275784887.
• General Public – Tuesday October 26, 2021 – 7:00pm to 8:00pm MT. To register for the public meeting, visit - https://www.eventbrite.ca/e/186388271337.
The meetings will provide details of the proposed revisions to the DCCs, see the types of roads, sewer, water, drainage, and parks projects that service future growth, gain a better understanding of who pays and when they pay and see how the proposed charges compare to neighbouring communities.
If you have questions, please contact Curtis Penson, Manager of Engineering and Field Services by email at [email protected] or call 250-489-0237.
Learn more about Development Cost Charges (DCCs) with our FAQ section.
What are DCCs?
Development Cost Charges (DCCs) are collected from land developers by a municipality to compensate 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 on utilities and services – this poses significant costs to the public sector. DCCs are intended to alleviate the financial burden on local governments and facilitate development by providing a method to finance capital projects related to roads, drainage, sewers, water, and parkland.
Why does a DCC update need to be done?
Cranbrook’s DCC Bylaw was last updated in 2004. Therefore, project costs, plans and statuses may now be outdated and in need of updating.
What will this DCC update accomplish?
Conducting this DCC update will determine:
- Which projects are complete and can be eliminated from the DCC Bylaw
- Which projects are now complete and must stay in the DCC Bylaw as the debt is not paid off
- Which projects can be eliminated as they are no longer required as DCC projects
- Which projects need to stay in the DCC program
This DCC update will review the City’s existing infrastructure reports to identify projects that are DCC eligible, in particular, projects that have not been included in the current DCC project list.
What are DCC monies used for?
DCC monies received are used to finance capital projects related to new roads, drainage, sewers, water mains as well as for improving parks within the City. DCC's are integrated with the Official Community Plan (OCP) and the City’s Capital Plans which outline the major infrastructure improvements for water distribution, wastewater trunks and treatment, stormwater, major roads and parkland improvements for accommodating the City's growth. DCCs may be used to pay for:
- Intersection and road improvements
- Transportation upgrades
- Water mains, drainage, and sanitary sewer mains
- Water reservoirs, utility pump stations, treatment plant upgrades
- To purchase and develop new park land
- Pedestrian and bicycle facilities
What do DCCs NOT pay for?
By legislation, DCCs cannot be used to pay for:
- New or upgraded works needed only for the existing population
- Infrastructure operation and maintenance
- New libraries, fire halls, police stations, parks and recreation buildings, parking lots, sports field lighting, artificial turf and sport courts
- Any other items not specifically set out in the list of eligible projects
Who pays DCCs?
DCCs are paid by land developers when applying for subdivisions, or building permits where the value of the work covered by the building permit exceeds $50,000.
How are DCCs calculated?
In basic terms, DCCs are calculated by dividing the expected infrastructure costs by the number of new development units that will be served.
How do rising costs of infrastructure impact DCCs?
The cost of building infrastructure increases over time, therefore, the establishment of new DCC rates reflect the projected costs to build the infrastructure required to service growth.