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Home My WebLink AboutFND-019-09• liuergbing OutnNo REPORT FINANCE DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: Monday September 14`h, 2009 Resolution #: PA~ 5~ 3 ' b~ Report #: FND-019-09 File #: By-law #: Subject: REPORT ~N REVENUE SENSITIVE TO ECONOMIC CONDITIONS - JUNE 2009 Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report FND-019-09 be received for information. ~ Reviewed b~' "~ ~ _ _ ~ "- Submitted by: Nancy Ta or, B. ., C.A., Franklin Wu, Director of Finance/Treasurer Chief Administrative Officer. NT/LG/hjl REPORT NO.: FND-019-09 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 June 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 JUNE 2009 2008 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 $ 203,294.00 14 $ 887,713.00 91 -Additions $ - 0 $ 39,844.00 4 Townhouse $ - 0 $ - 0 Apartment $ - 0 $ - 0 Commercial $ 1,453.68 2 $ 128,488.61 3 Agricultural $ - 0 $ - 0 Go~emment $ - 0 $ - 0 Institutional $ - 0 $ - 0 Industrial $ - 0 $ - 0 TOTAL $ 204,747.68 16 $ 1,056,045.61 98 -80.0% REPORT NO.: FND-019-09 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 June 2009, there were only 16 units of the forecasted residential units of 82 being issued which equates to 19.5%. For the month of June 2008, there were 98 units of the forecasted residential units of 79 being issued which equates to 124.1 %. Comparing the number of units issued in 2009 to 2008, shows that June 2009 has collected 16% of the units issued in June 2008. MUNICIPAL DEVELOPMENT CHARGES JANUARY TO JUNE -YEAR TO DATE 2009 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 $ 1,305,381.00 98 $ 2,422,313.00 246 -Additions $ - 0 $ 258,219.00 29 Townhouse $ - 0 $ - 0 Apartment $ (6,307.00) -1 $ - 0 Commercial $ 14,864.90 4 $ 172,929.41 5 Agricultural $ - 0 $ 16,040.67 0 Government $ - 0 $ - 0 Institutional $ - 0 $ - 0 Industrial $ - 0 $ - 0 TOTAL $ 1,313,938.90 101 $ 2,869,502.08 280 -54.2% NOTE:Apartment unit in April 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 36% of the units issued in 2008 YTD. For the 2009 YTD, there are 101 units of the forecasted residential units of 492 being issued which equates to 20.5%. Per the 2008 DC Amendment Study, 983 residential units are forecasted for 2009. For the 2008 YTD, there were only 280 units of the forecasted residential units of 476 being issued which equates to 58.8%. Per the 2008 DC Amendment Study, 951 residential units are forecasted for 2008. 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 July 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 $400,000. REPORT NO.: FND-019-09 PAGE 4 4.2 For the month of June 2009, $51,455 was paid for building permit fees which represents 44% of the 2009 budget (monthly budget is $116,666). For comparison purposes, for June 2008, $415,870 was paid for building permit fees which represented 333% of the 2008 budget (monthly budget was $125,000). BUILDING PERMIT FEES PER MONTH $500,000 ---- $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 ----~-,_., ,, _v. ,a~Jat~ ~~`JatJ ~at~r P~~\ ~aJ >J~e ~J~J PJ~Jy~ ~ ~~¢~ O ~o~ec J ~~~` G ~~e` ~ Q~ c, 02 ~e, ~e ~ O 2007 Actual 2008 Actual 2009 Actual 2009 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 July 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 June 2009 - $214,847. 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 June 30, 2009 permit fees of $214,847 is 15% of 2009 annual budget of $1,400,000. 1504 REPORT NO.: FND-019-09 PAGE 5 __ BUILDING PERMIT FEES CUMULATIVE YTD S 1,800,000 5.0 COMMUNITY SERVICES REVENUE STATUS 5.1 Community Services revenues overall are in line with the same period last year. 