Development Cost Charges for Solid Waste Infrastructure

Year
2011
Number
B35
Sponsor(s)
North Okanagan RD

WHEREAS the Local Government Act Sections 932937 allows local governments to collect development cost charges from developers, for local government parks, water, sewage, drainage and highways but not for solid waste infrastructure; AND WHEREAS the costs to expand local government solid waste infrastructure capacity or upgrade facilities to accommodate population growth are substantial and can be assessed; AND WHEREAS there is precedence for this type of funding, specifically, there are several jurisdictions in the United States of America that allow local governments to use a form of development cost charges to help fund solid waste management infrastructure: THEREFORE BE IT RESOLVED that the provincial government amend the Local Government Act to authorize collection of development cost charges by local governments for solid waste infrastructure.

Provincial Response

Ministry of Community, Sport Cultural Development Policy proposals regarding development cost charges are usually vetted through the Development Finance Review Committee DFRC. The DFRC is a committee made up of representatives from the ministry, local government and the development community. Historically, development cost charges have been limited to specific types of capital i.e. water, sewer, storm water, roads and parks. Expanding this definition to include solid waste management would be a significant change in policy scope. As such, it would be incumbent on local government to present a logical and well-supported proposal for such a change. DFRC would be willing to examine such a proposal taking into account the complexity of determining the following: - eligibility of capital costs, - suitability of levying development cost charge to recover such costs, - methodology for apportioning such costs between existing and new development, and - materiality of potential cost impacts on development. Based on a thorough examination of this proposal, the DFRC would make a recommendation to the Province based on the merits of this proposal. The Province would take into account the recommendations of the DFRC plus an examination of broader provincial interests before making a final decision on the merits of the proposal. Ministry staff are available for advice and to discuss the information necessary to bring forward this proposal to the DFRC for consideration.

Convention Decision
Endorsed