HomeMy WebLinkAboutFND-031-09•
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REPORT
FINANCE DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE.
Date: MONDAY NOVEMBER 16`h, 2009 Resolution #: GPI/~7~~~I
Report #: FND-031-09 File #: By-law #:
Subject: REPORT ON REVENUE SENSITIVE TO ECONOMIC CONDITIONS -
SEPTEMBER 2009
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report FND-031-09 be received for information.
Submitted by:
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Reviewed by.
Nancy yl r, B .A., Franklin Wu,
Director of Finance/Treasurer Chief Administrative Officer.
NT/LG/hjl
REPORT NO.: FND-031-09
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 September 2009 including the year-to-date amounts along
with prior year's amounts for comparison. This report incorporates the amendments made
to the 2009 budget through Report CAO-004-09 approved August 31, 2009.
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.
2.3 The Community Services Department revenues are not included in this month's report as
current economic conditions do not appear to be affecting its revenues at this time.
2.4 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 SEPTEMBER
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 $ 363,025.00 26 $ 1,057,295.00 102
-Additions $ - 0 $ 64,221.67 2
Townhouse $ 50,680.00 4 $ - 0
Apartment $ - 0 $ - 0
Commercial $ 768,483.00 1 $ - 0
Agricultural $ - 0 $ - 0
Government $ - 0 $ - 0
Institutional $ - p $ _ 0
Industrial $ - 0 $ 8,890.39 1
TOTAL $ 1,182,188.00 30 $ 1,130,407.06 lOS 4.6%
REPORT NO.: FND-031-09
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
September 2009, there were only 30 units of the forecasted residential units of 82 being
issued which equates to 36.6%. For the month of September 2008, there were 105 units
of the forecasted residential units of 79 being issued which equates to 132.9%.
Comparing the number of units issued in 2009 to 2008, shows that September 2009 has
collected 28.6% of the units issued in September 2008. It is important to note that
September 2008 was the transition month to a higher Development Charges fee so there
were an influx of applications prior to the deadline.
MUNICIPAL DEVELOPMENT CHARGES
JANUARY TO SEPTEMBER -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 $ 2,278,288.00 16S $ 4,775,666.00 S08
-Additions $ - 0 $ 322,440.67 31
Townhouse $ 50,680.00 4 $ 209,640.00 37
Apartment $ (6,307.00) -1 $ - 0
Commercial $ 784,727.65 8 $ 174,323.08 12
Agricultural $ - 0 $ 16,040.67 0
Government $ - 0 $ - 0
Institutional $ - 0 $ _ 0
Industrial $ 7,079.01 1 $ 8,890.39 1
TOTAL $ 3,114,467.66 177 $ 5,507,000.81 589 -43.4%
ivOTE: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 177 units of
the forecasted residential units of 738 being issued which equates to 24%. Per the 2008
DC Amendment Study, 983 residential units are forecasted for 2009. For the 2008 YTD,
there were only 589 units of the forecasted residential units of 711 being issued which
equates to 82.8%. 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 revised budget per
month. The line from October 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 July 2008 building permit fees collected were over $400,000.
REPORT NO.: FND-031-09 PAGE 4
4.2 For the month of September 2009, $60,750 was paid for building permit fees which
represents 121.5% of the 2009 monthly budget (monthly revised budget is $50,000). For
comparison purposes, for September 2008, $47,538 was paid for building permit fees
which represented 38% of the 2008 monthly budget (monthly budget was $125,000).
BUILDING PERMIT FEES PER MONTH
Ssoo,ooo
$aoo,ooo
$300,000 ---- ---
$200,000
$100,000 - -- -
50 - --
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F P S¢Q` ~o Q¢
-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 revised budget. The
line from October 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 September 2009 - $579,208. 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 $1.348,198 was 90% of the 2008 annual budget of
$1,500,000 and as of September 30, 2009 permit fees of $579,208 is 97% of 2009 revised
annual budget of 5600,000.
BUILDING PERMIT FEES CUMULATIVE YTD
$2,000,000 --
$isoo,ooo - - -- ---
SSOO,000 - -
$0 --- -
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S¢ e~ O
-2007 YTD Actual -2008 YTD Actual
~~--~~~ 2009 YTD Actual -2079 YTD Budget
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REPORT NO.: FND-031-09 PAGE 5
5.0 PLANNING SERVICES REVENUE STATUS
5.1 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.
5.2 The graph below illustrates for the monthly revenue and revised budget for September that
2009 revenue is slightly above 2008 years revenue.
PLANNING -MONTHLY REVENUE & BUDGET
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sao.ooo
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530,000
525,000 -~- ~ ^2009 Actual September
520.000 - _ ~ ^ 2009 Monthly Budget
515.000 ^ 2008 Actual September
510,000 ^ 2008 Monthly Budget
55,000 ,
50
September Budget September Budget
2009 ACtu.l 2009 Monthly 2008 Actual 2008 Monthly
5.3 Planning Services 2009 revised budget for the overall revenues is $186,000 and for 2008
budget the overall revenues were S500,000. This equates to a reduction
of $314,000 or 63% decrease from 2008 to 2009 budget. The Planning Services revenue
actuals for September 2009 are $16,078 and for September 2008 were $12,153. The
September revenues as a percentage of each year's monthly budget values: 2009 revised
is 103.7% and 2008 was 29.2%.
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REPORT NO.: FND-031-09 PAGE 6
PLANNING-ACCUMULATED REVENUE & BUDGET
$400,000 --
$350,000
5300,000
5250,000 -
$200,000 -- -- ^ 2009 YiD September
^ 2009 YTD Budget
$150,000 ',---- - - -
^ 2008 YTD September
$100,000 - --
^ 2008 VTD Budget
$50,000
$0 __
September Budget September Budget
2009 YTD 2009 YTD 2008 YTD 2008 YTD
5.4 The Planning Services accumulated revenues year-to-date as of September 2009 is
S126,187 and as of September 2008 were 5178,174. The accumulated revenues as a
percentage of each year's annual budget values: 2009 revised - 90.5% and 2008 -
47.5%. 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.
6.0 SUMMARY AND CONCLUSIONS:
6.1 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 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.
6.2 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 been adjusted based on revised forecasts as
approved by Council report CAO-004-09.
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
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