Background
The City of Courtenay is developing an Amenity Cost Charges (ACC) Bylaw, a new tool that will help fund community amenities needed to support Courtenay’s continued growth.
ACCs were introduced through Bill 46 (2023) as part of the Province’s changes to the Local Government Act. They allow municipalities to collect funds from new development for amenities that serve the broader community.
While Development Cost Charges (DCCs) fund essential infrastructure such as water, sewer, drainage, roads, and parks, ACCs focus on community amenities that improve livability and social well-being, including:
- Recreation and cultural facilities
- Parks, trails, and open spaces
- Sportsfields and playgrounds
- Dog parks and spray parks
- Cultural and community centres
Together, DCCs and ACCs ensure that growth pays for growth; balancing the costs of new infrastructure and amenities between the development community and existing taxpayers.
Where we are now
The City is continuing work toward adopting an Amenity Cost Charges (ACC) Bylaw.
In December 2025, staff presented a report to Council outlining ACC rate options, including potential rates for institutional and industrial development. The report also provided an opportunity for Council to review the draft ACC project list, which identifies the types of community amenities that will be funded through ACCs.
This discussion helped inform the development of the proposed ACC Bylaw and the projects that may be included as part of the program.
ACC rates and the associated project list will continue to be refined as the bylaw moves through the Council review and adoption process.
Additional information and updates will be shared as the bylaw progresses.
Proposed ACC rates
| Land Use | Unit | Proposed Rate (2026) |
|---|---|---|
| Low Density Residential | per lot or dwelling unit | $ 6,643 |
| Medium Density Residential | per unit | $ 3,618 |
| High Density Residential | per m² GFA | $ 42.56 |
| Commercial | per m² GFA | $ 13.84 |
| Industrial / Institutional | — | Exempt |
Rates include a 1 % Municipal Assist Factor (MAF) and are based on Courtenay’s 20-year growth projections.
Over this period, the program could collect up to $26 million of the estimated $73 million in growth-related amenity costs.
Proposed projects
The draft ACC program funds the following amenities to support growth over the next 20 years:
- Community Centre Expansion
- Florence Filberg Centre Expansion
- Recreation Facility Expansion
- Sportsfield Improvements
- Pickleball Court Construction and Improvements
- Dog Park Construction and Improvements
- Cultural Facility Expansion
- LINC Youth Centre and Skateboard Park Improvements
- Spray Park Construction
- Park Amenity Program
All projects were reviewed for eligibility under the Local Government Act and the ACC Best Practices Guide, ensuring they directly serve the needs of Courtenay’s growing population.
Economic analysis
To evaluate how ACCs may impact development, the City retained City Squared Consulting to conduct a financial feasibility study.
The analysis confirmed that:
- The proposed rates are modest and viable under current economic conditions.
- Phasing in rates is not required.
- Increased density anticipated through the Official Community Plan (OCP) and Zoning Bylaw updates will help offset development costs.
Learn more:
Amenity Cost Charges (ACCs) are one-time fees collected from new development to help pay for community amenities such as recreation centres, trails, and cultural facilities.
They ensure that new growth contributes to the amenities that make Courtenay a great place to live.
ACC rates are based on:
- 20-year growth projections
- Eligible capital projects (e.g., recreation and culture facilities)
- Benefit allocation between existing and new residents
- A Municipal Assist Factor (MAF), which determines the City’s share of costs
The City’s current proposal uses a 1% MAF and modest, city-wide rates for residential and commercial uses.
- DCCs fund essential infrastructure like water, sewer, drainage, roads, and parks.
- ACCs fund community amenities like recreation centres, sportsfields, and cultural spaces.
Together, they ensure growth pays for both infrastructure and quality-of-life amenities.
Payments By Installments
The Development Charge (Instalments) Regulation (BC Reg. 166/84) was recently amended on January 1, 2026. The amended Regulation allows payment of amenity cost charges, development cost charges, and school site acquisition charges by instalment.
What has changed?
The Province has made changes that are designed to encourage housing development by providing a way for developers to pay ACC in two installments if they meet certain requirements, while also protecting local governments from risk of non-payment. Developers may also choose to pay all development charges at once.
New Rules for Paying ACC in Installments
As of January 1, 2026, developers can choose to pay ACCs to the City of Courtenay in two installments. For developers this means:
- 25% of the total is payable on receipt of a Subdivision Approval or Building Permit Issuance (whichever comes first)
- 75% of the total can be deferred until whichever of the following comes first:
- Four years following receipt of the Subdivision Approval or Building Permit Issuance; or
- 15 business days after all occupancy permits have been issued and the local government gives written notice (an invoice) - to the developer that the conditions, if any, in those permits have been satisfied and payment of the balance of the charge is due.
If a developer chooses to defer 75% of the total charges, they must do the following to provide security to the City of Courtenay:
- Provide an Irrevocable Letter of Credit from a Financial Institution or Trust Company authorized under the Financial Institutions Act; or
- Provide an On-demand Surety Bond from an insurer authorized under the Financial Institutions Act, and with prescribed credit ratings.
Please see the Development Charge Instalments Regulation (BC Reg. 166/84) below for more on the requirements. To see how the Regulation changed on January 1, 2026, reference Ministerial Order No. M197.
Applications submitted prior to final adoption of the ACC Bylaw may qualify for in-stream protection under the existing charge structure, provided they meet completeness requirements as specified in Section 570 of the Local Government Act.
Criteria for when In-stream Protection Applies
New ACC rates take effect immediately upon adoption of the respective Bylaw. Precursor or in-stream development applications are indefinitely exempt from the initial ACC Bylaw No. 3207, and applicants will not pay ACCs until the City passes an amended ACC bylaw. The City is planning an inflationary update in early 2027. The 12-month in-stream protection period starts once the amended bylaw is adopted, and the rates in the original 2026 Bylaw No. 3207 would apply for 12 months.
Complete rezoning, development permit, or building permit application received by the City | Initial ACC Bylaw adopted | Year 1 ACC Rate | Amended ACC Bylaw adopted with new rates in 2027 | Year 2 ACC Rate | Year 3 ACC Rate |
| No ACCs charged for in-stream applications. Applicants are locked in at the previous rate (i.e., no ACCs). | In-stream applicants pay 2026 rates and are protected from the amended rates for 12 months. Applicants must receive Subdivision Approval or Building Permit within this period to pay the initial ACC rate. | In-stream protection no longer applies if Building Permit is not received within 12 months of amended ACC Bylaw (2027 update).All new applications are now subject to the amended ACC rate. |
Yes. Under the Local Government Act, ACCs do not apply to:
- Affordable and government or non-profit owned or leased rental housing
- Supportive, cooperative, or transitional housing
- Places of public worship
- Developments that do not increase population or employment
- Any capital cost already covered by a DCC
The MAF is Council’s policy decision on how much the City contributes toward growth-related amenities.
The provincial minimum is 1%, but Councils may choose to contribute more.
A higher MAF lowers costs for new development but increases the City’s financial responsibility.
Following consultation in fall 2025, staff will present the final ACC Bylaw for Council’s consideration.
Unlike DCC bylaws, ACC bylaws do not require Provincial Inspector approval between third and fourth reading, allowing both the ACC and DCC bylaws to be adopted together later this year.
