The Town of Golden Standing Committee Finance on Finance met on Tuesday, May 6th, at 5:00 p.m.
Following is a summary of the agenda, the main subject being a report from Urban Systems regarding Development Cost Charges (DCC).
The purpose and scope of the proposed DCC bylaw update for the Town of Golden can be outlined as follows:
The main purpose of the proposed DCC bylaw update is to perform a major revision of the existing DCC Bylaw, which was last updated in 2012.
The presentation to the Standing Committee on Finance is specifically intended to provide Council with an update on the DCC work done so far, review draft DCC rate scenarios with Council, and outline the next steps for updating the bylaw.
Reasons for the Update:
Several key drivers necessitate this update:
• Completed Projects: Projects included in the previous 2012 bylaw have been completed.
• Adding New Categories: The update allows the Town to take advantage of currently available DCC Categories, specifically adding transportation and parks programs, which were not included in the previous bylaw.
• Best Practice: It is considered best practice to complete a major update every 5 years.
• New Growth Patterns: Changes in growth patterns are resulting in different infrastructure needs and costs.
• Review Growth Categories: The update involves reviewing the categories used for calculating growth.
• Legislative Changes: The update incorporates recent legislative changes, including Bills 16, 44, 46, and 47.
• Reflecting Current Conditions: The review reflects current growth, infrastructure needs, and costs.
Scope:
The scope of this DCC bylaw update is comprehensive, involving a detailed review of various components:
• Covered Services:
DCCs are a one-time charge intended to pay for major transportation, water, sewer, drainage, parks, protective services, and solid waste capital projects that are necessary to service growth. These projects must be growth-related.
• Growth Projections:
The update includes an update to growth projections, based on the Town’s historical building permit data, Interim Housing Needs Report (2024), Statistics Canada Census (2021), and BC Stats. This includes a projection of 1.5% population growth per year (+1,811 people by 2046) and separate allowances for ICI (Industrial, Commercial, Institutional) growth based on anticipated development patterns.
• Land Use Categories:
There is an update to land use categories used in the calculations.
• Projects and Capital Costs: The scope involves identifying new projects necessary to support growth, often based on master plans and studies, and removing completed projects. This includes a range of projects across Transportation, Water, Sewer, and Parks services with associated total capital costs.
• Cost Allocation:
The process involves determining the benefit to new development from these projects (Benefit Allocation) and determining the Municipal Assist Factor (MAF), which is the amount the municipality contributes in addition to the portion for existing residents. The draft scenarios presented set all programs at the minimum 1% MAF.
• DCC Rates: The core output is the calculation of draft DCC rates for various land uses, such as Low Density Residential, Medium Density Residential, High Density Residential, Commercial, Commercial Accommodation, Industrial, and Institutional. Different scenarios (Scenario 1: High Priority, Scenario 2: Med-High Priority) with different project lists and associated costs/rates were developed and reviewed.
• Municipal Contribution: The update considers the municipal costs (Municipal Assist Factor and portion allocated to existing development) associated with the projects and the potential impact on annual property tax and utility fee increases for existing residents.
• Exemptions, Waivers, and Reductions:
The bylaw can incorporate statutory DCC exemptions and permitted variations. It also allows for waivers and reductions for certain types of development, such as not-for-profit affordable housing, for-profit rental housing, or housing designed for reduced environmental impact, noting that the Town must fund the waived/reduced amount from non-DCC dollars.
• Comparisons: The update process includes comparing the proposed Golden (2025) DCC rates to current and proposed rates in other communities for different land uses. It also compares MAF, waivers, and reductions across these communities.
The DCC process is described as a technical exercise that is put through a political lens, indicating that Council direction is integral to finalising the rates and bylaw. The next steps involve receiving Council’s direction, engaging with the Ministry and the development community, and proceeding through the formal bylaw adoption process.
The presentation included comparisons of the proposed Golden (2025) DCC rates (specifically the Scenario 2 rates in the summary table) for different land uses against existing Golden rates (2012) and current or proposed rates in other communities like Fernie, Salmon Arm, Cranbrook, Invermere, Penticton, Sun Peaks, and Revelstoke. A comparison of MAF, waivers, and reductions in these communities was also provided. Notably, Revelstoke’s proposed 2025 bylaw includes waivers for not-for-profit rental housing and reductions for for-profit rental housing.
Finally, three Council options for moving forward were presented:
1. Council accept Scenario 1 rates and direct staff to proceed with a developer information session.
2. Council accept Scenario 2 rates and direct staff to proceed with a developer information session.
3. Council direct staff to conduct further review of the DCC rates and return to Council with revised rates.
The presentation concluded by outlining the next steps in the DCC bylaw update process, which include receiving Council’s direction, liaising with the Ministry for a pre-review, engaging with the development community, reporting back on feedback, proceeding with three readings of the bylaw, and finally submitting the bylaw to the Province for approval.
