The District of Coldstream (District) is working with Urban Systems Ltd. to update the Development Cost Charges (DCC) Bylaw. Updating these charges ensures that growth-related infrastructure needs are contributed to fairly, predictability and in a financially sustainable way. As Coldstream continues to grow, new development increases the demand for infrastructure and services. The District last updated its DCC program in 2019 and this update will help ensure that rates match current costs of infrastructure to support new growth.
WHAT IS A DEVELOPMENT COST CHARGE?
Development cost charges (DCCs) are one-time fees that developers pay to help cover the cost of new infrastructure needed for a growing community. They are based on the principles that “growth pays for growth” and “benefiter pays”, meaning infrastructure costs should be paid by those who will use and benefit from the infrastructure. DCCs are a Provincially regulated tool; the Local Government Act sets out the general requirements under which local governments may administer DCC programs.
Funds generated through DCCs are intended for one-time capital costs and are only applied to growth-driven projects. DCCs can be used to fund capital costs (planning, engineering, design, legal, studies) for:
- Transportation services
- Water services
- Drainage services
- Sewer services
- Parkland acquisition and improvements
- Fire protection facilities
- Police facilities
- Solid waste and recycling facilities
Funds cannot be used for projects needed to address existing deficiencies or for operations and maintenance costs.
EXEMPTIONS FROM DCCs
The following are exempt from DCCs:
- Buildings for public worship
- Development that does not impose a new capital cost burden
- Development where DCCs have been charged previouslyAdditionally exempt are:
- Building permits for ≤$50,000. (Council can vary this amount to a higher amount);
- Residential units ≤ 29m2 in sizee (Council can vary to a larger size); and
Fewer than 4 units (i.e. duplex/triplexes) (Council can elect to charge on fewer than 4 units). DCCs also cannot be used for projects otherwise eligible for amenity cost charges (ACCs), which are separate and apply to public amenities (There is currently no ACC program within the District of Coldstream). Additional DCCs may apply if an expansion to a development increases capital costs to the District or requires additional servicing beyond the previous use.
PROPOSED DCC RATES
DCCs are levied on a per lot basis for Residential Lots, on a per unit basis for all other residential typologies and on a per square metre of gross floor area (GFA) basis for Commercial, Industrial, and Institutional development. DCCs will be applied District-wide, with the exception of sewer, for which collection is limited to the sewer service area (outlined in Schedule ‘B’ of existing DCC Bylaw No. 1722, which can be found here). Proposed DCC Rates are shown in Table 1 on the following page.
Further details on proposed rates, including growth projections, related assumptions, technical inputs, project lists, project costs, inflationary amounts applied since the last update, and further descriptions of associated inputs and assumptions, please review the Background Report (also provided to Coldstream Council on August 17th, 2026). Please note that detailed project lists and costs can be found in Appendix A beginning on page 25.
Table 1: Proposed DCC Rates Land Use | Unit of Charge | Current DCC Rates (2019) | Proposed DCC Rates** |
|---|---|---|---|
| Low Density Residential | Dwelling Unit/Lot | $14,162 | $33,313.00 |
| Medium Density Residential | Dwelling Unit | $12,063 | $27,633.00 |
| Institutional B | Occupancy Unit | $8,392 | $19,114.00 |
| Institutional | Occupancy Unit | $5,245 | $12,241.00 |
| Commercial | m2 GFA | $32.99 | $100.63 |
| Educational | m2 GFA* | $7,612* | $121.63 |
| Industrial | m2 GFA | $7.02 | $66.70 |
*The unit of charge for educational under the current DCC Bylaw No. 1722 is “per 10 seats”
** The proposed rates reflect a 1% Municipal Assist Factor (MAF) for each of the programs except for the Drainage and Parks Acquisition which reflect a 50% Municipal Assist Factor.
PAYMENT OF DCCs
DCCs are paid by applicants/developers at the time of:
- Subdivision, for approval to create new Residential lots (single-family) or,
- Building Permit, upon application to construct all other residential typologies, Commercial, Industrial, or Institutional developments
- Note that Regional DCCs are also collected by the District.
Additionally, The Province has made changes that are designed to encourage housing development by providing a way for developers to pay DCCs in two installments if they meet certain requirements while also protecting local governments from risk of non-payment.
Please see the section below for developers on the updated provincial regulations for paying DCCs in installments.
As of January 1, 2026 developers can choose to pay DCCs to the District of Coldstream in two installments. For developers this means:
- 25% of the total is payable on receipt of a Subdivision Approval or Building Permit (whichever comes first)
- 75% of the total can be deferred until whichever of the following comes first:
- Four years following receipt of the Subdivision Approval or Building Permit; or
- 15 business days after all occupancy permits have been issued and the local government gives written notice (an invoice) - to the developer that the conditions, if any, in those permits have been satisfied and payment of the balance of the charge is due.
If a developer chooses to defer 75% of the total charges, they must do the following to provide security to the District of Coldstream:
- Provide an Irrevocable Letter of Credit from a Financial Institution or Trust Company authorized under the Financial Institutions Act; or
- Provide an On-demand Surety Bond from an insurer authorized under the Financial Institutions Act, and with prescribed credit ratings.
Please see the pdf of the Ministerial Order for more detail on the requirements.
WHAT HAPPENS TO APPLICATIONS ALREADY IN PROCESS?
When a new DCC Bylaw is enacted, any existing development application submitted prior to the adoption of the new Bylaw(s) is granted 12-month in-stream protection.
In-stream protection will apply to both building permit and subdivision applications received prior to the adoption of any new DCC Bylaw. Protection is also extended to rezoning and development permit applications that were submitted prior to the adoption of any new DCC Bylaw and that will result in a building permit within 12 months of bylaw adoption. If an application meets the required criteria of being submitted prior to the adoption of the new DCC Bylaw, it is provided protection from rate increases.
WAIVERS AND REDUCTIONS
Under the Local Government Act, a local government may opt to impose a bylaw through which DCCs may be waived or reduced for eligible developments, such as affordable rental housing or building with reduced environmental impact.
The District does not currently provide any waivers or reductions. Should the District establish any waivers or reductions, the amount waived is to be entirely supported by the existing taxpayer.
DCC CREDITS
Developments on which DCCs have already been charged may be eligible for Existing Use Credits. Credits may be provided so long as the development maintains the same land use or if the change in land use is from one residential type to another. Applicants are responsible for providing all necessary information (e.g., floor plans, floor area) for staff to determine if there are any Existing Use Credits.
All Existing Use Credits provided for expansions or redevelopments will be based on the rates in place at the time of initial building permit issuance or subdivision. Existing Use Credits are not granted for the addition of suites, including Secondary Suites and Accessory Dwelling Units.
HOW TO GET MORE INFORMATION OR PROVIDE FEEDBACK
Join us for a virtual open house on September 8, 2026.
Time: 4:00 PM – 6:00 PM with a presentation at 4:00 PM and repeated again at 5:30 PM. Following the presentation, City staff and consultant Urban Systems will be available to answer questions.
CONTACT FOR QUESTIONS
For general inquiries and/or comments related to the DCC Updates, please contact: planner@coldstream.ca