What is the CRD’s Regional Water Supply (RWS) DCC?

    The CRD's Regional Water Supply service provides treated drinking water to approximately 430,000 residents in Greater Victoria. The RWS service has never had a DCC program in place to help fund infrastructure upgrades required to service population growth. The creation of a RWS DCC Program was highlighted in both the CRD’s RWS 2017 Strategic Plan and the 2023-2026 Corporate Plan, and in the RWS 2025 Strategic Plan. The 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 annual 5-year capital plans.

    When does the RWS DCC Bylaw come into effect?

    The RWS DCC Bylaw comes into effect on April 2, 2027, and any new development applications not eligible for in-stream protection will be required to pay the DCCs.

    What is a Development Cost Charge (DCC)?

    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.

    What do DCCs pay for?

    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

    When will DCCs be Collected?

    RWS DCCs will be collected by the municipality who received an application and would be paid at either: 

    • The time of subdivision approval for low-density residential development, or
    • The time of building permit issuance for all other development types (medium and high density residential, commercial, institutional, and industrial development types). 

    Which municipalities and regions are included within the Regional Water Supply DCC Program?

    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

    How will DCCs be administered across the Regional Water Supply Service Area?

    The DCC bylaw adopts a RWS service area wide DCC, meaning that the DCC rates apply consistently across the RWS service area. The same DCC rate will be applied to each land use category (low, medium and high residential, commercial, institutional and industrial) regardless of location withithe RWS service arearegardless of the location withithe RWS service area. A service area-wide approach reduces administrative effort and provides greater flexibility for allocated funding to projects within the program. The municipality which receives the development application will collect the DCCs on behalf of the CRD and remit the DCC payment to the CRD for inclusion in the established DCC reserve fund.  

    How was the Regional Water Supply DCC Program developed?

    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 RWS Capital Plans and the CRD RWS 2022 Master PlanGrowth estimates were determined by regional growth strategies and were reviewed and confirmed 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.  

    What projects are included within the Regional Water Supply DCC Program?

    The major proposed RWS DCC funded 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 5-Year Capital Plan and the CRD RWS 2022 Master Plan.



    How much of the Regional Water Supply DCC Program will be paid for by DCC’s and by the CRD?

    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.

    What are the Regional Water Supply DCC rates?

    The RWS DCC rates will 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. 

     

    Land Use Category

    Unit of Charge

    Development Cost Charge Rates

    Low Density Residential
     
    (Single Family, Two-Unit Dwelling)

    Per lot (or unit, in the case of a Two-Unit Dwelling)

    $9,044

    Medium Density Residential
     
    (Triplex, Fourplex, Townhouse, Manufactured House)

    Per Unit

    $7,914

    High Density Residential (Apartment)

    Per Unit

    $5,087

    Commercial

    Per m2 * GFA* 

    $33.92

    Industrial

    Per mGFA

    $16.96

    Institutional

    Per m2  GFA

    $73.48

    * m2 = square metre
    * GFA = Gross Floor Area


    What is a Municipal Assist Factor (MAF)?

    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 RWS 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.  

    What is the bulk water user rate?

    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

    How will the bulk water user rate be affected by the proposed Regional Water Supply DCC?

    The introduction of the RWS DCC bylaw (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.

    Are secondary suites subject to DCCs?

    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. 


    NOTE: Recent federal and provincial infrastructure funding announcements may affect the CRD's new RWS DCC program by introducing new funding streams for growth-related infrastructure. However, funding details, eligibility criteria, and implementation requirements have not yet been finalized, and the CRD is awaiting further information before assessing potential impacts. 

    Can DCCs be waived or reduced?

    Yes, The Local Government Act includes options for local governments to consider waivers and reductions for eligible forms of development, such as non-market housing, non-profits and co-op housing. 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 has directed CRD staff further explore options for DCCs to be waived or reduced for non-market housing, including government, non-profit and co-op housing.   

    How is the 1-year in-stream protection administered?

    The LGA requires the CRD to provide one (1) year in-stream protection for developments with a “precursor application”.  According to the LGA, in-stream protection is initiated at the bylaw adoption date (September 9, 2026) and remains in effect until the one-year anniversary of the DCC Bylaw adoption date (September 9, 2027).

    Any “precursor applications” (refer to LGA Section 568 (1)) made before the bylaw adoption date are eligible for in-stream protection.  A “precursor application” may include:

    1. the application for the issuance of the building permit, if the application has been submitted to a designated local government officer in a form satisfactory to the designated local government officer and the applicable fee has been paid,
    1. an application for the issuance of a development permit, if
    1. the application has been submitted to a designated local government officer in a form satisfactory to the designated local government officer and the applicable fee has been paid, and
    2. the development authorized by the building permit is entirely within the area of land that is the subject of the application, or
    1. an application for an amendment to a zoning bylaw, if
    1. the application has been submitted in accordance with the applicable procedures under section 460 [development approval procedures] and the applicable fee has been paid, and
    2. the development authorized by the building permit is entirely within the area of land to which the application relates.

    Subject to the above definitions of “precursor applications”, the proposed RWS DCC Bylaw would not be applicable to developments if:

    1. the building permit authorizing that construction, alteration or extension is issued within 12 months after the bylaw adoption date, and
    2. a precursor application to that building permit is in-stream on the bylaw adoption date.