HomeMy WebLinkAbout2011-02-04 SSPECIAL FINANCE AND CORPORATE SERVICES COMMITTEE
FEBRUARY 4, 2011 CITY OF KITCHENER
Present: Councillor J. Gazzola - Chair
Mayor C. Zehr and Councillors S. Davey, B. Vrbanovic, Y. Fernandes, K. Galloway, P.
Singh, B. Ioannidis, Z. Janecki, F. Etherington and D. Glenn-Graham.
Staff: C. Ladd, Chief Administrative Officer
D. Chapman, Deputy CAO, Finance & Corporate Services
J. Willmer, Deputy CAO, Community Services
P. Houston, Deputy CAO, Infrastructure Services
C. Smith, Director of Financial Planning
H. Gross, Director, Project Administration & Economic Investment
R. Gosse, Director, Legislated Services & City Clerk
J. Witmer, Director of Operations
M. May, Interim Director, Human Resources
S. Adams, Director, Community & Corporate Planning
S. Turner, Director, By-law Enforcement
M. Hildebrand, Director, Community Programs & Services
C. Fletcher, Director of Facilities Management
M. Seiling, Director of Building
G. Murphy, Director of Engineering
D. Miller, Director of Fleet
A. Pinard, Director of Planning
J. McBride, Director of Transportation Planning
T. Beckett, Fire Chief
J. Ham, Manager, Database Administration & GIS
D. Murray, Manager, Client Services
B. Korah, Manager, Development Engineering
K. Kugler, Manager, The AUD & Community Arenas
R. Hagey, Manager of Financial Planning
G. Hummel, Manager, Park Planning, Development & Operations
J. Billett, Committee Administrator
C. Goodeve, Committee Administrator
The purpose of this special meeting was to discuss the proposed Capital Budget and 10 Year Capital
Forecast 2011-2020.
FCS-11-014 - 2011 CAPITAL FORECAST AND DEVELOPMENT CHARGES RESERVE
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The Committee considered Finance and Corporate Services Department report FCS-11-014,
dated January 14, 2011, and attached line-by-line listing of all projects in the Capital Forecast
by Department / Division. The Committee also received supplemental information, including
Issue Papers #52 (GPS System Maintenance) and #60 (Economic Development Investment
Fund [EDIF]).
DELEGATIONS
Mr. Ed Redgwell, resident, attended to speak to the 2011 budget raising concerns that budgets
as adopted by this Council over the past several years have produced tax levy increases at
higher than the rate of inflation and suggesting substantial dollars are being wasted on projects
related to EDIF, like the new main library expansion project and the Centre Block. He alleged
that this has been compounded by interest on debenturing, issued for a 15 year period, related
to EDIF and suggested the City implement a pay-as-you-go system. He proposed that monies
to be spent on the main library renovations should be phased in over six years as opposed to
three; adding that this would provide relief to taxpayers who will soon face rising costs related
to the implementation of the Storm Water Management (SWM) fee. He commented that
monies being spent on the new Consolidated Maintenance Facility are also wasteful as it was
his opinion the facility would be obsolete in 10 years time. Mr. Redgwell further suggested that
if the Kitchener Market did not become self-supporting over the next 12-24 months, then it
should be sold with a stipulation ensuring the new owners continue to operate the Market on
Saturdays.
Mr. Doug Letson and Ms. Lisa Talbot, KidsAbility Centre for Child Development Foundation,
addressed the Committee with respect to a request for a one-time capital grant of $25,000. for
use towards leasehold rnovations at their new Kitchenersite. Mr. Letson advised that
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KidsAbility provides rehabilitation services to children in Waterloo Region, noting that 4,425
children were served last year, of whom 1,421 reside in Kitchener. He added that KidsAbility
has not had a location in Kitchener since 1995 and have heard from their stakeholders that
one is required. He stated that recently a site became available when Family and Children
Services received financial support from the Federal Government to renovate the building at
65 Hanson Avenue, Kitchener. Mr Letson estimated the costs for the leasehold improvements
to accommodate KidsAbility at this site at approximately $483,000., of which $255,000. has
currently been raised in pledges. He noted that it is their intention to offer services at the
Kitchener site as of June 1, 2011.
