2019 Development Charges By-law Review

Why are the rates changing?

The City is conducting a review of its development charges by-law. The current Development Charges By-law (C.P. 1496-244) expires August 4, 2019. Under the Development Charges Act a study must be conducted at least every 5 years to set a new development charge rate structure.

The City conducted a Development Charges Background Study to review growth related capital projects needed to accommodate London’s growth. This information is used to update the proposed Development Charges By-Law and development charge rates.

The main focus of development charge calculation is recovering the appropriate amount of money from individuals who are sparking city growth.

May 2019-Strategic Priorities and Policy Committee: Approval of Development Charges Background Study & By-Law Report


Background

What are development charges?

A fee charged by the City to recover growth related capital costs associated with residential and non-residential growth.

Development charges do not pay for operating costs or infrastructure renewal, that is paid for by new taxes from new homes and businesses, also known as assessment growth.

Growth costs are recovered to:
  • build new infrastructure supporting growth
    (The services required to support new development. Services include new water and wastewater systems, roads and transportation infrastructure, recreation facilities, parks, fire and police)
  • pay down existing debt for past growth works
  • avoid taxpayers paying for costs that serve growth

Development charges assist in financing capital projects required to meet the increased need for services resulting from growth and development. Development charge funds may only be used for the purpose for which they are collected.

How we pay for a growing city:

Classifications:

Residential, Commercial, Institutional and Industrial

Development charges would be charged for the construction of new buildings, expanded buildings and converted buildings.

Development charges are collected at the building permit stage for residential dwellings (such as single family, semi-detached, apartments and condos), industrial buildings as well as non-industrial buildings such as retail and office buildings.

The World of Development Charges


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