Burnaby faces a significant setback as it took in only $62.2 million in developer contributions in 2023, $175 million less than the expected $237 million. This shortfall poses challenges for future community projects. The city typically channels developer funds through its community benefit bonus program into reserves for affordable housing and amenities like recreation centers and cultural facilities. The fluctuating nature of developer contributions, affected by market conditions and development activity, led to this substantial deficit. Now there are concerns regarding the sufficiency of Burnaby’s reserve funds to finance future projects, notably the city’s ambitious $2.6 billion capital plan. At the end of 2023, the city had reserves totaling $2.16 billion.

Additionally, new provincial housing legislation introduces further uncertainty, potentially impacting developer contributions even more. This situation prompts a need for reassessment of funding strategies to support vital civic projects outlined in Burnaby’s capital plan, including community center redevelopments and infrastructure upgrades, without burdening taxpayers or incurring external debt.

You can view the 2023 Annual Municipal Report here.