In response to inquiries regarding the new site, Mr. Letson stated that approximately one-third
of the children they service are from Kitchener and estimated that 700 to 800 children would
receive services at the new location. He added that KidsAbility would occupy approximately
10% of the Family and Children Services facility. He noted that as this location is specific to
the City of Kitchener, no other municipalities have been approached for funding. Questions
were raised as to the viability of the requested funding being spread over two years and Mr.
Letson advised that KidsAbility would not be opposed to such a proposal. He responded
further that if the requested funding were not received, the Kitchener site would still go forward;
however, an alternative source of funding would need to be secured.
In response to questions, Mr. D. Chapman indicated that the requested $25,000. is not
currently provided for in the 2011 Budget. He advised that of the four options set out in Issue
Paper #1 to accommodate the requested funding, the most practical choice would be Option C
to fund the request from capital contingency, which as of December 31, 2010 has an available
balance of $34,000. At the request of the Committee, he agreed to provide a further issue
paper on this proposal to include the suggested two-year phase-in funding approach.
BUDGET OVERVIEW
Mr. Chapman introduced the proposed 2011 Capital Budget and 10 Year Capital Forecast
(2011-2020), developed in accordance with Council’s budget guidelines and capital priorities
defined through strategic planning processes. He advised that given the limited amount of
available funding, the Forecast remains relatively unchanged from last year. He stated that
three priorities are being put forward for increased investment and are reflective of previous
direction given by Council. The first is the SWM Utility, as it moves to a sustainable program
there is an increase in capital expenditures tied to the new SWM rate. Further to this, for 2011
and the near term of the Forecast, there are substantial investments in the Victoria Park Lake
Remediation project. He stated the second priority relates to parks and trails, which was
identified through the development of the Parks and Open Space Master Plan. The third
priority pertains to accessibility improvements as required by the Accessibility for Ontarians
with Disabilities Act (AODA). He added that there are considerable challenges within the
Capital Budget with respect to growth related projects, noting that revenues in the
Development Charges Reserve Fund are lower than anticipated due to the downturn in the
economy. Accordingly, staff is proposing deferrals of growth related projects to balance the
funding with the capital priorities.
Mr. Chapman reviewed the capital funding by source, noting that the level of the capital pool
has declined from $255,858,000. in 2010 to an estimated $187,820,000. in 2011, while
enterprises have increased from $281,372,000. in 2010 to $379,890,000. in 2011. This is due
to the transfer of SWM costs from the capital pool to enterprises. He noted that parking was
also moved from the capital pool in 2010 to the ‘Other’ category in 2011. Questions were
raised regarding the value of the SWM component in the 2010 capital pool, compared to the
portion of 2011 funding attributed to the SWM fees. In addition, a similar comparison was
requested for the transfer of parking to ‘Other’. Mr. Chapman agreed to bring back further
details in regard to those items prior to final budget day.
Mr. Chapman then spoke to the capital pool and development charges, noting the complexities
tied to those two funding sources within the Capital Budget. He advised that funding from a
number of sources are transferred into the capital pool and are used to fund the projects
across the Forecast. He stated that Capital out of Current (CC) represents transfers from the
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tax base and shows the amount contributed annually from the operating budget through the
tax rate to the capital program. In 2011, that amount is $1.3M, which is relatively small when
taken in the context of the overall 2011 Capital Budget at $120M. He noted that direct
transfers from the tax supported operating budget amount to approximately 1% of the total
capital outlay. He added that given the number of items that have moved to an enterprise
model within the capital program, there is very little potential to lessen the tax levy by reducing
transfers from the operating budget. He noted that there is a balance across the Capital
Forecast for the capital pool, which means that all of the funding sources within the pool equal
the outlay across the 10 year capital program. Accordingly, if a new project is to be added,
reductions must be made to other areas, or increases to the tax rate / debt; however, given the
current debt forecasts, this last option would not be feasible.
Mr. Chapman reviewed the Gas and Hydro Capital Investment Reserve Fund projections and
the 2010 General City Capital Closeouts. He stressed the importance of maintaining a healthy
reserve for the Gas Utility to deal with significant fluctuations in gas revenue. He stated that a
target balance of 5-15% of gas delivery revenue is recommended for this Reserve Fund and it
is estimated that this target would be reached by 2015. He added that in accordance with
Council direction, 2010 capital closeouts were transferred to the operating fund to assist with
deficit mitigation.
