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# Background
The Town's current Offsite Levy Bylaw 1190/15 requires an update since it was formally accepted over ten years ago!
*An off-site levy
bylaw is a tool intended to assist a Municipality in the recovery of
capital costs incurred for infrastructure improvements undertaken to
accommodate new development.*For example, the future McKay Ranch
Lift Station, the Northwest Stormwater Management System and
improvements to roadways are included in this cost-sharing model.
During
the June 9, 2026 Regular Council Meeting, preliminary revisions to
the Town's off-site levies were presented and approved for first reading, and
Administration has been directed to move forward with public and stakeholder
engagement. Please see the current Offsite Levies Bylaw and the Draft 2026 Off-site Levies Report that
supports the proposed new rates here.
The existing off-site levies rates, the proposed off-site
levies rates, and links to related documents along with important
Frequently Asked Questions can be found below!
##### Phased Offsite Levies Rate Increase
| | |
| --- | --- |
| Year | Offsite Levy Rate (Average) |
| 2027 (80%) | $111,948.52/ha |
| 2028 (90%) | $125,941.78/ha |
| 2029 (100%) | $139,935.31/ha |
Historically,
Administration has been reviewing and updating this bylaw every 3-5
years to ensure that levies remain consistent with current
infrastructure costs. Recent inflation of goods and services, along with
revisions to the Municipal Government Act
(MGA) to allow more flexibility to off-site levies, specifically to
include recreation levies, has prompted the update of this bylaw as
inflation and new projects not previously included in the bylaw rates
calculations require additional funding.
Section
648 of the MGA allows for the collection of off-site levies for land
being developed or subdivided to pay for all or part of the capital cost
for new or expanded infrastructure. Recently, the MGA was amended to
allow off-site levies to also be collected for recreation facilities,
fire halls, police stations, and libraries. However, off-site levies can
only be collected on a parcel of land **once**.
If
you have any questions or would like to set up on a meeting on the proposed changes to the Town's off-site
levies, we invite you to contact our Director of Infrastructure & Planning
Services, Preston Weran, via email at [email protected] or at 403.885.6242.
***Schedule dependant, the bylaw will be brought to Council for second and third reading September 2026.***
#### FREQUENTLY ASKED QUESTIONS
## What are off-site levies?
Off-site levies are fees that developers have to pay to a municipality
when they build new homes, businesses, or other developments.
Infrastructure is initially funded by the municipality, with a portion
of costs recovered as development proceeds. Off-site levies are not a
tax, but rather a cost recovery tool based on the principle that growth
pays for growth.
## How does an off-site levy work?
An off-site levy is a funding mechanism for municipalities to support
growth. A subdivision requires infrastructure on-site as well as
large-scale infrastructure off-site that supports the subdivision such
as roads, water, sanitary, and storm sewer systems. These large-scale
infrastructure projects are expensive and typically benefit more than
one development.
A developer may not have the capital funds to pay
all off-site infrastructure costs up front to support this new growth.
The role of the municipality is to bankroll the construction of the
off-site infrastructure and collect levies from benefiting parties as
development progresses.
Off-site levies are not a tax, and
municipalities do not make revenue from them. The money spent on the
construction of off-site levies infrastructure will equal the amount of
money collected. According to provincial regulations, off-site levies
cannot be used to fund operations or maintenance, only new construction.
## How are the off-site levy rates calculated?
The Town retains an engineering consultant to update the Off-Site
Levies Report (the current "2015 Off-Site Levies Report" was completed
by Stantec in March 2016 and is appended to the Offsite Levies Bylaw).
The report forms part of the Offsite Levies Bylaw and identifies the
costs of infrastructure required to support the Town's growth and
development. The costs for specific infrastructure projects are then
allocated to the appropriate contributing areas (those areas that
require that specific infrastructure) so that developers and people
subdividing will pay an amount proportionate to the area being developed
or subdivided.
Some areas of Town pay higher or lower off-site
levy rates based on where the subject property is located and what
specific off-site levies are required for that property to develop. The
rates that are listed above are average off-site levy rates for the
Town.
Historically, the Town has updated the off-site levy rates /
bylaw every 3-5 years to ensure that levies remain consistent with
current infrastructure costs. However, this bylaw has not been updated
for 10 years.
## How are off-site levies regulated?
Off-site levies are regulated under Section 648 of the Municipal Government Act (MGA) and Off-site Levies Regulation (187/2017). The act and regulation authorize municipalities to collect offsite levies through adoption of a bylaw. Blackfalds' current Offsite Levies Bylaw (1190/15) was passed by Council in January 2016.
## How do off-site levies impact existing homeowners?
Off-site levies are charged to developers at the time of development or
subdivision, so they do not directly impact existing homeowners, but
they may impact new home buyers in developing neighbourhoods.
