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HomeMy WebLinkAboutFND-027-09tv+ergfzFnn OuGrrlo REPORT FINANCE DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: Monday October 19~h, 2009 Resolution #: ~1~f}'S77-Q~ Report #: FND-027-09 File #: By-law #: Subject: REPORT ON REVENUE SENSITIVE TO ECONOMIC CONDITIONS - AUGUST 2009 Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report FND-027-09 be received for information. Submitted by: r~ ~; ~ Reviewed ~4--r~ ~ ~C Nancy Ta) lor, B :A., Franklin Wu, Director of Finance/Treasurer Chief Administrative Officer. NT/LG/hjl REPORT NO.: FND-027x09 PAGE 2 1.0 BACKGROUND: 1.1 At the meeting held on January 12, 2009, Council requested staff to provide by department on a rrlonthly 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 August 2009 including the year-to-date amounts along with prior ye~r'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 t©tal 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 SEIRVICES -BUILDING DIVISION REVENUE STATUS WIUNICIPAL DEVELOPMENT CHARGES MONTH OF AUGUST 2009 ~nnQ UNIT TYPE MUNICIPAL DEV. QHARGES PAID NUMBER OF UNITS MUNICIPAL DEV. CHARGES PAID NUMBER OF UNITS % CHANGE OF DEV.CHGS 2009-20D8 Single/Semi- Detached -New construction $ 217,815.00 15 $ 417,373.00 38 -Additions $ - D $ - 0 Townhouse $ - 0 $ - 0 Apartment $ - 0 $ - 0 Commercial $ - 0 $ - 0 Agricultural- $ - 0 $ - 0 Government $ - 0 $ - 0 Institutional $ - 0 $ - 0 Industrial $ - 0 $ - 0 TOTAL $ 217,815.00 15 $ 417,373.00 38 _47.8ry REPORT NO.; FND-027-p9 PAGE 3 3.1 In the 2008 Development Charges Amendment Study, it is forecasted that the municipality would bbe 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 August 2009, there were only 15 units of the forecasted residential units of i82 being issued which equates to 18.3%. For the month of August 2008, there, were 38 units of the forecasted residential units of 79 being issued which equates to 48.1 %. Comparing the number of units issued in 2009 to 2008, shows that August 2009 has collected 39.5% of the units issued in August 2008. ', MUNICIPAL DEVELOPMENT CHARGES JANUARY TO AUGUST -YEAR TO DATE 2009 ~nnu UNIT TYPE MIUNICIPAL DEV. CHARGES PAID NUMBER OF UNITS MUNICIPAL DEV. CHARGES PAID NUMBER OF UNITS Y CHANGE OF DEV.CHGS 2009-2D08 Single/Semi- Detached -New construction $ 1,915,263.00 140 $ 3,718,371.00 406 -Additions $ - 0 $ 258,219.00 29 Townhouse $ - 0 $ 209,640.00 37 Apartment $ (6,307.00) -1 $ _ 0 Commercial $ 16,244.65 7 $ 174,323.08 12 Agricultural $ - 0 $ 16,040.67 0 Government $ - 0 $ _ 0 Institutional $ - 0 $ - 0 Industrial $ 7,079.01 1 $ _ p TOTA $ 1,932,279.66 147 $ 4,376,593.75 484 -55.8% NOTE:Apartment unit in April 2009 is a negative value as permit was changed from 2 apartments to 1 3.2 Comparing the number of units issued in 2009 to 2008, shows that 2009 YTD has collected 30.1 % of the units issued in 2008 YTD. For the 2009 YTD, there are 147 units of the forecasted residential units of 656 being issued which equates to 22%. Per the 2008 DC Amendment Study, 983 residential units are forecasted for 2009. For the 2008 YTD, there were only 484 units of the forecasted residential units of 632 being issued which equates to 76.6%. 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 belovu 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 September 2009 to December 2009 is flat lined as the revenues have not been received. This line graph accents the fluctuations on a monthly and ye rly basis for the building permit fees collected in any given year. As you will no a on the chart, the March 2007 and the July 2008 building permit fees collecte were over $400,000. REPORT NO.: FND-027-09 PAGE 4 4.2 For the month of August 2009, S224.909 was paid for building permit fees which represents 192.8% of the 2009 monthly budget (monthly budget is $116,666). For comparison purposes, for August 2008, $26,688 was paid for building permit fees which represented 21.4% of the 2008 monthly budget (monthly budget was $125,000). BUILDING PERMIT FEES PER MONTH ssoo,ooo saoo,ooo - -- - 5300,000 -- - - --- - 5200,000 --- ,,~'t 5100,000 SO - c'~ ~J ar i~ aA ce J~O Jyt e` e~ e~ e~ oa oe a~ QQ tS to > o, ~o °~ n v sac e,°c r~ P~ sec Ora. ,eo `ec F ~eQ ~0 02 - 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 September 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 - S1,685,290; 2008 - $1,348,198: and as at August 2009 - S518,458. For comparison purposes, the 2007 permit fees of S1,685,290 was 112% of the 2007 annual budget of $1,500,000; the 2008 permit fees of 51,348,198 was 90% of the 2008 annual budget of $1.500,000 and as of August 31, 2009 permit fees of $518;458 is 37% of 2009 annual budget of S1,400,000. 