Clarification was requested as to why in 2010 the budgeted transfer for contributions from Gas
was $3.4M, while the final projection is shown as being $5.4M. Mr. Chapman agreed to report
back with more information on this prior to final budget day. In addition, further information
would be provided on the amount of the 2009 capital closeouts.
Mr. Chapman reviewed the Economic Development Investment Fund (EDIF) projections,
advising that they remain relatively unchanged, with the largest expenditures going toward the
new main library expansion project and the Centre Block lands. He stated that these projects
reflect firm commitments of Council and there is little to no ability to modify them at this time.
He clarified that of the $110M in EDIF, $89M is funded through debentures; $8.9M per year for
10 years. For 15 years from the time the debt is issued, the City will pay interest and principle
on the debt. He noted that no further debentures would be issued through EDIF as of 2013,
which will result in a levy reduction at that time.
Ms. Sonia Lewis, CEO, Kitchener Public Library (KPL), responded to questions raised
regarding the feasibility of adjusting the timing for the library expansion project, stating that a
contract is in place and construction is already underway; as such, delaying the project would
not be advisable. She estimated the non-construction related costs at just under $4M, with
$2.9M of that associated with furnishings, equipment, and technology as well as approximately
$1M allocated toward collections. She pointed out that some of the existing shelving units pre-
date the current building, which was constructed in 1962, adding that there is also a need to
adapt to the expanded space. She stated that in terms of the additional computers, those are
anticipated to be phased in over a number of years, as a means of improving the cash flow of
the project. She commented that significant cuts have been made to this project compared to
what was originally presented, adding that only the basic needs of the library are currently
included in its budget.
DEVELOPMENT CHARGES RESERVE
Mr. Chapman advised that the current Development Charges (DC) By-law expires in 2014 and
there is a significant deficit in the DC reserve projected for 2011 and beyond. Mr. Chapman
stated, however, that by prioritizing and deferring some projects in the 10 year Forecast the
deficit will remain until 2014 but be reduced from the projected amount.
In answer to questions raised, Mr. G. Murphy advised that changes in the projected amount for
the Huron Road (Strasburg to Fischer-Hallman) project results from detailed design work
defining actual work to be done; however, the project has been spread out over 2 years to
reduce financial impact and meet timing issues. Councillor Y. Fernandes requested information
regarding the Strasburg Road extension expenditure made in 2009 in the amount of $1.7M
and the proposed expenditure for 2011 of $524,000.
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Mr. Chapman advised that the City did receive a letter on behalf of a developer concerned with
their project being deferred. He explained that in cases where a project deferral impacts a
developer, the City will meet with the party to discuss other options including front-ending the
costs. In answer to questions raised regarding the deficit caused by construction of the Activa
Sportsplex, Mr. Chapman advised staff would provide information on the Sportsplex, including
naming rights.
SUPPLEMENTARY DEBT INFORMATION
Mr. Chapman provided further information regarding current and projected debt advising that it
is projected that the City’s debt will increase to $100M in 2013 before falling to less than $60M
in 2020. He explained that guidelines indicate that debt charges as a percentage of tax levy
should be between 5%-10% and it is projected that the City’s debt will exceed the 10%
threshold until 2020. He added that the debt per household will exceed the moderate threshold
(between $400-$1,000) for the years 2011, 2012 and 2013.
GENERAL EXPENSES
Councillor J. Gazzola requested information on the balances of provisional accounts.
Councillor D. Glenn-Graham asked for information on the Corporate Accessibility Fund. Mr.
Chapman advised that the fund is being put in place to deal with required works under the Built
Environment Standards that will be implemented as part of the Accessibility for Ontarians with
Disabilities Act (AODA). Councillor K. Galloway raised concerns that the amount of funding
may not be sufficient to meet the requirements of the Act.
CENTRE IN THE SQUARE
Mr. J. Grant, General Manager, was requested to provide more information on the latest
technical audit.
OFFICE OF THE CHIEF ADMINISTRATOR
In regard to the Communications & Customer Service budget, Councillor J. Gazzola requested
information on the savings realized by the City’s Print Shop when it converted to digital
copiers.
The meeting then recessed at 11:55 a.m. and reconvened at 1:35 p.m. with all members present.
FINANCE AND CORPORATE SERVICES
It was noted that a business case is to be developed in 2011 to set long term direction for the
tax / utility billing system, based on findings of an external review of the current CIS application
conducted in 2010.
