1.1 The purpose of this policy is to establish rules and practices for charging interest, as permitted under the Development Charges Act, 1997 (the “Act”).
1.2 The fundamental principle of funding growth-related capital costs is that ‘Growth should pay for Growth’. This policy serves to ensure that there is compensating interest income to fund the lost Development Charges (DCs) that will result from any DC rate freeze and all deferred payments.
1.3 This DC Interest Policy aims to ensure that the Town of Bradford West Gwillimbury (the Town) can fund the new cost of capital required to maintain the delivery of our services to new employment and population in the community. DCs are the main source of funding for infrastructure required to accommodate growth and without mitigation of the funding shortfall expected, the tax and rate payers may otherwise have to make up this difference. The Town’s goal is for growth to pay for growth as much as the Act allows. The interest earned from this policy will fund the lost DC revenue resulting from the payment of DC’s through instalment payments, or the deferral of development charge collections as permitted through the Act or as approved by Council where permitted by the Act.