HomeMy WebLinkAboutFND-016-10CIaC1ll~0Il REPORT
FINANCE DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMI/N-ISTRATION
Date: JUNE 7, 2010 Resolution#: bP/>1~c35/-/0 By-law#:
Report: FND-016-10 File#:
Subject: REPORT ON REVENUE SENSITIVE TO ECONOMIC CONDITIONS -APRIL 2010
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report FND-016-10 be received for information.
Submitted by:
Nancy TayXor, BB/j~
Director o Finance/
Treasurer
NT/hjl
Reviewed by: ~" -" ~-'~-"'l,
Franklin Wu,
Chief Administrative Officer
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T (905)623-3379
REPORT NO.: FND-016-10
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 April 2010 including the year-to-date amounts along
.with prior year'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 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.
REPORT NO.: FND-016-10
PAGE 3
3.0 ENGINEERING SERVICES -BUILDING DIVISION REVENUE STATUS
3.1 In the 2008 Development Charges Amendment Study, it is forecasted that the
municipality would be collecting approximately 85 residential units on a monthly basis
for 2010 and approximately 82 residential units on a monthly basis for 2009. For the
month of April 2010, there were only 77 units of the forecasted residential units of 85
being issued which equates to 90.6%. For the month of April 2009, there were 23
units of the forecasted residential units of 82 being issued which equates to 28.0%.
Comparing the number of units issued in 2010 to 2009, shows that April 2010 has
collected 334.8% of the units issued in April 2009.
MUNICIPAL DEVELOPMENT CHARGES
MONTH OF APRIL
2010 2009
UNIT TYPE MUNICIPAL
DEV. CHARGES PAID NUMBER
OF UNITS MUNICIPAL
DEV. CHARGES PAID NUMBER
OF UNITS %CHANGE OF
DEV.CHGS 2010-2009
Single/Semi- Detached
-New construction $ 703,035.00 51 $ 320,971.00 23
-Additions $ - 0 $ - 0
Townhouse $ 312,728.00 26 $ - 0
Apartment $ - 0 $ (6,307.00) -1
Commercial $ - 0 $ 12,963.89 1
Agricultural $ - 0 $ - 0
Government $ - 0 $ - 0
Institutional $ - 0 $ - 0
Industrial $ - 0 $ - 0
TOTAL $ 1,015,763.00 77 $ 327,627.89 23 210.0%
NOTE:Apartment unit in April 2009 is a negative value as permit was changed from 2 apartments to 1
REPORT NO.: FND-016-10 PAGE 4
3.2 Comparing the number of units issued in 2010 to 2009, shows that 2010 YTD has
collected 327.1 % of the units issued in 2009 YTD. For the 2010 YTD, there are 193
units of the forecasted residential units of 340 being issued which equates to 56.8%.
Per the 2008 DC Amendment Study, 1,017 residential units are forecasted for 2010.
For the 2009 YTD, there were only 59 units of the forecasted residential units of 328
being issued which equates to 18.0%. Per the 2008 DC Amendment Study, 983
residential units are forecasted for 2009.
MUNICIPAL DEVELOPMENT CHARGES
JANUARY TO APRIL -YEAR TO DATE
2010 2009
UNIT TYPE MUNICIPAL
DEV. CHARGES PAID NUMBER
OF UNITS MUNICIPAL
DEV. CHARGES PAID NUMBER
OF UNITS %CHANGEOF
DEV.CHGS 2010-2009
Single/Semi- Detached
-New construction $ 2,026,395.00 147 $ 739,062.00 59
-Additions $ - 0 $ - 0
Townhouse $ 481,120.00 40 $ - 0
Apartment $ 37,744.00 4 $ (6,307.00) -1
Commercial $ 75,428.45 2 $ 12,963.89 1
Agricultural $ - 0 $ - 0
Government $ - 0 $ - 0
Institutional $ - 0 $ - 0
Industrial $ - 0 $ - 0
TOTA $ 2,620,687.45 193 $ 745,718.89 59 251.4%
NOTE:Apartment unit in April 2009 is a negative value as permit was changed from 2 apartments to 1.
