New development in the RM of Stanley will be coming with a substantially increased cost for the developers.
Council recently gave final approval to a revised bylaw that increases the capital lot levies that will be charged, and it basically comes down to the idea of growth needing to help pay for growth.
What had previously been a levy of $2,500 will now be $16,600 per new lot. For properties designated as rural clusters, it will be $13,600 per new lot, while properties in the highway corridor will be charged $22,500 per acre of land being subdivided. All other properties will be charged $11,400 per new lot.
“It’s a lot more … it’s substantially higher,” acknowledged Reeve Ike Friesen, who noted the capital lot levies had not increased in the RM for a number of years.
“It was very much needed,” he said. “We’re doing what a lot of municipalities are doing now. It’s happening right across all municipalities. For us, we were just seeing with the expenses that we weren’t keeping up … we weren’t staying on top of it for the future.
“We were trying to be very careful to not chase away development,” he added. “It was a tough decision for everyone.”
The increase came about following a review done with a consulting firm, and it was found that the capital lot levies had not kept pace with significantly increased costs.
The funds collected through the levies will go into a variety of reserve funds for municipal infrastructure ranging from sewer and water to roads and recreation.
“All taxpayers were paying for a lot of that type of infrastructure when it was needed,” said Friesen, suggesting there was a need to put more of it on the developers. “As development was continuing to happen … we needed to be prepared for all of the extra expenses that will be coming with all of the growth.”
Stanley CAO Terry Penner noted the actual costs faced by the municipality were significantly higher than what was being paid when the fee was $2,500.
The new fee of $16,600 represents about 60 per cent of the total associated costs of development, with the municipality responsible for 40 per cent.
“So it is a substantial increase,” he also acknowledged. “It is an effort to try to recapture some of the future anticipated cost of development and share those together with the developers.
“As time goes on and as the infrastructure ages, there’s significant costs to maintain that stuff,” said Penner. “It’s not just Stanley. It’s all of the municipalities right across Canada who are taking about this … there needs to be a greater share from the developers.”
