FAQs

DCCs are charges collected by local governments to help fund eligible infrastructure expenditures required to service population growth. The Local Government Act (LGA) sets out the general requirements under which local governments may charge DCCs. Funds generated through DCCs are used to help accommodate growth and development through capital cost investment. They are charged at the subdivision or building permit stage.

Capital costs that can be funded through DCCs include:

• Providing, constructing, altering, or expanding water, sewage, drainage, transportation, protective services (fire, policing), and solid waste and recycling facilities
• Parkland acquisition and improvements

The JdF DCC program was first implemented in 1999.  The program has since been reviewed and updated in 2005, 2011, and 2018.

View Royal, Colwood, Langford, Metchosin, Sooke, parts of Highlands and portions of CRD Electoral area A that fall within the Juan de Fuca Water Distribution System. 

NOTE: Areas of the Highlands and Electoral Area A that are not within the JdF water service area will not be required to pay DCCs.

The JdF DCC rates would be in addition to any DCC rates currently charged by other municipalities and the CRD’s proposed Regional Water Supply DCC program rates. Rates for the proposed 2024 JdF DCC program are highlighted in the summary table below.  

The capital costs and number of projects have changed since the previous JdF DCC update for the following reasons:

• The CRD water model for the JdF Water Distribution System was updated based on new growth estimates and changes in development areas since 2018
• Due to rising costs in land, construction and soft costs, existing project costs have been updated with an appropriate inflation factor based on the Engineering News Record index and adjusted to reflect the local context
• New projects identified through water modelling have been included and reflect Class D cost estimates or better, where available
• Debt servicing costs have been updated to reflect current liabilities
• The JdF DCC reserve amounts have been updated to reflect current reserves held by the CRD

Anytime a new DCC Bylaw is enacted, an existing development application submitted prior to the adoption of the new Bylaw are 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.

Applicants can indicate in writing (at time of application) whether they would like to opt out of in-stream protection.

As per provincial legislation, a number of developments are exempt from paying DCCs including the following:

• Development(s) in which a DCC has previously been paid
• Places of worship;
• Self-contained residential dwelling units less than 29 square meters (312 sq. ft.)
• Building permits for work less than $50,000 in value.

Changes to the Local Government Act in 2008 provide local governments with the discretionary authority to waive or reduce DCCs for certain types of development to promote affordable housing and low impact development.

NOTE: The CRD does not currently provide any waivers or reductions for the JdF DCC program.

Proposed 2024 JdF DCC rates were updated to align with requirements under the Local Government Act and the DCC Best Practices Guide. Growth estimates were determined by regional growth strategies and were with each local government based on existing Original Community Plans (OCPs) and neighbourhood plans. Both the project list and growth estimates span a 20 year time horizon.

The Local Government Act requires local governments (including the CRD) to assist with the costs associated with implementing a DCC program. The assist factor can range from 1% (lowest) to 99% (highest). The JdF DCC program includes a municipal assist factor (MAF) of 1%; this means that the CRD would pay 1% of the DCC through water user rates.

NOTE: The MAF was not changed in the JdF DCC program update and remains at 1%.

The Regional Water Supply (RWS) DCC Program and the JdF DCC Program fund two different components of an integrated CRD water delivery system. The RWS is composed of water storage, treatment and trunk main systems that deliver bulk water supply from the Sooke Reservoir to multiple municipal and CRD water distributions systems needed to service 387,000 customers across the Capital Region, including the JdF Water Distribution System, which is also operated by the CRD. The JdF Water Distribution System then distributes this bulk water to residents within the service area which includes the municipalities of Langford, Colwood, View Royal, Highlands, Metchosin, Sooke and East Sooke, which are connected to CRD water services.

The JdF DCC rates only apply to developments within the JdF water service area. If adopted, the Regional Water Supply (RWS) DCC would also apply to all developments within the JdF water service area, as well as all developments in the Capital Region that are able to connect to a distribution system that is supplied by the CRD RWS. This would include virtually all development within the CRD’s established Urban Containment Boundary (UCB). 

The RWS DCC pays for the growth-related costs of infrastructure required to expand regional water supply system and the JdF DCC pays for the growth related costs of infrastructure required to expand water distributions services in the Westshore communities within the JdF water service area. 

DCCs are paid by applicants or developers at the time of:

• Subdivision, for approval to create new single-family lots (low density)
• Building permit, upon application to construct medium or high-density multi-family residential, commercial, industrial or institutional development

NOTE: The JdF DCC is payable to the municipality that issues the subdivision or building permit and the municipality will then remit the DCC amount to the CRD.