Off-Site Levy
2021 Off-Site Levy Update – Bylaw No. 2099
An update to the Off-Site Levy Bylaw and Policy was approved in August 2021.
The monies collected by the Off-site Levy are used to build infrastructure that supports new developments. The basic principle behind the Off-site Levy is that growth pays for growth. The existing offsite levy bylaw, policy and model can be found on the Town’s website.
The Town of Peace River has updated the off-site levy model, which sets the rates applied to new development and subdivisions. The rate update reflects changes in infrastructure projects, project allocations, cost estimates, and development areas. The monies collected by the off-site levy are used to build infrastructure that supports new developments.
In addition to the levy rate update, the Town is proposing two substantive changes to the Off-site Levy Bylaw and an update to the Off-site Levy Policy. The Proposed bylaw and policy are included in a submission to Town Council from May 25, accessible below:
Key changes are summarized below.
Once the new bylaw is adopted, the updated offsite levy rates will apply to any new development or subdivision applications where the off-site levy is imposed.
Open House
A virtual open house was held on June 17, 2021 to discuss the proposed changes and answer questions from residents and stakeholders. A video of the open house presentation is available below:
Couldn’t make it to the Open House? Please contact the Planning Department at 780-624-2574 or email Alisha Mody, Manager of Planning and Development at [email protected] to receive a pdf of the presentation.
Key changes to the Bylaw
Off-site Levy Bylaw No. 2099 replaced the Off-Site Levy Bylaw, No. 2044, which was adopted in 2019. The full Bylaw No. 2099 including the rate model can be found as part of the May 25 Town Council Agenda.
Update to Definition of “Subdivision Area”
The “Subdivision Area” definition was updated, replacing “arterial roads” with “roads”, the “arterial roads” definition was removed, and a “road” definition was added.
The effect of these changes is that in the case of an off-site levy being imposed at subdivision, the off-site levies no longer apply to any lands being dedicated as roads. i.e. the per hectare off-site levy charge will not apply to lands that become a public road.
This lessens the cost to the developer of subdivision that requires the development of a road. The developer will no longer be required to pay the levy on lands that are being provided to the town as road infrastructure, in addition to paying for the road infrastructure itself and providing the land.
| Costs of Developing Road | Current Costs | Costs after Bylaw No. 2099 is adopted |
|---|---|---|
| Land provided to Town through road plan | Yes | Yes |
| Developing Road infrastructure (engineering, road base, asphalt etc.) | Yes | Yes |
| OSL on land provided | Yes | No |
Removal of Adjustment to Rates in Non-Review Years
The adjustment of off-site levy rates during non-review years (Section 10(c) of the current bylaw) was removed. The Town is updating the levy rates every two years. This is sufficient to keep the rates current for Peace River.
Changes to the Rate Model
The off-site levy rates must be updated regularly to ensure that they are generated based on the best information available. The model has been updated with inputs to the end of 2020. The rate update reflects changes in infrastructure projects, project allocations, cost estimates, and development areas.
2021 rates vary from a low of $35,032 ($32,236 in 2019) per ha. to a high of $54,758 ($60,344 in 2019) per ha. The weighted average rate across all areas is $37,297 ($40,355 in 2019) per ha. (note, the weighted average rate is provided for information purposes only; developers are charged the rate applicable to their specific offsite levy area).
