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By Liam Verster
5% per year

Vernon development fees set to increase 15% over next three years

Feb 27, 2024 | 2:58 PM

The cost of building in Vernon will be rising over the next three years.

Vernon city council supported a proposed amendment to the Development Cost Charges (DCC) Bylaw at the regular meeting Monday, Feb. 27.

The report to council stated that, in order to account for increases in civil construction costs, the DCCs for road, sanitary collection, sanitary treatment and stormwater be increased by five per cent annually over a three-year period.

The report stated DCCs are collected from land developers and used for infrastructure projects to meet service capacity demands stemming from residential, commercial and industrial growth.

It was noted that council heard in July of 2023 that road construction costs had increased by approximately 41 per cent from 2021 to ’22, and another six per cent from 2022 to ’23, which in turn placed a larger burden on taxation and other funding sources to pay for capital projects triggered by development projects.

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Brian Derrick, manager of development infrastructure of servicing, told council the fee increases are expected to cover 33 per cent of the recent construction cost increases, but added a full DCC bylaw review would be undertaken after this three-year period ends in 2026 and the new Official Community Plan and Transportation Master Plan have been put in place.

The report also noted that not increasing the DCC fees would place the burden on the taxpayers and other funding sources to pay for development-triggered infrastructure projects.

Council voted unanimously in favour of the bylaw amendment.

by Liam Verster
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