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Staff Report
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Report To: General Government Committee
Date of Meeting: April 17, 2023 Report Number: FSD-014-23
Submitted By:
Reviewed By:
File Number:
Trevor Pinn, Director of Finance/Treasurer
Mary -Anne Dempster, CAO Resolution#: GG-090-23
By-law Number:
Report Subject: 2022 Building Permit Fees Annual Report
Recommendation:
1. That Report FSD-014-23 be received for information.
Municipality of Clarington
Report FSD-014-23
Report Overview
Page 2
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, 1992 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. 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. An update to this study has
been scheduled for 2023.
1.4. In 2022, building permits issued generated total building permit revenue of $1,967,075
(2021 - $3,038,510), with total direct and overhead costs of $2,282,081 (2021 -
$2,326,915), creating a deficit of $315,006 (2021 — surplus of $711,595) after reducing
the total revenue by the direct and indirect expenses as outlined on Attachment 1.
1.5. As the building permit funds are to be segregated from the general funds of the
Municipality, the deficit of $315,006 was transferred from the Building Division Reserve
Fund leaving the surplus/deficit for December 31, 2022, as nil. As of December 31,
2022, the reserve fund had approximately $2.3 million. These funds are restricted to
building permit services related uses.
2. Concurrence
This report has been reviewed by the Director of Planning and Infrastructure Services
who concurs with the recommendations.
3. Conclusion
It is respectfully recommended that Council receive this report.
Municipality of Clarington
Report FSD-014-23
Page 3
Staff Contact: Michelle Pick, Accounting Services Manager / Deputy Treasurer, 905-623-3379
ext. 2605 or mpick@clarington.net.
Attachments:
Attachment 1 - 2022 Annual Building Permit Fee Report
Interested Parties:
There are no interested parties to be notified of Council's decision.
Attachment #1 to
Report FSD-014-23
Municipality of Clarington
Building Permit Fee Report
December 31, 2022
2022 Actual
Building Permit Fees Revenue $ 1,967,075
Transfer from Reserve Fund 315.006
Total Revenue
Direct costs (Note 1)
Payroll
Office Space
Other Operating and Capital Costs
Subtotal Direct Costs
Transfer to Reserve Fund
Overhead Costs (Note 2)
$ 1,756,511
94,093
149,068
$ 1,999,672
282,409
Total $ 2,282,081
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 Development 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.