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Home My WebLink AboutFND-015-09Clar~~gton Energizing Ontario REPORT FINANCE DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE G Date: Monday June 15t", 2009 Resolution # ~~' ~ ~D Report #: FND-015-09 File #: By-law #: Subject: REPORT ON REVENUE SENSITIVE TO ECONOMIC CONDITIONS - APRIL 2009 Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report FND-015-09 be received for information. Submitted by: Director of Finance/Treasurer ~' ` Reviewed by~ '~"~~ ~- Nancy Ta or, .A., Franklin Wu, Chief Administrative Officer. NT/LG/hjl REPORT NO.: FND-015-09 PAGE 2 1.0 BACKGROUND: 1.1 At the meeting held on January 12, 2009, Council requested staff to provide by department on a monthly reporting basis a report to Council on 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. 2.0 CURRENT: 2.1 This report is for the month of April 2009 including the year to date amounts along with prior year's amounts for comparison. 2.2 This report will look at the Building Division's revenues of the Engineering Services department such as municipal development charges and building permit fees revenue paid, the total of Planning Services department's revenues such as Site Plans, Rezoning, Condominium application fees and Subdivision applications fees revenues, and the total of Community Services department's revenues. 2.3 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 Engineering department due to this timing difference. 3.0 ENGINEERING SERVICES -BUILDING DIVISION REVENUE STATUS MUNICIPAL DEVELOPMENT CHARGES -MONTH OF APRIL 2009 ~ 2008 NITTYPE MUNICIPAL DEV. CHARGES PAID NUMBER OF UNITS MUNICIPAL DEV. CHARGES PAID NUMBER OF UNITS CHANGE OF DEV.CHGS PAID 2009- 2008 Single/Semi- Detached -New construction $320,971 23 $458,206 46 -Additions $0 0 $0 0 Townhouse $0 0 $0 0 A artment -$6,307 -1 $0 0 Commercial $12,964 1 $0 0 A ricultural $0 0 $16,041 0 Government $0 0 $0 0 Institutional $0 0 $0 0 Industrial $0 0 $0 0 TOTAL $327,628 23 $474,247 46 -30.0% NOTE: Apartment unit in 2009 is a negative value as permit was changed from 2 apartments to 1 apartment. REPORT NO.: FND-015-09 PAGE 3 3.1 In the 2008 Development Charges Amendment Study, it is forecasted that the municipality would be collecting approximately 82 residential units on a monthly basis for 2009 and approximately 79 residential units on a monthly basis for 2008. For the month of April 2009, there were only 23 units of the forecasted residential units of 82 being issued which equates to 28%. For the month of April 2008, there were only 46 units of the forecasted residential units of 79 being issued which equates to 58%. Comparing the number of units issued in 2009 to 2008, shows that April 2009 has collected 50% of the units issued in April 2008. MUNICIPAL DEVELOPMENT CHARGES JANUARY TO APRIL YEAR TO DATE 2009 ~nn>3 NIT TYPE MUNICIPAL DEV. CHARGES PAID NUMBER OF UNITS - -- MUNICIPAL DEV. CHARGES PAID NUMBER OF UNITS CHANGE OF DEV.CHGS PAID 2009- 2008 Sin le/Semi- Detached -New construction $739,062 59 $1,255,692 127 -Additions $0 0 $0 0 Townhouse $0 0 $0 0 A artment -$6,307 -1 $0 0 Commercial $12,964 1 $2,326 1 A ricultural $0 0 $16,041 0 Government $0 0 $0 0 Institutional $0 0 $0 1 Industrial $0 0 $0 0 TOTAL $745,719 59 $1;274,059 129 -40.0% NOTE: Apartment unit in 2009 is a negative value as permit was changed from 2 apartments to 1 apartment. 