The City of Cranbrook will update its development cost charge (DCC) bylaw, which has been unchanged for 18 years.
City staff said the changes will update the fees that developers need to pay to help offset the cost of new infrastructure and increased use from new subdivisions and other developments in Cranbrook
“The development itself is still paid for by the developer. They put the utilities, water sewer, pave the roads and put the sewers in. What this is for is to cover the additional pressure on our existing systems,” said Mayor Lee Pratt.
City officials noted that the bylaw has not been updated since 2004.
“I’m sure everybody can appreciate that things have changed in the last 18 years. We’re still just below the middle of the pack for DCC changes, and we’re phasing it in over a couple of different programs so it’s not a big jump all at once,” said Pratt.
The DCC review will determine how much of the increased cost of maintaining infrastructure should be paid for by the developer and how much should be paid for by taxpayers.
“Although there is a significant proposed increase in DCCs over the next four years, we need to ensure that new growth pays for growth and the brunt of the cost is not resting on the backs of our existing residents,” said Pratt
According to the city, the DCC would cost about $11,000 to $12,000 if a developer were to build a single-family home at the cost of $600,000 on a lot. This means about two per cent of the total value of the home and lot will help pay for the installation of infrastructure to support growth.
“Right now, the current DCC bylaw really places a heavier burden on our current taxpayer, and we are expecting this bylaw update will help balance that burden out, so that development pays for a fair portion of the costs to service new development while ensuring that we remain competitive with other communities,” said Pratt.
The DCC bylaw will come forward to council for adoption later in the spring, with the changes to be implemented over a three-year period.