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HomeMy WebLinkAboutFND-009-09l3nergizing Ontario Monday April 20th, 2009 FINANCE DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: Report #: Subject: FND-009-09 File REPORT Resolution #: fCJ A"oS / b~/ By-law #: REPORT ON REVENUE SENSITIVE TO ECONOMIC CONDITIONS - MARCH 2009 Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report FND-009-09 be received for information. Submitted by: Reviewe~~~ (/ll~bc Franklin Wu, Chief Administrative Officer. NT/LB/hjl REPORT NO.: FND-009-09 PAGE 2 BACKGROUND: 1.0 Council, at the meeting held on January 12, 2009, passed the following resolution: "Resolution #GPA-034-09 Moved by Mayor Abernethy, seconded by Councillor Hooper WHEREAS in the year 2007, Clarington Council approved and made available to the public the 2007-2010 Corporate Strategic Business Plan. The Mission Statement contained in that document reads as follows: "TO PROVIDE INFASTRUCTURE AND QUALITY SERVICES TO OUR COMMUNITY STAKEHOLDERS THROUGH LEADERSHIP, ACCOUNTABILITY AND RESPECT." AND WHEREAS the Strategic Business Plan complements the other three important planning and policy tools of Council: the Clarington Official Plan; the annual operating budget; and the multiyear capital plan. Collectively, these governance tools represent the cornerstones of all municipal government decisions. AND W HEREAS the Municipality of Clarington is in the approvals process for the 2009 Municipal Capital and Current Budget. AND WHEREAS the Municipality of Clarington's current revenues sources are as follows: approximately 51 % are generated from property taxes, and the balance is generated from the following: a) Payment-in-lieu/Linear taxation/Grants - 10% b) Contributions from Reserves and Reserve Funds - 21 c) Licenses and Permits - 3% d) User Fees - 10% e) Interest on Investments - 2% f) Interest on Taxes/fines - 2% g) Other- 1% AND WHEREAS each year the Municipality of Clarington depend upon these budgeted revenues to off-set the budgeted expenses. AND WHEREAS a portion of these revenues are variable and are directly related to the economic growth both within and outside the Municipality of Clarington. AND WHEREAS in the event that there is a revenue shortfall in any given year, such shortfall will impact the tax levy in the following year, effectively increasing property taxes by the amount of the revenue shortfall. REPORT NO.: FND-009-09 PAGE 3 AND WHEREAS Clarington Council is mandated to managing the assets of the Municipality of Clarington in a fiscally responsible manner and to determine which services and at what level those services will be provided to the people of Clarington. AND WHEREAS in consideration of the current volatile economic global outlook, Clarington Council desires to more closely monitor the revenues and expenses of each department in the months ahead. The purpose of such monitoring is to: a) protect the interests of the taxpayers in the Municipality of Clarington, b) prevent any yearend surprises in revenue shortfalls, c) improve the openness and transparency of the public reporting process, d) provide an additional management and reporting tool for staff, council and the public, and e) demonstrate to the taxpayer that Clarington Council is managing the assets of the municipality in a fiscally responsibility manner. NOW THEREFORE BE IT RESOLVED THAT the Chief Financial Officer, the Chief Administration Officer and the Chief Executive Officer design a report which provides: by department and on a monthly reporting basis; adequate information for Staff to analyze and report to Council the variable growth related revenue and the variable economic related revenues which could have an adverse effect on achieving the 2009 Municipal Capital and Current Budget." 1.1 This report is for the month of March 2009 including the year to date values along with prior year's amounts for comparison purposes. 1.2 Currently included in this report are municipal development charges collections and building permit fees revenue both collected through the Building Division of the Engineering Department. Also included are the Planning Services department's revenues for site plans, rezoning and subdivision applications fees revenues. Revenue from other departments may be included as the report is further developed in the coming months. 