City of Medicine Hat reviewing off-site levy bylaw for new developments

City council heard an update to the review at its regular meeting on Monday night. The city has contracted CORVUS Business Advisors to consult on the proposed changes to the bylaw and build out a levy model.

Greg Weiss, a partner with CORVUS, appeared virtually and walked council through an overview of off-site levies, how they are calculated, and a fee model that could be implemented.

“I know we’ve done that in house predominantly most of the years that I can recall,” said Coun. Robert Dumanowski of the outside consultants. “I’m glad that we are doing a full review and that’s where you come into this it’s good to test the outside inputs against your own inputs.”

The city cannot turn a profit on levy reserves, all funds must flow through to the infrastructure for which they are collected. The city’s Planning and Development Services Department (PDSD) is leading the review and identifying ways to update the levies and implement a yearly analysis of the costs associated with city projects to ensure levies collected are accurately reflected in changing project costs.

“One of the main drivers when it comes to offsite levies is to ensure that they are fair and equitable,” said Randi Buchner, the superintendent of engineering with the planning and development services department. “One of the ways that infrastructure is identified is through servicing reports and ensures that we’re putting in the ground the infrastructure that’s needed to support growth.”

The PDSD is working closely with the development community to revise the levy rates. Stakeholder engagement has begun with one session already complete. Buchner says those sessions will continue and more stakeholders will be identified to participate.

“Anytime that we are we are collecting money from the development community there is always a lot of questions and things that may come forward out of that,” said Randi Buchner, the superintendent of engineering with the planning and development services department.

“We really want to ensure that we’re building that relationship on the front side of this to ensure that they’re on board when we do bring forward the bylaw amendment itself. “

Off-site levies can only be collected once from land parcels, either at the time of development or sub-division. Once that levy has been collected, it cannot be re-collected at the time of redevelopment. Additionally, funds collected must be used for the specific purposes of the levy in place.

The City of Medicine Hat currently has four levies in place: transportation, water, sanitary, and storm water. As per the amendments to the Municipal Government Act in 2017, the city could add ‘soft’ infrastructure levies like recreation facilities, fire halls, police stations, and libraries.

by Meghan Cobb

City of Medicine Hat reviewing off-site levy bylaw for new developments

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