Councillor Y. Fernandes questioned why the City is proposing to update to Microsoft Windows
7 instead of pursuing free software, such as Lunex. Mr. D. Murray advised that open source
software has been investigated numerous times over the past 5 years and while the concept of
free is true to a point, the challenge lies in obtaining appropriate support to ensure all systems
function properly and can be relied upon to meet the City’s needs. He noted that the vast
majority of the City’s software programs are written for Microsoft products and there would be
substantial costs involved to transfer to another platform. Councillor Fernandes requested a
comparison of costs between existing licences per unit and use of Lunex, with associated
support costs. Mr. Murray advised that he could provide costing based on existing practice;
however, he suggested that, without undertaking a full project comparison, it would be difficult
to quantify costing for use of another platform due to the numerous and varying systems
currently used. Mr. D. Chapman pointed out that a tender recommendation will come forward
in the spring and suggested that additional background information could be provided prior to
Council dealing with the tender.
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Issue Paper #30 - Payment Card Industry (PCI) Compliance
Mr. D. Chapman advised that the City is obligated to comply with Data Security Standards set
by the PCI Security Standards Council. The standards ensure all companies, including the City
of Kitchener, who process, store or transmit credit card information maintain a secure
environment. The City is classified as a Level 4 merchant, and as such, is subject to the least
stringent requirements. The City must meet the reporting requirements of its acquirer, Global
Payments, who is charged with enforcing compliance with PCI Data Security Standards. Mr.
Chapman advised that a deadline for reporting has not yet been set but is expected to be set
for 2011.
Staff agreed to provide additional information concerning a history of the volume of the City’s
credit card transactions and points of transactions; feasibility of permitting only debit card
payments; and partnering with other municipalities and/or associated agencies, such as the
Centre In The Square to mitigate costs associated with compliance. It was also pointed out
that under the current agreement for Kitchener Utilities, the City is not permitted to pass along
transaction fees to its customers. As such transaction fees would have to be borne by the
taxpayer, the cost of which cannot be justified; and therefore, credit card payments are not
accepted for Utility billing purposes.
COMMUNITY SERVICES
Councillor K. Galloway referred to the capital line item for a new arena in the south end in
2020, questioning if the estimated amount of $8M is sufficient. Ms. K. Kugler advised that
costing will be reviewed in more detail at start of the project and once defined, adjustments will
be made to the Capital Forecast.
Councillor J. Gazzola questioned the last time the ticket surcharge for Auditorium events was
reviewed. Ms. Kugler advised that this is reviewed annually as part of contract negotiations
with the Kitchener Rangers and other promoters.
It was noted that monies are set aside in 2012 for Phase II expansion of the Williamsburg
Cemetery which will see the remainder of lands in the cemetery developed to meet projected
demand for burial space. It was noted that not all municipalities participate in the burial
industry; however, municipalities are subject to legislation that requires them to assume care
and control of any privately owned cemeteries that have been abandoned. It was also noted
that Kitchener has chosen to operate its own cemeteries based on moral and sound fiscal
indicators that suggest it makes sense to do so.
Councillor B. Vrbanovic referred to capital allocations for AED units (defibrillators) and asked
that staff dialogue with representatives of the Kitchener Public Library and Centre In The
Square in regard to having AED units available at these locations.
Councillor K. Galloway questioned the impact of delaying construction of a Community Centre
in the south end to 2020, noting that the Neighbourhood Association currently operates out of
the Williamsburg Town Centre under a 5 year lease arrangement. Mr. M. Hildebrand advised
that it is likely staff will return to Council with a report recommending extension of the lease
arrangement. Concern was also raised regarding ability to combine a branch library with the
Community Centre in the south end given these projects are not aligned in the Forecast. Mr.
J. Willmer advised that all projects beyond 2011 are more of a guideline and if it is found to be
advantageous to partner these two projects then adjustments can be made later on in the
Forecast. Mr. D. Chapman added that staff have not taken the liberty to make adjustments to
the central library project and at this time, there is insufficient funds in the library portion of that
reserve to proceed with a branch library on the projected timeline. He suggested this is a
matter best left to the Library Board to consider and report back on.
