Development Cost Charge (DCC) Bylaw Review
Overview
The Regional District currently levies Development Cost Charges (DCCs) or Capital Expenditure Charges (CECs) on new development to pay for new or expanded water and/or sewer infrastructure necessary to adequately service the demands of new development in the communities of Faulder, Naramata and Okanagan Falls.
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 and the Regional District’s current DCC and CEC bylaws date to between 1994 and 2009 and are seen to require updating.
Project Status
The Regional District is currently preparing a Request for Proposals (RFP) in relation to updating the various DCC and CEC bylaws through the preparation of a technical appendix that will establish new charges for water and sewer.
It is anticipated that the RFP will be released in March of 2025, and a contract awarded shortly thereafter with the project completed by the end of 2025.
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 residential commercial, institutional, and industrial development will generate higher demand on water and sewer services.
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, as needed. However, these direct servicing cost contributions do not address the diminishing capacity of the Regional District’s existing infrastructure.
DCCs provide a mechanism for collecting funds to assist financing of infrastructure needs beyond the development location itself.
Current DCC & CEC Bylaws
The Regional District’s current DCC and CEC bylaws can be accessed at the following links:
Naramata
- Naramata Comprehensive Capital Expenditure Charge (Water) Bylaw No. 443, 1994
- Naramata Water System Development Cost Charge Bylaw No.1804, 1997
Okanagan Falls
- Okanagan Falls Specified Area Sanitary Sewer System Local Service Establishment Bylaw No. 1239, 1991
- Okanagan Falls Sanitary Sewer Development Cost Charge Bylaw No. 2486, 2009
- Okanagan Falls Water Service Establishment Bylaw No. 2978, 2022
- Okanagan Falls Irrigation District Comprehensive Capital Expenditure Charge Water Bylaw No. 371, 2012
DCC Waiver Bylaw
Studies and Reports
Naramata
- Naramata Water System Capital Plan & DCC Review – Asset Management and Capital Plan Report (2012)
- Naramata DCC Options Analysis (2014)
- Naramata Water Development Cost Charge Bylaw – Draft Background Report (2014)
Okanagan Falls (Sewer)
- Okanagan Falls Sewage Treatment Plant DCC – Implementation Steps (2008)
- Okanagan Falls Sewage Treatment Plant DCC (2013)
- Okanagan Falls Sewage Mater Plan (2024)
Okanagan Falls (Water)
- OK Falls Water Master Plan (2021)
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 formal consideration of the bylaw by the Regional District Board.
Opportunities for public input will be determined following Board consideration of the draft bylaw and technical appendix later in 2025.