Lake Country Development Cost Charges Update

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As Lake Country grows, support for new or renewed/updated infrastructure is required. (e.g. to support development, a watermain may need to be replaced or enlarged; a road width may be fine but sidewalks may need to be added; sewer connections and increased capacity may be needed to support the growth).

Council’s vision and strategic priorities include a focus on the theme of “Well-maintained infrastructure and facilities that meet community needs and allow growth and development for prosperity.”

Infrastructure (new and renewal) is paid for through taxation and/or development cost charges (DCCs).

Who pays DCCs?

• Applicants at time of Subdivision approval to create detached dwelling lots

• Applicants at time of Building Permit to construct multi-family residential, commercial, industrial and institutional development.

Once levied and collected, the development cost charges must be deposited into separate water, sewer, drainage, parks and roads DCC reserve funds. These reserve funds may only be used for capital costs relating to an approved development cost charge bylaw. (The bylaw identifies infrastructure projects required to support growth over the next 20 years.) Any interest earned from investments in the reserve funds must be used for eligible development cost charge projects.

Federal and provincial grants are always sought but cannot be relied upon and therefore are not considered a sustainable source of funding required to deliver a 20-year program.

DCCs are a cost-sharing mechanism to spread the required investment in supporting infrastructure among all growth. It is about sharing the costs fairly and reasonably – trying to strike the correct balance between contributors – towards growth in the community.

Options for exemptions and secondary suites are being explored as well as a new category for accessory dwelling units.

Lake Country will be meeting with the Central Okanagan chapter of the Canadian Home Builders Association and Urban Development Institute to gather their input before presenting a new DCC Bylaw to Council for first reading. Then an opportunity for public engagement will be open to all. Additional engagement may be conducted with the development community. Feedback and input will be presented to Council before second and third reading of the bylaw; followed by provincial review and adoption.

DCC rates will be in force immediately after the updated Development Cost Charge Bylaw is adopted by Council (anticipated Fall 2024), following bylaw readings and approval by the Inspector of Municipalities. Consultation with the community and development industry is currently underway, prior to Bylaw consideration by Council.

Once the new DCC Bylaw is adopted, all in-stream development applications (with fees paid) will be provided DCC rate protection (i.e. current rates), as long as the final subdivision approval or building permit is obtained by the applicant within twelve (12) months of the adoption of the DCC Bylaw.

For specific details about how much is collected from development for various programs, please view Development Cost Charge Bylaw 950, 2016.

As Lake Country grows, support for new or renewed/updated infrastructure is required. (e.g. to support development, a watermain may need to be replaced or enlarged; a road width may be fine but sidewalks may need to be added; sewer connections and increased capacity may be needed to support the growth).

Council’s vision and strategic priorities include a focus on the theme of “Well-maintained infrastructure and facilities that meet community needs and allow growth and development for prosperity.”

Infrastructure (new and renewal) is paid for through taxation and/or development cost charges (DCCs).

Who pays DCCs?

• Applicants at time of Subdivision approval to create detached dwelling lots

• Applicants at time of Building Permit to construct multi-family residential, commercial, industrial and institutional development.

Once levied and collected, the development cost charges must be deposited into separate water, sewer, drainage, parks and roads DCC reserve funds. These reserve funds may only be used for capital costs relating to an approved development cost charge bylaw. (The bylaw identifies infrastructure projects required to support growth over the next 20 years.) Any interest earned from investments in the reserve funds must be used for eligible development cost charge projects.

Federal and provincial grants are always sought but cannot be relied upon and therefore are not considered a sustainable source of funding required to deliver a 20-year program.

DCCs are a cost-sharing mechanism to spread the required investment in supporting infrastructure among all growth. It is about sharing the costs fairly and reasonably – trying to strike the correct balance between contributors – towards growth in the community.

Options for exemptions and secondary suites are being explored as well as a new category for accessory dwelling units.

Lake Country will be meeting with the Central Okanagan chapter of the Canadian Home Builders Association and Urban Development Institute to gather their input before presenting a new DCC Bylaw to Council for first reading. Then an opportunity for public engagement will be open to all. Additional engagement may be conducted with the development community. Feedback and input will be presented to Council before second and third reading of the bylaw; followed by provincial review and adoption.

DCC rates will be in force immediately after the updated Development Cost Charge Bylaw is adopted by Council (anticipated Fall 2024), following bylaw readings and approval by the Inspector of Municipalities. Consultation with the community and development industry is currently underway, prior to Bylaw consideration by Council.

Once the new DCC Bylaw is adopted, all in-stream development applications (with fees paid) will be provided DCC rate protection (i.e. current rates), as long as the final subdivision approval or building permit is obtained by the applicant within twelve (12) months of the adoption of the DCC Bylaw.

