Development Cost Charges; A Hot Button Issue

Development Cost Charges have become a hot button issue in many communities around BC. This is a letter to the editor of the Rossland Telegraph. http://www.rosslandtelegraph.com/  It stuck a chord with us as there are many similarities between Rossland and Cranbrook when it comes to discussing DCC rates. As a note, Rosslands DCC rates are already over $1000.00 higher than Cranbrooks. Isn't it about time for Cranbrook to address our DCC rates?
To the editor:

Rossland Council has given developers another break which will ultimately be at the expense of taxpayers. At a recent meeting, Council decided not to consider a revised Development Cost Charge (DCC) bylaw until 2011. The ostensible reason given for the delay was the “infrastructure assessment” that is to be undertaken this year.
The “infrastructure assessment” consists of two phases. Phase 1 is a pavement condition assessment of all the roads in Rossland. Phase 2 will include the results of the pavement condition assessment in the existing
Geographical Information System (GIS) database.

None of the DCC projects involve the condition of the existing roads. Thus the “infrastructure assessment” provides absolutely no basis for delaying amendment of the DCC bylaw because it has nothing to do with any proposed DCC projects. Waiting for completion of the “infrastructure assessment” simply provides Council with a convenient excuse to off-load costs that should be paid by developers onto the tax bill paid by homeowners.

DCCs are fees the City can collect from new development to help pay the cost of off-site infrastructure services that are needed to accommodate growth. DCCs are generally collected in advance of the need to install the infrastructure services required by new development. The priority for DCC projects is determined by the amount of development occurring. The priority is not determined by the condition of existing infrastructure.

Council was informed in the spring of 2007 that the DCC bylaw then in place needed to be updated to reflect increasing construction costs over those that existed when the current bylaw was amended in February 2006. A draft DCC bylaw was presented to Council in June 2008 by consultants hired by the City
at a cost of $50,000 to review the existing bylaw. Public consultation was undertaken and a revised version of the consultants report was submitted to the City in July 2009. This revised report was not circulated to Council until June 2010. No explanation for this delay has been provided to Council.
By the time Council gets around to considering the DCC bylaw, the information provided by the consultant will be outdated and the whole process will have to be redone. The money spent for the current review has been wasted. DCCs that are collected from on-going development at the current low rates will not be enough to pay for the projects required to support development in the future. The result will be taxpayers paying the difference.

Taxpayers in Rossland have subsidized development in Rossland to the tune of over $2,000,000 already. Delaying the review of the DCC bylaw will only increase that subsidy. I think Council needs to think about who they are representing.

Laurie Charlton
Rossland