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HomeMy WebLinkAboutFND-001-10Energizing Ontario 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 ~e ~ O 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 ~~ ~ O 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 1506 a~JacJ ~~ Jai's ~a~'c PQ~~ ~a~ ,~.~e ~~~a J~~~'~ ~~~t ~o~~t ~~e~ ~~~t > ~e P ~eQ~2 p~ ~~,e O~`e