City Updates Development Cost Charges

As of June 1st, 2016 the City of Duncan is updating their Development Cost Charges (DCCs), to help offset the infrastructure costs associated with new developments.

At the May 16, 2016 Council meeting, Council adopted a new DCC Bylaw, which sets out the new DCCs. To figure out the new charges, the City looked at the:

  • amount of growth expected;
  • infrastructure services required;
  • estimated cost of those services;
  • impact of growth on the services; and,
  • total cost of those services to be paid by the existing users.

“The new DCCs are a fair and equitable way to support future developments by providing the means to finance capital projects, such as roads and sewers,” said Mayor Kent. “The City’s DCC Bylaw had not been updated in many years and now these new rates reflect the current construction costs of the infrastructure required to support new development.”

To encourage density and sustainability, the City has also adopted a DCC Reduction Bylaw. Developers of multi-family residential property may qualify for a 50% reduction in DCCs if they achieve the desired density levels, and if they meet the criteria set out in the City’s sustainability checklist, they can qualify for a further 25% rate reduction.

The new DCCs are still among the lowest in the area and developers who are able to take advantage of the DCC reductions will pay less under the new bylaw than they would have under the previous bylaw.

 

Talitha Soldera
Director of Finance
talitha@duncan.ca
250-746-6126

 

Frequently Asked Questions

What are Development Cost Charges?

Development Cost Charges (DCCs) are levied on new developments to assist in financing the cost of upgrading or providing infrastructure (road/transportation, water, sanitary sewer, and drainage), or acquiring and developing parkland, which are needed to support the new development. DCCs offset the portion of the costs of this infrastructure that are incurred as a direct result of the new development.

Why were the DCCs updated in 2016?

The City of Duncan has been charging DCCs since 1994, and since that time only the road/transportation DCC has been updated, in 2000. A new servicing study has recently been completed, giving the City a better understanding of the infrastructure investment that will be required to keep up with expected population growth and, as a result, the City has revised its capital infrastructure programs. In addition, construction costs have gone up and it now costs significantly more than it did in 1994 to undertake infrastructure improvements.

How are DCCs collected?

DCCs for single-family detached housing are calculated per dwelling unit and are paid before subdivision approval.

DCCs for multi-family residential are calculated per dwelling unit and are paid before a building permit is issued. * To encourage density, developers of multi‐family residential property may qualify for a 50% reduction in DCCs if they achieve a density of 100 units per hectare, or the maximum density permitted on a lot. In addition, new multi‐family development that meets criteria set out in the City’s sustainability checklist can qualify for a further 25% rate reduction.

DCCs for commercial, industrial or institutional developments are calculated per square meter of building area and are paid before a building permit is issued.*

*No DCCs are payable where the construction authorized does not exceed $50,000 or where the gross floor area of the dwelling unit is no larger than 29 square metres.

How is DCC money used?

DCCs collected are held in a special reserve fund until enough money is available to complete capital projects planned for in the DCC program. DCC projects are prioritized on the location and needs of growth.

What kind of projects are funded by DCCs?

DCCs are used to assist in the funding of road improvements, traffic circles, traffic calming works, and sidewalks; water main upgrade projects, new water reservoir, new well, new pump station, and chlorination works; sewage treatment, sewage lift station upgrades, and sewer main upgrades; trunk mains upgrades, and drainage pump station improvements; and, park land acquisition, landscaping, restrooms, playground equipment, and playing field equipment.

What are DCCs not used for?

Replacing, operating, and maintaining roads, water infrastructure, sanitary and storm works already in place to serve the existing City residents and businesses. DCCs cannot be used to fund libraries, fire halls, police stations, and other City buildings.

How much are DCCs?

Land Use Transportation Water Sanitary Sewer Drainage Parks
Acquisition and Development
Total Collection Basis
Single Family
Residential or Duplex
$1,470.28 $2,033.31 $1,888.74 $2,001.05 $421.21 $7,814.59 Per lot or per dwelling unit
Townhouse $862.57 $1,586.69 $1,473.87 $1,160.61 $328.69 $5,412.43 Per dwelling unit
Apartment $810.29 $1,234.09 $1,146.35 $540.28 $255.65 $3,986.66 Per dwelling unit
Commercial $16.99 $5.29 $6.55 $8.00 $1.10 $37.93 Per m2 of gross
floor area
Industrial $13.07 $4.70 $8.19 $7.00 $0.97 $33.93 Per m2 of gross
floor area
Institutional $15.68 $2.94 $10.92 $6.00 $0.61 $36.15 Per m2 of gross
floor area