Town council has approved the updated Off-site Levy Bylaw, an initiative to ensure there is enough funds generated to support the costs of future development infrastructure and to provide a financial cushion to taxpayers against an increased tax burden.
The updated bylaw proposal was given first reading by town council at its regular meeting on Jan. 11. Following a Feb. 11 open house, the proposed revamped bylaw was back to council on March 14 and approval was made after second and third readings.
Craig Teal, the town's director of planning and operational services, said council's approval on March 14 means developers will be subjected immediately to the new rates, which will mainly cover future water and transportation system improvements.
“Some of the subdivision applications that have been approved recently, when they come in for a development agreement, will be assessed the new rate structure,” said Teal, whose report to council said there was no public interest on the updated bylaw for the Feb. 11 open house. “On a percentage basis they (rates) are higher in terms of globally going up, about 50 per cent, but that is a reflection of looking ahead to the infrastructure we need to support that long-term growth. “Prices have to go up to reflect not only the quantity and nature of infrastructure but also up-to- date costs,” added Teal.
His submission to council noted that in a report prepared last year by Tagish Engineering, more than $22 million is needed to fund municipal infrastructure to support new growth in the community. However, the rates set out in the current bylaw would result in a shortfall of up to $8 million, an amount that would have to be paid by local ratepayers.
“The proposed levy rate still results in a shortfall of approximately $3 million, which represents the tax base contribution to the cost of new growth,” said Teal in his report to council. “Recognizing this as an investment in the future of the community, administration is of the view that this level of shortfall ($3 million) can be reasonably covered by the tax base.”
Teal's report to council also noted the new rates under the approved updated bylaw, while substantially higher overall than previously, are considered more in line with other communities about the same size, but still viewed by local town officials as “below average” in comparison.
His report stated the average levy collected for residential development will increase from $15,500 per hectare to $23,966 per hectare, based on a density of 10 units per hectare. Additionally, the average levy collected for non-residential development will increase from $12,000 to $16,000 per hectare to $23,996 per hectare.
Meanwhile, recessionary economic conditions have slowed large-scale residential development in town. Town officials said the lift station development for the planned Woodlands subdivision is unlikely to go ahead this year. However, Napoleon Lake West and Upland Aspen subdivisions are moving along as planned.
Craig Teal
"On a percentage basis they (rates) are (higher) in terms of globally going up, about 50 per cent, but that is a reflection of looking ahead to the infrastructure we need to support that long-term growth."