Councillor Y. Fernandes questioned the feasibility of adjusting the timing forward to 2013-2014
for an addition to the Doon Pioneer Park Community Centre. Mr. D. Chapman advised that
projections in the Development Charge (DC) Reserve Fund must be kept in mind when
considering timing of projects, suggesting that it is unlikely having not met projections over the
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past 3 years that there would be sufficient funds available in that timeframe. He added that it
could be reviewed again as part of the next 5 year DC background study.
Councillor K. Galloway requested clarification as to the rationale for delaying construction of a
pool facility in the south end to beyond the current Capital Forecast. Mr. M. Hildebrand
advised that this stems from recommendations within the Leisure Facilities Master Plan, noting
that there is still capacity in the 3 existing indoor pools to accommodate programming.
In regard to Fire Services vehicle replacement plan, Fire Chief T. Beckett agreed to provide an
outline of the 20 year replacement plan. It was also agreed to provide additional information
concerning the rationale for transfer of operating funds for Personal Protection Equipment into
the Capital budget and a breakdown of 2010 maintenance expenditures. Councillor J. Gazzola
questioned the status of OPTICOM. Fire Chief Beckett advised that comes from the Region of
Waterloo EMS Master Plan and is a traffic light pre-emption system to enhance emergency
vehicle response times. Regional funding has been approved; however, an installation plan is
pending. Impact to Fire Services is only for replacement of its in-house vehicle system, the
cost of which is to be funded through Fire Service’s vehicle maintenance account.
INFRASTRUCTURE SERVICES
Ms. P. Houston addressed an earlier question regarding the Corporate Accessibility Fund,
advising that $100,000. is earmarked over the next 10 years as a general provision and until
governing legislation is completed, it remains unknown at this time if that amount will be
sufficient to meet requirements of compliance.
Councillor Y. Fernandes requested a comparison of costs regarding operation of the new CMF
versus the 3 existing facilities and timing of payback for the new facility. Ms. P. Houston
advised that a project status report is to come forward on February 28 which will provide a
comprehensive overview of construction work and efficiencies achieved to date. She stated
that it would be difficult to provide a true comparison until such time as the CMF is occupied
and staff has had an opportunity to see the facility in full operation. It was also noted that while
efficiencies are to be gained in combining to a central facility there is also opportunity to
explore options to take on additional work that previously could not be done under a
decentralized operation. Ms. P. Houston agreed to circulate a copy of the CMF Business Case
for purpose of background for new members of Council.
Issue Paper #50 - Facility Audits
Funding is requested to conduct comprehensive audits of all major building and infrastructure
components maintained by Facilities Management.
Ms. C. Fletcher responded to questions concerning the Herrington Report, which outlines
accessibility upgrade requirements to City facilities. She advised that the City has not come
close to completing the recommendations of the report and is setting its own priorities at this
time until the governing legislation on built environments is finished. She added that once the
requirements of the legislation are in place, the timing and priority of accessibility upgrades
may change.
Councillor D. Glenn-Graham questioned the impact of reducing Facilities Management
maintenance budgets. Ms. Fletcher pointed out that this budget was already reduced in 2010
by $50,000. per year across the 10 Year Capital Forecast and stated that further reductions
may jeopardize the City’s ability to meet pending legislated requirements. Mayor C. Zehr
added that reductions have been made in the past where considered sustainable; however,
removing a certain percentage in the current year does require that the same amount be taken
from across the full 10 years of the Capital Forecast. Mr. Chapman concurred, advising that in
order to effect a tax levy reduction, any reduction identified must be sustainable over the 10
year timeframe of the Forecast.
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Issue Paper #52 - GPS System Maintenance
Area municipalities, together with the County of Brant and City of Brantford, is investigating
potential to move GPS/AVL Salt Management in a new direction. A Request for Proposals
(RFP) has been issued to determine availability of new technologies and their associated
costs. A pilot project is planned in which a short list of companies will be selected to participate
in demonstrating their product over the winter season 2011-2012. A report will follow to each
municipal Council outlining a preferred direction, with costing to support moving forward with
implementation in 2012-2013. It was noted that as part of the winter maintenance contract with
the Region of Waterloo, the City is required to confirm all maintenance activities using AVL
records. The proposed capital budget provides $200,000. over a 2 year period, 2011-2012, for
purchase of a new GPS/AVL system.
The Committee then entered into discussions concerning the impact of the Emerald Ash Borer,
an invasive species that attacks Ash trees. 10% of the City’s canopy consists of ash trees
equating to approximately 5,000 trees subject to attack; the cost of which to replace is
approximately $5M.
Mr. D. Chapman agreed to provide an issue paper on the subject of the Emerald Ash Borer in
regard to what the proposed $175,000. in funding comprises and what government / agency
partnerships may potentially be entered into to deal with this issue.
In regard to synthetic turf, Mr. J. Witmer advised that $4.1M is proposed to be allocated over
the next 10 years for the development of 4 synthetic turf fields to meet the needs of user
groups. He explained that currently each natural turf field can only accommodate 450 hours of
use, whereas by utilizing synthetic turf, the season can be extended, with no restriction as to
the amount of use by an additional 1500 hours for each field. In answer to questions, Mr. G.
Hummel explained that natural turf requires extensive maintenance and the number of useable
hours is restricted in order to not damage the fields; whereas, synthetic turf requires very little
maintenance and can be used over a longer season. He added that the reduction in
maintenance could result in a reduction in the number of temporary and student staff required
each season.
Councillor Y. Fernandes raised concerns regarding the increase in user rates for the synthetic
turf and asked what the payback would be in light of the additional hours and increased rate.
The Committee was advised that the user groups have been made aware of the proposal and
support the direction. The payback period would be approximately 6.5 years for the 2 fields
being proposed in 2011. Mr. Hummel added that the proposed $75/hour rate is typical of rates
charged by other municipalities for use of synthetic turf fields. Councillor B. Vrbanovic pointed
out that it has been Council’s guiding principle that no young person wishing to play hockey or
figure skate would be denied due to lack of ice time and with the significant growth in minor
soccer, this principle should apply to playing fields.
Staff agreed to provide additional information concerning prioritization and funding of
community trails as it relates to the proposed South District Park, Major Park Development and
Community Trails budgets.
Councillor B. Vrbanovic requested staff to provide an issue paper regarding a backlog in
funding outdoor ice rinks and where additional dollars might be taken from in 2011 if a decision
was made to move forward in addressing the backlog.
Staff also agreed to provide a summary of the City’s investment in the Huron Natural Area,
together with an explanation of how the fund is planned to be managed over the 10 year
Forecast, where gaps occur and what options may be available to accelerate plans for the
natural area.
Utilities - Water and Gas
Councillor Y. Fernandes questioned the impact of reducing the Water Utility budget by 10%.
Ms. P. Houston advised that the Enterprise is funded entirely by user rates and therefore has
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no impact on the tax levy. She added that the Utilities are heavily regulated and the City must
ensure it meets legislated requirements for water and sewer infrastructure. Councillor
Fernandes suggested that if the amounts for Uncommitted Watermains and new tools was
removed it would come close to the 10%. Ms. Houston pointed out that this budget is only a
small portion of the City’s overall capital budget and when Engineering accounts are reviewed
the Committee would see the entire Accelerated Infrastructure Program for water, sewer and
roads infrastructure replacement.
Engineering
Mr. G. Murphy provided an overview of infrastructure capital programs and how they are
delivered. In response to remarks made earlier by Mr. Redgwell regarding the appropriate
location for work to be done at Victoria Park Lake, Mr. Murphy advised that an Environmental
Assessment (EA) was completed in 2008 and presented to Council in 2009. The EA
recommends dredging of the lake and construction of a 4 bay structure and pond upstream to
capture sediment. The work upstream is recognized; however, the main focus at this time is to
address more immediate concerns at the lake and he advised that the budget contains a
series of funding envelopes to cover remediation work over the next 4 years.
Councillor Y. Fernandes questioned the impact of reducing the Engineering budget by 10%.
Mr. G. Murphy advised that 10% equates to $4.5M and pointed out that as a result of
establishing the Storm Water Management enterprise, only a very small sliver of projects
remain funded from the tax levy in the amount of approximately $300,000. He suggested that
if a reduction is requested it could potentially come from proposed water and sewer rates
which is where funding for these projects comes from. Mr. Murphy pointed out, however, that a
detailed analysis was conducted of all projects and those identified are classified as the “worst
of the worst”. He stated that there are many priorities from an infrastructure perspective that
have to be addressed and if a reduction of 10% is made it will have a ripple effect over the full
10 years of the Forecast, adversely impacting the City’s ability to keep up with its Infrastructure
Renewal Program. Mr. D. Chapman cautioned that as a condition of receiving Federal Gas
Tax dollars, there has to be a net increase in investment in the City’s capital infrastructure
program and any scaling back of the capital program would risk loosing the Federal Gas Tax
dollars. He pointed out that the intent of the Federal program is that cities will not reduce their
investment in infrastructure at the same as receiving funding and the City must report annually
with a calculation to demonstrate increased investment in its capital program.
