Development Cost Charges Update and Introduction of Amenity Cost Charges 2025

DEVELOPMENT COST CHARGES

The District of Squamish is updating its Development Cost Charge (DCC) bylaw to allow the District to collect revenue that keeps pace with the increasing costs of infrastructure required to service community growth. DCC bylaws are typically updated every few years to keep up with changing growth patterns and increasing costs of infrastructure. The District of Squamish (District) DCC Bylaw was last reviewed and updated in 2022.

Development contributions through DCCs benefit the community by helping to fund infrastructure to ensure that existing taxpayers are not burdened with costs associated with the demands of new development. DCCs are governed by provincial legislation and can fund a very specific list of projects: sewer, water, drainage, parks and roads. Development Cost Charges (DCCs) are a provincially regulated cost-recovery tool used by the District to support financial sustainability and to adequately service the demands of new development which included new or expanded infrastructure such as such as sewer, water, drainage, parks and roads.

DCCs are charged on new developments, small and large, that involve:

  • Subdivision of property
  • Addition of new dwelling units
  • Expansion of commercial, industrial and institutional buildings

The District of Squamish’s Development Cost Charges are established by bylaw with the approval of the Inspector of Municipalities, and guided under the Local Government Act, Development Cost Charges Best Practices Guide, and the District’s Official Community Plan (OCP) and its suite of Master Plans.

View the current Development Cost Charge Bylaw No. 2911, 2022

AMENITY COST CHARGES

In 2023 the provincial government passed Bill 46, Housing Statutes (Development Financing) Amendment Act which introduced Amenity Cost Charges (ACCs) as a new growth-related capital financing tool under the Local Government Act, for amenities which cannot be recovered through DCCs. This tool is provided as an alternative to Community Amenity Contributions (CACs), which have been provided by developers through the rezoning negotiation process.

Prior to the implementation of ACCs through the enactment of Bill 46, CACs have been utilized by the District to recover capital costs related to community infrastructure from developers. These contributions have been established by District policy and are negotiated with developers on a case-by-case basis through the rezoning process. Amenities could either be offered directly in-kind or as a cash-in-lieu offer.

What can ACCs be used for?

An amenity includes a facility or feature that provides social, cultural heritage, recreational, or environmental benefits which include (but not limited to):

  • Community, youth or senior’s centre
  • Recreational or athletic facility
  • Library
  • Day care facility
  • Public square

Project Information

The District is undertaking a comprehensive review and update of the existing DCC Bylaw and associated financial model, and to develop a new ACC Bylaw in accordance with the applicable legislation. The draft DCC rates and new ACC rates will allow the District to collect revenue that more accurately reflects the costs of infrastructure and amenities required to service and grow the community.

The current calculations are based on draft capital project listings provided through new master planning on water and transportation which are not yet complete and will be updated following Council approval.

The 2025 DCC review includes the following components:

  • Current DCC policies
  • Legislative requirements, including recent amendments
  • Residential and non-residential growth forecasts for the District
  • Future capital requirements to service growth, including the related deductions and allocations;
  • Overall approach and calculation of the DCC;
  • DCC Revenue Forecasting
  • Policy recommendations

Through Bill 46, Housing Statutes (Development Financing) Amendment Act, 2023, the list of eligible services that can be included as part of the DCC calculation has been expanded:

  • Existing eligible services:
    • Sewage (included in DCC calculation)
    • Water (included in DCC calculation)
    • Drainage (included in DCC calculation)
    • Transportation (included in DCC calculation)
    • Parkland improvements (included in DCC calculation)
  • New eligible services: 
    • Fire
    • Police
    • Solid waste and recycling
    • Municipal portion of provincial highway facilities that are cost-shared with the Province (included in DCC calculation)

New Rates

Draft DCC rates

The new draft rates provide a rate comparison of the existing DCCs, relative to the proposed preliminary DCC rates based on land use and type of development. These draft rates are currently subject to further review of calculation assumptions before presented to Council for adoption.

Proposed ACC rates

The proposed ACC rates have been drafted in comparison with ACC rates for various land uses relative to other local governments as of January 2025.

Next Steps

NEXT STEPS

February– March 2025: The District of Squamish and consultant will undertake stakeholder consultation and amend DCC and ACC financial models and associated rates as needed.

March 2025: A final draft of DCC and ACC rates will be presented to Council for consideration of first three readings.

WEBINAR: DCCs and ACCs: What are they and why do they matter?

WANT TO LEARN MORE ABOUT DCCS AND ACCS?

The public is invited to join one of two Districts webinars DCCs and ACCs: What are they and why do they matter?  and learn more about how DCCs and ACCs rates are made, what they are used for and why.

  • Each webinar will begin with a presentation followed by an opportunity for questions and discussion.
  • Each webinar will be recorded live and available to view later online.
  • Participants only need to attend one of two webinars as both will cover the same content.

Webinar one:

Wednesday, February 26, from 6 to 7 p.m.

Join link: https://districtofsquamish.webex.com/districtofsquamish/j.php?MTID=me772732cb1987a2b846f519b949dd0d5

Webinar number: 2773 000 0970

Webinar password: 1234 (1234 when dialing from a phone or video system)

Join by phone: +1-604-449-3026 Canada Toll (Vancouver)

Access code: 277 300 00970

Webinar two:

Thursday, February 27, from 12 to 1 p.m.

Join link: https://districtofsquamish.webex.com/districtofsquamish/j.php?MTID=m3bea6a8289979aece434a1f18e01e1fa

Webinar number: 2771 146 6181

Webinar password: 1234 (1234 when dialing from a phone or video system)

Join by phone: +1-604-449-3026 Canada Toll (Vancouver)

Access code: 277 114 66181


Questions? Email [email protected]