For specific details about how much is collected from development for various programs, please view Development Cost Charge Bylaw 950, 2016.

Questions about the Development Cost Charges Update

Have a question and/or comment about the DCC updates? Ask your question and staff will get back to you as soon as possible. All questions and comments will be relayed to Council.

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  • Share Can an itemized list of DCC projects that make up the totals be provided. on Facebook Share Can an itemized list of DCC projects that make up the totals be provided. on Twitter Share Can an itemized list of DCC projects that make up the totals be provided. on Linkedin Email Can an itemized list of DCC projects that make up the totals be provided. link

    Can an itemized list of DCC projects that make up the totals be provided.

    John Macdonald asked 6 months ago

    Yes absolutely.  It is the Appendix A of the background report in the presentation to Council on May 21st.  Here is a direct link to the report and the information you are looking for starts on page 22.  Thanks for asking. 

  • Share Hello. Thank you for providing this information. Can you explain the rationale for charging the servicing costs of the Lake Country Business Park to development at large rather than that specific development? It seems like those costs should be the responsibility of the owners of that development. Maybe via a longterm loan that runs with the properties rather than the owners? I don't see how a new townhome on Woodsdale benefits more than a current home on Chase or Okanagan Centre road. Can you explain how you came to the 80%-20% calculations if you remove the specifically affected properties that will become the Lake Country Business Park? Thank you for your time. on Facebook Share Hello. Thank you for providing this information. Can you explain the rationale for charging the servicing costs of the Lake Country Business Park to development at large rather than that specific development? It seems like those costs should be the responsibility of the owners of that development. Maybe via a longterm loan that runs with the properties rather than the owners? I don't see how a new townhome on Woodsdale benefits more than a current home on Chase or Okanagan Centre road. Can you explain how you came to the 80%-20% calculations if you remove the specifically affected properties that will become the Lake Country Business Park? Thank you for your time. on Twitter Share Hello. Thank you for providing this information. Can you explain the rationale for charging the servicing costs of the Lake Country Business Park to development at large rather than that specific development? It seems like those costs should be the responsibility of the owners of that development. Maybe via a longterm loan that runs with the properties rather than the owners? I don't see how a new townhome on Woodsdale benefits more than a current home on Chase or Okanagan Centre road. Can you explain how you came to the 80%-20% calculations if you remove the specifically affected properties that will become the Lake Country Business Park? Thank you for your time. on Linkedin Email Hello. Thank you for providing this information. Can you explain the rationale for charging the servicing costs of the Lake Country Business Park to development at large rather than that specific development? It seems like those costs should be the responsibility of the owners of that development. Maybe via a longterm loan that runs with the properties rather than the owners? I don't see how a new townhome on Woodsdale benefits more than a current home on Chase or Okanagan Centre road. Can you explain how you came to the 80%-20% calculations if you remove the specifically affected properties that will become the Lake Country Business Park? Thank you for your time. link

    Hello. Thank you for providing this information. Can you explain the rationale for charging the servicing costs of the Lake Country Business Park to development at large rather than that specific development? It seems like those costs should be the responsibility of the owners of that development. Maybe via a longterm loan that runs with the properties rather than the owners? I don't see how a new townhome on Woodsdale benefits more than a current home on Chase or Okanagan Centre road. Can you explain how you came to the 80%-20% calculations if you remove the specifically affected properties that will become the Lake Country Business Park? Thank you for your time.

    LCD asked 7 months ago

    Thank you for the question. The main rationale for including the servicing costs of the Lake Country Business park in the Development Cost Charge (DCC) program is that this project includes much more than just the business park itself, it includes servicing that greatly benefits the surrounding area, including upcoming and future developments; and it benefits the entire community in the form of improved infrastructure and enhanced road networks.

    DCCs are one of the tools available to local governments to use as a cost recovery mechanism for apportioning infrastructure project costs amongst developers of land. It allows us to pool monies from many developers so that funds can be raised to construct the necessary services in an equitable manner. Under the pooling method you will not necessarily see funds collected from one part of the municipality used directly in that location.

    In this case, there are three main groups who benefit from this project: the property owners of the specific parcels where the business park will be, the general community from the businesses and jobs that will be created as well as the additional tax revenues that will be generated that will benefit the overall community, as well as other development. In this case there is other development on that side of the community that will benefit from having the additional services in the form of an enhanced road network, increased water network, as well as the effluent force main which allows long term increased sewer treatment and disposal capacity in the area. Developments such as McCoubrey Plateau, future phases of Lakestone and any other potential major developments in the area would also greatly benefit from the additional services in the area – therefore the rationale for inclusion in the DCC program.

