HomeMy WebLinkAboutFND-025-10CIaC111~C0Il REPORT
FINANCE DEPARTMENT
Meefing: GENERAL PURPOSE AND ADMINISTRATION
Date: SEPT 27, 2010 Resolution#: C~-`f4~ /o By-law#: N~/}
Report: FND-025-10 File#:
Subject: REPORT ON REVENUE SENSITIVE TO ECONOMIC CONDITIONS -JUNE, JULY
AND AUGUST 2010
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
THAT Report FND-025-10 be received for information.
Submitted by:
Nancy ay or, A, .A
Director of Finance/
Treasurer
NT/hjl
Reviewed by: ~ °""""~ -~~~"
ranklin Wu,
Chief Administrative Officer
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1 C 3A6 T (905)623-3379
REPORT NO.: FND-025-10
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 months of June, July and August 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 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 31 $`, 2010.
REPORT NO.: FND-025-10
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
months of June, July and August 2010, there were 192 units of the forecasted residential
units of 171 being issued which equates to 112.2%. For the months of June, July and
August 2009, there were 62 units of the forecasted residential units of 168 being issued
which equates to 36.9%. Comparing the number of units issued in 2010 to 2009, shows
that June, July and August 2010 have collected 309.6% of the units issued in June, July
and August 2009.
MUNICIPAL DEVELOPMENT CHARGES
MONTHS OF JUNE TO AUGUST
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 $ 1,692,152.00 122 $ 813,176.00 56
-Additions $ - 0 $ - 0
Townhouse $ 757,764.00 63 $ - 0
Apartment $ - 0 $ - 0
Commercial $ 892,721.88 7 $ 2,833.43 5
Agricultural $ - 0 $ - 0
Government $ - 0 $ - 0
Institutional $ - 0 $ _ 0
Industrial $ - 0 $ 7,079.01 1
TOTAL $ 3,342,637:88 192 $ 823,088.44 62 306.1%
Analysis
1) Commercial -June 2010 -Smart Centre -Swiss Chalet
2) Commercial -July 2010 -Smart Centre -Canadian Tire Corporation
3) Commercial -July 2010 - K. Knudsen Construction -Warehouse
4) Commercial -July 2010 -Newcastle Storage
REPORT NO.: FND-025-10
PAGE 4
3.2 Comparing the number of units issued in 2010 to 2009, shows that 2010 YTD has
collected 299.3% of the units issued in 2009 YTD. For the 2010 YTD, there are 440
units of the forecasted residential units of 456 being issued which equates to 96.4%. Per
the 2010 DC Background Study, 682 residential units are forecasted for 2010. For the
2009 YTD, there were only 147 units of the forecasted residential units of 445 being
issued which equates to 32.3%. Per the 2010 DC Background Study, 667 residential
units are forecasted for 2009.
MUNICIPAL DEVELOPMENT CHARGES
JANUARY TO AUGUST -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 $ 4,394,012.00 318 $ 1,915,263.00 140
-Additions $ - p $ _ 0
Townhouse $ 1,311,052.00 109 $ - 0
Apartment $ 37,744.00 4 $ (6,307.00) -1
Commercial $ 968,150.33 9 $ 16,244.65 7
Agricultural $ - 0 $ - 0
Government $ - p $ _ 0
Institutional $ - 0 $ - 0
IndusVial $ - 0 $ 7,079.01 1
TOTAL $ 6,710,958.33 440 $ 1,932,279.66 147 247.3%
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-025-10 PAGE 5
4.2 For the months of June, July and August 2010, $462,497 was paid for building permit
fees which represents 217.6% of the 2010 3 months budget (2010 monthly budget is
$70,833 per month). For comparison purposes, for June, July and August 2009,
$355,066 was paid for building permit fees which represented 236.7% of the 2009
monthly budget (monthly revised budget was $50,000 per month).
--
~, BUILDING PERMIT FEES PER MONTH
$450,OOD
s4DD,aoD
$350,000
5 3 00, 000
5 2 5 0,000
$200,000
$1so,aoo
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sa
2008 Actual 2009 Actual 2010 Actual 2010 Budge[
Analysis 1) June 2008 -Due to Development Charge Price Increase effective July 1st, 2008
2) August 2009 -Construction of the Bowmanville Wal-Mart
3) June 2010 -Due to Development Charge Price Increase effective July 1st, 201D
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 August 31, 2010 - $1,047,933. 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
August 31, 2010 permit fees of $1,047,933 is 123.3% of the 2010 budget of $850,000.
BUILDING PERMIT FEES CUMULATIVE YTD
$1,600,000
$1,400,000
$1, 200,000
$1, 000,000
$800,000
$600,000
$400,000
$200,000
$0
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2010 YTD Actual 2010 BUDGET
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REPORT NO.: FND-025-10 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 subdivisionlconsent 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
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Analysis
1) December 2009 -Funds received for Subdivision Application Fee's
2) January 2010 -Funds received for Subdivision Application Fee's
3) June 2010 -Funds received ~ffical Plan Amend, Zoning By-law and
Site plans
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 June, July and August 2010 total $73,661 and for June, July and August 2009
total $50,820. The June, July and August revenues as a percentage of each year's 3
months budget values: 2010 is 147.3% and 2009 was 109.4%.
REPORT NO.: FND-025-10
PAGE 7
5.4 The Planning Services accumulated revenues year-to-date as of August 2010 is
$271,320 and as of August 2009 were $110,109. The accumulated revenues as a
percentage of the year to date budget values: 2010 is 203.5% and 2009 revised was
ss.s~r°.
PLANNING SERVICES CUMULATIVE YTD
$3DD,000.00 --
$ 250, 000.00
$ 200, 000.00
$150, 000.00
$100,000.00
~ $50,000.00
$0.00
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 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 15t, 2010. Application fees are
not a steady stream rather they are intermittent throughout the year.
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