City of Merritt Updating Development Cost Charges (DCCs)
The City of Merritt is seeking feedback from invested or interested parties on proposed changes to Development Cost Charges (DCCs). The City is providing two engagement opportunities:
- General Open House
Wednesday, October 8, 2025 | 4:00 pm – 7:00 pm
City of Merritt Civic Centre - Complete the Online Survey
Please review the information on this page and complete the SURVEY by OCTOBER 12, 2025. After this date, no responses will be accepted. Questions? Email planning@merritt.ca.
What are DCCs?
Development Cost Charges (DCCs) are one-time fees paid by developers to help fund growth-related infrastructure in the community. These charges ensure that the costs of major infrastructure projects needed to support new development are shared fairly between developers and existing taxpayers.
DCCs are established under provincial legislation and may only be used for specific categories of infrastructure: water, sewer, drainage, parks, roads, solid waste and recycling facilities, fire protection facilities, and police facilities.
Funds collected through DCCs are placed in reserve accounts for each eligible category. They remain in reserve until used by the local government to pay for an approved project under the Development Cost Charges program. More information on DCCs is included at the bottom of this page.
DCC Program Update 2025
Development Cost Charge (DCC) programs are typically reviewed every few years to reflect changing growth patterns and rising infrastructure costs. The City’s last significant DCC update was in 2007. View the DCC Bylaw 1964, 2007, and the associated DCC Background Report, which details growth projections and specific calculations of the current Development Cost Charge rates.
Since 2007, Merritt has experienced substantial changes that are not reflected in the current DCC program.
The proposed DCC program update is designed to better align with the City’s most recent Official Community Plan and supporting infrastructure plans.
The proposed update also ensures that the costs of major infrastructure upgrades are shared more fairly between the development community and existing taxpayers.
PROPOSED DCC RATE CHANGES
LAND USE |
PROPOSED DCC RATES |
UNIT OF CHARGE |
CURRENT DCC RATES |
UNIT OF CHARGE |
| Low Density Residential | $23,931.23 | Per Dwelling Unit | $8,085.00 | Per Dwelling Unit |
| Medium Density Residential | $17,094.57 | Per Dwelling Unit | $6,611.00 | Per Dwelling Unit |
| High Density Residential | $11,455.65 | Per Dwelling Unit | $4,564.00 | Per Dwelling Unit |
| Commercial | $89.39 | Per sqm | $42.17 | Per sqm |
| Industrial | $71.88 | Per sqm | $30,570.00 | per hectare* |
| $8.99 | Per sqm** | |||
| Institutional | $103.20 | Per sqm | $38.58 | Per sqm |
*at the time of subdivision
**at the time of Building Permit
In-stream protection
If Council approves the new Development Cost Charges (DCC) rates, they are expected to take effect in early 2026. Provincial legislation provides “in-stream protection,” which means certain applications submitted before the new bylaw is adopted are protected from the updated rates for up to 12 months.
In-stream protection applies to both subdivision and building permit applications that meet the following criteria:
- The complete application is received prior to the adoption of the new DCC bylaw; and
- Final subdivision approval or building permit issuance occurs within twelve (12) months of the adoption of the new DCC bylaw.
In-stream protections also extend to related applications, such as zoning amendment and development permit applications, if they are submitted before the new DCC bylaw is adopted.
Share your voice
The City is seeking feedback from the community and stakeholders on the proposed DCC rates before they are finalized. Please complete the DCC Survey by OCTOBER 5, 2025 at midnight.
If you wish to learn more, attend the Open House and Presentation on Wednesday, SEPTEMBER 24, 2025, from 5:00 pm to 8:00pm, at the Merritt Civic Centre. This event will include a Q&A opportunity.
If you have general feedback, questions, or comments regarding draft DCC rates, contact the City of Merritt Planning Department at planning@merritt.ca.
Please note that any correspondence submitted to the City of Merritt with respect to the DCC rates may be used to better understand the views of community members on the City of Merritt’s proposed Development Cost Charges. Personal information is collected in accordance with Section 26 (c, d, e) of the Freedom of Information and Protection of Privacy Act (FOIPPA) and will be used solely for the purpose of informing the development of the Development Cost Charges bylaw. Questions about the collection, use, and disclosure of this information can be directed to the City of Merritt Corporate Services: 2185 Voght Street, PO Box 189, Merritt, B.C. V1K 1B8.
Frequently Asked Questions
What are DCCs?
DCCs are fees collected from developers to help fund the cost of growth-related infrastructure and parks. DCCs are regulated through the Local Government Act. The rates charged reflect the impact growth has on infrastructure and parks; the greater the impact, the larger the charge. This helps ensure development contributes towards the necessary growth-related infrastructure improvements.
What do DCCs fund?
DCCs are regulated by the province and can only be used to fund the following:
- Transportation Infrastructure
- Sanitary Sewer Infrastructure
- Water Infrastructure
- Drainage Infrastructure
- Parkland Acquisition and Development*
- Protective Service Infrastructure (i.e., fire halls and police stations)*
- Solid Waste and Recycling Infrastructure*
*Note: This update to the City’s DCC Bylaw is not introducing DCC charges in these categories.
What do DCCs NOT fund?
As per provincial legislation, DCCs cannot be used to pay for:
- Replacing infrastructure solely to service existing residents
- Operations and Maintenance
- Community amenities or facilities such as recreation centres, affordable housing, libraries, etc.
- Replacing amenities or infrastucture solely to service existing residents
Who pays DCCs and when?
DCCs are paid by applicants at time of approval for:
- Subdivision, for approval to create new single-family lots, or:
- Building Permit, at the time of application, to construct multifamily residential, commercial, industrial, or institutional developments.
The applicant may pay DCCs in full or, if the DCCs exceed $50,000, pay in instalments, subject to the conditions outlined in the Local Government Act Development Cost Charge and Amenity Cost Charge (Instalments) Regulation.
How are DCCs calculated?
DCC rates are calculated by dividing the cost of growth-related infrastructure and parks by the amount of anticipated growth.
What are the Statutory Exemptions from DCCs?
As per provincial legislation, the following are exempt from paying DCCs:
- Development in which a DCC has previously been paid;
- Development that does not impose a new capital cost burden;
- Places of Worship;
- Self-contained residential dwelling units no larger than 29 m2 (312 ft2); and
- Building Permits for work that does not exceed $50,000 in value.
More Information
- Province of BC: Devevelopment Cost Charges (DCCs)
- Province of BC: Local Government Act, Part 14, Division 19 – Development Costs Recovery
- Current City of Merritt Development Cost Charges Bylaw No. 1964, 2007.
- City of Merritt DCC Background Report: shows growth projections and specific calculations of the current Development Cost Charge rates.
Contact:
City of Merritt
Phone: 250.378.4224
Email: planning@merritt.ca
