HomeMy WebLinkAboutFND-002-10Date: FEB 1, 2010 Resolution#: ~~~ "~(3-/~ By-law#: N~~
Report#: FND-002-10 File#:
Subject: REPORT ON REVENUE SENSITIVE TO ECONOMIC CONDITIONS -
DECEMBER 2009
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report FND-002-10 be received for information.
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Submitted by: Reviewed by:
Nancy T ylor, ~ .A Franklin Wu,
Direct of Finance/ Chief Administrative Officer
Treasurer
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CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T (905)623-3379
REPORT NO.: FND-002-10 PAGE 2
1.0 BACKGROUND:
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 December 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 DECEMBER
2009 2008
UNIT TYPE MUNICIPAL
DEV. CHARGES PAID NUMBER
OF UNITS MUNICIPAL
DEV. CHARGES PAID NUMBER
OF UNITS %CHANGf OF
DEV.CHGS 2009-2008
Single/Semi- Detached
-New construction $ 377,546.00 26 $ 130,120.00 10
-Additions $ - 0 $ - 0
Townhouse $ - 0 $ - 0
Apartment $ - 0 $ - 0
Commercial $ - 0 $ - 0
Agricultural $ - 0 $ - 0
Government $ - 0 $ - 0
Institutional $ - 0 $. - 0
Industrial $ - 0 $ - 0
TOTAL $ 377,546.00 26 $ 130,120.00 10 190.2%
REPORT NO.: FND-002-10
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 December 2009, there were only 26 units of the forecasted residential units of 82
being issued which equates to 31.7%. For the month of December 2008, there were 10
units of the forecasted residential units of 79 being issued which equates to 12.7%.
Comparing the number of units issued in 2009 to 2008, shows that December 2009 has
collected 260% of the units issued in December 2008.
MUNICIPAL DEVELOPMENT CHARGES
JANUARY TO DECEMBER - 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 $ 3,454,489.00 246 $ 5,479,122.00 563
-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 $ 4,328,678.66 261 $ 6,210,456.81 644 -30.3%
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 40.5% of the units issued in 2008 YTD. For the 2009 YTD, there are 261 units
of the forecasted residential units of 983 being issued which equates to 26.5%. Per the
2008 DC Amendment Study, 983 residential units are forecasted for 2009. For the 2008
YTD, there were only 644 units of the forecasted residential units of 951 being issued
which equates to 67.7%. 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. 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-002-10
PAGE 4
4.2 For the month of December 2009, $49,569 was paid for building permit fees which
represents 99.1 % of the 2009 monthly budget (monthly revised budget is $50,000). For
comparison purposes, for December 2008, $49,144 was paid for building permit fees
which represented 39.3% 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
$0
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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.
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 2009 - $812,747. 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 2009 permit
fees of $812,747 is 135.5% of 2009 revised annual budget of $600,000.
BUILDING PERMIT FEES CUMULATIVE YTD
$z,ooo,ooo
$1,500, 000
$1,000, 000
$500,000
$0
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2007 YTD Actual
--• 2009 YTD Actual
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2008 YTD Actual
2009 YTD Budget Revised
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REPORT NO.: FND-002-10
5.0 PLANNING SERVICES REVENUE STATUS
PAGE 5
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 collected for the years 2008 and year to
date with the 2009 revised budget per month.
PLANNING SERVICES PER MONTH
$140,000.00 ---..._. .. _
$120,000.00
$100,000.00
$80,000.00
$60,000.00
$40,000.00
$ 20, 000.00
$0.00
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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 December 2009 are $125,024 and for December 2008 were $8,738. The
December revenues as a percentage of each year's monthly budget values: 2009
revised is 806.6% and 2008 was 21.0%. The following Planning accounts received
higher than normal activity for the month of December 2009: Subdivision Application fee,
Rezoning Revenue and Office Plan Amendments fee.
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REPORT NO.: FND-002-10
PLANNING SERVICES CUMULATIVE YTD
$300,000.00
$250,000.00
$200,000.00
$150,000.00
$100,000.00
$50,000.00
$0.00
PAGE 6
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2008 YTD Actual 2009 YTD Actual 2009 YTD Budget Revised
5.4 The Planning Services accumulated revenues year-to-date as of December 2009 is
$277,836 and as of November 2008 were $243,271. The accumulated revenues as a
percentage of the year to date budget values: 2009 revised is 149.4% and 2008 was
48.7°10. 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.
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