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HomeMy WebLinkAboutCS 62-07 CiUI o~ REPORT TO EXECUTIVE COMMITTEE Report Number: CS 62-07 Date: December 10, 2007 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Revision to Select User Fees due to GST Reduction Recommendation: 1. That Report CS 62-07 of the Director, Corporate Services & Treasurer be received; 2. That Council approve the changes to the General Municipal Fees as outlined in Attachment 1; and, 3. That the appropriate City of Pickering officials be authorized to take the necessary actions to give effect thereto. Executive Summary: In April of this year, Council approved By-law 6749/07 and Council Report CS 16-07 which revised the City's fees and charges to reflect the 2007 Budget. The recently announced GST reduction from 6% to 5% has created the situation where the final price charged for a small number of fees (including GST) results in staff having to provide a few pennies in change. For example, public skating with 6% GST is $3.00 and with the GST at 5% the price charged would be $2.97. The attached fee schedule reflects a small adjustment to these fees to facilitate processing of payments and eliminates the need to make small penny transactions. Financial Implications: None Sustainability Implications: This report does not contain any sustainability implications. Background: On October 30, 2007, the Government of Canada announced in its Economic Statement that it proposes to reduce the GST rate by one percentage point from 6% to 5% effective January 1, 2008. As in the previous situation, this reduction will be passed onto the taxpayer. Therefore, individuals will be paying slightly less for those services that attract GST such as memberships or program registrations. Report CS 62-07 Subject: Revision to Select User Fees due to GST Reduction Date: December 10, 2007 Page 2 109 Staff have reviewed the City's current user fee schedule and have discovered that there are a few situations where an adjustment is required to the City's fees to eliminate the need for making small penny (change) transactions. These are primarily "door" admissions for public skating and pre-teen dances. As stated above, staff would prefer to maintain the public skate fee at $3.00, and therefore eliminate the need to make change in the amount of three pennies. The rationale for this change is to facilitate the processing of door admissions and therefore maintaining customer service. If staff had to make change for these admissions, the line-ups at these events would increase or additional staff would have to be hired to process admissions to maintain customer service at its current level. Table One under "Column E," lists those fees that staff are recommending have an adjustment. The proposed fee changes do not increase the final price charged of any of the fees. Under "Column F" which reflects the final price with the 5% GST all the fees remain the same except for ten pass adult, family ten pass and twenty pass shinny where the end user will realize a small savings. Arena Current Full Fee Full Fee Col. B Proposed Revised Admissions Fee 6% GST 5% GST Minus Revised Full Fee Col. C Fee 5% GST 1 0 Pass Youth $22.64 $24.00 $23.77 $0.23 $22.86 $24.00 10 Pass Adult $30.19 $32.00 $31.70 $0.30 $30.24 $31.75 Family 10 Pass $47.17 $50.00 $49.53 $0.47 $47.14 $49.50 Table One Proposed Fee Changes Senior Skate $0.94 $1.00 $0.99 $0.01 $0.95 $1.00 91 20 Pass Shinny $75.47 $80.00 $79.24 $0.76 $75.48 $79.25 Italicized words indicate lower full fees. Report CS 62-07 Date: December 10, 2007 Subject: Revision to Select User Fees due to GST Reduction 1 j 0 Page 3 On June 18th, 2007, Council approved Resolution 142/07 that provided for special promotion to reduce public swimming and public skating admissions on Saturdays. Council approved that youth public swimming and skating be $2.00 and this rate and the other special family rates of $5.00 will be maintained for the GST reduction. Attachment 1 summarizes the fee proposed fee changes with an effective date of January 1 , 2008. Attachments: 1 . Proposed Fee Changes Prepared By: Approved I Endorsed By: '*~~ <=-..-3 ~:;::.::,~-. ~~,:7 . ' ~. ~~~':7?..:.~ . ---""",.,............... ~....- '-"-. . .. --- .. Gillis A. Paterson Director, Corporate Services & Treasurer Stan Karwowski Manager, Finance & Taxation GAP:vw Attachment Copy: Chief Administrative Officer Director, Operations & Emergency Services Recommended for the consideration of Pickering Cit unci! "I "iTACHMENT#-L-TOREPOR, . (!) ~ Dr) Proposed Fee Changes Effective - January 1, 2008 111 Current Fee (Excluding GST) Proposed Fee (Excluding GST) 10 Pass Youth $22.64 $22.86 10 Pass Adult $30.19 $30.24 Family 10 Pass $47.17 $47.14 Senior Skate $0.94 $0.95 20 Pass Shinny $75.47 $75.48