Reviewing and Updating Development Cost Charges

Introduction: Reviewing and Updating Development Cost Charges (DCCs)

Development Cost Charges (DCCs) are a vital financial tool that enable municipalities and regional districts in British Columbia to fund the infrastructure required to support new development—such as water, sewer, drainage, roads, and parks—without placing the burden on existing taxpayers. Authorized under Section 559 of the Local Government Act (LGA), DCCs ensure that growth pays for growth, helping communities maintain livability and service standards as they expand.

Regular review and updating of DCC bylaws is essential to ensure that the charges remain aligned with current infrastructure costs, development trends, and community planning objectives. The Province of British Columbia recommends updating DCC bylaws at least every five years to reflect accurate cost estimates and development projections. This periodic review helps maintain fairness, transparency, and financial sustainability in local government planning.

Importantly, DCCs do not discourage development. When implemented transparently and predictably, they provide developers with a clear understanding of the costs associated with new projects. This predictability reduces uncertainty and risk, which are often greater deterrents to investment than the charges themselves. In fact, the Development Cost Charges Best Practices Guide emphasizes that well-structured DCC programs contribute to a more stable development environment by ensuring that infrastructure keeps pace with growth.

By leveraging DCCs, municipalities can reduce their reliance on property taxes and other general revenues to fund growth-related infrastructure. This approach not only promotes fiscal responsibility but also supports long-term community resilience and affordability.