    The District is also considering other funding sources and strategies such as revitalization tax exemptions and Local Service Areas. A Local Service Area could occur where a portion of the costs would be borne by specific parcels that are directly benefiting which the costs could either be paid by the parcel owners up front or over a long term loan such as you have mentioned in your comment. A revitalization tax exemption is another strategy that would be considered. It has the benefit of providing incentives for parcel owners to move ahead with development and potentially offset some, or all, of a Local Service Area cost (these types of incentives are just on the incremental increased value of properties). Given the scale of this project, multiple funding methods will be required and everything is being considered to pay for all the different aspects of this project.

    As to specifically why 80%/20%, this was the best estimate of the benefit allocation. It was determined the primary benefiter of this project would be development, both where the business park is, and the surrounding areas where having improved roads, water and sewer would create significant opportunities for future development to tie into services and connect with road networks.

  • Share Thank you to Staff for presenting and informing the Development Community about this critical update. I appreciate that the Master Plans outline required and desired infrastructure, but massive increases in DCCs from the costs of this program risk pushing development to other communities. I would ask Council to consider either the use of Assist Factors to ease the transition, or revisit the Benefit Allocation which is pushing significant portions of already-required upgrades to the future residents/growth. If the growth slows and the costs/infrastructure can be spread over 30 years instead of 20, the costs change dramatically. I appreciate the challenge of this critical exercise, but raising DCCs too high may hurt Lake Country long term. Thanks for your consideration. on Facebook Share Thank you to Staff for presenting and informing the Development Community about this critical update. I appreciate that the Master Plans outline required and desired infrastructure, but massive increases in DCCs from the costs of this program risk pushing development to other communities. I would ask Council to consider either the use of Assist Factors to ease the transition, or revisit the Benefit Allocation which is pushing significant portions of already-required upgrades to the future residents/growth. If the growth slows and the costs/infrastructure can be spread over 30 years instead of 20, the costs change dramatically. I appreciate the challenge of this critical exercise, but raising DCCs too high may hurt Lake Country long term. Thanks for your consideration. on Twitter Share Thank you to Staff for presenting and informing the Development Community about this critical update. I appreciate that the Master Plans outline required and desired infrastructure, but massive increases in DCCs from the costs of this program risk pushing development to other communities. I would ask Council to consider either the use of Assist Factors to ease the transition, or revisit the Benefit Allocation which is pushing significant portions of already-required upgrades to the future residents/growth. If the growth slows and the costs/infrastructure can be spread over 30 years instead of 20, the costs change dramatically. I appreciate the challenge of this critical exercise, but raising DCCs too high may hurt Lake Country long term. Thanks for your consideration. on Linkedin Email Thank you to Staff for presenting and informing the Development Community about this critical update. I appreciate that the Master Plans outline required and desired infrastructure, but massive increases in DCCs from the costs of this program risk pushing development to other communities. I would ask Council to consider either the use of Assist Factors to ease the transition, or revisit the Benefit Allocation which is pushing significant portions of already-required upgrades to the future residents/growth. If the growth slows and the costs/infrastructure can be spread over 30 years instead of 20, the costs change dramatically. I appreciate the challenge of this critical exercise, but raising DCCs too high may hurt Lake Country long term. Thanks for your consideration. link

    Thank you to Staff for presenting and informing the Development Community about this critical update. I appreciate that the Master Plans outline required and desired infrastructure, but massive increases in DCCs from the costs of this program risk pushing development to other communities. I would ask Council to consider either the use of Assist Factors to ease the transition, or revisit the Benefit Allocation which is pushing significant portions of already-required upgrades to the future residents/growth. If the growth slows and the costs/infrastructure can be spread over 30 years instead of 20, the costs change dramatically. I appreciate the challenge of this critical exercise, but raising DCCs too high may hurt Lake Country long term. Thanks for your consideration.

    JamesBKay asked 8 months ago

    Thanks very much for the excellent feedback and suggestions. Yes, Council will be looking at both the Assist Factors and Benefit Allocation in making the difficult decisions regarding updating the DCC Bylaw this summer.  

    The benefit allocation considers the proportion of each project that benefits new development vs the existing community. It varies project by project based on the technical rationale for the allocation. The Municipal Assist Factor (MAF) is something that is required by legislation for municipalities to “assist” development. Typically it is set at a minimum of 1% for most infrastructure categories but it is something that is set at Council’s discretion. This is in addition to the municipal portion of the total program costs coming from non-DCC revenue sources.  The District acknowledges it has a responsibility to provide infrastructure and has assumed a higher share than previously allocated.

    More frequent updates to the DCC bylaw in future will resulting in keeping better pace with development and economic changes that impact the investment in infrastructure to support our growing community.  While the current DCC rates have not changed since 2016, we will plan for a major update every 5 years and minor updates every 2-3 years.

Page last updated: 17 Jul 2024, 11:20 AM