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Home My WebLink AboutFND-017-09Clarngta~ ~g Monday July 6th, 2009 FINANCE DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: Report #: Subject: FND-017-09 File #: REPORT Resolution #: r 4 p 1a ° ~{ 723 - o q By-law REPORT ON REVENUE SENSITIVE TO ECONOMIC CONDITIONS - MAY 2009 Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report FND-017-09 be received for information. Submitted by: ancy T ylor, .A., C.A., Director of Finance/Treasurer Reviewed by: Franklin Wu, ,~i~ Chief Administrative Officer. NT/LG/hjl REPORT NO.`. FND-017-09 1.0 BACKGROUND: PAGE 2 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 May 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 MA` 2009 I 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 $363,025 25 $278,908 28 -Additions $0 0 $218,375 25 Townhouse $0 0 $0 0 A artment $0 0 $0 0 Commercial $447 1 $42,115 1 A ricultural $0 0 $0 0 Government $0 0 $0 0 Institutional $0 0 $0 0 Industrial $0 0 $0 0 TOTAL $363,472 26 $539,398 54 -33.0% REPORT NO.: FND-017-09 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 May 2009, there were only 26 units of the forecasted residential units of 82 being issued which equates to 31.7%. For the month of May 2008, there were 54 units of the forecasted residential units of 79 being issued which equates to 68.4%. Comparing the number of units issued in 2009 to 2008, shows that May 2009 has collected 48% of the units issued in May 2008. MUNICIPAL DEVELOPMENT CHARGES JANUARY TO MAY YEAR TO DATE 2009 2008 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 $1,102,087 84 $1,534,600 155 -Additions $0 0 $218,375 25 Townhouse $0 0 $0 0 A artment -$6,307 -1 $0 0 Commercial $13,411 2 $44,441 2 A ricultural $0 0 $16,041 0 Government $0 0 $0 0 Institutional $0 0 $0 0 Industrial $0 0 $0 0 TOTAL $1,109,191 85 $1,813,456 182 -39.0% 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 47% of the units issued in 2008 YTD. For the 2009 YTD, there are 85 units of the forecasted residential units of 410 being issued which equates to 20.7%. Per the 2008 DC Amendment Study, 983 residential units are forecasted for 2009. For the 2008 YTD, there were only 182 units of the forecasted residential units of 395 being issued which equates to 46.1 %. Per the 2008 DC Amendment Study, 951 residential units are forecasted for 2008. REPORT NO.: FND-017-09 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 June 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 for 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 May 2009, $37,451.00 was paid for building permit fees which represents 32% of the 2009 budget (monthly budget is $116,666). For comparison purposes, for May 2008, $90,371.00 was paid for building permit fees which represented 72% of the 2008 budget (monthly budget was $125,000). 5500,000 SA50,000 s4aa,oao S3so,ooo 5300.000 szso,oao 5zaa,aoo 5150,000 S ioa,oao Sso,oao so ~a~~~~ e~°`~a~ ~~cGr ~~~ ay ~~z ,~~~ P~ J~~ ~e~~et G~~ec ~~~~~c Ge~~ec P ~` > ~ o F h~Q a' ~o ~~ z007 Actual 2008 Actual z009 Actual z009 Budget _- 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 June 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 May 2009 - $163,306. 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 May 31, 2009 permit fees of $163,306 is 12% of 2009 annual budget of $1,400,000. 1504 BUILDING PERMIT FEES PER MONTH REPORT NO.: FND-017-09 PAGE 5 BUILDING PERMIT FEES CUMULATIVE YTD S 1,s0o,aoo S 1,600,000 Si,4ao,0oa Si,zao,aoo S l,aaa,o0o S8oo,o00 S 600, QQ0 $400,000 Szoa,oao So Ja(~ ~Ja~ a~~ ~Q~\ ~~`~ ~J~~ ~`~\~ ~J~~ ~~~ owe` ~°~~ '~~~ ~a~ yep ~ P~ Q~~~ O~~ a,~~ ~`ecc ~~ ~ d 2007 YTD Actual 2008 YTD Actual ~°- 2009 YTD Actual 2009 YTD Budget 4.4 Due to the slower activity on new residential units, both inspectors and Clerical staff have taken this opportunity to begin going through the large number of imcomplete permit files that are currently open. People come in for permits for things like addictions, etc., and go through perhaps the first and second inspections, but delay on ever finilizing the entire thing. The reason many do this is because the minute the final inspection is done a notification is sent through to the assessment office and an increase in property taxes is likely to follow. For this reason many homeowners will choose not to call for a final inspection. Staff are surrently going through and pulling all imcomplete permits and are contacting homeowners to set up final inspections. For clerical staff this is a considerable amount of work going back through old files, prepairing lists, prepairing lertters and following up. For inspection staff you will see from the monthly building permit inspection services stats that the number of inspections is not down as much as one might think. This activity should result in an increase in taxation revenue in future years. 