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.
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.
|Residential & Commercial||$220,600||$111,300||$42,600||$1,500||$20,800||$45,200|
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.
The City is currently preparing to implement a new fee that will be charged when development occurs within established areas of the city - commonly referred to as infill. 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. Learn more about the Intensification Levy Project