Phase in option selected for Greater Vernon Water Development Cost Charge rate hikes

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DCCs are levies on new developments to pay for new or expanded infrastructure, which, in this case, applied to water services.

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Staff told GVAC that a public engagement session regarding these changes was held, but no one attended.

The regional District of North Okanagan also met with a number of developers, who were not opposed to the rate hikes.

Staff also noted data from Statistics Canada showed that properties with suites generally use the same amount of water as those without, so having those lumped together with one rate was acceptable.

The staff report also noted the GVW DCC Program was just over $186-million over the 20 years, with the portion recoverable from new development DCCs equaling more than $52-million.

GVAC was to give the bylaw second and third reading Wednesday, but decided to change course.

Victor Cumming, Mayor of Vernon, said though the rates had not changed in 20 years, they shouldn’t see this significant increase all at once, and instead be spread out over a number of years.

“When we did the allocation fees for agriculture, we spread it out over a number of years in terms of how fast we changed it,” Cumming said.

“It’s good to recognize how far we are away, in terms of covering the go forward costs that are expected to be covered by DCCs, and obviously we have created a bit of a hole because if we backed up a decade and looked at what the number should have been, we would find ourselves in a different position.”

Bob Fleming, the Director for Electoral Area B, also agreed that bringing in the rate changes in a phased approach was a better plan than doing it all at once.

He initially suggested implementing the change in three phases, but ultimately put forward a motion to have them go up with two increases, starting one year after the bylaw receives approval.

The increases under the phased approach would be as follows:

GVAC supported the motion and voted unanimously in favour with the phased-in approach.

Fleming also suggested that the GVW DCC be reviewed in five years to see if the rates and growth were still aligned, though no formal motion regarding that recommendation was made.