An increase to 91大黄鸭鈥檚 development cost charges (DCCs), limited to an inflationary adjustment, has drawn praise from the construction and development industry.

The city is proposing a 2.5 per cent hike, based on the Consumer Price Index (CPI) for 2024, a staff report to council states. 

A letter to the city from the Canadian Home Builders Association Central Okanagan (CHBA) notes that DCCs are a major factor in the overall cost of new homes 鈥� ultimately borne by the home-buyer. 

鈥淏y adopting a strategy of incremental inflationary adjustments, you have taken a pragmatic approach that allows for more predictable and manageable cost planning,鈥� the letter says.

The city last updated its DCCs in 2022. Construction costs have risen faster than CPI, the staff report points out, but the city wants to avoid putting too much pressure on housing costs.

The Urban Development Institute (UDI) Okanagan also supports the CPI increase. 鈥淭he caveat in this consideration is to remind council that the development industry should not bear the responsibility of providing all infrastructure and amenities since the taxpayer reaps the benefit and therefore should bear some of the cost through property taxes,鈥� a UDI letter states.  

The city consulted with development groups, including the CHBA and UDI, before making its decision regarding DCCs which help pay for roads, water, sewer systems, and parks.

Council will consider the DCCs increase at its Jan. 20 meeting.