HomeMy WebLinkAboutFIN-09-138 - 2010 Comprehensive Fee ReviewREPORT
Report To:Councillor Berry Vrbanovic, Chair, and Members of
the Finance and Corporate Services Committee
Date of Meeting:
October 26, 2009
Submitted By:
Dan Chapman, General Manager of Financial Services
Prepared By:
Saleh Saleh, Senior Financial Analyst
Ward(s) Involved:
ALL
Date of Report: September 30, 2009
Report No.: FIN-09-138
Subject:2010 Comprehensive Fee Review
RECOMMENDATION:
THAT the proposed fees and charges contained in the 2010 Comprehensive Fee Review
attached to Financial Services Department Report FIN-09-138 be approved;
THAT the Manager of Cemeteries be directed to forward the Cemetery Tariff of Fees and
Charges to the Ministry of Government Services – Cemeteries Regulation Unit for filing;
THAT staff be authorized to amend the user fees as necessary to reflect the new Harmonized
Sales Tax which is expected to come in effect as of July 1, 2010 as per Provincial Legislation;
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, and Committee of Adjustment applications.
BACKGROUND:
A comprehensive review of fees and charges forms part of the annual budget process. Council
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.
REPORT:
A comprehensive listing of proposed fees and charges is attached and includes all City fees and
charges with the exception of utility rates.
When setting individual rates, departments consider a range of factors including cost recovery,
legislation, rates of other municipalities and market conditions. For 2010, departments were
provided with a guideline for fee increases of 5.2% and, in general, most fees are increasing by
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this amount. This rate of increase helps to maintain parity with projected budget increases and
also serves to mitigate property tax increases.
In addition to the changes noted above, strategic fee adjustments are being recommended in
the following areas:
Community Centre Room Rental
Hourly rates for room rentals across all community centres were standardized and aligned to
comparable like size room rentals and licensed event fees in the City of Kitchener community
centres. The increases range from 4.56 % to 50.94% on select rooms and license fees events.
Committee of Adjustment
Committee of Adjustment fees have been adjusted to reflect cost recovery and are now in line
with other area Municipalities. The increases range from 15.00% to 100.11%.
Tankless Water Heaters
Tankless Water heater rental rates are proposed to decrease on average by 35.9% as approved
on September 14, 2009 through staff report FIN-09-121.
Licensing Fees for Dogs
In 2007 Council approved an increase in dog licensing fees to bring Kitchener fees in line with
those charged by the City of Waterloo. All revenues generated from an increase in license fees
become City revenue unless previously negotiated by the Humane Society. At that time, dog
owners saw fee increases that ranged between 33%-100% depending on the time of year
purchased and whether the fee is a general or senior fee and as a result, there was a decline in
the number of dog licenses sold.
For 2010, the net tax-supported cost for services provided by the Humane Society is expected
to increase by 8.9% to $351,076. In order for full cost recovery of the services provided by the
Humane Society, a fee increase in the range of 106%-119% would be needed on dog licenses.
Staff are proposing to increase the 2010 licensing fees by 3.45%-9.09% to be consistent with
the fees approved by the City of Waterloo for 2010. The Humane Society contract expires on
December 31st 2010. In advance of negotiating this contract, staff will review all services
provided by the Humane Society and update Council on options that may reduce the net tax-
supported cost.
Harmonized Sales Tax Implications
The Harmonized Sales Tax (HST) is proposed to be in effect on July 1, 2010. HST will be
applicable on a majority of the City’s user fees. It is recommended that the user fees be
adjusted to reflect HST once the new tax is in effect on July 1, 2010.
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FINANCIAL IMPLICATIONS:
At current volumes, a 5.2% increase in fees and charges amounts to approximately $965,000 of
additional revenue for the tax-supported budget or 1.09 % of the general levy.
COMMUNICATIONS:
Public notice of this meeting of the Finance and Corporate Services Committee was published
in the Record on October 2, 2009. In addition, the attached listing will be posted on the City’s
website subsequent to adoption by Council.
CONCLUSION:
Staff has undertaken a comprehensive review of fees and charges and recommends that the
attached listing be adopted for 2010.
ACKNOWLEDGED BY:
Dan Chapman, General Manager of Financial Services and City
Treasurer
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