Edmonton city council to allocate development fee surplus

Representatives of the development industry are urging city council to make sure surplus development revenues benefit all developers and not just those building infill. Council's urban planning committee heard an update on Sept. 29 on the planning and development business model, which is funded by the fees charged for land development applications, development permits, and building permits. The projected year-end balance of the reserve is $77.6 million, which is 105% of budgeted operating expenses, following years of increased construction activity. Because council policy mandates that the balance should not exceed 75%, administration presented options to bring the reserve closer to its target level. Administration recommends pausing inflationary fee increases in 2027, increasing staff levels, and investing in technology. It also recommended three actions that would require a policy exception: a one-time, $12-million transfer to the infill infrastructure program; a hold on funds for future growth planning studies; and a revision to the PDBM policy.

Kalen Anderson, CEO of BILD Edmonton Metro, said the organization supports the changes as an imperfect first step. "To be clear, our preferred approach would have more closely reflected the sources of the surplus itself," Anderson said. "This is because those who have overpaid fees for several years and have experienced an increased cost burden should receive a commensurate benefit to fairly equalize the situation." She noted that much of the reserve was generated through greenfield, commercial, industrial, and subdivision activity, and "our preferred allocation would have more closely matched those contributions."

Urban planning committee debated potential solutions for much of the day. There was a recommendation on the floor to remove the allocation for residential planning in the future growth area and add $8 million towards items identified in the industrial investment action plan. Ultimately, committee requisitioned the item to city council without a recommendation. Council is set to revisit the surplus allocation at its Oct. 6 meeting, and will review the entire model next year.