London will dip into its development charges fund to pay for two ice pads. Board of control approved a plan by city administration to use $3.8 million from the fund to pay for the additional ice pads at Nichols and Stronach arenas.

It's the first time the city has dipped into the fund, which is designed to assist in the expansion of services neces- sary because of growth or development.

Vic Cote, the city's acting general manager of finance and corporate services, said it's possible developers would disagree with the spending.

"But it's our opinion these two (ice) pads should qualify," he said.

"It's the city's prerogative to use these funds at it sees fit."

A spokesperson for the London Development Institute that represents the city's development industry said it had no comment on the issue.

In a report to the board, Cote noted the funds can be used to finance needed expansion of recreational facilities but not service improvements -- which is why part of the costs wouldn't be eligible.

Last year, the city spent $6.4 million to add an ice pad, expand the lobby and improve locker-rooms, restrooms and community rooms at Nichols Arena. The city twinned the Stronach rinks at a cost of $6.8 million for ice only.

By dipping into the fund, the city avoids adding to its debt load, saving interest and principal payments of more than $100,000 annually over about nine years.