Throughout 2021-2023, the City of Steinbach has experienced capital infrastructure budget shortfalls due to cost increases related to underground water and sewer infrastructure renewals as well as sidewalk construction costs.
The growing gap between development fee rates and actual construction costs is putting increasing pressure on grant funding to cover the costs of infrastructure maintenance and expansions.
The intent of residential capital development fees in Steinbach is to help pay for the cost of things such as installing sidewalks as well as larger upgrades such as drinking water production expansions, lagoon expansions, or arterial road expansions.
The City of Steinbach is generally charging lower than average development fees.
The City’s Residential and Non-Residential Capital Development Fee By-Laws have had annual fee increases of 2.5 per cent annually since 2015.
The intent of the yearly increases is to address the inflationary impacts of infrastructure costs.
Administration says the average annual infrastructure costs have been increasing by 5 to 6 per cent per year since the last time significant fee adjustments were made in 2013.
To bring development fees in line with actual construction inflation since the last significant adjustments were made, Administration says they would need to be increased by about 30 per cent in 2024.
Recommendation from Administration to Council is to increase development fees gradually over the next four years at a rate of 7.5 % per year.
Steinbach City Council will make a decision on how to proceed at a later date.
Wed, May 1, 12:00 PM
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