By Ron Seymour Tuesday, January 23, 2007 http://www.kelownadailycourier.ca/article_4315.php
Developers will soon have to pay $10,000 more in city fees to build on a single-family lot in Kelowna than they do in Kamloops.The new development cost charges approved Monday for Kelowna are about double the comparable fees in Summerland, Penticton and Peachland.The 30 per cent increase in Kelowna’s DCCs was described as “painful,” but necessary to provide all the new roads, sewers, water lines and parks required of a growing city.“It’s prudent fiscal management to put the dollars aside to provide the quality of service our citizens have demanded of us,” said Coun. Robert Hobson.
Under the revised DCC schedule, builders will have to pay the city fees totaling $16,300 to develop a typical single family lot. The comparable fees are $6,100 in Kamloops, $7,600 in Penticton and $8,600 in Summerland.The new fees will take effect in April despite warnings from the Urban Development Institute they could serve to make new housing even more unaffordable for many people in Kelowna.“There are many studies that show, as a percentage, that provincial, federal and municipal taxes, fees and requirements continue to outpace rising construction and labour costs in eroding overall affordability,” said Rick Miller, president of the Kelowna chapter of the Urban Development Institute.
The DCCs are used to help finance the city’s 20-year servicing plan, which outlines the ways in which money will be spent on road construction, sewer and water lines, the sewage treatment plant and parkland acquisition.The cost of the plan had been estimated last year at $607 million, but soaring construction costs and rising land values have pushed the tab to $753 million.Revenue from DCCs are estimated to cover about two-thirds of the servicing plan’s total cost.“I know a 30 per cent increase in DCC’s is painful,” Hobson said, but it’s necessary for the city to ensure that basic infrastructure is constructed and maintained properly.“It’s important that the toilets flush properly, that the water is clean and that we have enough parks,” he said.
Roads account for the biggest chunk of the updated servicing plan, at $490 million, or 65 per cent of the total. The single biggest transportation project would be the Central Okanagan Bypass from Spall Road to McCurdy Road, roughly following the railway tracks, at an estimated cost of almost $50 million.The next biggest component is spending for new parks, estimated to be $103 million. An upgrade of the wastewater treatment plant is forecast to come in at $80 million, while another $46 million would be spent on the water distribution network.
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Don Quixote Note: As explained in posting of Nov 8/07 Does Vernon have a servicing Plan Updated on a regular Basis ?? Kelowna's plan can be found at City Of Kelowna 20 year servicing plan 2005-2020.
About 60% of the total required ($753 million )comes from DCC's, 20% from direct taxation and 20% from utility charges and provincial grants.
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