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Home My WebLink AboutFND-018-10~j[-,~~ REPORT FINANCE DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION Date: JUNE 21, 2010 Resolution#: ~s P+4 '.3~~ !0 By-law#: Report: FND-018-10 File: REPORT ON REVENUE SENSITIVE TO ECONOMIC CONDITIONS -MAY 2010 RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report FND-018-10 be received for information. Submitted by: Director df Finance/ Treasurer NT/hjl Reviewed by: ~° ranklin Wu, Chief Administrative Officer CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T (905)623-3379 REPORT NO.: FND-018-10 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 May 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. 2.4 The references in this report have been updated to reflect the 2010 Development Charges Background Study, approved by Council on May 315, 2010. REPORT NO.: FND-018-10 PAGE 3 3.0 ENGINEERING SERVICES -BUILDING DIVISION REVENUE STATUS 3.1 In the 2010 Development Charges Background Study, it is forecasted that the municipality would be collecting approximately 57 residential units on a monthly basis for 2010 and approximately 56 residential units on a monthly basis for 2009. For the month of May 2010, there were only 55 units of the forecasted residential units of 57 being issued which equates to 96.5%. For the month of May 2009, there were 26 units of the forecasted residential units of 56 being issued which equates to 46.4%. Comparing the number of units issued in 2010 to 2009, shows that May 2010 has collected 211.5% of the units issued in May 2009. MUNICIPAL DEVELOPMENT CHARGES MONTH OF MAY 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 $ 675,465.00 49 $ 363,025.00 25 -Additions $ - 0 $ - 0 Townhouse $ 72,168.00 6 $ - 0 Apartment $ - 0 $ - 0 Commercial $ - 0 $ 447.33 1 Agricultural $ - 0 $ - 0 Government $ - 0 $ - 0 Institutional $ - 0 $ - 0 Industrial $ - 0 $ - 0 TOTAL $ 747,633.00 55 $ 363,472.33 26 105.7% REPORT NO.: FND-018-10 PAGE 4 3.2 Comparing the number of units issued in 2010 to 2009, shows that 2010 YTD has collected 291.8% of the units issued in 2009 YTD. For the 2010 YTD, there are 248 units of the forecasted residential units of 285 being issued which equates to 87.0%. Per the 2010 DC Background Study, 682 residential units are forecasted for 2010. For the 2009 YTD, there were only 85 units of the forecasted residential units of 280 being issued which equates to 30.4%. Per the 2010 DC Background Study, 667 residential units are forecasted for 2009. MUNICIPAL DEVELOPMENT CHARGES JANUARY TO MAY -YEAR TO DATE 2010 2009 UNIT TYPE MUNICIPAL DEV. CHARGES PAID NUMBER OF UNITS MUNICIPAL DEV. CHARGES PAID NUMBER OF UNITS 9'o CHANGE OF DEV.CHGS 2010-2009 Single/Semi- Detached -New construction $ 2,701,860.00 196 $ 1,102,087.00 84 -Additions $ - 0 $ - 0 Townhouse $ 553,288.00 46 $ - 0 Apartment $ 37,744.00 4 $ (6,307.00) -1 Commercial $ 75,428.45 2 $ 13,411.22 2 Agricultural $ - 0 $ - 0 Government $ - 0 $ - 0 Institutional $ - 0 $ - 0 Industrial $ - 0 $ - 0 TOTAL $ 3,368,320.45 248 $ 1,109,191.22 85 203.7% 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-018-10 PAGE 5 4.2 For the month of May 2010, $92,641 was paid for building permit fees which represents 130.8% of the 2010 monthly budget (2010 monthly budget is $70,833 per month). For comparison purposes, for May 2009, $37,536 was paid for building permit fees which represented 75.1 % of the 2009 monthly budget (monthly revised budget was $50,000 per month). -- - - _ __ -_ -- - - BUILDING PERMIT FEES PER MONTH 5450,000 5400,000 5 3 50, 000 5300,000 szso,ooa 5200,000 5lso,ooo S 100,000 5 50,000 50 Jam cJa~ a`r PQ~\ may ~~°~ ~°~J ~`~5` 'oe` o'oe~ ,o~~ 'oe~ lac Leo ~ P, Q,`eF OG~ o,~F Q`eco ~e ~ O 2608 Actual 2009 Actual 2010 Actual 2010 Budget Analysis 1) June 2008 -Due to Development Charge Price Increase effective July 1st, 2008 2) August 2009 -Development Charges received for the construction of the Bowmanville Wal-Mart 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 May 31, 2010 - $585,436. Far 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 May 31, 2010 permit fees of $585,436 is 68.9% of the 2010 budget of $850,000. BUILDING PERMIT FEES CUMULATIVE YTD 51,6ao.oao 51,4aa,ooo sl,zoo.oao sl,oao,aao Ssoo,ooo saoo,aao 54oo,aoo 5200.000 so lac z~ ~ ` ,ate ~ ~r ~~ a~ ce. J~J `T,~`` ~~c~e}o`~~Q~ ~¢~~~` c,2~~~` .? ~ a PQ cr lJ l Oo 0 ~ P ~eQ` ~o Qe 2008 YTD Actual 2009 YTD Actual 2010 YTD Actual 2010 BUDGET 1 509 REPORT NO.: FND-018-10 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. DO $120,000.00 $100,000.00 $80,000.00 $60,000.00 $40, 000.00 $ 20, 000.00 $0.00 ,a~Jat~ e~~~at~ ~a~~ P~~\ ~aJ ,~~~ ~~~~ ~~J~~ e~~~c OG~o~et ~~~~~~ ~~~~~~ 2009 Actual 2010 Actual 2010 Budget Analysis 1) December 2009 -Due to funds received for Subdivision Application Fee's 2) January 2010 -Funds received for Subdivision Application Fee's 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 May 2010 are $20,907 and for May 2009 were $14,656. The May revenues as a percentage of each year's monthly budget values: 201 D is 125.4% and 2009 was 94.6%. 1510 REPORT NO.: FND-018-10 PAGE 7 5.4 The Planning Services accumulated revenues year-to-date as of May 2010 is $197,659 and as of May 2009 were $59,289. The accumulated revenues as a percentage of the year to date budget values: 2010 is 237.2% and 2009 revised was 76.5°/a. PLANNING SERVICES CUMULATIVE YTD $300,000.00 $250,000.00 $200,000.00 $150,000.00 $100,000.00 $50,000.00 $ 0.00 ate a~ ~~r t~ a~ ~~' ~~J ~~'~ ei e'~ ¢~ ~'~ ~a~J e~~J ~a P~ ~ ,~ ~ ~~ e~~ ~~~~~ ,~~ro G~~~ ~ P w ~~Q ~o Om 2009 YTD 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 yearlseason, 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 1St, 2010. Application fees are not a steady stream rather they are intermittent throughout the year. 1511