HomeMy WebLinkAboutFIN-20-063 - 2021 User FeesREPORT TO:Finance and Corporate Services Committee
DATE OF MEETING: November 2, 2020
SUBMITTED BY:Ryan Hagey, Director of Financial Planning
519-741-2200 Ext 7353
PREPARED BY:Ryan Hagey, Director of Financial Planning
519-741-2200 Ext 7353
WARD(S) INVOLVED:All
DATE OF REPORT:October 20, 2020
REPORT NO.: FIN-20-063
SUBJECT:2021 User Fees
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RECOMMENDATION:
THAT 2021 user fees be held flat at 2020 rateswith the exception of those fees specifically
identified in report FIN-20-063; and
THAT the proposed fees and charges contained in the 2021 User Fee Schedule attached to
Financial Services Department report FIN-20-063be approved; andfurther,
THAT Legal Services staff be directed to prepare the necessary by-laws to amend The City of
Kitchener Municipal Code Chapters for fees and charges pertaining to licensing, planning
applications, building permits and Committee of Adjustment applications.
BACKGROUND:
A comprehensive review of fees and charges forms part of the annual budget process. Council normally
approves a new fee schedule each fall to provide time to secure Provincial approvals and by-law
amendments before fees are increased effective the beginning of the following year.
Fees and charges are used by municipalities as an alternative to fully funding various programs and
services through property taxes. Fees and charges are often used for programs and services where
customers have a choice whetherto use them and, for this reason, the use of fees and charges tends to
be favoured over property taxes alone.
REPORT:
A comprehensive schedule of proposed fees and charges is attached to this report.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994for assistance.
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When setting individual rates, departments consider a range of factors including cost recovery,
legislation, rates of other municipalities and market conditions. Given the localimpacts COVID-19,
holding the vast majority of user fees flat at 2020 levels is one way the City can help individuals and
businesses who are struggling financially due to the pandemic. Further, most building permit fees are
proposed to be reduced by 10%. A reduction to these fees helps lowerthe costs of development in
Kitchener, and can be accommodated based on Building’s strong financial results in past years which
has built up a healthy balance in the itsstabilization reserve.
The table below breaks down the change in fees into different categories. This breakdown shows the
vast majority (94%) of fees are remaining at 2020 levels. A small number of fees are proposed to
decrease, and only three fees have aproposed increase related to legislation or previous Council
decisions. No new fees are proposedfor 2021.
Summary of Change in User Fees Compared to Prior Year
Fee change# of Fees% of Fees
Fee decrease (i.e. less than 0%)725%
No change (i.e. 0%)125394%
Between 0% -1.5%00%
Between 1.5% -2.5%2Less than 1%
Greater than 2.5%1Less than 1%
New fee00%
The remainder of the report highlights fee changes that differ from the inflationary guideline.
Highlighted Fee Changes
Special Events (fees 17 –78 on the detailed fee schedule)
Allfees have remained at the 2020 rate,with the following exception:
Proposed 2022 Victoria Park Pavilion (VPP) Wedding Package (fee 78on the detailed fee
schedule)
In 2019, staff reviewed the costs of similar wedding packages from a number of venues and
found the City’s wedding package pricing was below existing market ratesfor weekend rentals
(Friday, Saturday, and Sunday).Council approved increasing the fees to better reflect market
rates, but to phase in the increase over a three-yearperiod(the 2022 wedding season being the
second year of the three year phase in period). The fee for 2022 weddings will increase from
$3,500 to $4,500 as per previous Council direction.All other VPP rentals for 2021 will remain at
2020 rates, allowing every other group/event to rent the facility at existing rates.
It is even more important in light of COVID-19 that the City move towardsa market-competitive
rate for venue rentals on prime dates. The hospitality sector is not anticipated to recover for at
least to 2-3 years and large event venues are among the hardest hit. For that reason, the City
should not offer a rental rate that undercuts private sector venues as they struggle to regain
business and return to profitability.
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Building (fees 358 - 456on the detailed fee schedule)
The Building Enterprise is proposing a 10% reduction to most of the permit fees for the 2021budget.
Favourable results over the last few years have allowed the Building Stabilization reserve fund to reach
its target level. This rate reduction will help maintain the reserve fund within its minimum and maximum
target levels going forward.
Fire (Fees 459 - 534 on the detailed schedule)
Response to Provincial Highways/Truck (fee 515 & 516) – these hourly rates are set by the
Province and have been updated to match their legislated fee.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of the city’s strategicvision through the delivery
of core service.
FINANCIAL IMPLICATIONS:
User fees make up approximately 11% of the revenues used to fund the tax supported operating
budget. The proposed 2021 tax supported budget includes no increaseto these fees, unless otherwise
noted in this report.
COMMUNITY ENGAGEMENT:
INFORM and CONSULT
This report has been listed on the City’s website. In addition, the finalized listing will be posted on the
City’s website afteradoption by Council.
The Planning, Engineering and Building fees were reviewed with development industry stakeholders at
a Waterloo Region Homebuilders Liaison committee meeting with no objections.
ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer (CFO), FinancialServices
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