HomeMy WebLinkAboutCouncil Minutes - 2003-05-05 SSPECIAL COUNCIL MINUTES
MAY 5, 2003
CITY OF KITCHENER
A special meeting of City Council was held at 1:45 p.m. this date, Chaired by Mayor C. Zehr with all
members present except Councillor J. Gazzola.
Notice of this special meeting had been previously given to all members of Council by the City Clerk
pursuant to Chapter 25 (Council Procedure) of the Municipal Code.
J. Fielding, Chief Administrative Officer, advised that the primary objective of the City's financial
strategy was financial stability. He explained that the financial strategy is broken down into three
components: Capital Investment Strategy, Activity Based Costing and Asset Management. The
purpose of the meeting this date was to discuss with Council the Capital Investment Strategy.
J. Fielding provided an overview of the Capital Investment Strategy explaining there were five main
investment categories:
· base infrastructure; streets, sidewalks, lighting, drainage
· community development; sportsfields and parks, community and recreational facilities, delivery of
programs, services and special events
· economic development; development of employment lands, adaptive reuse of industrial and
commercial sites, development of inner city and downtown properties, support of private / public
partnerships
· civic enterprises and utilities; publicly held, revenue generating businesses
· corporate infrastructure assets; administrative facilities, corporate systems, fleet
The primary strategic objectives are:
· maintaining base infrastructure and extend services to accommodate growth
· respond positively to community and neighbourhood needs
· improve our revenue base and return on investment
· improve service delivery
· enhance the prosperity, quality of life and image of the City
Mr. Fielding explained that senior staff members and Council had previously been asked to give each
objective a value which was entered into the software resulting in each objective being given an
importance weighting. He advised that the result of this weighting showed that the most important
objective was base infrastructure followed in order by community needs, revenue base, service
delivery and quality of life / image of the City. This importance weighting would be used when
evaluating the capital projects.
Council was shown a list of the 17 top projects using the weighted rating system, the top 5 projects
were:
· sewer and water infrastructure
· roads- ongoing reconstruction
· employment lands- inter-municipal partnership
· sidewalks - ongoing maintenance and reconstruction
· Downtown- Centre Block
The next five rated projects included three community centres, the St. Mary's block in the Downtown
area and the arena / twin pads. Council did not voice any concerns with respect to the ranking as
presented this date. J. Fielding advised that the current Capital Budget and 10-Year Forecast cannot
support the projects without changes which could include removing the lower rated projects in order
to free up funding, creative financing, or innovative ways to complete the projects at a lower cost.
In answer to a question regarding opportunity bonds as a new method of financing capital projects, P.
Houston, General Manager of Financial Services & City Treasurer, advised that staff were
investigating the use of opportunity bonds as a means of long term financing for capital projects but
cautioned that the bonds may in fact drive the cost of construction higher.
Mr. Fielding advised that the Region has identified lands surrounding the airport and lands located on
the western urban boundary of the City as employment lands for the City of Kitchener. He added that
the Downtown lands should also be identified as employment lands and that developing any of the
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MAY 5, 2003 - 141 -
CITY OF KITCHENER
employment lands will require an investment from the City either in isolation or with a partner or
partners.
Council requested that J. Fielding have staff develop various models for development of employment
lands showing how possible partnerships could work and the return on investment for the various
lands.
Mr. Fielding advised that there is no capacity in the 10-year Capital Forecast for the three proposed
community centres based on the traditional pay-as-you-go funding and that Council may have to look
at alternate methods of funding such as debt financing. Councillor G. Lorentz advised that he would
not support fewer but larger community centres and that he would except that the City would continue
its policy of establishing community centres in neighbourhoods where the residents assist in funding
and in operating the centres. He added that he would not be opposed to debt financing but would
need to see how such financing would look like and affect the City's financial stability. Mayor C. Zehr
advised that in comparison to other municipalities across the country, the City of Kitchener in regard
to debt per capita, was in a better position than most municipalities. Councillor J. Smola advised that
although debt does require future residents to pay for these projects, these future residents are also
benefiting from them.
J. Fielding requested direction from Council on how to proceed with developing a strategy and
innovative ways to move forward with respect to the capital projects and the issues surrounding
employment lands, public / private partnerships and debt financing. It was generally agreed that the
process of a weighted rating for each capital project be continued and that each individual project
have a business case developed to address issues such as private / public partnerships, financing
including debt financing, options and creative ideas and, the need for a public process.
Moved by Councillor J. Smola
Seconded by Councillor B. Vrbanovic
"That Council meet in-camera this date to consider a personal matter, three land acquisition /
disposition matters and two matters subject to solicitor-client privilege."
Carried.
On motion, the meeting adjourned at 3:20 p.m.
MAYOR CLERK