Development Cost Charge (DCC) Bylaw Review

Overview

The Regional District currently maintains nine (9) different Development Cost Charge (DCC) and Capital Expenditure Charge (CEC) bylaws which levy charges on new development to pay for new or expanded water and/or sewer infrastructure necessary to adequately service the demands of new development in the communities.

It is considered best practice to conduct a major DCC update at least every five years as a valid DCC bylaw requires current growth assumptions, a reviewed capital program, removal of completed projects, and updated technical calculations. This is particularly important considering that DCCs and CECs are only intended to fund the specific capital infrastructure projects that were used to calculate and establish the charge.

If the infrastructure originally identified to support the imposition of charges has subsequently been built, the DCC or CEC has served its purpose. Given the period in which a majority of the Regional District’s DCC and CEC bylaws were enacted, it is being proposed that the majority of these be repealed.  The exception to this are the DCC and CEC bylaws that apply to Okanagan Falls as it is being proposed that these be retained in order that the future Council of the Okanagan Falls municipality can determine if a review of the charges being applied is warranted.

The Regional District is proposing to continue with a capacity modelling/analysis of the Naramata Water System, which will inform if a new DCC Bylaw for this community is required in future, or if some other form of charge is more appropriate.

Amendment Bylaw Status

DocumentsPublic ConsultationRegional District Board Consideration

Draft Amendment Bylaws:

Draft Bylaw Repeal Bylaw No. 3113

Draft Okanagan Falls Sanitary Sewer DCC Amendment Bylaw No. 2486.03

(version - 2026-05-21) 

Not applicable

Electoral Area Services Committee:

Administrative Report

Draft Bylaw No. 3113

Draft Amendment Bylaw No. 2486.03

PowerPoint Presentation

Minutes (2026-05-21)

 

Bylaw Introduction (1st, 2nd & 3rd readings):

Administrative Report

Draft Bylaw No. 3113

Draft Amendment Bylaw No. 2486.03

Minutes (2026-06-04)

 

Final Readings (adoption):

Administrative Report

Draft Bylaw No. 3113

Draft Amendment Bylaw No. 2486.03

Minutes (2026-06-18)

What are Development Cost Charges?

DCCs are special levies imposed by a municipality to help pay for the cost of infrastructure enhancements required to service new development.  Although the ongoing cost of maintenance and eventual replacement of existing infrastructure is assessed to the taxpayers, additional burdens for capacity upgrades are placed on existing infrastructure when growth occurs in the community.

New residential commercial, institutional, and industrial development will generate higher demand on water and sewer services.

When a new development is approved for subdivision or construction, the developer will pay for the direct servicing costs to the property, including extensions to water and sewer mains, as needed. However, these direct servicing cost contributions do not address the diminishing capacity of the Regional District’s existing infrastructure.

DCCs provide a mechanism for collecting funds to assist financing of infrastructure needs beyond the development location itself.

Studies and Reports

Naramata

  • Naramata Water System Capital Plan & DCC Review – Asset Management and Capital Plan Report (2012)
  • Naramata DCC Options Analysis (2014)
  • Naramata Water Development Cost Charge Bylaw – Draft Background Report (2014)

Okanagan Falls (Sewer)

  • Okanagan Falls Sewage Treatment Plant DCC – Implementation Steps (2008)
  • Okanagan Falls Sewage Treatment Plant DCC (2013)
  • Okanagan Falls Sewage Mater Plan (2024)

Okanagan Falls (Water)

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