HomeMy WebLinkAboutFND-008-19Clarington
Finance Department
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 15, 2019
Report Number: FND-008-19 Resolution: GG -218-19
File Number: By-law Number:
Report Subject: 2018 Building Permit Fee Report
Recommendations:
1. That Report FND-008-19 be received for information.
Attachment 1 to Report FND-008-19
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 2017-086.
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
to Council with the required content on an informational basis and Attachment "A" will
be posted on the Municipality's website.
1.3 In 2018, the new residential building permits issued increased over the prior year
providing a total building permit revenue of $3,242,224 (2017 - $2,602,919) creating a
surplus of $991,603 (2017 - $432,226) after reducing the total revenue by the direct and
indirect expenses as outlined on Attachment 1.
1.4 As the building permit surplus funds are to be segregated from the general funds of the
Municipality, the surplus of $991,603 was transferred to the Building Division reserve
fund leaving the surplus/deficit for December 31, 2018 as nil.
1.5 For the 2018 year, the Engineering Department advised Council through the annual
building permit activity report (EGD -004-19) that the building permits issued in 2018
were trending higher than 2017.
1.6 The total number of all types of building permits issued in 2018 was 1,349 compared to
1,185 in 2017 which translates into 13.8% increase in 2018.
1.7 The total number of new residential building permits issued in 2018 was 1,138
compared to 977 in 2016 which translates into 16.5% increase in 2018.
1.8 The below graph illustrates the number of permits for all types and new residential for
the last 9 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-008-19
Page 3
Permits Issued Residential vs Non -Residential
1400
1200
1000
E
a 800
0
600
E
z 400
200
0
2010 2011
2012 2013 2014 2015 2016
2017 2018
■ New Residential 593 863
536 439 657 933 995
973 809
■ Non -Residential 449 325
520 520 519 263 187
207 211
Year
2. Concurrence
This report has been reviewed by the Director of Engineering Services who concurs with
the recommendations.
3. Conclusion
3.1 Attachment "1" is a summary of the 2018 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 A Building Permit Fee Update Study was completed in September 2017 by Hemson
Consulting Ltd. This was an update to the 2011 study also completed by Hemson. The
reviews are 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.
3.3 It is not necessary to adjust the building fees at this time.
Municipality of Clarington
Report FND-008-19
Page 4
Submitted by. Reviewed by:Z,--7
Trevor Pinn, B.Com, CPA, CA, Andrew C. Allison, B. Comm, LL.B
Director of Finance/Treasurer CAO
Staff Contact: Paul Creamer, Deputy Treasurer, 905-623-3379 ext. 2604 or
pereamer@clarington.net
Attachment 1 — 2018 Annual Building Permit fee report
There are no interested parties to be notified of Council's decision.
Attachment 1 to Report FND-008-19
2018 Annual Building Permit Fee Report
Revenues
Total revenues are those recognized revenues from the issuance of building permits under By-
law 2017-086.
Expenses
Direct Costs
Direct costs 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. Direct costs also include costs from the Engineering
Department, Legal Services, Fire Services and Planning Services which can be directly
attributed to the building permit function.
Indirect Costs
Indirect costs include the costs for support and overhead services to the Building Division.
Total Revenue
2018 Actual (Unaudited)
$3,242,224
Total Direct Costs
1,945,219
Total Indirect Costs
305,403
Transfer to Reserve Fund
991,603
Revenue (Under) / Over Expenditures
$Nil
Balance in Reserve Fund at December 31, 2018
$3,585,778