HomeMy WebLinkAboutFCS Minutes - 2021-11-29 - Capital Budget
Finance and Corporate Services
Committee Minutes
November 29, 2021, 9:30 a.m.
Electronic Meeting
Present: Mayor B. Vrbanovic
Councillor S. Davey
Councillor D. Schnider
Councillor J. Gazzola
Councillor C. Michaud
Councillor K. Galloway-Sealock
Councillor P. Singh
Councillor B. Ioannidis
Councillor M. Johnston
Councillor D. Chapman
Councillor S. Marsh
Staff: D. Chapman, Chief Administrative Officer
M. May, General Manager, Community Services and Deputy
Chief Administrator
V. Raab, General Manager, Corporate Services
J. Readman, General Manager, Development Services
J. Lautenbach, Chief Financial Officer, Financial Services
D. McGoldrick, General Manager, Infrastructure Services
L. MacDonald, City Solicitor
B. Rowland, Director, Corporate Communications and Marketing
C. Tarling, City Clerk
D. Murray, Director, Technology Innovation and Services
P. Dunn, Director, Human Resources
B. Lam, Director, Sanitary & Stormwater Utility
G. St. Louis, Director, Utilities
N. Lobley, Director, Parks and Cemeteries
K. Kugler, Director Sport
A. Qureshi, Director, Facilities Management
D. Miller, Director, Fleet
B. Cronkite, Director, Transportation Services
1
P. McCormick, Manager, Parking Enterprise
D. Saunderson, Deputy Clerk
S. Goldrup, Committee Administrator
_____________________________________________________________________
1. Commencement
The Finance and Corporate Services Committee held an electronic meeting this
date, commencing at 9:33 a.m., Chaired by Councillor S. Davey.
2. Discussion Items
2.1 FIN-2021-60 - 2022 Capital Budget and 10-Year Forecast
2.1.a Overview by Chief Financial Officer
J. Lautenbach provided opening remarks and an overview of the budget process.
J. Lautenbach reviewed the capital program, asset categories, forecasted
projects, and funding sources. J. Lautenbach highlighted the need to address
infrastructure projects over a longer time horizon; the projects identified and
prioritized in the Capital
and, the leveraging of grant funding to advance strategic initiatives. In response
capital projects.
2.1.b Boards
R. Hagey reviewed the Capital forecast for the Centre in the Square and
Kitchener Public Library. In response to questions from the Committee, R. Hagey
spoke to the Centre and the Square's projected surplus and how the funds are
allocated in the organization's capital reserve.
2.1.c Capital Funding Sources
R. Hagey reported the funding sources for the ten-year forecast of the Capital
Budget. R. Hagey noted the increase in funds due to previous adjustments to
Capital projects despite the decrease in Development Charges and Grant
Funding. Further, R. Hagey spoke to the Capital Pool and reviewed trends over
the ten years. R. Hagey explained that Capital projects are fully funded, the
proposed Capital Budget is currently balanced, and described the implications of
adjusting the Capital Budget on increasing tax rates or debt.
2
In response to questions from the Committee, R. Hagey spoke to the logistics of
adding additional funding for affordable housing initiatives, the considerations
and circumstances through which debt might be issued for the City to acquire an
asset, such as affordable housing, which another organization might manage.
2.1.d Debt
R. Hagey reviewed the City's outstanding debt and confirmed the City's debt
level is within the target range in terms of debt to the tax levy, per household, or
debt to reserves. In response to questions from the Committee, R. Hagey spoke
to the taxy levy increase assumed in the City's projections. The Committee
requested additional information regarding current interest rates, past trends, and
forecasts.
2.1.e Reserve Funds
R. Hagey spoke to Reserve Funding balances, the ratings and projections for
each fund, and noted which reserves were being monitored by staff. R. Hagey
confirmed Reserve Funds overall were projected to be above the minimum
balance at the end of 2021 and 2022. In response to questions from the
Committee, R. Hagey confirmed staff would provide further information about the
use of the Energy Retrofit Fund. Staff further spoke to the legislation and policy
governing the use of reserve funds.
