Overview
Metro Vancouver collects regional development cost charges (DCCs) for new residential and non-residential developments in the region to pay for new liquid waste and water infrastructure needed to provide these services to our growing region.
Metro Vancouver recently revised DCCs for regional water and liquid waste infrastructure, and introduced a DCC for regional parkland acquisition.
The proposed rate changes, which include the application of interest costs for liquid waste and water only, are intended to be phased in over a multi-year period to arrive at a one-per-cent assist factor. The assist factor is the portion of growth projects funded by non-growth-related sources, such as sewage levies and water sales. The increases are intended to occur on January 1 each year.
Background
In early 2022, Metro Vancouver’s Board Chair formed a Financial Plan Task Force to review the five-year financial plan and find ways to reduce potential costs to residents over the next four years. Through the process, Metro Vancouver reviewed programs and projects, and assessed risks to adjusting projects currently identified in the five-year plan. Recognizing that a significant portion of Metro Vancouver’s capital plan involves constructing larger or new infrastructure to accommodate new buildings and growth in the region, the Metro Vancouver Board endorsed moving to a DCC one-per-cent assist factor. This move embraces the principle of 'growth-pays-for-growth'.
Water DCC proposed rate changes
Water DCCs were first implemented by Metro Vancouver in April 2023. Previously, the water DCC funded 50 per cent of the cost for any new infrastructure to address population growth, with the rest paid for primarily by the general public though water sales. Beginning January 1, 2025, new rates will pay substantially all growth infrastructure costs and be phased in over a three-year period.
Liquid waste DCC proposed rate changes by sewerage area
Liquid waste DCCs have been in place since 1997 and previously funded all but 17.5% per cent of the cost for any new infrastructure needed to address population growth, with the rest paid for by the general public through the liquid waste levy. Beginning January 1, 2025, new rates will pay substantially all growth infrastructure costs and be phased in over a three-year period.
New parkland acquisition DCC
The regional parkland acquisition DCC will fund the acquisition of land to become regional parks, which will help ensure that the growing region can remain livable for the next generation. Growing the regional parks system supports human health and well-being, as well as biodiversity.