HomeMy WebLinkAboutFIN 14-25Report to
Executive Committee
Report Number: FIN 14-25
Date: September 3, 2025
From: Stan Karwowski
Director, Finance & Treasurer
Subject: 2024 Building Permit Stabilization Reserve Fund
File: F4910-01
Recommendation:
1. That Report FIN 14-25 regarding the 2024 Building Permit Stabilization Reserve Fund be
received for information.
Executive Summary: The purpose of this report is to fulfill Section 7(4) of the Building
Code Act (the “Act”) which requires the City to prepare an annual report of building permit and
inspection fees and related administrative and enforcement costs.
Relationship to the Pickering Strategic Plan: The recommendation in this report responds
to the Pickering Strategic Plan Corporate Key: Good Governance/Customer Service
Excellence.
Financial Implications: This report contains information pertaining to the financial status of
the Building Permit Stabilization Reserve Fund as at December 31, 2024.
Discussion: The purpose of this report is to fulfill Section 7(4) of the Act which requires the
City to prepare an annual report of building permit and inspection fees and related
administrative and enforcement costs.
In December 2005, Council approved Report PD 41-05 (Resolution #219/05), which enacted a
new building permit process and fees under the Act. The Act requires permit fees to be
accounted for, and not used to subsidize City functions other than administration and
enforcement of the Act and the Ontario Building Code.
The purpose of the Building Permit Stabilization Reserve Fund is to provide a source of funds
for current operating budget costs during an economic downturn to offset lower building permit
revenues. Without such a reserve fund, reduced growth and permit volumes during a downturn
could result in severe budgetary pressures which could impair the City’s ability to enforce the
Act and the Ontario Building Code.
As approved by Council (Resolution #651/25), Watson & Associates Economists Ltd. has been
retained to undertake a development application fee review encompassing their planning
application, building permit, and engineering fees. The ultimate objective of the fee review
FIN 14-25 September 3, 2025
Page 2
project is to develop user fee structures to recover a reasonable share of the costs of services
provided to the public and to provide financial stability for the delivery of these services
(including the evaluation of building permit reserve fund levels for the sustainable
administration and enforcement of the Act). Watson & Associates will provide a final report and
recommended fee structure at the end of September 2025.
The Act requires that an annual report be prepared that includes the total Building Permit fees
collected in the previous 12-month period and a summary of directly and indirectly related
administrative costs. The Building Permit Stabilization Reserve Fund has a 2024 yearend
balance of $5,312,868 which can be used as a possible funding source for future Building
Services operating and Capital Budget costs in the event of slower growth to offset lower
building permit fee revenues.
Annual Report – Building Permit Fees
for the year ended December 31, 2024
Building Permit Revenue $9,106,546
Costs:
Direct Costs ($3,702,981)
Indirect Costs (629,507)
Capital Costs (80,000) (4,412,488)
Excess (Shortfall) revenue Over Costs $4,694,058
Building Permit Stabilization Reserve Fund
Opening Balance, January 1, 2024 $ 585,657
2024 Contribution 4,694,058
2024 Interest Income 33,153
Closing Balance, December 31, 2024 $5,312,868
Attachment: None
FIN 14-25 September 3, 2025
Page 3
Prepared By: Approved/Endorsed By:
James Halsall
Division Head, Finance
Raghu Kumar
Senior Financial Analyst, Development Charges
& Capital Management
Stan Karwowski
Director Finance & Treasurer
Recommended for the consideration
of Pickering City Council
Marisa Carpino, M.A.
Chief Administrative Officer
Original Signed By:Original Signed By:
Original Signed By:
Original Signed By: