If other municpalities are starting to question the cost involved in providing services to new developments in their city then why is Cranbrook not doing the same? Our Development Cost Charges (what we charge to a developer to provide city services) are some of the lowest in the East Kootenays. With City of Cranbrook taxes increasing isn't it about time to have a discussion about how much developers should actually be paying. Please comment and let us know what you think. Lets start the discussion here.
The following is a article from the Calgary Herald by Jason Makusoff.
New suburbs asked to shoulder higher share of infrastructure costs
Builders say movewould cost $10,000 perhouse
Construction of new homes, seen here on March 12, 2010, is thriving in the new section of Cranston in Calgary's deep south. Calgary's land developers and new homebuyers will pay more of the costs of new suburban infrastructure under a plan that got aldermen's early endorsement Wednesday.
For nearly a decade, the full costs of water and sewer lines for Calgary's newest suburbs have been paid by the whole city, and city officials are warning that could send propel utility bills skyward.
But shifting the cost to developer levies -- along with hiking surcharges for other public works, such as fire halls -- comes with its own bill of roughly $10,000 per new house, executives in the suburb-building industry said Wednesday.
Developers acknowledge they must share more of the burden for growth but are wary of a sudden and sharp uptick in their fees.
"We need to see that number phased in, so the impact on the homeowner isn't as abrupt," said Richard Priest, senior vice-president of Apex Developments.
The exact timing and level of the per-hectare fees will be determined in negotiations later this year, but by a 5-4 vote, a council committee backed the principles of a larger share of infrastructure's cost borne by those who benefit from it.
"The question really is: how much are you asking current taxpayers to subsidize an industry?" asked Mayor Dave Bronconnier.
Industry leaders told the committee they were hoping the city could use other revenue sources to fund the infrastructure, such as new types of taxes or municipal bonds.
"We agree that the current system isn't working," said Michael Flynn of the Urban Development Institute.
"But to just introduce another set of levies won't solve the problem."
Aldermen agree the city needs new revenue-generating powers, and will lobby Ottawa and the province for them. However, they've been turned down before by the Stelmach government, and city officials want to hike levies in the short term to avoid taking on more debt or raising utility rates or taxes.
Priest said he understood the complaints about who benefits from the new communities' infrastructure.
"If I'm living downtown, I don't think I should be paying for a guy in suburbia to have that new waste water treatment plant that doesn't do (me) any good," he said. "But there's still spinoff benefits from jobs and tax money coming into the economy."
The $10,000-per-house extra cost is based on a density that some developers are striving to surpass. At greater suburban densities, that charge would be reduced.
Council will vote July 19 on whether to support the plan.
Read more: http://www.calgaryherald.com/news/suburbs+asked+shoulder+higher+share+infrastructure+costs/3249999/story.html#ixzz0uKoUot1f
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