3.2 Comparing the number of units issued in 2009 to 2008,. shows that 2009 YTD has collected 46% of the units issued in 2008 YTD. For the 2009 YTD, there are 59 units of the forecasted residential units of 328 being issued which equates to 18%. Per the 2008 DC Amendment Study, 983 residential units are forecasted for 2009. For the 2008 YTD, there were only 129 units of the forecasted residential units of 316 being issued which equates to 41 %. Per the 2008 DC Amendment Study, 951 residential units are forecasted for 2008. REPORT NO.: FND-015-09 PAGE 4 4.0 BUILDING PERMIT FEES REVENUE STATUS 4.1 The Line Graph below on building permit fees illustrates on a monthly basis the permit fees collected for the years 2007, 2008 and year-to-date with the 2009 budget per month. The line from May 2009 to December 2009 is flat lined as the revenues have not been received. This Line Graph accents the fluctuations on a monthly and yearly basis the building permit fees collected in any given year. As you will note on the chart, the March 2007 and the June 2008 building permit fees collected were over the $400,000. 4.2 For the month of April 2009, $51,396.00 was paid for building permit fees which represents 44% of the 2009 budget (monthly budget is $116,666). For comparison purposes, for April 2008, $145,511 was paid for building permit fees which represented 116% of the 2008 budget (monthly budget was $125,000). BUILDING PERMIT FEES PER MONTH Ssoa,ooo Saso,aoo saoo,ooa 5350,000 530QOOa 52sa,aa0 szao,aoo siso,ooo Siaa,oao Ssa,aao so a~ ac1 F~` Qc ay ~°e yea oy` vex .~e° yQE vex tiac3 e~P ~,a p ~` 1 ~ ~Jy 4efi t° yefi efi Q ~~ C}~' ~o Q¢c -2007Actual -2008 Actual -2009Aetual -20096udget 4.3 The following Line Graph illustrates the building permit fees on an accumulated monthly basis for the years 2007, 2008 and year-to-date with the 2009 YTD budget. The line from May 2009 to December 2009 is flat lined as the revenues have not been received. This Line Graph also illustrates that 2007 year had the highest permit fees revenue. The total building permit fees revenues were as follows for the years: 2007 - $1,685,290; 2008 - $1,348,198; and as at April 2009 - $125,856. For comparison purposes, the 2007 permit fees of $1,685,290 was 112% of the 2007 annual budget of $1,500,000; the 2008 permit fees of $1,348,198 was 90% of the 2008 annual budget of $1,500,000 and as of April 30, 2009 permit fees of $125,856 is 9% of 2009 annual budget of $1,400,000. REPORT NO.: FND-015-09 PAGE 5 BUILDING PERMIT FEES CUMULATIVE YTD $1,800,006 $1,600,000 $1,400,000 $1,200,600 $1,000,000 $800,000 $606,000 $400,000 $200,000 $0 -za6~vroaauai -zaosrrDAct~ai -2609 VTD Actual -2004 YTD Budget 5.0 COMMUNITY SERVICES REVENUE STATUS 5.1 Community Services revenues overall are up from the same period last year and this can be attributed to the opening of the Newcastle and District Recreation Complex. 5.2 Community Services revenues have been divided into 4 major divisions: Facilities, Aquatic Programs, Fitness Programs and Recreation Programs. Facilities revenues includes ice rentals, pool rentals, multi-purpose room rentals, soccer rentals, lacrosse rentals, skating and hockey rentals, concession sales, and proshop merchandise sales. Aquatic Program revenues include all pool facilities memberships and swimming activities. Fitness Program revenues include the fitness programs and memberships offered at the Courtice Community Complex and Newcastle and District Recreation Complex facilities. Recreation Program revenues include various recreational activities that are of interest to the pre-teens, teenagers for after school and during school holidays such as day camps, drama club, pre-teen dances, etc. 5.3 The below bar graph illustrates Community Services 4 major revenue groups for the month of April and the monthly budget value with the same period last year for comparison purposes. Comparing Community Services revenues on a monthly basis is not a true indicator of how well its performing as its revenue is more seasonal in nature. 