An off-site levy is one of several financing sources that municipalities use to pay for infrastructure costs associated with growth. Off-site levy charges are used to transparently and equitably allocate offsite infrastructure capital costs to those that benefit, ensuring that growth pays for growth.
As outlined in Alberta legislation, eligible off-site infrastructure includes new or expanded roads, water, sanitary and stormwater infrastructure, and associated lands for each. Many municipalities in Alberta impose off-site levies.
Off-site levies provide a mechanism for municipalities to recover capital costs incurred for infrastructure improvements required for new development and may only be collected once, for each type of infrastructure, in respect of lands subject to development or subdivision for those items outlined (transportation, drainage, water, sewer, and/or land required for transportation, drainage, water, sewer).
The off-site levy rates are calculated by area to ensure each development bares an equal share of costs associated with the needs of a specified area. The Municipal Government Act clearly outlines the requirements for off-site levy financial reporting, tracking use of funds (for example: costs associated with an offsite levy cannot be used towards ongoing maintenance of infrastructure).