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Report
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Clerk at 905-623-3379 ext. 2102.
Report To: General Government Committee
Date of Meeting: May 9, 2016
Report Number: FND-007-16 Resolution:
File Number: By-law Number:
Report Subject: BUILDING PERMIT FEES ANNUAL REPORT FOR 2015
Recommendations:
1. That Report FND-004-16 be received for information.
Municipality of Clarington
Report FND-007-16 Page 2
Report Overview
This report complies with the Building Code Act reporting requirements for Building Permit
Fee. 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.
Municipality of Clarington
Report FND-007-16 Page 3
1.4 In 2015, the new residential building permits issued were higher than anticipated
providing a total building permit revenue of $2,273,767 creating a surplus of $262,831
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 $262,831 was transferred to the Building Division reserve
fund leaving the surplus/deficit for December 31, 2015 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 2015 year, the Engineering Department advised Council through the monthly
building permit activity report that the building permits issued in 2015 were going to be
higher in comparison to the 2014 year.
1.8 The total number of all types of building permits issued in 2015 was 1 ,196 compared to
1 ,176 in 2014 which translates into 2% increase in 2015.
1 .9 The total number of new residential building permits issued in 2015 was 933 compared
to 657 in 2014 which translates into 42% increase in 2015.
1.10 The below graph illustrates the number of permits for all types and new residential for
the last 8 years. The 2011 figure is unusually high due to the effect of the building code
change effective January 1 , 2012.
Building Permits
1400
1188 1176 1196
1200
1042 1056
1000 950 959 33
63
800
v 643 57
n 93 93 36 All Types of Permits
o 600
xz 39 New Residential Permits
i
400
74
200
0
2008 2009 2010 2011 2012 2013 2014 2015
Year
Municipality of Clarington
Report FND-007-16 Page 4
2. Concurrence
Not Applicable
3. Conclusion
3.1 Attachment "A" is a summary of the 2015 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: G' Reviewed by- � °
Nancy T ylor, MBAICPA, CA Franklin Wu,
Director of Finance/Treasurer Chief Administrative Officer
p'
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 2015 Building Permit Fees Revenue & Expenditures
There are no interested parties to be notified of Council's decision.
I
NT/LG/hjl
Attachment A
Report FND-007-16
Municipality Of Claring'ton
Building Permit Fee Annual Report for 2015
Revenues
Total Building Permit fees collected during 2015 year under the Municipality of
Clarington's Bylaw Number 2011-036, as amended is $2,273,767
Total Revenues: $2,273,767
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: $1,406,175
Indirect Costs:
Indirect costs are deemed to include the costs for support and overhead services to
the Building Division. Total Indirect Costs: $604,761
Transfer to Reserve Fund: $262,831
Total Expenses: $2,273,767
Surplus/deficit as of December 31, 2015: Nil
Statement of Reserve Fund:
Building Division Reserve Fund balance as of December 31, 2015 is $1,355,441
Note: Unaudited Figures