5.4 The graph below shows the Facilities and Fitness Program revenues are fairly consistent in the same monthly period to last year. The Aquatic Program revenue in 2009 is slightly higher than 2008 due to the opening of the Newcastle and District Recreation Complex. Its too early to see how well the Recreation Program revenue is performing as most of its activities occur during summer school break. ~acJaAe'O~ac~ ~a~4r ~i~ gay ~°°~ ~o~~ P~JSa.~e~c ~o~ec ~~ec ewe` F o ~eQ ~ ~ ~o~ o~F` REPORT NO.: FND-015-09 MONTHLY REVENUE & BUDGET FOR APRIL 53oo,aoo ___ _ -- _ _. _- -- - -- I 52s0,000 ~ - ---_- ------ ......--- $200,000 S~so,ooa $100,000 550,000 SO ^ FACILITIES ^ AQUATIC PROGRM ^ FITNESS PROGRM ^ RECREATION PROGRM PAGE 6 5.5 The following comparison table illustrates the monthly revenue received as a percentage of the monthly budget used in the graph. OF % OF APRIL APRIL MONTHLY MONTHLY BUDGET BUDGET 2009 2008 REVENUE TYPE 2009 2008 BUDGET BUDGET 2009 2008 FACILITIES $180,115 $174,534 $241,756 $230,223 74.5% 75.8% AQUATIC PROGRM $20,023 $16,306 $65,710 $62,476 30.5% 26.1% FITNESS PROGRM $49,173 $45,338 $47,748 $42,750 103.0% 106.1% RECREATION PROGRM $14,010 $17,654 $31,875 $34,113 44.0% 51.8% 5.6 The following bar graph illustrates the accumulated Community Services 4 major revenue groups for year-to-date values as of April along with the accumulated monthly budget values with the same period last year for comparison purposes. This YTD graph emphasizes more how well Community Services revenues are performing in a YTD and Budget comparison as well as a year to year comparison. 2009 2008 2009 2008 BUDGET BUDGET REPORT NO.: FND-015-09 PAGE 7 ACCUMULATEQ REVENUE & BUDGET AS OF APRIL Si,zoo,oao Si,oaa,aoo 5800,006 5660,000 saoo,6oa SZ00,000 50 BUDGET BUDGET ^ FACILITIES ^ AQUATIC PROGRM ^ FITNESS PROGRM • RECREATION PROGRM 5.7 The following comparison table illustrates the accumulated revenue received as a percentage of the YTD budget used in the graph. YTD % of % of APRIL YTD APRIL YTD YTD BUDGET BUDGET 2009. 2008 REVENUE TYPE 2009 2008 BUDGET BUDGET 2009 2008 FACILITIES $1,146,515 $1,110,529 $967,024 $920,893 118.6% 120.6% AQUATIC PROGRM $331,017 $269,822 $262,842 $249,906 125.9% 108.0% FITNESS PROGRM $186,385 $208,727 $190,992 $171,000 97.6% 122.1% RECREATION PROGRM $88,622 $81,369 $127,500 $136,453 69.5% 59.6% 5.8 The Fitness Program revenue YTD for April 2009 is less than 2008 is attributable to a membership special offer in March of 2008 which provided members with an additional 3 months of membership time. These memberships are not due to expire/renew until June of 2009. 5.9 Community Services staff noticed during the 2008 year that some of the programs offered in the Recreation Program were not performing as well as in the past such as its summer trip and day camps. During the 2009 budget process, the camp revenues were reduced in recognition of this. This reduction in revenue was done prior to the economic downturn. Community Services staff will continue to monitor and market the 2009 line up of summer day camps. 6.0 PLANNING SERVICES REVENUE STATUS 6.1 Planning Services individual revenue sources have been consolidated. Planning Services revenues include Official Plan Amendment Fees, Rezoning Fees, Site Plan Fees, Subdivision Application Fees and Subdivision/Consent application fees. Planning fees do not reflect full cost recovery rates in contrast to those done under Building Fee Legislation. They have been consolidated since the sum total of fees is the key revenue number and individual types of application are difficult to predict. 