1.3 The revenue amounts reported monthly in this report are reflected in the municipality's general ledger when paid to the municipality, ie. on a cash basis. There will be some differences between this report and the monthly Report on Building Permit Activity from the Engineering Department due to this timing difference. REPORT NO.: FND-009-09 PAGE 4 2.0 ENGINEERING SERVICES -BUILDING DIVISION REVENUE STATUS MUNICIPAL DEVELOPMENT CHARGES MONTH OF MARCH 2009 I 2008 UNIT TYPE MUNICIPAL DEV. CHARGES PAID NUMBER OF UNITS MUNICIPAL DEV. CHARGES PAID NUMBER OF UNITS % CHANGE OF DEV.CHGS 2009- 2008 Single/Semi- Detached -New construction $67,138 10 $119,532 12 -40.0% -Additions $0 0 $0 0 Townhouse $0 0 $0 0 Apartment $0 0 $0 0 Commercial $0 0 $2,326 1 -100.0% A ricultural $D 0 $0 0 Government $0 0 $0 0 Institutional $0 0 $0 0 Industrial $0 0 $0 0 TOTAL $67,138 10 $121,858 13 -40.0% REPORT NO.: FND-009-09 MUNICIPAL DEVELOPMENT CHARGES YEAR TO DATE 2009 2008 PAGE 5 UNIT TYPE MUNICIPAL DEV. CHARGES PAID NUMBER OF UNITS MUNICIPAL DEV. CHARGES PAID NUMBER OF UNITS %CHANGEOF DEV.CHGS 2009- 2008 Single/Semi- Detached -New construction $418,091 36 $797,486 81 -50.0% -Additions $0 0 $0 0 Townhouse $0 0 $0 0 A artment $0 0 $0 0 Commercial $0 0 $2,326 1 -100.0% A ricultural $0 0 $0 0 Government $0 0 $0 0 Institutional $0 0 $0 1 Industrial $0 0 $0 0 TOTAL $418,091 36 $799,812 83 -50.0% REPORT NO.: FND-009-09 PAGE 6 January February March 2009 ;,r 2008 The 2009 Building Permit Fee Revenue Budget was approved at $1.4 million. The 2008 approved Budget was $1.5 million. 2>t~{l9 Building Permit Fees Revenue & Budget Yearto Date 5400,000 _- 5350,000 !, _...__::.:; $300,000 ~------ $200,000 5150,000. _ .... $100,000 550,000 ~::.:...:_,.. January February ~+i--BUDGET ~~ ° BLDG PERMIT FEE III44 5~4ia6o March REPORT NO.: FND-009-09 PAGE 7 208 Building Permit Fees Revenue & Budget Yearto Date 3.0 PLANNING SERVICES REVENUE STATUS Rezoning Revenue & Budget YT© ^ 2009 BU DGET ~ll 2009 Rezoning Revenue i January February March _ The 2009 Rezoning Revenue Budget was approved at $45,000. The 2008 approved budget was $90,000. REPORT NO.: FND-009-09 Site Plans Revenue & Budget YTD szs,oa0 I Sza,ooo $IS,000 $10,000 $5,000 ® 2009 Budget ~ 20095ite Plans Revenue PAGE 8 SO ~ut:u~°=_t stti}~i ~_ `~tr~.:vu ... ' January February March The 2009 Site Plans Revenue Budget was approved at $95,000. The 2008 approved budget was $140,000. Subdivision Application Fees & Budget YTC3 $2s,000 $20,000 $15,000 510,000 $5,000 50 ~ 2009 Budget i~P 2009 Subdivision App'n Revenue January February March The 2009 Subdivision Application Fees Budget was approved at $90,000. The 2008 approved budget was $140,000. REPORT NO.: FND-009-09 PAGE 9 SUMMARY AND CONCLUSIONS: 4.0 During the 2009 budget process both of the department heads from the Engineering Department and the Planning Department expressed concern over the impact of the current economic environment and submitted budget projections reflective of this concern. Individual departments submit their budget requests. The Director of Finance and Chief Administrative Officer then review those requests with the entire organization and overall impact in mind. 4.1 While Council is only approving the annual budget, in preparing the budget submission, staff work to avoid dramatic budget and tax levy shifts from one year to the next. Due to this factor as well as unknowns over the length and severity of the economic downturn, the final budget submissions for building and planning were moderated somewhat. This was discussed during budget deliberations. 4.2 In comparing current year's month and previous year's month values several aspects need to be considered such as the time of year/season; economic conditions; weather conditions; investors long term plans, pending legislation and appeals. 4.3 This report is submitted for information purposes. It is still early in the year and activity may be somewhat delayed due to difficult weather conditions and a report on development charges on the agenda for this meeting. Staff will have a much more representative picture of how 2009 may evolve in early fall when the bulk of permit activity for 2009 will be completed. CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T (905)623-3379 F (905)623-4169