DCC Bylaw Review

OVERVIEW
The Town of Osoyoos currently levies Development Cost Charges (DCCs) on new development to pay for new or expanded infrastructure such as sewer, water, drainage, parks and roads necessary to adequately service the demands of new development.

It is considered good practice to update a DCC Bylaw every five (5) years in order to ensure that the estimates of new development and infrastructure costs are kept current. The Town’s current DCC Bylaw No. 1322 was adopted in 2016 and seen to require updating.

PROJECT STATUS
In 2023, TRUE Engineering Limited was engaged by the Town to complete an updated Technical Appendix in support of an updated DCC Bylaw.

This technical appendix will consider, amongst other things, the Town’s new Zoning Bylaw No. 1395, adopted in September of 2024, as well as the Housing Statues (Development Financing) Amendment Act (2023), which allows for the collection of charges for new categories.

It is anticipated that a draft of the new DCC Bylaw and Technical Appendix will be presented to Council in early 2025.

ENGAGEMENT OPPORTUNITIES
The Local Government Act does not impose any mandatory public consultation requirements in relation to the adoption of a new DCC Bylaw, however, the Inspector of Municipalities may refuse approval of a DCC bylaw if it is determined that the DCCs are excessive, deter development or discourage construction of reasonably priced housing.

Evidence of public/stakeholder consultation may address some of these issues and, it is for this reason, that the province encourages, as a best practice, a public process to obtain input from stakeholders prior to consideration of the bylaw by Council.

Opportunities for public input will be determined following Council consideration of the draft bylaw and Technical Appendix.

WHAT ARE DEVELOPMENT COST CHARGES?
DCCs are special levies imposed by a municipality to help pay for the cost of infrastructure enhancements required to service new development. Although the ongoing cost of maintenance and eventual replacement of existing infrastructure is assessed to the taxpayers, additional burdens for capacity upgrades are placed on existing infrastructure when growth occurs in the community.

New residences generate higher demand on municipal services including water, sewer, storm drainage, roads, parks, fire protection facilities, police facilities, and solid waste and recycling facilities. Similarly, new commercial, institutional, and industrial development will generate demand for these infrastructure categories.

When a new development is approved for subdivision or construction, the developer will pay for the direct servicing costs to the property, including extensions to water and sewer mains, and road and sidewalk dedication and construction as needed. However, these direct servicing cost contributions do not address the diminishing capacity of the Town’s existing infrastructure.

DCCs provide a mechanism for collecting funds to assist financing of infrastructure needs beyond the development location itself.