2009 2008 2009 2008 REPORT NO.: FND-015-09 PAGE 8 6.2 The graph below illustrates for the monthly revenue and budget for April that 2009 revenue is below 2008 year's revenue. MONTHLY REVENUE & BUDGET FOR APRIL $45,000 $40,000 $35,000 $30,Q00 $25,000 $20,000 $u,oba $lo,oao $s,oao $o ^ PLANNING SERVICES REVENUES 6.3 Planning Services 2009 budget for the overall revenues is $346,000 and for 2008 budget the overall revenues were $500,000. This equates to a reduction of $154,000 or 31%decrease from 2008 to 2009 budget. The Planning Services revenue actuals for April 2009 are $11,480 and for April 2008 were $13,768. The April revenues as a percentage of each year's budget values: 2009 - 39.8% and 2008 - 33.0%, which represents a fairly minor fluctuation typical of this time period ~ ACCUMULATED REVENUE & BUDGET FOR APRIL I $180,000 $160,000 $140,060 $120,000 $100,000 ssa,aaa $60,006 $40,000 $zo,boo sa ^ PLANNING SERVICES REVENUES 6.4 The Planning Services accumulated revenues year-to-date as of April in the bar graph above show the 2009 column is slightly higher than 2008. The Planning Services accumulated revenues year-to-date as of April 2009 are $44,633 and as of April 2008 were $37,796. The accumulated revenues as a percentage of each year's budget values: 2009 - 38.7% and 2008 - 22.7%. This reflects the overall economic activity and the surplus of subdivision applications in the draft approved zobe zoae zoos zoos BUOGE7 BUDGET zo69 zabs zaos zoos BUDGET BUDGET REPORT NO.: FND-015-09 PAGE 9 or processing stages. While fees were paid several years ago, plan review and implementation activities are ongoing. 7.0 SUMMARY AND CONCLUSIONS: 7.1 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. 7.2 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. 7.3 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. It is important to keep in mind that planning fees and community services fees are applied to the overall general fund rather than departmental. The development plan review and implementation process involves staff from many departments who play various roles in the process to generate the revenues identified. 7.4 This report is submitted for information purposes. The trend reflected should it continue into the high development season will present a sustainability concern. It is the intention at the half-year mark, to have senior staff review possible mediation measures both for in-year 2009 and 2010 budget purposes. CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T (905)623-3379 F (905)623-4169 REPORT NO.: FND-015-09 PAGE 4 4.0 BUILDING PERMIT FEES REVENUE STATUS 4.1 The Line Graph below on building permit fees illustrates on a monthly basis the permit fees collected for the years 2007, 2008 and year-to-date with the 2009 budget per month. The line from May 2009 to December 2009 is flat lined as the revenues have not been received. This Line Graph accents the fluctuations on a monthly and yearly basis the building permit fees collected in any given year. As you will note on the chart, the March 2007 and the June 2008 building permit fees collected were over the $400,000. 4.2 For the month of April 2009, $51,396.00 was paid for building permit fees which represents 44% of the 2009 budget (monthly budget is $116,666). For comparison purposes, for April 2008, $145,511 was paid for building permit fees which. represented 116% of the 2008 budget (monthly budget was $125,000). BUILDING PERMIT FEE5 PER MONTH $500,OOa 5450,0aa 540a,00a 5~so,ooo saao,aoo szsa,aoa 5zao,ooo siso,ooo siao,oaa Ssa,aoo 50 c~a~ <°a~ ""~`r PGC `Sa`d ~°~~ ,~~~ ~°`~ ,°¢t o~yf °et ~~ ~a ~e~Q ~` PJ a~cyc~` p~c oyes yce~ c~ e~ d -2aa7Actual -2aaBActual ---2aa9ACtual -20o9Budget 4.3 The following Line Graph illustrates the building permit