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Home My WebLink AboutFND-005-15 Clarington Finance Departrbent Report If this information is required in an alternate accessible format, please contact the Municipal Clerk at 905-623-3379 ext. 2102. Report To: General Purpose and Administration Committee Date of Meeting: March 30, 2015 Report Number: FND-005-15 File Number: Department File# By-law Number: Report Subject: Building Permit Fees Annual Report for 2014 Recommendations: 1. That Report FND-005-15 be received for information. Municipality of Clarington Report FND-005-15 Page 2 Report Overview This report complies with the Building Code Act reporting requirements for Building Permit Fees...Based on the review, there are no adjustments required to the building fees. 1 . Background and Comment 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. 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. 1.2 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. 1.3 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 2015. Municipality of Clarington Report FND-005-15 Page 3 1.4 In 2014, the new residential building permits issued were higher than anticipated providing a total building permit revenue of$2,056,892 creating a surplus of$213,462 after reducing the total revenue by the direct and indirect expenses as outlined on Attachment "A". 1.5 As the building permit surplus funds are to be segregated from the general funds of the municipality, the surplus of$213,462 was transferred to the Building Division reserve fund leaving the surplus/deficit for December 31, 2014 as nil. 1.6 In December 2011, the building permits increased significantly due to the effect of the building code change effective January 1, 2012. 1.7 During the 2014 year, the Engineering Department advised Council through the monthly building permit activity report that the building permits issued in 2014 were going to be higher in comparison to the 2013 year. 1.8 The total number of all types of building permits issued in 2014 was 1,176 compared to 959 in 2013 which translates into 22% increase in 2014. 1.9 The total number of new residential building permits issued in 2014 was 657 compared to 439 in 2013 which translates into 49.7% increase in 2014. 1.10 The below graph illustrates the number of permits for all types and new residential for the last 8 years. The 2010 figures are more in line with the pre 2007 figures. The 2011 figure is unusually high due to the effect of the building code change effective January 1, 2012. Building Permits 1400 ��— --- ---- --- 1200 1188 1176 1073 1042 1056 1000 - 5,0�� - - 959 63 800 =1- ---- k a 55 643 57 93 93 ■All Types of Permits 0 600 - 3£_u *� 39 New Residential Permits 400 °- c- _� -_- �-_. _.- e 74 200 0 2007 2008 2009 2010 2011 2012 2013 2014 Year Municipality of Clarington Report FND-005-15 Page 4 2. Concurrence Not Applicable 3. Conclusion 3.1 Attachment "A" is a summary of the 2014 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. 3.2 It is not necessary to adjust the building fees as the Building Fees By-Law#2011-036 contains a clause to increase building fees by three (3) percent annually effective January 1St each year. 4. Strategic Plan Application The recommendations contained in this report conform to the Strategic Plan. Submitted by: % �'�' / Reviewed by: Nancy Ta or B , C A, CA Franklin Wu, Director of Finance/Treasurer Chief Administrative Officer e- A.S. Cannella, C.E.T. Director of Engineering Services. Staff Contact: Lori Gordon, Deputy Treasurer, 905-623-3379 ext. 2604 or Igordon @clarington.net Attachments: Attachment "A" — Summary of 2014 Building Permit Fees Revenue & Expenditures There are no interested parties to be notified of Council's decision. NT/LG/hjl Attachment A Report FND-005-15 Municipality Of Clarington Building Permit Fee Annual Report for 2014 Revenues Total Building Permit fees collected during 2014 year under the Municipality of Clarington's Bylaw Number 2011-036, as amended is $2,056,892. Total Revenues: $2,056,892. 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 applications, the review of building plans conducting inspections and building-related enforcement duties. Total Direct Costs: $1,357,574. Indirect Costs: Indirect costs are deemed to include the costs for support and overhead services to the Building Division. Total Indirect Costs: $485,856. Transfer to Reserve Fund: $213,462. Total Expenses: $2,056,892. Surplus/deficit as of December 31, 2014: Nil I Statement Of Reserve Fund: Building Division Reserve Fund balance as of December 31, 2014 is $1,051,648. Note: Unaudited Figures.