Legislative History: Enacted March 24, 2020 (By-law No. CPOL.-400-85)
Last Review Date: December 7, 2021
Service Area Lead: Director, Capital Assets and Projects
1. Policy Statement
The purpose of this Policy is to establish a framework for determining the interest rate that can be applied to Development Charges for certain development types.
2.1 City: means the Corporation of the City of London.
2.2 City Treasurer: means the individual appointed by Municipal Council in accordance with the Municipal Act, 2001.
2.3 Development Charge: means any Development Charge that may be imposed pursuant to a By-law enacted under the authority of the Development Charges Act, 1997 S.O. 1997, c.27, as amended.
This Policy applies only to Development Charges administered in compliance with the current Development Charges By-law enacted under the authority of the Development Charges Act that are subject to interest charges.
4. The Policy
The following approach establishes the Policy for Development Charge Interest:
4.1 The average annual historical five year Statistics Canada Non-residential Building Construction Price Index for Toronto year over year change as of September 30th shall be the financial mechanism used as the foundation for establishing the interest rate.
4.2 The interest rate shall be established at the earlier of when the Development Charge is calculated or when the first payment is due. The established interest rate shall remain in effect until the final payment is received.
4.3 Interest accruing on the unpaid balance of the Development Charge shall be compounded annually.
4.4 The City Treasurer, or designate is authorized to execute the administrative actions necessary to implement the Development Charges interest rate.