From a municipal cash flow perspective, the mandatory deferral will delay the timeframe in which the City receives funds used to support future growth related projects and initiatives.

An alternative to the mandatory deferral is provided pursuant to s.27 of the DCA, which allows a municipality to enter into an agreement that would provide for payment of any part or all of the DC prior to or after the required date. Terms may be flexible and reflect the unique structure of each development. Interest, similar to what was allowed and approved in accordance with the provisions of the deferral or other appropriate rate, may also be applied during the period for which the agreement in in place until such time as payment in full is made.

Administration has received and supports several recent developer requests to enter into agreements to be able to pay the applicable DC Fees at the time of building permit issuance and avoid the mandatory deferral of DC, along with the associated interest rates.

Given Administration’s ongoing support for entering into such agreements it is proposed, via this report, that the approval of such agreements be standardized via a delegation of authority and that the CAO be granted authority to approve all such agreements going forward. This delegation is in accordance with s.23.1 to 23.3 of the Municipal Act and will serve to avoid numerous separate administrative reports to Council that would simply seek approval to enter into said agreements.

Risk Analysis:

One of the significant risks to municipalities is the collectability of deferred DC payments that remain uncollectible and fall into arrears. These outstanding payments currently do not have priority lien status or the requirement to register agreements on title to land, although they can be added to and collected as taxes. In order to mitigate this risk, we currently require a Letter of Credit be provided as security for the deferred DC payments in order for the lower interest rate to apply. By allowing the developers to enter into an agreement to pay the DCs at time of building permit issuance, this risk is eliminated.

As with any development, project budget and cash flow considerations are a risk factor. An agreement that allows for the upfront payment of DC’s based upon a developer’s request assists both the developer and the City.

Climate Change Risks

Climate Change Mitigation:

Climate Change Adaptation:

New construction will incorporate the latest building standards for improving residential and institutional structures to withstand extreme weather events. This is an essential