FAQs
Who pays DCCs and how are they collected?
Development Cost Charges (DCCs) are paid by applicants at the time of subdivision (for single detached lots) or building permit (for all other development). DCCs for residential developments are calculated based on the number of new lots/units created. DCCs for commercial, industrial and institutional development are based on a square metre of gross floor area (GFA) for new construction or additions.
As per provincial legislation, the following types of development are exempt from paying DCCs: places of worship; self-contained residential units less than 29sq m (312 ft sq); and building permits for work less than $50,000 in value.
Why update the DCC Bylaw now?
Provincial best practices recommends updating DCC programs every five (5) years, so it is overdue. Since the last update, the District has new information on growth projections as well as capital projects, based on recently approved infrastructure master plans for water, sewer, and mobility.
Since the last DCC update in 2016, construction costs and land values have changed considerably, which need to be reflected in the DCC rates.
When do the new DCC rates come into effect?
DCC rates will be in effect 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.
Are the DCC rates proposed based on the current Lake Country OCP growth estimates?
DCC rates are based on current growth projections utilized for infrastructure master planning (e.g. LWMP) and the OCP. They have been adjusted to accommodate only the DCC-chargeable growth (e.g. not retrofit growth identified in the LWMP).
Given that DLC has consistently underestimated their growth, would it be fair to reassess DCC rates for single family and multi-family based on the housing needs assessment that the District will need to complete prior to January 1 2025?
As new information becomes available, the District will update its plans accordingly, including the DCC program. Best practices indicates a major DCC review every 5 years, minor reviews every 2-3 years, and annual inflationary adjustments as necessary.
It's now July, what has changed for 2nd reading of the bylaw from the May 2024 1st reading?
•On May 21, 2024 Council gave 1st Reading (initial consideration) to an updated DCC Bylaw; and at that meeting Council raised some questions regarding the infrastructure required to service the Lake Country Business Park (LCBP).
•Since then, District staff and consultants have undertaken additional analysis and modeling, and we are proposing an amended DCC Bylaw at 2nd reading (July 16th) which includes the introduction of an Area-Specific DCC for the LCBP to address the site-specific infrastructure needs.
Additional analysis and scenario review included the following:
•Reviewed industrial/commercial growth projections for LCBP based on an updated development area following future road and utility re-alignment.
•Based on these updated growth projections, re-considered the 20-year timeline to be consistent with OCP, infrastructure master plans, and LCBP servicing plan.
•For the ~$30M infrastructure requirements for LCBP, worked with District staff and consultants to determine road/utility re-alignment costs (vs. just upsizing) to service business park development, for consideration of an Area-Specific DCC.
View the PowerPoint presentation for the July 16 Council Meeting and not the difference between Bylaw 1st Reading DCC Rates - 10-year program (shown on slide 3) and compare it with the Recommended DCCs at 2nd Reading - 20-year program (shown on slide 6).
View the video of the presentation to Council and discussion: Development Cost Charge (DCC) Amendment Bylaw 1233, 2024 - Regular Council Meeting - July 16, 2024 (escribemeetings.com)