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HomeMy WebLinkAbout2011-02-15 SSPECIAL FINANCE AND CORPORATE SERVICES COMMITTEE FEBRUARY 15, 2011 CITY OF KITCHENER The Finance and Corporate Services Committee met this date commencing at 7:05 p.m. Present: Councillor S. Davey - Vice-Chair Mayor C. Zehr and Councillors D. Glenn-Graham, B. Ioannidis, Z. Janecki, Y. Fernandes, K. Galloway, B. Vrbanovic, F. Etherington and P. Singh. Staff: D. Chapman, Deputy CAO, Finance & Corporate Services P. Houston, Deputy CAO, Infrastructure Services J. Willmer, Deputy CAO, Community Services C. Smith, Director of Financial Planning G. Murphy, Director of Engineering R. Regier, Executive Director, Economic Development R. Gosse, Director, Legislated Services & City Clerk M. Hildebrand, Director, Community Programs & Services S. Adams, Director, Community & Corporate Planning D. Keelan, Manager, Aquatics & Athletics R. Hagey, Manager of Financial Planning R. Schirm, Supervisor, Crossing Guards J. Billett, Committee Administrator DRAFT 2011 BUDGET - PUBLIC CONSULTATION 1. Councillor S. Davey welcomed members of the public in attendance, advising that this special meeting was being held to receive comments and consultation from the public in respect to the draft 2011 Budget. He noted that Council has given direction to staff to identify options to reduce the projected 1.94% tax levy increase by a range of 1 to 5% and to reduce the projected water and sewer rate increases to 5%. These matters will be reviewed on th February 28; and final budget deliberations will be held on March 1, 2011. Mr. D. Chapman advised that the City has undertaken various consultative measures to inform and engage the public in budget considerations, including: a dedicated telephone line; e-mail address; web page devoted to the 2011 budget; a variety of publications; public meetings; and use of social media networking technologies. Copies of written responses received to date through the various methods of communication was circulated this date for the Committee’s information. The Committee was also in receipt of correspondence this date from the following: Monarch Corporation, dated February 15, 2011, requesting that the City recognize their development in Doon South as a priority area for development and move the status of their development up from a Priority ‘C’ project; and, Williamsburg Community Association, dated February 13, 2011, requesting reconsideration of the proposal to delay construction of a community centre in the south-end; area residents be engaged to determine the best fit of facilities in the community; and the Community Association be involved in discussions regarding current and future programming to be provided and facility needs required to ensure adequate space and activities are achieved. Dan Carli, Chair, Kitchener Public Library (KPL) Board, spoke in support of the proposed operating budget for KPL, advising that KPL’s budget was developed having regard to ratepayers and reflects the growing demand for library services in the community. He pointed out that the Library’s budget was reduced in 2010 resulting in an overall reduction in expenses of 3%, which cannot be sustained without a noticeable impact on library resources and programs. He stated that the Library is also subject to the Ontario Municipal Employee Retirement System (OMERS) employer and employee pension rate increases, the costs of which must be covered. Mr. Carli added that KPL is rated in citizen surveys as a top service provided by the municipality and their services and programs help to support the local economy. Franck Hivert, President, and Tim Hart, General Manager, Kitchener Soccer Club, spoke in support of funding for sportsfield synthetic turf conversion as it relates to 2 soccer fields at Woodside Park. Mr. Hivert commented that the Club has experienced steady growth over the FINANCE AND CORPORATE SERVICES COMMITTEE FEBRUARY 15, 2011 - 38 - CITY OF KITCHENER DRAFT 2011 BUDGET - PUBLIC CONSULTATION (CONT’D) 1. past 5 years, achieving a 31% increase in players with 5,000 registered to date. The number of players is expected to increase to 6,000 in 2011 and by 2015 the number is projected at 10,000. Mr. Hivert stated that the synthetic turf fields will provide a longer playing season and substantially increase operating hours which will serve to meet demands of a growing sport and enhance quality of life for citizens of the community. Mr. Hivert responded to questions, agreeing to provide additional information demonstrating the gap in number of fields versus growth demands. It was noted that a