CASTANET:
The City of Kelowna is holding the line on development cost charges for water and wastewater infrastructure. Overall, charges will increase by an average of 1.6 per cent for a single residential unit in the City Centre. “We have seen a downturn in the construction industry and very volatile costing,” says Keith Grayston, Financial Services Director. “The City wants to avoid basing rates on the peaks and valley of market prices. We heard from the public and industry and determined that the best approach was to hold the line on unit rates for 2009.” The new charges include only the actual cost of parkland acquired and only those road projects with updated detailed design. All other costs remain at 2008 levels. Development cost charges are collected from new development to pay for arterial roads, water and wastewater trunks, wastewater treatment, and parkland acquisition to service the new growth. On average, development charges represent less than four per cent of the overall selling price of a home. The total cost for providing infrastructure in the 2020 plan is $916.3 million. The infrastructure financing plan for new growth was approved by Council on November 10, 2008 and the new rate bylaw adopted on February 2, 2009. Rates become effective immediately.
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