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 2008, 2009 and year-to-date with the 2010 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.
REPORT NO.: FND-016-10
PAGE 5
4.2 For the month of April 2010, $131,005 was paid for building permit fees which
represents 184.9% of the 2010 monthly budget (2010 monthly budget is $70,833 per
month). For comparison purposes, for April 2009, $51,396 was paid for building
permit fees which represented 102.8% of the 2009 monthly budget (monthly revised
budget was $50,000 per month).
BUILDING PERMIT FEES PER MONTH
$aso,DOo
$400,000
$350,000
$300,000
$250,000
$200,000
$1s0,000
$100,000
$50,000
$0
-2008 Actual -2009 Actual -2010ACtual -20106udget
4.3 The following line graph illustrates the building permit fees on an accumulated monthly
basis for the years 2008, 2009 and year-to-date with the 2010 YTD budget. The total
building permit fees revenues were as follows for the years: 2008 - $1,348,198; 2009
- $812,747 and as of April 30, 2010 - $492,795. For comparison purposes, the 2008
permit fees of $1,348,198 was 90% of the 2008 annual budget of $1,500,000; the
2009 permit fees of $812,747 is 135.5% of 2009 revised annual budget of $600,000
and as of April 30, 2010 permit fees of $492,795 is 58.0% of the 2010 budget of
$850,000.
BUILDING PERMIT FEES CUMULATIVE YTD
$1,600,000 ---------
$1,400,000 I
$1,200,000 - -- -
$1,000,000
$800,000
$600,000
$400,000
$200,000 i
$0
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Q P SeQ~`' ~o Qe
i
-2008 YTD Actual -2009 YTD Actual
2010 YTD Actual -2010 BUDGET ~
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REPORT NO.: FND-016-10 PAGE 6
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 collected for the years 2009 and year
to date with the 2010 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
$0.00
cJ,acJ cJa~ a~~ PQi~ ~a~ ~JC¢ ~J~, ~J$ Lei ooea ,o¢t ~yc
~a ~yb er QJ aQ, ¢'F pL~ oae'F ¢caF
5 ? O
2009 Actual -2010 Actual -2010 Budget
5.3 Planning Services 2010 budget for the overall revenues is $200,000 and for 2009
revised budget the overall revenues were $186,000. The Planning Services revenue.
actuals for April 2010 are $22,690 and for April 2009 were $11,480. The April
revenues as a percentage of each year's monthly budget values: 2010 is 136.1 % and
2009 was 74.1 %.
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REPORT NO.: FND-016-10
PAGE 7
5.4 The Planning Services accumulated revenues year-to-date as of April 2010 is
$176,753 and as of April 2009 were $44,633. The accumulated revenues as a
percentage of the year to date budget values: 2010 is 265.1 % and 2009 revised was
72.0°/a
PLANNING SERVICES CUMULATIVE MD
$300,000.00 - -------- -------
$250,000.00 ---------~-
$200,000.00 ---- -r
$150,000.00 - -------------- -__ ~
$100,000.00 - - -_
$50,000.00
$0.00 -- --
o°a~ aJ,ad ate PQi` ~,aJ ,JCe >o~J ~~4 yea ooec sec sec
~a e~ er PJ .ems b" m'F eF
F SeQ O spa Oec
X2009 VTD Actual -2010 YTD Actual 2010 YTD Budget
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. While fees are sporadically received, plan review and
implementation activities are ongoing.
6.2 To-date, revenues are better than anticipated which may be a reflection of some pent-
up demand remaining from the 2009 economic climate. The year-end spike in 2009
were applications in anticipation of the fee increase January 1 a~, 2010. Application
fees are not a steady stream rather they are intermittent throughout the year. The first
quarter results cannot be extrapolated over the balance of the year.
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