fees on an accumulated monthly basis for the years 2007, 2008 and year-to-date with the 2009 YTD budget. The line from May 2009 to December 2009 is flat lined as the revenues have not been received. This Line Graph also illustrates that 2007 year had the highest permit fees revenue. The total building permit fees revenues were as follows for the years: 2007 - $1,685,290; 2008 - $1,348,198; and as at April 2009 - $125,856. For comparison purposes, the 2007 permit fees of $1;685,290 was 112% of the 2007 annual budget of $1,500,000; the 2008 permit fees of $1,348,198 was 90% of the 2008 annual budget of $1,500,000 and as of April 30, 2009 permit fees of $125,856 is 9% of 2009 annual budget of $1,400,000. 1519 REPORT NO.: FND-015-09 PAGE 5 BUILDING PERMtT FEES CUMULATIVE YTD 51,BOO,aoo 51,60a,0aQ 51,400,000 51,z0a,oao 51,oao,ooa S8oa,0OO 5600,000 5400,000 5200,OOa 50 ,acJatie`Jaei ~a~c ~Qi. ~aJ >JCZ lJ~i gS~JS'~ie~,pec c'u°~ec ~eF~ec ce~~ec F SeQ d ~o Qe -20a7YTDACtual -2008 YTDAdual ---~2009YTDAchial -2009VTpBudgeE _. 5.0 COMMUNITY SERVICES REVENUE STATUS 5.1 Community Services revenues overall are up from the same period last year and this can be attributed to the opening of the Newcastle and District Recreation Complex. 5.2 Community Services revenues have been divided into 4 major divisions: Facilities, Aquatic Programs, Fitness Programs and Recreation Programs. Facilities revenues includes ice rentals, pool rentals, multi-purpose room rentals, soccer rentals, lacrosse rentals, skating and hockey rentals, concession sales, and proshop merchandise sales. Aquatic Program revenues include all pool facilities memberships and swimming activities. Fitness Program revenues include the fitness programs and memberships offered at the Courtice Community Complex and Newcastle and District Recreation Complex facilities. Recreation Program revenues include various recreational activities that are of interest to the pre-teens, teenagers for after school and during school holidays such as day camps, drama club, pre-teen dances, etc. 5.3 The below bar graph illustrates Community Services 4 major revenue groups for the month of April and the monthly budget value with the same period last year for comparison purposes. Comparing Community Services revenues on a monthly basis is not a true indicator of how well its performing as its revenue is more seasonal in nature. 5.4 The graph below shows the Facilities and Fitness Program revenues are fairly consistent in the same monthly period to last year. The Aquatic Program revenue in 2009 is slightly higher than 2008 due to the opening of the Newcastle and District Recreation Complex. Its toe early to see how well the Recreation Program revenue is performing as most of its activities occur during summer school break. 1520 REPORT NO.: FND-015-09 Saao,ooa 5zso,aao I 5zoa,ooo Siso,ooa S1o0,oaa 556,000 50 __ .. ._-.- ..._... ^ FACILITIES __ ^ AQUATIC PROGRM ---- ~FITNESSPROGRM - -- ^ RECREATION PROGRM z009 2008 BUDGET BUDGET PAGE 6 5.5 The following comparison table illustrates the monthly revenue received as a percentage of the monthly budget used in the graph. OF % OF APRIL APRIL MONTHLY MONTHLY BUDGET BUDGET 2009 2008 REVENUE TYPE 2009 2008 BUDGET BUDGET 2009 2008 FACILITIES $180,115 $174,534 $241,756 $230,223 74.5% 75.8% AQUATIC PROGRM $20,023 $16,306 $65,710 $62,476 30.5% 26.1% FITNESS PROGRM $49,173 $45,338 $47,748 $42,750 103.0% 106.1°/a RECREATION PROGRM $14,010 $17,654 $31,875 $34,113 44.0% 51.8% 5.6 The following bar graph illustrates the accumulated Community Services 4 major revenue groups for year-to-date values as of April along with the accumulated monthly budget values with the same period last year for