## How do the updated off-site levy rates compare with other communities?
Each community has unique servicing and development needs and therefore
it is challenging to compare one community's off-site levies rates to
another.
## Will the proposed off-site levy rates be phased-in?
Administration is recommending that the off-site levies be introduced
as a phased percentage of the total cost per hectare. The bylaw would
include reduced rate of 80% for 2026, then 90% for 2027 then come into
full force on January 1, 2028, at the rate of 100% of the total cost per
hectare.
## What is included in the off-site levy infrastructure project costs?
Costs include the cost of design and construction of off-site levies
infrastructure, contingency (10% of the estimated construction costs),
and a 5% administration fee to cover the costs of the Town's contract
administration and engineering review for the improvements.
Although
the MGA does allow land costs to be include in the collection of
off-site levies, the Town has chosen to exclude land costs from the levy
calculations and instead includes land costs as a capital expenditure.
If the land costs were to be included in the off-site levies
calculations, the proposed rates would increase.
Off-site levies cannot be used to fund operations or maintenance, only new construction.
For
transportation off-site levies projects related to arterial roadways,
the Town pays 25% of the cost with offsite levies being collected for
the remaining 75% of the costs.
## Why are the updated off-site levy rates going up?
The off-site levies were last updated in 2015 (11 years ago). Since
that time costs to construct infrastructure have gone up, especially
within the last 5 years. The rates need to increase to ensure that
projects have adequate funding when they are needed.
The combined
off-site levies rate is also proposed to include the new facilities
rate, replacing the current recreation contribution.
## How do the updated off-site levy rates compare to past Blackfalds rates?
The current bylaw includes an average cost of $89,107.33 / ha - this
includes deep utilities (water, sanitary and storm sewer) and
transportation levies.
The proposed updates include an average
cost of $128,231 / ha - this includes deep utilities, transportation,
and facilities levies. Excluding the facilities levy, the rate would be
$110,000 / ha.
Historical average off-site levies rates for Blackfalds are shown below.
| | | |
| --- | --- | --- |
| **Year** | **Off-Site Levy Rate ($/ha)** | **Average Annual Increase (%)** |
| 2001 | $16,185 / ha | - |
| 2005 | $30,610 / ha | 17.3% |
| 2007 | $43,012 / ha | 18.6% |
| 2008 | $51,236 / ha | 19.1% |
| 2013 | $71,950 / ha | 7.1% |
| 2014 | $72,458 / ha | 6.8% |
| 2015 | $89,107 / ha | 22.9% |
| **2026** | **$139,935.31 / ha** | **4.19%** |
## Why are no Highway 2A improvements included in the off-site levies?
While the 2015 Transportation Master Plan
recommends significant upgrades along the Highway 2A corridor in the
future, they are not included in the calculation of transportation
off-site levies because Alberta Transportation & Economic Corridors
owns and maintains Highway 2A. Off-site levies could be collected for
construction and improvement of the highway; however, the Province
should be paying for these improvements.
## How do I know if off-site levies are owing on my parcel of land?
If off-site levies have not been previously paid on a parcel of
undeveloped land, it is likely that off-site levies are owing. For
further questions or confirmation, contact the Planning &
Development department via email or by phone at 403.885.9679 Ext. 280.
## Why is the Town implementing a facilities off-site levy?
In 2018 the MGA was updated to allow off-site levies to be collected
on facilities including recreation facilities, police facilities, fire
halls, and libraries.
Currently the Town collects a recreation
contribution (only on residential lots). The new facilities off-site
levy will replace the recreation contribution. The Town is not proposing
to collect levies for police facilities, fire halls, or libraries at
this time.
## When will the updated off-site levy rates go into effect?
Once the updated Off-site Levies Bylaw receives 3rd reading, the new rates would go into effect. This is expected to occur in late 2026 or early 2027.
## How does the cost of the current recreation contribution compare to the proposed facilities off-site levy rate?
**Current recreation contribution:** $1,150 per
residential dwelling unit. Based
on an average density of 16 residential homes per hectare (ha), this would
equate to approximately $18,244.80/ha.
**Proposed facilities off-site levy rate:**The new proposed facility levy, calculated
based on capital costs of $21,145,513.00, equates to $18,543.82/ha. With the
ability to collect off-site levies for facilities, the recreation contribution
for parks and facility improvements has been integrated into this Bylaw, formalizing
the contribution option into the Bylaw.
## What are the next steps related to the Off-site Levies Bylaw update?
* Administration will go back to Council with the proposed updated Off-site Levies Bylaw in September 2026.
* Following
passing of the bylaw, the new off-site levies rates will come into
effect. This is expected to occur in late 2026.