Councillor S. Davey inquired if there is a set percentage of growth required by the Federal
program and what the percentage of growth was in 2010. Mr. Chapman stated that the
condition of the Federal program requires an incremental increase in the City’s investment,
meaning that the City had to add new projects into the Capital Forecast rather than use the
money for existing projects. Mr. Chapman suggested that an issue paper be provided for
budget deliberations to further explain how the Federal program is administered and how it
stands now. Mayor C. Zehr added that the gas tax rebate program is the first step taken by
the Federal Government toward dealing with municipal infrastructure deficits at around $123B.
He stated that the City’s infrastructure deficit is significant and agreed that any reduction in the
City’s infrastructure program could have significant adverse implications.
Councillor J. Gazzola requested information regarding the Hall’s Lane reconstruction project.
Mr. Murphy advised that construction on this project is to start in 2011 and is to be phased in
over several years. He stated that this is a highly complex reconstruction project with work
taking place behind the buildings fronting King / Charles Streets and the Water Utility has
expressed concerns with a dead-end watermain in the Lane that must be replaced to provide
continuous service to the area.
Mr. G. Murphy agreed to provide Councillor Janecki with a list of streets to be resurfaced in
2011, including their current condition and location. Mr. Murphy also agreed to confirm
eligibility of bridge repairs under the Federal Gas Tax program and to provide additional
information on the work done in 2008 for the Hwy 7/8 Pedestrian Bridge.
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In regard to the Storm Water Management (SWM) Utility and the various capital projects listed
in the Forecast, Councillor K. Galloway asked if any surpluses realized in a year would be
returned back to the City or be used to reduce the SWM rates. Mr. G. Murphy explained that
surpluses would be treated the same as the other Utilities in that surplus funds would be
returned back to the reserve to be used for other approved utility projects. He pointed out that
the rates for 2011 have been set and the first billings will be sent out in one weeks time.
Councillor Z. Janecki requested a printed copy of the Victoria Park Lake Environmental
Assessment.
In answer to questions raised, Mr. Murphy explained that the SWM Monitoring fund is used for
the annual audit which provides the data necessary to identify projects under the Utility. The
Drainage Improvement Program is funds used to address small drainage problems throughout
the City as resources permit. The SWM Implementation Program is set up to collect funds from
developers that require some storm water management but do not have sufficient area for a
large scale pond. Fees are collected based on the size of the development, kept in a reserve
and used for larger scale projects such as an oil/grit separator. He added that this program has
been in place for at least 10 years and operates much like cash-in-lieu of park land fees under
the Planning Act. Councillor Y. Fernandes requested the current balance of these accounts.
The Committee then discussed Transportation initiatives and Councillor K. Galloway inquired
as to the status of traffic calming projects. Mr. J. McBride advised that 2-3 studies are
undertaken each year and there are approximately 50-60 streets on the pending list. He added
that a report on traffic calming projects will be presented to Council in the next month or two.
Councillor Galloway expressed concerns regarding the back log of traffic calming projects and
st
requested that staff report to the March 1 budget meeting on what resources would be
necessary to accomplish more in this regard.
RESERVES
Councillor J. Gazzola pointed out that the Reserve Schedule shows only the balances and
requested that the credit/debit amounts also be shown in order to provide more information.
Mr. Chapman advised that due to time constraints, staff could provide general information and
data in this regard.
Concerns were raised regarding the need for more time to discuss the proposed budgets and
additional issue papers, prior to final budget day scheduled for March 1, 2011. Mr. Chapman
th
advised that staff will review the forecasted reports for February 28 with the intent of clearing
at least half the day for further discussion on the budget.
ADJOURNMENT
2.
On motion, this meeting adjourned at 6:37 p.m.
J. Billett C. Goodeve R. Gosse
Committee Administrator Committee Administrator City Clerk