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 1505 REPORT NO.: FND-017-09 PAGE 6 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 May 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. 53oa,oaa s2so,ooa 5200,000 S 150,000 s1oa,0oa Sso,ooo Sa ^ fACIUTIES ^ ACiUATIC PROGRM ~ FITNESS PROGRM ^ RECREATION PROGRM 5.5 The following comparison table illustrates the monthly revenue received as a percentage of the monthly budget used in the graph. %OF %OF MAY MAY MONTHLY MONTHLY BUDGET BUDGET I 2009 2008 REVENUE TYPE 2009 2008 BUDGET BUDGET 2009 2008 FACILITIES $114,604 $106,909 $241,756 $230,223 47.4% 46.4% AQUATIC PROGRM $16,602 $12,743 $65,710 $62,476 25.3% 20.4% FITNESS PROGRM $33,535 $33,616 $47,748 $42,750 70.2% 78.6% RECREATION PROGRM $24,347 $35,86 ! $31,875 $34,113 76.4% 105.1% MONTHLY REVENUE & BUDGET FOR MAY 1506 zoos zoos zoa~ zoos BUDGET BUDGET REPORT NO.: FND-017-09 PAGE 7 5.6 The following bar graph illustrates the accumulated Community Services 4 major revenue groups for year-to-date values as of May 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. ACCUMULATED REVENUE & BUDGET AS 4F MAY si,4oG,ooo 51,20G,000 s i,ooa,0ao ssao,ooG 56oo,oGo S~OO,OGa saaG,oGG 50 ^ 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. Of % Of YTD MAY YTD MAY YTD YTD BUDGET BUDGET 2009 2008 REVENUE TYPE 2009 2008 BUDGET BUDGET 2009 2008 FACILITIES $1,226,964 $1,217,438 $1,208,780 $1,151,117 104.8% 105.8% AQUATIC PROGRM $348,895 $282,565 $328,552 $312,382 106.2% 90.5% FITNESS PROGRM $223,115 $242,344 $238,740 $213,750 93.5% 113.4% RECREATION PROGRM $115,207 $117,231 $159,375 $170,567 72.3% 68.7% 5.8 The Fitness Program revenue YTD for May 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 has found a similar trend with other Regional Municipalities in addition to other local service providers (ie Museum). Community Services staff will continue to monitor and market the 2009 line up of summer day camps and hopefully participatory numbers will increase over the next few weeks to be reflected in a future report. 1507 2009 2009 2GG9 2GG8 BUDGET BUQGET REPORT NO.: FND-017-09 PAGE 8 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. 6.2 The graph below illustrates for the monthly revenue and budget for May that 2009 revenue is below 2008 year's revenue. MONTHLY REVENUE ~ BUDGET FOR MAY S~o,ooo S fi0, 000 Ssa,aoo 54o,aoo s.3o,aoo szo,aoo 510,000 so ^ zooo ^ zaoo BUDGET ^zaas ^ 2008 BUDGET 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 °lo decrease from 2008 to 2009 budget. The Planning Services revenue actuals for May 2009 are $14,656 and for May 2008 were $62,370. The May revenues as a percentage of each year's budget values: 2009 - 50.8% and 2008 - 149.7%. Planning received $51,600 in Site Plan revenue which accounts for the high spike in May 2008 in comparison to the total revenue for April 2008 of $13,768 or May 2009 of $14,656. 1508 zoo9 zao9 zaas zoos BUDGET BUDGET REPORT NO.: FND-017-09 PAGE 9 ACCUMULATED REVENUE & BUDGET FOR MAY Szso,ooo Szoo,000 S 1 s0,000 S 100,000 550,000 $0 ^ z009 ^ z009 BUDGET ^ z00s ^ 2008 BUDGET 6.4 The Planning Services accumulated revenues year-to-date as of May 2009 are $59,289 and as of May 2008 were $100,166. The accumulated revenues as a percentage of each year's budget values: 2009 - 41 % and 2008 - 48%. This reflects the overall economic activity and the surplus of subdivision applications in the draft approved or processing stages. While fees were paid several years ago, plan review and implementation activities are ongoing. 7.0 SUMMARY AND CONCLUSIONS: 7.1 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. 7.2 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 1509 zooo z0oo z00s z00s 8U DGET BUDGET