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Report
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Report To: General Government Committee
Date of Meeting: March 26, 2018
Report Number: FND-002-18 Resolution: GG -185-18
File Number: By-law Number:
Report Subject: 2017 Building Permit Fees Annual Report
Recommendation:
That Report FND-002-18 be received for information.
Municipality of Clarington
Report FND-002-18 Page 2
Report Overview
This report is prepared as required by the Building Code Act reporting requirements for
Building Permit Fees. There is no current adjustment required to the building fees beyond
the normal increase approved through By-law 2017-086.
1. Background
1.1 Under the Building Code Act, 1992 and the passing of subsequent amendments and
Ontario Regulation 350106, municipalities are required to prepare an annual report that
records the amount of building permit fees collected and the costs incurred during the
process.
1.2 In accordance with the Building Code Act as amended, staff have prepared this report
with the required content to Council on an informational basis and Attachment "A" will be
posted on the municipality's website.
1.3 In 2017, the new residential building permits issued increased over the prior year
providing a total building permit revenue of $2,602,919 (2016 - $2,838,221) creating a
surplus of $432,226 (2016 - $750,449) after reducing the total revenue by the direct and
indirect expenses as outlined on Attachment "A".
1.4 As the building permit surplus funds are to be segregated from the general funds of the
municipality, the surplus of 432,226 was transferred to the Building Division reserve fund
leaving the surplus/deficit for December 31, 2017 as nil_
1.5 During the 2017 year, the Engineering Department advised Council through the monthly
building permit activity report that the building permits for all types issued in 2017 were
going to be consistent with 2016.
1.6 The total number of all types of building permits issued in 2017 was 1,185 compared to
1,182 in 2016 which translates into 0.2% increase in 2017.
1.7 The total number of new residential building permits issued in 2017 was 978 compared to
991 in 2016 which translates into 1.3% decrease in 2017.
1.8 The below graph illustrates the number of permits for all types and new residential for the
last 8 years. The 2011 figure is unusually high due to the effect of the building code
change effective January 1, 2012.
Municipality of Clarington
Report FND-002-18 Page 3
Permits Issued Residential vs Non -Residential
1400
1200
LA
1000
Q) 800
0
Q) 600
E
z 400
200
-
0
2010 2011 2012 2013 2014 2015 2016 2017
■ Non -Residential
449 325 520 520 519 263 187 207
■ New Residential
593 863 536 439 657 933 995 978
Year
2. Concurrence
This report has been reviewed by the Director of Engineering Services who concurs with
the recommendations.
3. Conclusion
3.1 Attachment 1 is a summary of the 2017 building permit fees revenue and related
expenditures with the expenses broken down into direct and indirect costs along with the
balance of the building division reserve fund.
3.2 A Building Permit Fee Update Study was completed in September 2017 by Hemson
Consulting Ltd. This was an update to the 2011 study also completed by Hemson. The
reviews are completed every five (5) years to ensure that the building permit fees are in
line with the cost of building inspections and that all appropriate direct and indirect costs
are being allocated.
3.3 It is not necessary to adjust the building fees at this time.
Municipality of Clarington
Resort FND-002-18
4. Strategic Plan Application
The recommendations contained in this report conform to the Strategic Plan.
Submitted by:
Nancy Taylor, B/A,CA, CA,
Director of Finance/Treasurer
Paae 4
Reviewed by:z4le,,��
Andrew C. Allison, B. Comm, LL.B
CAO
Staff Contact: Trevor Pinn, CPA, CA, Deputy Treasurer, 905-623-3379 x.2604 or
tpinn@clarington.net
Attachments:
Attachment 1 — 2017 Annual Building Permit Fee Report
There are no interested parties to be notified of Council's decision.
Municipality of Clarington
Resort FND-002-18
2017 Annual Building Permit Fee Report
Revenues
Attachment 1
Total revenues are those recognized revenues from the issuance of building permits under By-
law 2017-086
Expenses
Direct Costs
Direct costs include the costs of the Building Division of the Engineering Department for the
processing of building permit applications, the review of building plans conducting inspections
and building -related enforcement duties. Direct costs also include costs from the Engineering
Department, Legal Services, Fire Services and Planning Services which can be directly
attributed to the building permit function.
Indirect Costs
Indirect costs include the costs for support and overhead services to the Building Division.
2017 Actual (Unaudited)
Total Revenue
$2,602,919
Total Direct Costs
1,865,642
Total Indirect Costs
305,051
Transfer to Reserve Fund
432,226
Revenue (Under) / Over Expenditures
$Nil
Balance in Reserve Fund at December 31, 2017
$2,609,178