A growing city requires investment in growth related infrastructure to service new development. Development charges are fees that are paid by new development upon the issuance of a building permit to fund the capital cost of services constructed throughout the City. Development charges play an important part in how growth infrastructure is financed in London. Each new house, commercial centre, university building, and manufacturing plant requires infrastructure and services (e.g., sewer pipes, stormwater ponds, fire stations, road improvements, etc.) in order to function efficiently and effectively.
Currently, none of the London-area school boards have calculated development charges for any categories of development. No additional development charges are collected with a building permit other than those outlined in the City of London Development Charges By-law.
Are development charges included with property taxes or water and wastewater rates?
No. Development charges (DCs) are different than property taxes and water and wastewater rates. DC's represent a source of funding for the design and construction of new municipal infrastructure required to support new developments. Only new construction or additions to existing buildings are required to pay development charge fees. Instead, taxes and rates are used to pay for the everyday costs of running and maintaining a city, and all London property owners are responsible for these costs.
Development Charges Background Study
At least every five years, the City of London conducts a development charges background study to forecast the city’s future residential and non-residential growth to determine infrastructure needs and costs. This information is used to calculate the amount of money that new development needs to pay in order to cover new infrastructure and services.
For more information on the 2019 development charges and how they are calculated please click here.
- Strategic Priorities and Policy Committee Meeting December 17th, 2018
- This short video outlines the key aspects of Development Charges