Development Cost Charges (DCCs) are fees that municipalities charge developers of subdivisions or new buildings, these fees help fund the infrastructure required to support the new developments. DCCs help facilitate development by providing a method to finance some of the capital projects needed to keep up with growth: for example, increased sewage treatment facility capacity, increased pipe and pumping capacity, and transportation improvements (example Selkirk Hill and a multi-use path on Golden Donald Upper).
The fees are placed in reserve funds to contribute to future capital projects identified within the Town’s DCC Program.DCCs do the following:
- Help ensure growth pays for growth;
- Meet the beneficiary pay principal (developers are charged in proportion to how much the development benefits);
- Provide greater certainty to developers;
- Fairly distribute growth costs across developments
- Help communities save for growth-related infrastructure; and
- Reduce the potential for tax burden on residents.
Background: DCCs in Golden
The Town’s current Development Cost Charges Bylaw No. 1304 was adopted in 2012 and includes DCCs for water and sewer.
Proposed DCC Program
Following the completion of transportation, active transportation, water and sewer master plans, a new DCC program is being proposed. The new program will continue to include DCCs for water and sewer, and as proposed, will also include two new DCC categories: transportation and parks.
Visit www.golden.ca/dcc to learn more about the DCC program, including links to masterplans, previous Council presentations and a copy of the slide deck and recording of the recent stakeholder virtual session.
When creating a DCC program benefit allocation is determined. Some projects benefit growth entirely and some DCC projects include a municipal benefit allocation (portion to be funded by the taxpayer or water/sewer utility; however, all projects include the legislated minimum municipal assist factor of 1% (funded by the municipality),
For example, the Selkirk Hill Transportation Project estimated at $3,180,000 is 50% allocated to growth ($1,590,000), with a 1% municipal assist factor ($15,900) so the amount recoverable by DCCs (from development) is $1,574100 and the existing taxpayer portion would be $1,605,900.
An example that is 100% allocated to growth are upgrades at the sewage treatment plant. A proposed project is the Moving Bed Biofilm Reactor (MBBR) estimated at $13,800,000. The existing taxpayer portion would be only the 1% municipal assist factor of $138,000
Besides the DCC program the Town (the taxpayer) has supported growth related infrastructure in many ways including Master Plans, development related infrastructure financing guides, a new water well, front-ending the 12th St Lift Station and pipes and proposed cost sharing on Pine Drive Alternative Sewer Alignment.
Now that you've reviewed this project, please share your opinion by answering the following 6 questions about the DCC update. This survey should take approximately 5 minutes to complete. Your feedback will be used to inform Council's decisions on the DCC program.