A Utility Master Plan is an engineering study used to assess the capacity of Municipal utility systems such as water, wastewater, stormwater and transportation to identify upgrades required to accommodate community growth.
The Town of Rocky Mountain House has been working with Stantec and Corvus Business Advisors to review and update its Utilities Master Plan together with its Off-site Levy Bylaw.
Before considering a new bylaw, Rocky Mountain House Council is seeking feedback from landowners and developers about the suggested off-site levy rates, based on the revised Utility Master Plan.
Landowners and developers are invited to attend an information session on June 11 to review the suggested rates.
There will be a public information session that evening.
Public Information Session
WHEN: Wednesday, June 11 from 4 PM to 6 PM.
WHERE: Rocky Regional Recreation Centre Rotary Room (upstairs)
WHAT: Drop-in information session for the public. Town staff and consultants will be on hand to answer questions
What is a Utility Master Plan?
A Utility Master Plan is an engineering study used to assess the capacity of Municipal utility systems such as water, wastewater, stormwater and transportation to identify upgrades required to accommodate community growth.
Why did the Town of Rocky Mountain House undertake a Utility Master Plan?
The Town’s last Utility Master Plan was completed 10 years ago. Since then, the Town has undertaken several significant infrastructure upgrades such as:
- 54 St. Extension
- New Wastewater Treatment Plant in progress
- Main Lift Station Number #1 where additional capacity was required to support the Creekside development.
- Water Treatment Plant upgrades
Since 2015, construction costs have increased, and the Town’s long-term growth projections have changed. In the interest of continuously improving our bylaws and asset management strategy, the Town undertook a comprehensive Utilities Master Plan in 2024. This new plan will be used to calculate off-site levies for new development, to ensure the Town and developers have clear expectations and understanding of responsibilities and the rational for them. The plan was approved by council, in principle, on April 8, 2025.
What were the findings of the Utility Master Plan?
The Utility Master Plan found that the Town’s infrastructure is well equipped to meet the projected growth of the next 25 years, with upgrades recommended to service new development areas.
What is an off-site levy?
An off-site levy is a funding tool used by municipalities to recover the capital costs for infrastructure needed to support growth. Off-site levies are imposed on developers to fund the infrastructure projects that support new developments.
How are off-site levies authorized and governed?
Off-site levies are enabled under Section 648 of the Municipal Government Act and governed through an off-site levy bylaw.
What types of infrastructure can be funded by off-site levies?
Off-site levies can fund a range of capital infrastructure projects, including roads, water and wastewater systems, stormwater systems, and community facilities like fire halls, recreation centres, police stations and libraries.
Operating programs and costs cannot be funded via off-site levies.
The Town of Rocky Mountain House only imposes off-site levies for roads, water, wastewater and stormwater infrastructure.
Who pays the off-site levy?
Developers pay the off-site levy as a condition of subdivision approval. The off-site levy represents their share of the cost of infrastructure that benefits their development. This cost is then reflected in the purchase price of the home or lot.
How are off-site levy rates calculated?
Simply put, the rates are calculated by dividing the construction cost of the infrastructure by the assessable area served by that infrastructure.
The Town of Rocky Mountain House relies on its Utilities Master Plan to inform what projects can be funded by offsite levies.
Offsite levy rates are calculated using a model that considers certain variables such as project costs, inflation, cash flow and interest impacts, and the area benefiting from the infrastructure:
The Town’s model for calculating offsite levies is used in nearly 50 other municipalities in Alberta.
How does the off-site levy affect homeowners?
While the levy is charged to developers, the costs is usually reflected in the price an end-user or homebuyer will pay to purchase in the new development.
Off-site levies do not affect existing developed properties.
Who builds and owns the infrastructure funded by off-site levies?
The infrastructure is designed and constructed by either the municipality or developers; After construction, it is owned and maintained by the municipality. The Town is responsible for its lifetime maintenance and replacement.
How does the Town’s current off-site levy rates compare to similar-sized municipalities?
Rocky Mountain House is about the middle of the pack. The suggested off-site levy rates would put the average levy at $120,034 per hectare in Rocky Mountain House, based on the new Utilities Master Plan.
When comparing off-site levies, it’s important to remember municipalities may apply off-site levies to different infrastructure categories.
Here are some general comparisons from other municipalities that apply of-fsite levies for roads, water, wastewater and stormwater projects, based on 2023 or 2024 rates (most recent available):
| Town of Olds | $73,000/ha |
| Town of Sylvan Lake | $90,000/ha |
| Town of Devon | $160,000/ha |
| Town of Coaldale | $185,000/ha |
| Strathcona County | $391,000/ha |
How often are off-site levy rates reviewed and updated?
Rates are reviewed and updated regularly, usually annually, as specified by a municipality’s bylaw or policy.
What is the relationship between population growth and off-site levies?
The Town’s population growth influences the type and timing of infrastructure needed, as identified in the Town’s Utility Master Plan, Asset Management Plan and Recreation Master Plan. The Utility Master Plan forms the basis for determining off-site levy requirements for water, wastewater, stormwater and transportation infrastructure categories.
How are off-site levies used by the municipality?
Funds collected are placed in dedicated reserves and may be used only for the infrastructure types specified in the Municipal Government Act. Municipalities are accountable for ensuring appropriate use of the funds.
Are off-site levies the same as development charges?
While the terms are sometimes used interchangeably, “off-site levies” specifically refer to charges for off-site infrastructure under Alberta’s Municipal Government Act. “Development charges” can also refer to other local fees and costs, such as fees for development permits and subdivision applications.
