Frequently Asked Questions

Development Cost Charges (DCCs) are funds that are collected from developers to contribute to the costs of infrastructure that is required to service new growth in the community. DCCs are regulated through the Local Government Act and are an important tool for local governments to sustainably facilitate and finance development in their community, without compromising the delivery of services to their residents.

The City of Colwood (the City) currently charges and collects DCCs to help fund road and sewer infrastructure projects. The City also collects DCCs on behalf of the Capital Regional District to help fund water infrastructure projects under the Juan de Fuca Water DCC Bylaw.

DCCs are calculated by:

1. Estimating total new growth
2. Identifying infrastructure projects and capital costs
3. Determining benefit allocation
4. Determining municipal assist factor

1. Applicants for subdivision approval to create single-family development sites
2. Applicants for building permits to construct multi-family, commercial, industrial or institutional development

Park Improvement DCC’s can be levied for park improvements, generally limited to fencing, landscaping, drainage, irrigation, washrooms, changing rooms, playgrounds and playing field equipment.

Park improvement needs must be related to growth. By legislation, Parks DCC’s cannot be used to pay for:

• Operation and maintenance of City parks;
• New or upgraded works needed only for the existing population;
• New facilities, such as recreation buildings, fire halls, police stations or libraries;
• Park improvements that are considered to serve more specialized user groups, such as sports courts, skateboard parks, bike parks, dog parks, artificial turf fields, baseball diamonds and dugouts; and
• Vehicle parking areas in City parks.

The proposed Park Improvement DCC rates were brought to Council on June 26^th [KT1] and are shown below.