Understanding Rising Water Levies: What New North Okanagan Developments Mean for You

New water levies in the North Okanagan are set for a significant increase, but local leaders have decided to implement these changes gradually instead of all at once.

During a meeting on March 5, the Greater Vernon Advisory Committee (GVAC) discussed updates to the Greater Vernon Water Development Cost Charge (DCC) bylaw. A development cost charge helps local governments fund infrastructure, particularly water systems.

The current DCC, established in 2004, hasn’t changed in 20 years. As a result, GVAC is considering a major hike. For single-family homes, the DCC could rise from $2,180 per unit to $6,307, nearly tripling the cost.

The proposed new rates for other property types include:

• Multi-family residential, low density: from $1,857 to $4,171
• Multi-family residential, high density: from $1,857 to $3,053
• Commercial: from $7.27 to $15 per square metre
• Industrial: from $3.63 to $15 per square metre
• Institutional: from $8.88 to $15 per square metre

A public hearing was held on November 26 regarding these increases, but no community members attended to share their thoughts.

Initially, GVAC planned to implement the new rates one year after adopting the bylaw. However, they ultimately opted for a slower approach. Vernon Mayor Victor Cumming emphasized that these increases were overdue, pointing out that the province suggests updating DCC bylaws every five years to reflect current development and infrastructure costs.

Cumming expressed concern that raising the fees all at once wouldn’t be beneficial. He noted, “We haven’t touched this for 20 years. If we suddenly increase it, we risk negative reactions from developers who create homes that are sensitive to price.” He added that the community would likely provide significant feedback if the increase was implemented abruptly.

GVAC member Bob Fleming agreed with Cumming and mentioned that international tariffs affecting Canadian materials could also influence the situation. Stephen Banmen, the general manager of finance for RDNO, explained that any adjustment to the DCC would require approval from the Inspector of Municipalities. Therefore, if GVAC had followed the original plan, developers wouldn’t see the increase for about a year and a half.

Ultimately, GVAC decided to phase the DCC increases over two years instead of one. This means that, after the bylaw passes, the DCC for single-family homes will initially rise to $4,264 in the first year and then increase to $6,307 in the following year.

For the first year after the bylaw adoption, the DCC rates will also be as follows:

• Multi-family residential, low density: $2,820 per unit
• Multi-family residential, high density: $2,064 per unit
• Industrial: $10 per square metre
• Commercial: $10 per square metre
• Institutional: $10 per square metre