Published on April 22, 2020
Off-Site Levy Management
A special motion brought forward to City Council by Engineering Services on April 20, 2020 has resulted in $5.13 million being disbursed to developers and the City for front-ending costs related to constructing various off-site levy projects. Approximately $4.37 million of this money was reimbursed to the City as it is a major front-ending party to these projects. The remaining $0.76 million will be reimbursed to private developers. This is welcome news in an otherwise economically strained time due to the COVID-19 pandemic.
As part of land development, developers are required to pay off-site levies to support new infrastructure. Some developers will build the infrastructure themselves as a front-ending party, but many times, especially for larger projects, the City builds what is needed and is reimbursed as the levies are collected from other parties that benefit from the improvement.
In this case, levies were collected on a large development that was not finalized until after the City had developed a recommendation to distribute levies collected in 2019 to front-ending parties. As the additional levies were received under the 2019 rates, it was considered appropriate to disburse them to front-ending parties who were still owed monies up to the end of 2019 and after the March 2020 Off-Site Levy Bylaw update. Without a special motion, these funds would not have been reimbursed until the annual update was completed next year.
The City is required to use these reimbursed funds in specific ways in accordance with a policy governing funds of this nature. Options include funding new off-site levy eligible infrastructure projects directly, or using the funds to service existing or new debt related to off-site levy infrastructure.
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Last edited: April 22, 2020