2.1.f Development Charges
R. Hagey explained the recent changes to the handling of Development Charges
(DC), DC projections, and the updated DC By-law and rates, which will return to
the Committee in 2022. In response to questions from the Committee, R. Hagey
discussed support for affordable housing, the development of rental units, and
the deferral of DC fees. Further, R. Hagey reviewed the projects funded by DC
fees.
2.1.g Capital Budget Format
R. Hagey introduced the Capital Budget Pages, which included the capital
forecast and investment options, highlights of changes to the capital forecast,
and issue papers. The Committee discussed the potential Capital Investment
options for affordable housing, facility infrastructure, and community trails and
requested that staff investigate other funding options that might be leveraged to
allocate 2M or 3M in funding. R. Hagey confirmed the community feedback on
the potential opportunities for Capital Investment would be circulated in advance
of the final budget meeting.
2.1.h Capital Forecast and Issue Papers
3
R. Hagey highlighted budget changes. In response to questions from the
Committee, staff discussed cost considerations for print shop operations, the
corporate planning process and sources of funding, and the ongoing work to
advance the Reconciliation Action Plan and contributions from area
municipalities. Further, staff discussed Council technology, LoveMyHood funding
sources and program implementation, and confirmed staff would complete the
Ice Needs Assessment in 2023. Staff spoke to funding for studies supporting
purpose-built rental housing development and affordable housing. Additionally,
staff described funding for traffic calming signage, consideration of the Bramm
Street lands in the future Leisure Facilities Master Plan, and acquiring,
converting, or managing lands for park spaces.
Mayor B. Vrbanovic left the meeting at this time.
Responding to the Committee's questions, staff reviewed funding allocations for
front desk resourcing at City Hall, funding sources for Capital Forecast projects,
and streetscape improvements in the downtown core and property standards
considerations.
Councillor S. Davey left the meeting and Councillor K. Galloway-Sealock
assumed the role of Chair.
In response to a request, staff confirmed additional information would be
provided regarding the staff contribution and long-service recognition program,
implementing the Transform WR initiatives, and the implications of the request
for the Social Development Centre Waterloo Region.
Councillor S. Davey returned to the meeting and resumed the role of Chair.
2.1.i Resolution
On motion by Councillor D. Schnider
wing
matters arising from the November 29, 2021 Special Finance and Corporate
Services Committee meeting relative to the 2022 Capital budget, as outlined in
the chart below:
DIVISION/AREA TOPIC ACTION
4
FINANCIAL Reserves Provide information
PLANNING
Energy regarding the allowable
Retrofits
uses for the Energy
retrofit reserve fund, and
what it is allocated for.
General
FINANCIAL Circulate information
PLANNING
about the review of staff
recognition that was
conducted a few years
ago and what is planned
going forward.
PLANNING Affordable Provide additional
Housing (and information on how to
other capital fund an additional $1M-
options)
$2M for affordable
housing (or the other
capital options), options
could include:- Review
the impacts of a special
levy be for affordable
housing.- Consider
options for issuing debt,
what would the principle
& interest costs be, and
what is staff's opinion of
adding debt for this
purpose.- Provide
additional information on
past, present, and future
debt interest rates.- Look
at options to partner with
Kitchener Housing.-
Consult with the School
Board to see whether
they would consider
waiving their
Development Charges for
affordable housing.
5
PLANNING
Affordable Provide information about
Housing
the availability of
staffing/consulting
resources related to a
review of policy to
accelerate purpose-built
rentals.
PLANNING Heritage
Provide information about
the different heritage
capital accounts and
what they fund.
COMMUNITY Grant Funding Provide information about
SERVICES Request
the Social Development
Centre grant funding
request.
DEVELOPMENT Transportation Provide information about
SERVICES Services the costs of adding three
new, flexi-delineator
signs in each ward for
small scale traffic calming
and whether a budget
increase is required to
accommodate.
DEVELOPMENT Corporate Provide information about
SERVICES
Sustainability the efforts of the City to
Office
meet the Transform WR
recommendations."
Carried
3. Adjournment
On motion, this meeting adjourned at 1:25 p.m.
6