Infrastructure – The Town of Golden is preparing for an important discussion about how to fund the infrastructure needed to support future development. At the Standing Committee on Finance meeting on April 29, 2025, council members heard a presentation from Urban Systems Ltd. on new guidelines for recovering the costs of major projects like water, sewer, and road upgrades.
The proposed Development-Related Infrastructure Funding Guidelines aim to help the Town ensure that the financial burden of growth is shared fairly, using a variety of cost recovery tools beyond the Town’s current reliance on Development Cost Charges (DCCs) and Servicing Agreements.
At the heart of the guide is the “Benefiter Pays” principle — the idea that those who benefit from new infrastructure should help pay for it. Other guiding principles include protecting the Town’s limited borrowing capacity, ensuring new development covers its own costs, and minimizing impacts on existing taxpayers.
The town of Golden, BC, currently faces financial resource constraints. Over 40 per cent of Golden’s borrowing capacity has already been used, and reserves are limited, making it crucial to plan carefully for future projects. Golden’s leaders are emphasizing caution to avoid overextending municipal finances, while still preparing for the demands of a growing community.
Exploring New Funding Options
The guide outlines several alternatives for funding infrastructure beyond traditional DCCs, including:
• Latecomer Agreements: Allowing developers who build infrastructure to recover costs from others who later benefit.
• Development Works Agreements (DWAs): Enabling groups of property owners to share the cost of off-site improvements.
• Local Area Services: Imposing special taxes in areas that directly benefit from new infrastructure.
• Development Agreements and Revitalization Tax Exemptions: Offering flexibility during rezoning or revitalization efforts.
Each tool comes with specific rules, and often multiple tools can be combined for one project, but care must be taken to avoid double-charging developers.
“These funding tools allow municipalities to facilitate development without having to shoulder all the upfront costs,” the guide notes. “But it’s critical to select the right tool for each situation.”
The Town will also need to consider when infrastructure upgrades are urgently needed to avoid service bottlenecks, and where it makes sense to coordinate efforts across multiple developments.
Local Examples for consideration
Urban Systems has provided local case studies showing how these tools could help advance much-needed projects, including:
• NE Bench Water Upgrades: Booster stations and water mains to serve growing neighbourhoods.
• Kicking Horse Drive Sanitary and Water Improvements: Sewer and water extensions to accommodate future development north of 7th Street North.
• 13th Street South Sanitary Sewer Upgrades: Upgrading capacity to support infill development.
• Pine Drive Alternative Sewer Alignment: Exploring a more efficient sewer route for the Granite and Golden Donald Upper Road areas.
In each case, developers could either front the costs and recover them later, or work together through agreements, while the Town would maintain control over timing, costs, and infrastructure standards.
The need for proactive planning is especially pressing as Golden continues to attract new residents and investment, boosting the local economy but also increasing demand on critical infrastructure.
Property Tax Adjustments
At a recent meeting on April 22, 2025, Council made decisions affecting property tax rates. To create more consistency among business classes, Council directed staff to gradually align Class 8 (Business and Other) tax rates with Class 5 and 6 (Light and Major Industry) over the next three years. The Class 8 tax ratio has been increased to 1.48 for 2025.
These tax changes and the infrastructure funding discussion reflect a broader strategy to manage Golden’s financial health while supporting responsible growth.
Council’s consideration of the new Development-Related Infrastructure Funding Guidelines marks an important step in shaping how Golden grows, ensuring the community’s expansion is managed in a sustainable, fair, and financially responsible way.
The full document is available to download in detail at Golden.ca.
