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Kelowna  

City of Kelowna plans to increase development cost charges 2.4 per cent

Developer charges going up

The City of Kelowna is looking to increase the cost developers pay for infrastructure improvements through new construction.

Due to the rising cost of construction, the city says it needs to increase development cost charges to keep pace.

“Provincial legislation permits local governments to increase DCC’s consistent with the Consumer Price Index without requiring provincial approval,” a report for council states.

“The CPI for 2024 was 2.5 per cent and the same is proposed for this DCC increase.”

The city uses development cost charges on new residential, commercial, industrial and institutional construction to help fund road, water, sanitary and drainage infrastructure as well as parkland acquisition and development.

The city’s current DCC program encompasses 234 projects through 2040 with a total estimated cost of $1.33 billion.

DCC revenues can only be used for projects outlined in that program.

Of the $1.33 billion, 65 per cent comes from DCC’s, 29 per cent from utility and tax revenues and six per cent from grants and other sources.

“While key infrastructure cost drivers are entirely beyond the city’s control, the city has contained the size of the DCC program and implemented improvements that reflect the true cost of servicing growth while at the same time ensuring the DCC program is understandable, transparent and aligns with best practices," the report concludes.

The District of Lake Country, meanwhile, is in the process of increasing its DCCs by as much as 75 per cent.



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