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REPORT
FINANCE DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date: MONDAY JANUARY 4"', 2010 Resolution #: Q~}- a -/~
Report #: FND-001-10 File #: By-law #:
Subject: REPORT ON REVENUE SENSITIVE TO ECONOMIC CONDITIONS -
NOVEMBER 2009
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report FND-001-10 be received for information.
Submitted by:
,~ Reviewed by: ' "`""`^--'~
Nancy T to , B. .A., C.A., Franklin Wu,
Director of FinancelTreasurer Chief Administrative Officer.
NT/JW/LG/hjl
REPORT NO.: FND-001.10
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 November 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 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 NOVEMBER
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 $ 435,630.00 30 $ 534,300.00 42
-Additions $ - 0 $ - 0
Townhouse $ - 0 $ - 0
Apartment $ - 0 $ - p
Commercial $ - 0 $ - 0
Agricultural $ - 0 $ - 0
Government $ - 0 $ - 0
Institutional $ - 0 $ - 0
Industrial $ - 0 $ - 0
TOTAL $ 435,630.00 30 $ 534,300.00 42 -18.5%
REPORT NO.: FND-001-10
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
November 2009, there were only 30 units of the forecasted residential units of 82 being
issued which equates to 36.6%. For the month of November 2008, there were 42 units of
the forecasted residential units of 79 being issued which equates to 53.2%. Comparing
the number of units issued in 2009 to 2008, shows that November 2009 has collected
71.4% of the units issued in November 2008.
MUNICIPAL DEVELOPMENT CHARGES
JANUARY TO NOVEMBER -YEAR TO DATE
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 $ 3,076,943.00 220 $ 5,349,002.00 553
-Additions $ - 0 $ 322,440.67 31
Townhouse $ 88,690.00 7 $ 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 $ 3,951,132.66 235 $ 6,080,336.81 634 -35.0%
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 37.1 % of the units issued in 2008 YTD. For the 2009 YTD, there are 235 units of
the forecasted residential units of 901 being issued which equates to 28.7%. Per the 2008
DC Amendment Study, 983 residential units are forecasted for 2009. For the 2008 YTD,
there were only 634 units of the forecasted residential units of 872 being issued which
equates to 80.3%. 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 for 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-001-10
PAGE 4
4.2 For the month of November 2009, $98,683 was paid for building permit fees which
represents 197.4% of the 2009 monthly budget (monthly revised budget is $50,000). For
comparison purposes, for November 2008, $47,516 was paid for building permit fees
which represented 38% of the 2008 monthly budget (monthly budget was $125,000).
BUILDING PERMIT FEES PER MONTH
$500,000
$400, 000
$300,000
$200,000
$100,000
I
I $0
Jata Ja~~ atr P~~\ ~a~ >J~~ ~~~J ~~~5~, ~~e~ Kopec ~~et ~~~t
~a~ ~e~~ ~ P e~~e Oc owe eye
c, ~ O
2007 Actual 2008 Actual 2009 Actual 2009 Budget Revised
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 for 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 November 2009 - $763,178. 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
November 30, 2009 permit fees of $763,178 is 127.2% of 2009 revised annual budget of
$600,000.
BUILDING PERMIT FEES CUMULATIVE YTD
` S2,ooo,ooo
$1,500,000
$1,000,000
$500,000
$0
,~~~ata e~i~atJ fair P~`\ ~~~ ,~~~ ,~\~ P~~~y~~ t~~OetO~o~et ~ ~~~` ~ ~~~~
~ ~e ~ oe ee
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2007 YTD Actual 2008 YTD Actual
~- 2009 YTD Actual 2009 YTD Budget Revised
1504
REPORT NO.: FND-001-10 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 the monthly revenue and revised budget for November.
__
PLANNING SERVICES PER MONTH
~oooo ----
60000
50000
40000
30000
20000
10000
0
Jai ~~a~J at~r P~~\ ~a~ >J~~ >J~~ ~~JS~, ~~et ~o~~t ~~~~ ~~~c
~a~ ~~~ ~` P Q~e O~ o~~ e`z
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2008 Actual 2009 Actual 2009 Budget Revised
5.3 Planning Services 2009 revised budget for the overall revenues is $186,000 and for 2008
budget the overall revenues were $500,000. This equates to a reduction
of $314,000 or 63% decrease from 2008 to 2009 budget. The Planning Services revenue
actuals for November 2009 are $10,426 and for November 2008 were $39,744. The
November revenues as a percentage of each year's monthly budget values: 2009 revised
is 67.3% and 2008 was 95.4%.
1505
REPORT NO.: FND-001-10
PAGE 6
PLANNING SERVICES CUMULATIVE YTD
300000
250000
200000
150000
100000
50000
0
2008 YTD Actual -2009 YTD Actual 2009 YTD Budget Revised
5.4 The Planning Services accumulated revenues year-to-date as of November 2009 is
$152,813 and as of November 2008 were $234,533. The accumulated revenues as a
percentage of the year to date budget values: 2009 revised is 89.6% and 2008 was
51.2%. 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.
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.
SlKttl,
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
VILLE, ONTARIO L1C 3A6 T (905)623-3379 F (9051623-4169
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