The City of Kamloops levies development cost charges (DCCs) on new developments to help fund the costs of expanding and upgrading the City’s road, water, drainage, and sewer services and for parkland acquisition or improvement to meet the needs of projected growth that's expected to occur within the next 10 years.
DCCs are generally updated every two to three years to reflect current costs and growth trends.
The Development Cost Charge Bylaw was last updated in July 2023. It was a major update that took approximately 18 months, during which all aspects of development cost charges were considered, and significant engagement occurred.
The Development Cost Charges program is a comprehensive, 10-year plan extending until 2032. At the time of adoption, it included 73 infrastructure projects, with a total estimated value of $272 million.
Since the 2023 Development Cost Charge Bylaw was adopted, several factors have impacted costs and another development cost charge increase is needed at this time. Increases are being driven by construction inflation; recent changes to provincial legislation that have added new project categories such as protective services (fire halls and police facilities), provincial highways, and solid waste facilities; and evolving growth rates and patterns (e.g. an increase in small-scale multi-unit housing).
Adjustments to the Development Cost Charge Bylaw and the list of capital projects within the bylaw are necessary to ensure that sufficient development cost charge revenue is collected. At the same time, the City must remain sensitive to the impact that development cost charges have on housing costs.
A Development Cost Charges Engagement Group has been formed to help review and provide feedback as staff work though the update in late 2026 into early 2026. The updated bylaw is expected to come in front of Council in March 2026.
How Development Cost Charges Work
DCCs are charged at the building permit stage for new single- and multi-family residential units and commercial, industrial, and institutional development projects.
The City implemented DCCs in the 1970s. The collection and usage of DCCs are legislated by the Province under the Provincial Local Government Act. DCCs cannot be used to fund any projects that do not meet the eligibility requirements.
Provincial Resources:
What Kinds of Projects do Development Cost Charges Help Pay For?
DCCs are used to meet growth-related infrastructure needs by funding:
- Transportation: new roads and bridges, road widening, capacity improvements, signalization, and sidewalks and cycle tracks
- Water: new and upgraded water mains and new water pump stations and reservoirs
- Sewer: new trunk mains, new sanitary pump stations, and sewer upgrades
- Drainage: stormwater ponds and pump stations, culvert upgrades, and storm sewer upgrades
- Parks: acquiring parkland for parks and greenways and completing park improvements
Development Cost Charge Bylaw
The City's current Development Cost Charge Bylaw No. 48-100 came into effect on December 15, 2020, and was amended on July 25, 2023.
Contact
Email devadmin@kamloops.ca or phone 250-828-3561 with any questions or comments on DCCs in Kamloops.
