Loading...
HomeMy WebLinkAboutCS 16-10 City o¢~ Report To PICKERING Executive Committee Report Number: CS 16-10 Date: May 10, 2010 6 4 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: 2009 Building Permit Stabilization Reserve Fund Recommendation: That Report CS 16-10 from the Director, Corporate Services & Treasurer regarding the 2009 Building Permit Stabilization Reserve Fund be received for information. Executive Summary: Section 7(4) of the Building Code Act requires that "every 12 months each principal authority shall prepare a report... of building fees and related costs." This report provides this information. Financial Implications: This report contains information pertaining to the financial status of the Building Permit Stabilization Reserve Fund as at December 31, 2009. Provincial legislation requires an annual report on this fund be presented to Council. Sustainability Implications: This report does not contain any sustainability implications. Background: In December 2005, Council approved report PD 41-05, which enacted a new building permit process and fees under the Provincial Building Code Statue Law Amendment Act or Bill 124. The premise of Bill 124 was the requirement that municipalities will no longer be able to subsidize planning services or other City areas through building permit fees. C.N. Watson was retained to undertake a comprehensive analysis of all Planning & Development service costs fees and legislative requirements and to develop an Activity Based Costing (ABC) model for the City. Using this information, the consultant recommended a small increase in building permit fees to provide for cost recovery and to establish a building permit stabilization reserve fund. The purpose of this reserve fund is to provide a source of funds during an economic downturn to offset lower building permit revenues. Without such a reserve fund, Report CS 16-10 Date: May 10, 2010 Subject: 2009 Building Permit Stabilization Reserve Fund Page 2 65 reduced growth and permit volumes during a downturn could result in severe budgetary pressures. The Building Code Act requires that an annual report be prepared including total fees collected in the previous 12 month period, a summary of indirect and direct costs of delivering the service. The following statements indicate that expenses exceeded revenues and therefore there was no transfer to the reserve fund as required by the Act. The accumulated shortfall for this reserve fund is approximately $2.4 million. Annual Report - Building Permit Fees For the year ended December 31, 2009 Building Permit Revenue $ 668,764 Costs: Direct Costs $(1,146,126) Indirect Costs (221,252) (1,367,378) Excess (Deficit) Revenue Over Costs $(698,614) Building Permit Stabilization Reserve Fund Opening Balance, January 1, 2009 $ - 2009 Contribution Closing Balance, December 31, 2009 $ - Attachments: None Report CS 16-10 Date: May 10, 2010 Subject: 2009 Building Permit Stabilization Reserve Fund Page 3 66 Prepared By: Approved / Endorsed By: Stan Karwowski Gillis A. Paterson Manager, Finance & Taxation Director, Corporate Services & Treasurer S K/vw Copy: Chief Administrative Officer Recommended for the consideration of Pickering Ci Council as J. u n , R Chief Administrative fficer