Financial Policies for Development

Financial Policies for Development outlines how the City of Hamilton handles cost sharing and recovery with land developers for construction of municipal infrastructure under development applications. Municipal infrastructure includes:

  • roads
  • sewers
  • watermains

Land developers must pay the full cost of all local infrastructure installed under development agreements. The City contributes to the cost of oversized infrastructure.

The City defines over-sized infrastructure as infrastructure that will benefit lands other than the development they are constructed for. In the case of oversized infrastructure such as a watermain, the developer has to pay the cost of the local component and the City only pays the component of the cost identified as over-sized.

The City's contribution is based on a flat rate system for oversizing of:

  • sanitary sewers
  • storm sewers and manholes
  • watermains and valve chambers
  • extra width and extra depth of materials for roadways

Plans of subdivisions

The City pays for oversized infrastructure after registration of the subdivision plan and certification by the developer's consulting engineer that the works have been completed and accepted by the City.

City lands

Where municipal infrastructure is to be constructed by a land developer next to future City-owned land we will pay a portion as outlined in the policy.

Eligible lands include:

  • Park land dedications
  • Water and/or wastewater outstations
  • Storm ponds where we determine the location

Municipal infrastructure within the road allowance is normally constructed by the City as part of the capital improvement program. When a land developer constructs this, the City will share the cost as outlined with the Development Charges Background Study and approved Capital Budget.

All cost sharing by the City is subject to allocation of sufficient funding in the year the work is constructed.

The Best Efforts provision allows developers to recover infrastructure costs from other developers when the work benefits lands outside of the development. The engineer for the developer should identify the infrastructurethat will benefit other lands and determine the portion of cost applicable to the benefiting lands. Once approved, the City commits to collect the share from future developers when the developer comes forward with a development application.

Under the Best Efforts provision, the land developer pays the up-front cost to construct the infrastructure applicable to the benefitting lands and is reimbursed as follows:

  1. When a benefiting property owner connects to either a sewer or watermain that has outstanding servicing costs, the City will collect the portion of the cost applicable to the subject property before issuing a sewer or water permit.
  2. When developing land next to existing infrastructure, the developer must pay the outstanding servicing costs before the development application is given final approval.

Additional costs for overhead and indexing may also be included in the final calculation of the outstanding costs recovered by us.

As a condition of development approval, land developers may be required to pay the City for future infrastructure next to the development. A cash payment is collected towards the urbanization of existing rural roads wherethe developing land is next to an existing rural road, such as a road with ditches and no curb and gutter.

A security deposit may also be retained to secure the land developer's proportionate share towards the cost of future underground infrastructure, which will be constructed by the developer of the neighbouring land. We collect payment up-front from the primary developer for work that will be done by another developer later on. The security deposit will be released once the infrastructure is constructed and the land developer pays the invoiced amount.

The City will compensate a land developer for the portion of land that has been dedicated as a condition of development approval in accordance with the Official Plan and any supporting policies.