1504 REPORT NO.: FND-027-09 PAGE 5 BUILDING PERMIT FEES CUMULATIVE YTD $1,8CG,000 51,600,000 -- --- $1,400,000 S 1, 200,000 - - 51,000,000 - - 5800,000 - 5600,000 $400,000 - - 5200,000 - - - - 50 - - ,acJa~a¢~`Jad ~a~r PQiJ ~aJ lJC¢ ,o~A P~~Jy`~e~~QC o`~~¢c e~~yc ¢~~~~ ~ SyQ O boa Qyc, -2007 YTD Actual -2008 YTD Actual --- 2009 YTD Actual -2009 YTD Dudget 5.0 COMMUNITY SERVICES REVENUE STATUS 5.1 Community Services revenues overall are down for the month of August by S31,000 compared to the same period last year. Whereas the revenues on a overall accumulated year to date basis are up by $42,000 compared to 2008. 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 August 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 Aquatic Programs and Fitness Program revenues for 2009 are comparable to the same monthly period to last year. The Recreation Program revenue is not comparable on a monthly basis as the total revenue is received through 4 registration periods. 1505 REPORT NO.: FND-027-09 PAGE 6 COMMUNITY SERVICES MONTHLY REVENUE & BUDGET $300,000 $250,000 $200,000 5150,000 ~ - - • FACILITIES $100,000 ~- ~- ------- ^AQUATIC PROGRAMS $50,000 - FITNESS PROGRAMS $0 ^ RECREATION PROGRAMS August August Budget I Budget 2009ACtual 2008ACtual 2009Monthly!, 2008MOn[hly 5.5 The following comparison table illustrates the monthly revenue received as a percentage of the monthly budget used in the graph. of % of Monthly Monthly 2009 2009 2008 Actual 2008 Actual ' Monthly Monthly Budget Budget COMMUNITY SERVICES August August Budget Budget 2009 2008 FACILITIES $64,042 $93,009 $241,756 $230,223 26.5% 40.4% AQUATIC PROGRAMS $126,885 ' $130,105 $65,710 $62,476 193.1% 208.2% FITNESS PROGRAMS $39,454 $32,537 $47,748 $42,750 82.6% 76.1% RECREATION PROGRAMS $23,790 $29,546 $31,875 $34,113 74.6% 86.6% TOTAL $254,171 $285,197 1506 REPORT NO.: FND-027-09 PAGE 7 5.6 The following bar graph illustrates the accumulated Community Services 4 major revenue groups for year-to-date values as of August 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 sz,soo.ooo 52,000,000 $1,500,000 $1,000,000 5500,000 50 2008 YTD ^ FACILITIES ^ AQUATIC PROGRAMS FITNESS PROGRAMS • RECREATION PROGRAMS 5.7 The following comparison table illustrates the accumulated revenue received as a percentage of the YTD budget used in the graph. of YTD % of YTD 2009 YTD 2008 YTD i 2009 YTD 2008 YTD Budget Budget COMMUNITY SERVICES August August Budget Budget 2009 2008_ FACILITIES $1,500,784 $1,474,485 $1,934,049 $1,841,787 77.6% ' 80.1% AQUATIC PROGRAMS $549,468 $485,708 $525,683 ! $499,812 104.5% ~! 97.2% FITNESS PROGRAMS $328,279. 5343,969 $381,983 $342,000 85.9% ' 100.6% RECREATION PROGRAMS 5251,129 $283,432 $255,000 $272,907 98.5% 103.9% TOTAL $2,629,660 $2,587,594 5.8 The Fitness Program revenue YTD for August 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 1507 KEPORT NO.: FND-027-09 PAGE 8 (ie. Museum). Community Services staff have monitored and marketed the 2009 summer day camps; however, the participatory numbers are down. 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 August that 2009 revenue is below 2008 years revenue, PLANNING- MONTHLY REVENUE& $as,ooo $ao,ooo $35,000 $30,000 $25,000 520,000 $15,000 $10,000 55,000 50 ^ 2009 Actual August ^ 2009 Monthly Budget ^ 2008 Actual August ^ 2008 Monthly 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 % decrease from 2008 to 2009 budget. The Planning Services revenue actuals for August 2009 are S9,794 and for August 2008 were $15,067. The August revenues as a percentage of each year's monthly budget values: 2009 - 34% and 2008 - 36%. 1508 BUDGET REPORT NO.: FND-027-09 PAGE 9 PLANNING-ACCUMULATED REVENUE & BUDGET $350,000 - - $300,000 - - - $250,000 - -- -- $200,000 ' ^ 2009 YTC August $150,000 ~ ---~--- ^ 2009 YTD Budget $100,000 - ----- - ^ 2008YiDAugust $50,000 ~ - • 2008YTDeudge[ $0 - August Budget August Budget '~ 2009 VTD ~ 2009 YiD 2008 YTD 2008 YTD 6.4 The Planning Services accumulated revenues year-to-date as of August 2009 is $110,109 and as of August 2008 were $166,021. The accumulated revenues as a percentage of each year's annual budget values: 2009 - 31.8% and 2008 - 33.2%. 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 forecasted to the end of 2009 has been addressed in the Council report CAO-004-09 on August 31, 2009. The budget values in this report have not been adjusted based on revised forecasts as this will be done for September to match the timing of the approval of the budget revisions. CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE ONTARIG L1C 3A6 T x;:905;623-3379 F (905;623-4169 1509