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HomeMy WebLinkAboutFND-006-11~~ ~ Energizing Ontario REPORT FINANCE DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: MAR 21, 2011 Resolution #: GPg"aJO-// Report #: FND-006-11 File #: By-law #: Subject: BUILDING PERMIT FEES ANNUAL REPORT FOR 2010 Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report FND-006-11 be received for information. Submitted by' ~ ~~ Reviewed by: ~ f" - -" !/a-( Nancy Taylor, B.B.A., C.A. Franklin Wu, ~~"11 Director of Finance/ Chief Administrative Officer Treasurer 1 A. .Cannella, . ~~ Director of Engineering Services NT/LG/hjl CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T (905)623-3379 REPORT NO.: FND-006-11 BACKGROUND AND COMMENT: PAGE 2 1.0 Under the Building Code Act, 1992 and the passing of subsequent amendments and Ontario Regulation 350/06, municipalities are required to prepare an annual report that records the amount of building permit fees collected and the costs incurred during the process. Division C Part 1 Section 1.9 of the Building Code specifies what is to be included in the annual report as follows: (1) The report referred to in Subsection 7 (4) of the Act shall contain the following information in respect of fees authorized under Clause 7 (1) (c) of the Act: (a) total fees collected in the 12-month period ending no earlier than three months before the release of the report, (b) the direct and indirect costs of delivering services related to the administration and enforcement of the Act in the area of jurisdiction of the principal authority in the 12-month period referred to in Clause (a), (c) a break-down of the costs described in Clause (b) into at least the following categories: (i) direct costs of administration and enforcement of the Act, including the review of applications for permits and inspection of buildings, and (ii) indirect costs of administration and enforcement of the Act, including support and overhead costs, and (d) if a reserve fund has been established for any purpose relating to the administration or enforcement of the Act, the amount of the fund at the end of the 12-month period referred to in Clause (a). (2) The principal authority shall give notice of the preparation of a report under Subsection 7 (4) of the Act to every person and organization that has requested that the principal authority provide the person or organization with such notice and has provided an address for the notice. 1.1 The requirement to issue an annual report on building permit fees came into effect for the 2006 year which means the first report was required by March 31, 2007. It is unclear in the regulations as to how the annual report is to be reported; i.e. via Council meeting, newspaper advertising, municipal website, etc. 1.2 In accordance with the Building Code Act as amended, staff have prepared this report to Council on an informational basis and Attachment "A" will be posted on the municipality's website in March 2011. 1.3 On Attachment "A" for the summary of the 2010 Annual Report for Building Permit Fees, the total of the direct and indirect costs exceeds the total building permit fees revenue by $34,991. REPORT NO.: FND-006-11 PAGE 3 1.4 During the 2010 year, the Engineering Department advised Council through the monthly building permit activity report that the building permits issued in 2010 were significantly higher in comparison to the 2009 year. 1.5 The total number of all types of building permits issued in 2010 was 1,042 compared to 643 in 2009 which translates into a 62% increase in 2010. 1.6 The total number of new residential building permits issued in 2010 was 593 compared to 274 in 2009 which translates into 116% increase in 2010. 1.7 The below graph illustrates the number of permits for all types and new residential for the last 6 years. The 2010 figures are more in line with the pre 2007 figures. Building Permits 1~ao lzao loco N Y_ p//'~~ •~ 8lPQ L a r- 500 0 ar 400 Z00 0 Year CONCLUSION: ^ All types of Permits ^ New Residential Permits 2.0 In the Annual Building Permit Fees report for 2009, Report #FND-017-10, staff advised that the building fee financial analysis model would be updated to verify that the permit fees charged were reasonable. 2.1 The Engineering department staff has a report in this Committee meeting under the Engineering section of the agenda addressing the outcome of the Building Permit Fees study update and other amendments to the Building Gode. 2005 2006 2007 2008 2009 2010 REPORT NO.: FND-006-11 PAGE 4 2.2 In light of the Council's decision on Engineering's report for Building Permit Fees and Inspection Fees increase and Building By-Law, staff advises that the current fee structure in the municipal by-law for the building permit fees By-Law Number 2005-145 does not sustain the building services costs. 2.3 Attachment "A" is a summary of the 2010 building permit fees revenue and related expenditures with the expenses broken down into direct and indirect costs along with the balance of the building division reserve fund. It also reflects that the total amount of the permit fees do not exceed the costs to administer and enforce the Building Code Act. Attachments: Attachment "A": Summary of 2010 Building Permit Fees Revenue & Expenditures ATTACHMENT "A" MUNICIPALITY OF CLARIlVGTON Building Permit Fee Annual Report for 2010 REVENUES Total Building Permit fees collected during 2010 year under the Municipality of Clarington's Bylaw Number 2005-145, as amended is $1,394,707. Transfer from Reserve Fund: $143,054. TOTAL REVENUES: $1,537,761. EXPENSES Direct Costs: Direct costs are deemed to include the costs of the Building Division of the Engineering Department for the processing of building permit applicafions, the review of building plans conducting inspections and building-related enforcement duties. Total Direct Costs: $1,083,983. Indirect Costs: Indirect costs are deemed to include the costs for support and overhead services to the Building Division. Total Indirect Costs: $488,769. TOTAL EXPENSES: $1,572,752. Deficit/(Surplus) as of December 31, 2010: $34,991. STATEMENT OF RESERVE FUND: Building Division Reserve Fund balance as of December 31, 2010 ($3,042). NOTE: Unaudited Figures.