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 June 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 Fitness Program revenues is fairly consistent in the same monthly period to last year. The Facilities and Aquatic Program revenue in 2009 is slightly higher than 2008 due to the opening of the Newcastle and District Recreation Complex. It is too early to see how well the Recreation Program revenue is performing as most of its activities occur during summer months. 1505 REPORT NO.: FND-019-09 I $300,000 $250,000 $200,000 ~ $150,000 $100,000 $50,000 $0 ^ FACILITIES ^ AQUATIC PROGRAMS `n FITNESS PROGRAMS ^ RECREATION PROGRAMS 2009 June 2008 June 2009 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. MONTHLY MONTHLY % OF BUDGET % OF BUDGET COMMUNITY SERVICES 2009 June 2008 June 2009 BUDGET 2008 BUDGET 2009 2008 FACILITIES $89,771 $83,184 $241,756 $230,223 37.13% 36.13% AQUATIC PROGRAMS $45,214 $41,710 $65,710 $62,476 68.81% 66.76% FITNESS PROGRAMS $31,101 $32,438 $47,748 $42,750 65.14% 75.88% RECREATION PROGRAMS $69,121 $82,432 $31,875 $34,113 216.85% 241.64% 5.6 The following bar graph illustrates the accumulated Community Services 4 major revenue groups for year-to-date values as of June 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. __ _ __ _ COMMUNITY SERVICES-ACCUMULATED REVENUE & BUDGET I i $1,600,000 __ $1,400,000 I $1,200,000 $1,000,000 ^ FACILITIES I! $800,000 ^ ggUATIC PROGRAMS $600,000 $400,000 '` FITNESS PROGRAMS $200,000 ^ RECREATION PROGRAMS ,I $0 COMMUNITY SERVICES MONTHLY REVENUE & BUDGET 2009. 2008 2009 2008 June June BUDGET BUDGET __ ___ __ __ __ ____ _.__ _ _ __ _ _ _ __ __ 1 506 REPORT NO.: FND-019-09 PAGE 7 5.7 The following comparison table illustrates the accumulated revenue received as a percentage of the YTD budget used in the graph. YTD YTD YTD YTD % of BUDGET % of BUDGET COMMUNITY SERVICES 2009 June 2008 June 2009 BUDGET 2008 BUDGET 2009 2008 FACILITIES $1,356,735 $1,300,622 $1,450,537 $1,381,340 93.50% 94.20% AQUATIC PROGRAMS $394,109 $324,275 $394,263 $374,859 100.00% 86.50% FITNESS PROGRAMS $254,216 $274,782 $286,488 $256,500 88.70% 107.10% Iti[ C(4[ ATIt)N Pi~OGRAMS $184,329 $199,663 $191,250 $204,680 96.40% 97.50% 5.8 The Fitness Program revenue YTD for June 2009 is less than 2008 is attributable to a decline in the memberships. Staff will continue with ongoing member recruitment and retention efforts. 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. 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. 1507 REPORT NO.: FND-019-09 PAGE 8 6.2 The graph below illustrates for the monthly revenue and budget for June that 2009 revenue is below 2008 year's revenue. PLANNING -MONTHLY REVENUE & BUDGET $45,000 --- - ._ _ __ __.. _ .. $40,000 $35,000 ii ', $30,000 I $25,000 ^2009June $20,000 ^ 2009 BUDGET ~ $15,000 ^2008June $10,000 ^ 2008 BUDGET ', $5,000 ~, $0 2009 June 2009 2008 June 2008 BUDGET BUDGET ~ __ . _-. - - --- -- ___ __- - _____ 1 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 June 2009 are $16,821 and for June 2008 were $28,812. The June revenues as a percentage of each year's monthly budget values: 2009 - 58.3% and 2008 - 69.2%. i PLANNING-ACCUMULATED REVENUE & BUDGET $300,000 _ ----- --- __. _ . ---- ___ __ - _ $250,000 $200,000 ^2009June $150,000 ^ 2009 BUDGET ', ~ $100,000 ^2008June ~ ~ ^ 2008 BUDGET $50,000 $0 1508 20091une 2009 20081une 2008 BUDGET BUDGET REPORT NO.: FND-019-09 PAGE 9 6.4 The Planning Services accumulated revenues year-to-date as of June 2009 are $76,110 and as of June 2008 were $128,978. The accumulated revenues as a percentage of each year's annual budget values: 2009- 22% and 2008 - 26%. 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 revenue shortfall as of June 30th and forecasted to the end of 2009 has been addressed in Council report CAO-004-09 on August 31, 2009. The budget values in this report have not been adjusted based on revised forecasts. CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 I (yU5)6"L3-3:Siy r ~aua~o~3-4 ioy 1 509