Town of Rocky Mountain House

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. 

View Draft Utilities 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.

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.

Off-site levies are enabled under Section 648 of the Municipal Government Act and governed through an off-site levy bylaw.

Click here to view the current Off-site Levy Bylaw

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.

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.

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.

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.

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.

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):

Rates are reviewed and updated regularly, usually annually, as specified by a municipality’s bylaw or policy.

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.

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.

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.