Development Cost Charge Bylaw

New Development Cost Charges to Support Community Growth

The District is developing a Development Cost Charge (DCC) Bylaw to help fund infrastructure needed to support community growth.

DCCs are one-time fees that new developments pay to help cover the cost of necessary community infrastructure to support growth, such as improving our roads, water, sewer, drainage, parks, and other community services.

As our community grows, this puts strain on the existing infrastructure. Eventually, utility pipes need to be upsized, reservoirs need to be enlarged, and our sewage treatment plant needs to be upgraded. DCCs help fund these improvements, keeping Sparwood safe, connected, and prepared for the future.

How to participate and ask questions

While DCC bylaws follow a legislated approval process, the municipality is committed to providing clear information and opportunities for questions. Please send written feedback to planning@sparwood.ca.

Drop-In Public Information Session

Join us at our Public Information Session to learn more about the new DCC Bylaw, ask questions, and chat with the project team over coffee.

Date: June 24th, 2026
Time: 6pm
Location: Municipal Office, 136 Spruce Ave.

Review the website and materials

After reviewing the website and materials to learn more about the proposed changes, submit your questions or comments by email to planning@sparwood.ca by July 10, 2026.

Why are DCCs being implemented/recommended?

This bylaw will help ensure DCC rates reflect:

  • Current growth: As more homes, businesses, and services are built, our community will need more infrastructure. Meeting these needs helps us stay ready for future growth.
  • Fairness: DCCs make sure that the costs of growth are shared, so new development helps pay for the infrastructure it needs instead of putting all the costs on current taxpayers.
  • Consistency: Creating this bylaw will help make sure all new developments follow a consistent approach.
  • Provincial requirements and alignment: DCC Bylaws must follow provincial laws and guidelines, and they are reviewed by the Inspector of Municipalities.

The new DCC Bylaw ensures new development pays its fair share for the infrastructure needed to support our growing community.

What is being created?

In Sparwood, the proposed DCCs are meant to help pay for important infrastructure upgrades so that services can keep up as the community grows.

Here’s what is included in the current draft DCCs (see background report here)

  • Water projects that will support growth and improve the overall system capacity
  • Sewer projects, including upgrades needed to handle future growth such as growth component of the new sewage treatment plant.
  • Improvements to Fire Hall #2 as part of Protective Services

What’s not included in this draft (at this time):

  • Roads/transportation (recommended to be considered after an updated transportation plan is completed)
  • Storm and drainage projects, as no growth-related storm projects have been identified for inclusion right now
  • Parks, since there are no current park projects included in this draft

Overall, the new DCC Bylaw focuses on the infrastructure projects that are needed to support long-term growth planning.

Timeline and Process

  • Background review and technical analysis (2025)
  • Draft project list, costs, and rates (2025)
  • Presentation to Council for consideration of 1st and 2nd readings (est. June 2026)
  • Public information session (June 24th, 2026)
  • Submission to the Province / Inspector of Municipalities (July 2026)
  • Third Reading and Final Council adoption
  • New rates take effect in acordance with s568 of the the Local Government Act.

DCC FAQs

This FAQ summarizes the District’s current draft approach to Development Cost Charges (DCCs). Details may change as Council reviews the bylaw and feedback is received.

What are Development Cost Charges (DCCs)?

DCCs are fees collected from new developments to help fund infrastructure for a growing community. The development and collection of DCCs is established in the Local Government Act.

Why is the District considering DCCs now?

To help plan for and fund infrastructure for Sparwood's growth and allocating costs equitably between new development and existing taxpayers, the District is considering DCCs. These charges not only keep infrastructure development in step with the community's needs but also support long-term planning. And create consistency for across all new developments in what new infrastructure they support.

Who pays DCCs?

DCCs are paid by land developers or builders as part of new development and these costs are passed on to purchasers through higher prices.

When are DCCs collected (subdivision approval vs. building permit)?

Developers or builders pay DCCs either at the time of subdivision approval or when they get a building permit. The timing depends on the type of project and the specific language of the bylaw. If the project changes after subdivision approval, such as an increase in size or scope, the project may be eligible for additional DCCs.

What do DCCs pay for?

DCCs help pay for infrastructure projects that support new development, like water and sewer systems, along with other types of infrastructure allowed by law and local rules.

What don’t DCCs pay for?

DCC funds are reserved solely for the infrastructure projects. Previously collected DCCs must be used for the same service category (or purpose) for which they were collected. While individual projects in the DCC program may change over time through bylaw amendments, funds cannot be reallocated to a different infrastructure category (e.g., sewer to water).

What’s included in Sparwood’s current draft DCC program?

In the current draft, the District suggests using DCCs to support the following:

  • Water infrastructure
  • Sewer infrastructure
  • Protective Services, including Fire Hall #2 improvements

What’s not included in this draft (and why)?

The current draft does not propose DCCs for these categories:

  • Roads and transportation - the draft recommends updating the Transportation Master Plan before proposing any transportation-related DCC projects.
  • Storm and drainage - the draft indicates that no growth-related storm projects are currently identified for inclusion.
  • Parks - there are no current park development projects included in the draft at this time.

How are DCC rates calculated for different types of development?

The current draft organizes DCCs by the type and size of development. For example:

  • Residential developments are usually charged per dwelling unit.
  • Commercial developments are assessed at the building permit stage, based on their total floor area in square feet.
  • Industrial developments are assessed at the building permit stage, based on the total parcel area in acres.

How were the proposed projects chosen (what does “growth-related” mean)?

The District’s draft plan uses specific criteria to decide which projects should receive DCC funding. For example, it looks at whether a project supports growth and benefits the whole community.

Will DCCs affect housing affordability?

The District values affordable housing. Affordability and fairness guide DCC decisions; however, the imposition of DCCs will have an impact on the cost of new development. Not imposing DCCs means that all the costs of infrastructure would be funded by existing taxpayers.

What is the infrastructure project list?

Projects include:

  • Protective Services
    • Construction of a new/upgraded Fire Hall #2
  • Wastewater
    • Upgrades to the Wastewater Treatment Facility
    • Improvements to the Buckthorn Lift Station
    • Enhancements to the sanitary trunk line along Maple St./Pine Ave.
    • Provision of sanitary servicing for the future extension of Sparwood Dr.
    • Future Planning Studies
  • Water
    • Installation of a new water main on Hwy 3 from the Sparwood Proper Reservoir to Pine Ave
    • New watermain at Sparwood Dr. and Hwy 3. 
    • Watermain crossing Hwy 3 between Douglas Fir Rd. and Sparwood Dr.
    • Development of a new reservoir with ancillary connections
    • Future Planning Studies

What are the proposed DCC Rates?

 

When would DCC rates take effect (and is there a transition period)?

 

If Council approves the DCC bylaw, the District will announce the new rates and any transition rules. The Local Government Act (s. 568(2)) requires that DCC bylaws for in-stream projects cannot take effect for 12 months after adoption.

Where can I review the draft information?

The District is sharing the background report so everyone in the community can see the proposed approach and what is being considered. Read the current draft here. Links to the draft bylaw will be included when available. 

How can I provide input and what kind of feedback is the District looking for?

The District’s engagement approach is to clearly inform the communty about the the draft DCC framework and gather feedback through online review and written comments. The Distirct welcomes all comments on the subject of DCCs including but not limited to, the projects included, the rates, or other comments or concerns the community may have. Please submit comments to planning@sparwood.ca.