The updated off-site levy rates per area (Schedule B of the bylaw) is below:
| Area Ref # | Road Off-Site Levy (per Ha) | Water Off-Site Levy (per Ha) | Sanitary Sewer Off-Site Levy (per Ha) | Total (per Ha) |
|---|---|---|---|---|
| 1 | $16,209 | $8,221 | $10,932 | $35,362 |
| 2 | $16,209 | $8,221 | $10,932 | $35,362 |
| 3 | $16,674 | $8,221 | $10,932 | $35,827 |
| 4 | $16,209 | $8,221 | $10,932 | $35,362 |
| 5 | $16,209 | $8,221 | $10,932 | $35,362 |
| 6 | $16,209 | $8,221 | $10,932 | $35,362 |
| 7 | $16,209 | $8,221 | $10,932 | $35,362 |
| 8 | $16,674 | $8,221 | $10,932 | $35,827 |
| 9 | $18,635 | $8,221 | $10,932 | $37,788 |
| 10 | $16,209 | $8,221 | $10,932 | $35,362 |
| 11 | $16,209 | $10,127 | $13,095 | $39,431 |
| 12 | $16,209 | $10,127 | $13,095 | $39,431 |
| 13 | $16,209 | $10,127 | $13,095 | $39,431 |
| 14 | $16,209 | $8,221 | $10,932 | $35,362 |
| 15 | $18,170 | $8,221 | $10,932 | $37,323 |
| 16 | $16,674 | $8,221 | $10,932 | $35,827 |
| 17 | $16,209 | $8,221 | $10,932 | $35,362 |
| 18 | $16,209 | $10,127 | $13,095 | $39,431 |
| 19 | $16,209 | $10,127 | $13,095 | $39,431 |
| 20 | $16,625 | $8,221 | $10,932 | $35,778 |
| 21 | $16,625 | $8,221 | $10,932 | $35,778 |
| 22 | $16,625 | $10,127 | $13,095 | $39,847 |
| 23 | $16,209 | $8,221 | $10,932 | $35,362 |
| 24 | $16,209 | $10,127 | $13,095 | $39,431 |
| 25 | $16,209 | $10,127 | $13,095 | $39,431 |
| 26 | $16,209 | $10,127 | $13,095 | $39,431 |
| 27 | $16,674 | $10,127 | $13,095 | $39,896 |
| 28 | $16,209 | $10,127 | $13,095 | $39,431 |
| 29 | $16,209 | $10,127 | $13,095 | $39,431 |
| 30 | $16,209 | $10,127 | $13,095 | $39,431 |
| 31 | $16,209 | $10,127 | $13,095 | $39,431 |
| 32 | $15,879 | $8,221 | $10,932 | $35,032 |
| 33 | $16,625 | $10,127 | $13,095 | $39,847 |
| 34 | $19,051 | $10,127 | $13,095 | $42,273 |
| 35 | $16,625 | $10,127 | $13,095 | $39,847 |
| 36 | $17,090 | $10,127 | $13,095 | $40,312 |
| 37 | $15,879 | $8,221 | $10,932 | $35,032 |
| 38 | $15,879 | $8,221 | $10,932 | $35,032 |
| 39 | $16,625 | $11,866 | $9,086 | $37,577 |
| 40 | $19,051 | $11,866 | $9,086 | $40,003 |
| 41 | $18,635 | $11,866 | $9,086 | $39,587 |
| 42 | $18,586 | $11,866 | $9,086 | $39,538 |
| 43 | $16,210 | $11,866 | $9,086 | $37,162 |
| 44 | $18,586 | $15,432 | $12,652 | $46,670 |
| 45 | $26,674 | $15,432 | $12,652 | $54,758 |
| 46 | $19,051 | $15,432 | $12,652 | $47,135 |
| 47 | $16,625 | $15,432 | $12,652 | $44,709 |
| 48 | $16,625 | $15,432 | $12,652 | $44,709 |
| 49 | $16,210 | $11,866 | $9,086 | $37,162 |
| 50 | $16,210 | $8,221 | $13,095 | $37,526 |
| 51 | $16,210 | $8,221 | $13,095 | $37,526 |
| 52 | $16,625 | $10,127 | $13,095 | $39,847 |
The updated off-site levy areas (Schedule A of the bylaw) is below:
Off-site Levy History
The Town of Peace River has had an off-site levy in place since May 1978. Off-site levy rates have been set using the current approach, a rate model developed by CORVUS Business Advisors, since 2009. The off-site levy report associated with each bylaw outlines the methodology used in updating and establishing offsite levies and the resulting rates for each infrastructure type and each offsite levy area.
Table 1 Off-Site Levy Bylaw History
| Bylaw 1036 | 08-May-78 |
| Bylaw 1193 | 29-Dec-82 |
| Bylaw 1360 | 11-Jul-88 |
| Bylaw 1851 | 23-Nov-09 |
| Bylaw 1929 | June 10, 2013 Amends Bylaw 1851 |
| Bylaw 1952 | May 25, 2015 Amends Bylaw 1851 |
| Bylaw 2044 | 13-May-19 |
In April 2014, the Town retained CORVUS Business Advisors to facilitate a rate update. The average approved rates called for an adjusted rate (70% of the full amount) in 2014 totalling $58,348 per hectare and increasing to 100% of the full amount totalling $83,355 in 2016.
For the 2019 update, Town staff continued to use the CORVUS model and made several enhancements to the existing methodology. Capital projections over 25 years have been rationalized, as have the portions attributable to future development. As such, the rates show a significant reduction to an average rate of $40,886 per hectare.
The table below shows the approved rates at the time against the rates provided for 2021.
Table 2 Off-site levy rates since 2014
| Year | Rate Adjustment in Each Area | Approximate Weighted Average Rate |
|---|---|---|
| 2014 | 70% of Full Cost Rate | $58,348 |
| 2015 | 85% of Full Cost Rate | $70,852 |
| 2016 | 100% of Full Cost Rate | $83,355 |
| 2019 | 100% of Full Cost Rate | $40,886 |
| 2021 | 100% of Full Cost Rate | $37,297 |