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Report To: General Government Committee
Date of Meeting: March 27, 2017
Report Number: FND-006-17 Resolution: GG-170-17
File Number: By-law Number:
Report Subject: Building Permit Fees Annual Report for 2016
Recommendations:
1.That Report FND-006-17 be received for information.
Municipality of Clarington
Report FND-006-17 Page 2
Report Overview
This report is prepared as required by the Building Code Act reporting requirements for
Building Permit Fees. There is no current adjustment required to the building fees beyond
the normal increase approved through By-law 2011-036.
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 as amended, staff have prepared this report
with the required content to Council on an informational basis and Attachment “A” will
be posted on the municipality’s website.
1.3 In 2016, the new residential building permits issued increased over the prior year
providing a total building permit revenue of $2,838,221 creating a surplus of $750,449
after reducing the total revenue by the direct and indirect expenses as outlined on
Attachment “A”.
1.4 As the building permit surplus funds are to be segregated from the general funds of the
municipality, the surplus of $750,449 was transferred to the Building Division reserve
fund leaving the surplus/deficit for December 31, 2016 as nil.
1.5 During the 2016 year, the Engineering Department advised Council through the monthly
building permit activity report that the building permits for all types issued in 2016 were
going to be consistent with 2015.
1.6 The total number of all types of building permits issued in 2016 was 1,182 compared to
1,196 in 2015 which translates into 1.2% decrease in 2016.
1.7 The total number of new residential building permits issued in 2016 was 995 compared
to 933 in 2015 which translates into 6.6% increase in 2016.
1.8 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.
Municipality of Clarington
Report FND-006-17 Page 3
2. Concurrence
Not Applicable
3. Conclusion
3.1 Attachment “A” is a summary of the 2016 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.
3.3 Currently, there is a Building Permit Fee Review update being prepared by the
Engineering and Finance Departments with the assistance of Hemson Consulting. It is
important to have a Review update every five (5) years to ensure that the Building
Permit fees are in line with building inspection costs and that all appropriate direct and
indirect costs are being allocated. A report to Council will come once the Review
update has been completed.
4. Strategic Plan Application
The recommendations contained in this report conform to the Strategic Plan.
643
1042
1188
1056
959
1176 1196 1182
274
593
863
536
439
657
933 995
0
200
400
600
800
1000
1200
1400
2009 2010 2011 2012 2013 2014 2015 2016# of PermitsYear
Building Permits
All Types of Permits
New Residential
Permits
Municipality of Clarington
Report FND-006-17 Page 4
Submitted by: Reviewed by:
Nancy Taylor, BBA, CPA, CA, Curry Clifford, MPA, CMO
Director of Finance/Treasurer Interim CAO
A.S. Cannella, C.E.T.,
Director of Engineering Services.
Staff Contact: Lori Gordon, Deputy Treasurer, 905-623-3379 ext. 2604 or
lgordon@clarington.net
Attachments:
Attachment “A” – Summary of 2016 Building Permit Fees, Revenues and Expenditures
There are no interested parties to be notified of Council's decision.
NT/LG/hjl
Attachment A to
Report FND-006-17
Municipality Of Clarington
Building Permit Fee Annual Report for 2016
Revenues
Total Building Permit fees collected during 2016 year under the Municipality of
Clarington’s Bylaw Number 2011-036, as amended is $2,838,221
Total Revenues: $2,838,221
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: $1,451,998
Indirect Costs:
Indirect costs are deemed to include the costs for support and overhead services to
the Building Division. Total Indirect Costs: $635,774
Transfer to Reserve Fund: $750,449
Total Expenses: $2,838,221
Surplus/deficit as of December 31, 2016: Nil
Statement of Reserve Fund:
Building Division Reserve Fund balance as of December 31, 2016 is $2,126,272
Note: Unaudited Figures