FAQs

DCCs are charges collected by local governments to help fund 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.

DCCs pay for capital costs associated with growth-related infrastructure such as: 

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

The CRD’s Regional Water Supply service provides treated drinking water to most Greater Victoria municipalities. Currently, there is no DCC program in place for the RWS service. The creation of a RWS DCC Program was highlighted in both the CRD’s RWS 2017 Strategic Plan and the 2023-2026 Corporate Plan.  The proposed CRD RWS DCC program and rates are based on priority growth-related infrastructure needs and capital costs identified in the Regional Water Supply 2022 Master Plan and the 2023 RWS Capital Plan.

Each of the CRD’s 13 member municipalities (Sidney, North Saanich, Central Saanich, Saanich, Esquimalt, Victoria, Oak Bay, View Royal, Colwood, Langford, Highlands, Metchosin, Sooke) and portions of the Juan de Fuca Electoral Area where CRD water services are available.

NOTE: First Nations communities are exempt from DCCs

The proposed DCC bylaw would facilitate the adoption of a RWS service area wide DCC. The same DCC rate would be applied for each land use deemed to generate a similar or same capital cost burden, regardless of the location within the RWS service area. A service area-wide approach reduces administrative effort and provides greater flexibility for allocated funding to projects within the program.  If approved, municipalities would collect the DCCs on behalf of the CRD.

The proposed RWS DCC program was developed to align with requirements under the LGA and the DCC Best Practices Guide. The project list was based on the RWS 2023 Capital Plan and the CRD RWS 2022 Master Plan. 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 30-year time horizon.

The major proposed RWS DCC projects include:

• Sooke Lake Reservoir Deep Northern Intake
• Leech Watershed
• Water Filtration Plant
• Transmission Mains
• Smith Hill Storage Tank
• Studies and Modelling

More information about these projects can be found in the RWS 2023 Capital Plan and the CRD RWS 2022 Master Plan.

The total proposed program cost is $1.44 billion over a span of 30 years. 64% of the total proposed program cost will be paid for by the CRD and 36% will be paid for through DCCs. The CRD will re-evaluate and update the program every 5 years to account for changes in growth, project costs, and any grants received.

The RWS DCC rates would be in addition to any DCC rates currently charged by other municipalities and the CRD’s existing DCC programs. Rates for the proposed RWS DCC program are highlighted in the summary table below. 

* GFA = Gross Floor Area

The Local Government Act requires local governments (including the CRD) to provide a level of financial assistance to any DCC program through a municipal assist factor (MAF).The assist factor can range from 1% (lowest) to 99% (highest). The proposed RWS DCC program includes a MAF of 1%; this means that the CRD would pay 1% of the DCC through water user rates.

The Regional Water Supply service sells bulk water to each municipality’s distribution system on a wholesale basis. The final price residents pay for water includes the Regional Water Supply wholesale water rate and distribution rates (determined by distributors across the CRD member municipalities). Distribution rates vary by municipality as each municipality can set their own distribution rates. More information on water rates can be found here. 

A higher DCC rate (i.e., more responsibility attributed to new growth) will mean a lower bulk water user rate; conversely, a lower DCC rate (i.e., more responsibility attributed to existing users) will mean a higher bulk water user rate.

Attached suites are factored into the existing Low Density Residential DCC rate that is paid at time of subdivision. Detached suites (e.g., garden suites, coach houses and laneway homes) will be charged a separate Medium Density Residential DCC rate paid at time of building permit issuance.

Yes, The Local Government Act includes options for local governments to consider waivers and reductions for eligible forms of development. Any waivers or reductions must be paid for through non-DCC sources, i.e. through an increase in water user rates. The Regional Water Supply Commission directed CRD staff to report back to the Commission on options for DCCs to be waived or reduced for non-market housing, including government, non-profit and co-op housing.