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HomeMy WebLinkAboutFSD-012-24Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: April 8, 2024 Report Number: FSD-012-24 Submitted By: Reviewed By: Authored by: File Number: Report Subject: Trevor Pinn, Deputy CAO/Treasurer, Finance and Technology Mary- Anne Dempster, CAO Resolution #:GG-055-24 Michelle Pick, Accounting Services Manager, Deputy Treasurer By-law #: 2023 Annual Building Permit Fees Report Recommendation: 1.That Report FSD-012-24 be received for information. Municipality of Clarington Page 2 Report FSD-012-24 Report Overview This report is prepared as required by the Building Code Act reporting requirements for Building Permit Fees. There was no 2023 adjustment required to the building fees beyond the normal increase approved through By-law 2017-086. In 2024, the Building Permit Fee Study was updated, and Bylaw 2017-086 was repealed and replaced with By-law 2024-006. 1. Background 1.1 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. 1.2 In accordance with the Building Code Act, 1992 as amended, staff have prepared this report to Council with the required content on an informational basis and this report and the related attachment will be posted on the Municipality’s website. 1.3 A Building Permit Fee Update Study was completed in September 2017 by Hemson Consulting Ltd. The reviews are to be completed every five (5) years to ensure that the building permit fees are in line with the cost of building inspections and that all appropriate direct and indirect costs are being allocated. 1.4 An updated Building Permit Fee Update Study was completed in 2024, with an effective date of March 1, 2024. 1.5 In 2023, building permits issued generated total building permit revenue of $2,149,337 (2022 - $1,967,075), with total direct and overhead costs of $3,485,770 (2022 - $2,282,081), creating a deficit of $1,336,433 (2022 – deficit of $315,006) after reducing the total revenue by the direct and indirect expenses as outlined on Attachment 1. 1.6 As the building permit funds are to be segregated from the general funds of the Municipality, the deficit of $1,336,433 was transferred from the Building Division Reserve Fund leaving the surplus/deficit for December 31, 2023, as nil. As of December 31, 2023, the reserve fund had approximately $0.4 million. These funds are restricted to building permit services related uses. 2. Financial Considerations Not Applicable. Municipality of Clarington Page 3 Report FSD-012-24 3. Strategic Plan Though not directly related to the specific priorities or actions set out in the Clarington Strategic Plan 2024-27, the recommendations in Report FSD-012-24 contribute more broadly to the following expected results: Finances and operations are efficiently and responsibly managed. 4. Concurrence This report has been reviewed by the Deputy CAO of Planning and Infrastructure Services who concurs with the recommendation. 5. Conclusion It is respectfully recommended that Council receive this report. Staff Contact: Michelle Pick, Accounting Services Manager / Deputy Treasurer, 905-623-3379 ext. 2605 or mpick@clarington.net. Attachments: Attachment 1 – 2023 Annual Building Permit Fees Report Interested Parties: There are no interested parties to be notified of Council's decision. Attachment #1 to Report FSD-012-24 Municipality of Clarington Building Permit Fee Report December 31, 2023 2023 Actual Building Permit Fees Revenue $ 2,149,337 Transfer from Reserve Fund 1,336,433 Total Revenue $ 3,485,770 Direct costs (Note 1) Payroll 2,863,801 Office Space 101,000 Other Operating and Capital Costs 163,293 Subtotal Direct Costs $ 3,128,094 Overhead Costs (Note 2) 357,676 Total Costs $ 3,485,770 Revenue (Under) / Over Expenditures - Note 1 - Direct costs are deemed to include the costs of the Building Division for the processing of building permit applications, the review of building plans, conducting inspections and building-related enforcement duties. Direct costs also include costs from Public Works, Legislative Services, Fire and Emergency Services and Planning and Infrastructure Services which can be directly attributed to the building permit function. Note 2 - Overhead or Indirect costs are deemed to include the costs for support and overhead services to the Building Division.