comparison purposes. This YTD graph emphasizes more how well Community Services revenues are performing in a YTD and Budget comparison as well as a year to year comparison. N10NTHtY REVENUI & BUDGET FCJR /~iPRIL ___ __ _ __ - 1521 2609 2008 REPORT NO.: FND-015-09 PAGE 7 ACCUMULATED REVENUE & BUDGET AS dF APRIL s1,zoD,oao 51,000,000 saoo,aoo $600,000 saoo,ooa 520Q,000 $0 ^ FACILITIES ^ AQUATIC PROGRM ~ FITN E55 PROGRM ^ RECREATION PROGRM 5.7 The following comparison table illustrates the accumulated revenue received as a percentage of the YTD budget used in the graph. YTD % of % of APRIL YTD APRIL YTD YTD BUDGET BUDGET 2009 2008 REVENUE TYPE 2009 2008 BUDGET BUDGET 2009 2008 FACILITIES $1,146,515 $1,110,529 $967,024 $920,893 118.6% 120.6% AQUATIC PROGRM $331,017 $269,822 $262,842 $249,906 125.9% 108.0% FITNESS PROGRM $186,385 $208,727 $190,992 $171,000 97.6% 122.1% RECREATION PROGRM $88,622 $81,369 $127,500 $136,453 69.5% 59.6% 5.8 The Fitness Program revenue YTD for April 2009 is less than 2008 is attributable to a membership special offer in March of 2008 which provided members with an additional 3 months of membership time. These memberships are not due to expire/renew until June of 2009. 5.9 Community Services staff noticed during the 2008 year that some of the programs offered in the Recreation Program were not performing as well as in the past such as its summer trip and day camps. During the 2009 budget process, the camp revenues were reduced in recognition of this. This reduction in revenue was done prior to the economic downturn. Community Services staff will continue to monitor and market the 2009 line up of summer day camps. 6.0 PLANNING SERVICES REVENUE STATUS 6.1 Planning Services individual revenue sources have been consolidated. Planning Services revenues include Official Plan Amendment Fees, Rezoning Fees, Site Plan Fees, Subdivision Application Fees and Subdivision/Consent application fees. Planning fees do not reflect full cost recovery rates in contrast to those done under Building Fee Legislation. They have been consolidated since the sum total of fees is the key revenue number and individual types of application are difficult to predict. 1 ~ ~ 2 2009 2008 2009 2008 BUDGET BUDGET REPORT NO.: FND-015-09 PAGE 8 6.2 The graph below illustrates for the monthly revenue and budget for April that 2009 revenue is below 2008 year's revenue. MONTHLY REVENUE & BUDGET FOR APRIL 545,000 540,000 535.060 530,600 $25,060 Sz0,000 515,600 Sla,oao Ss,ooo So ^ PLAN NING SERVICES REVENUES 6.3 Planning Services 2009 budget for the overall revenues is $346,000 and for 2008 budget the overall revenues were $500,000. This equates to a reduction of $154,000 or 31 % decrease from 2008 to 2009 budget. The Planning Services revenue actuals for April 2009 are $11,480 and for April 2008 were $13,768. The April revenues as a percentage of each year's budget values: 2009 - 39.8% and 2008 - 33.0%, which represents a fairly minor fluctuation typical of this time period ACCUMULATED REVENUE Re BUDGET FOR APRIL slsa,oa6 S 160,000 5lao,aaa slza,ooa 51ao,ooa sso,ooa $60,000 saa,ooa szo,ooo sa ^ PLANNING SERVICES REVENUES 6.4 The Planning Services accumulated revenues year-to-date as of April in the bar graph above show the 2009 column is slightly higher than 2008. The Planning Services accumulated revenues year-to-date as of April 2009 are $44,633 and as of April 2008 were $37,796. The accumulated revenues as a percentage of each year's budget values: 2009 - 38.7% and 2008 - 22.7%. This reflects the overall economic activity and the surplus of subdivision applications in the draft approved 1:123 zo6o zoo9 zoos zags BUDGET BUDGET zoa9 z0oa zags zoos BUDGET BUDGET