Image of the City of Regina

Servicing Agreement Fees and Development Levy Policies

Servicing Agreement Fees and Development Levies (generally referred to as SAFs) are types of development charges. These fees are charged by a municipality for the recovery of growth costs. Growth costs are recovered to build new infrastructure supporting growth, pay down existing debt for past growth works and avoid taxpayers paying costs that serve growth.

Servicing Agreement Fees and Development Levies do not pay for operating costs or renewal of infrastructure. Those costs are paid for by taxes from homes and businesses.

SAFs must be paid when any new development requires more servicing capacity than is currently provided for that site. This could include widening existing roads, expansions to water and wastewater treatment plants, and building new parks and recreation facilities.

Watch the video to learn more about SAFs.

SAFs are subject to the Servicing Agreement Fees and Development Levy Policy and Servicing Agreements and Development Levy Agreements Policy. These policies make up the Development Levy Bylaw.

Greenfield Development Rates

SAF rates are annually reviewed and approved by City Council. The greenfield Servicing Agreement Fee and Development Levy rates effective January 1 for 2018 are:

  • $442,000 per hectare for Residential and Commercial greenfield development; and
  • $147,333 per hectare for Industrial-zoned greenfield development.

Greenfield Development

TransportationWaterWastewaterDrainageParks/RecAdmin
Residential & Commercial $220,600 $111,300 $42,600 $1,500 $20,800 $45,200
Industrial-zoned $73,533 $37,100 $14,200 $500 $6,933 $15,067


Intensification Levy Rates

Effective: October 1, 2019

An Intensification Levy, a type of SAF, will be charged for development within established areas of the city to cover a portion of capital infrastructure projects required to support growth.

Intensification is a type of infill development that involves the construction of new buildings or additions to existing buildings on serviced land within a city’s existing boundaries. The new fee, referred to as an Intensification Levy, will cover a portion of capital infrastructure projects required to support growth.

Examples of development that would result in intensification include:

  • Replacing a single-family home with a fourplex
  • Subdividing one lot into two and building a new home on each
  • Converting a commercial building to a residential building
  • Building an addition onto an existing commercial or industrial building

The Intensification Levy is charged by unit for residential development and by gross floor area for employment-based development at the time of building permit. Council-approved rates are outlined below.

Intensification Levy Rate by Land Use Type - Effective October 2019

Land Use Type

Rate

Residential Unit Types (rate charged per unit)

Secondary Suite

$5,000

Single-Detached Dwelling

$10,300

Semi-Detached Dwelling or Duplex

$9,900

More than Two Dwelling Units (e.g. townhouse, triplex, etc.)

$9,500

Apartment (less than two bedrooms)

$5,000

Apartment (two or more bedrooms)

$7,200

Employment-Based Type (rate charged by gross floor area (per m2))

Office/Commercial/Institutional

$110

 Industrial

$50

The Intensification Levy is determined by multiplying the rate for the land-use type by either the number of units to be built for residential or the gross floor area for employment-based development.

Credits

The Intensification Levy covers the incremental impact on servicing resulting from the development. As such, a site is eligible for a credit if a structure existed within ten years of submitting a new development application for that site.

Typically, the most recent land use would be used in determining the credit. However, if the applicant can demonstrate that a more intense legal-use had been on the site within the past ten years, that use will be used to determine the credit. Once established, the credit is subtracted from the calculated Intensification Levy amount to determine the final levy amount to be paid at the time of building permit.

If the credit exceeds the Intensification Levy, the charge would be zero and the residual credit would be maintained on the site for use in the remaining ten years.

The credit is divided on a proportional basis at the time of subdivision. The credit has no cash value and would be applied when the new development on the site proceeds, provided it occurs within ten years of the demolition of the original structure.

Simple Example:

A single-detached dwelling in the established area of the city is demolished, the lot is subdivided into two equal lots, and then two single-family homes are built.

Determining the Credit

  • Original Credit:  $10,300 for the original single-detached dwelling (as per the table)
  • Credit after subdividing the lot into two: $10,300/2 = $5,150 per lot (available for up to 10 years)

Determining the Intensification Levy per New Single-Detached Dwelling

  • Rate for Single-Detached Dwelling = $10,300 (as per table)

Determination of Total Owing per New Single-Detached Dwelling

  • New Development – Credit
  • $10,300 - $5,150
  • $5,150