longer playing season is desirable and notwithstanding seasonal environments, players want more time to practice and train in their sport. Due to the sale of the former Budd Plant, two fields on the Budd Park lands are at risk as it is unknown if the new owner will request return of the lands for their use or continue to allow use of the lands as playing fields. Mr. Hivert advised that they are in the process of conducting a supply and demand analysis to determine future needs, the results of which would be shared with Council; however, at this time, the Club’s focus is on support for the two fields proposed for Woodside Park. He suggested that while synthetic turf fields require a larger investment, it was his understanding additional revenues to be accrued, together with operational savings will result in a break-even position for the City. He added that the club would be in better position to comment on the benefit of synthetic turf versus natural fields following the supply and demand analysis. Sarah Colvin, Expansion Chair, Doon Pioneer Park Community Association, advised that the Doon Pioneer Park Community Centre (DPPCC) was built in 1989 and plans for expansion were developed to commence in 2007. Since that time, the expansion project has been deferred 3 times and the 2011 capital budget shows it will be deferred for a fourth time to 2016. Ms. Colvin requested that a portion of the funds be re-allocated to 2014 for required pre- construction costs that will allow the project to commence in spring 2016. Anna Maste, Victoria Park Neighbourhood Association, advised that in 2010 the Neighbourhood Association, with support from many Kitchener residents, came before Council regarding the state of the Victoria Park Lake and the need for remediation work to take place in 2011. Ms. Maste further advised that although Council at that time agreed to move the project forward and committed to commencing work in 2011, there are rumours that this Council may consider deferring the project. Ms. Maste pointed out that Victoria Park is used by all citizens of the City and is not just a neighbourhood issue. She requested that Council proceed with the project in 2011. Councillor Z. Janecki asked the delegation if she could accept a 1 year deferral. Ms. Maste responded that she could but has concerns that it will be further deferred next year. Rick Haldenby, resident, advised that he lives across from Victoria Park and was speaking in support of the Victoria Park Lake project and the need for it to proceed as scheduled. Mr. Haldenby pointed out that the studies have been completed on this project, as well as other aspects of the storm water management system that includes the lake; and a commitment has been made by the previous Council to commence the lake remediation in 2011. He added that the park is considered a jewel of the City and with increased urbanization and intensification in housing it will become even more important in the future. Bob Sharpe, Victoria Park Working Group, stated that remediation of the park lake is a pressing concern and it is important to the City and citizens needs to provide adequate funding to support this necessary project. He noted that there is continued public support to retain this project as a top priority and it is clear from the costs associated with the Storm Water (SWM) Utility budget, averaging $13M over the next 10 years, that there is serious need to repair storm water infrastructure and it cannot be delayed. He suggested that while costs to remediate the park lake are high, delaying will only serve to increase costs more. He expressed the opinion that sustainable funds are required, which can be provided under the SWM Utility and that these are necessary steps in the right direction so as not to lose momentum for this project. Councillor D. Glen-Graham questioned whether or not the funds provided under the SWM Utility are sufficient to remediate the park lake. Mr. Sharpe stated that the SWM Utility is to provide an ongoing source of funding to maintain the City’s infrastructure and within the budget, prioritizes key projects. He suggested that VictoriaPark Lake should be the first FINANCE AND CORPORATE SERVICES COMMITTEE FEBRUARY 15, 2011 - 39 - CITY OF KITCHENER DRAFT 2011 BUDGET - PUBLIC CONSULTATION (CONT’D) 1. project to go forward and from there, work should progress beyond its boundary to adjoining tributaries, both upstream and downstream of the lake. He added that the lake is the single biggest feature of the City’s infrastructure known to the community and expressed the importance of the City in showing commitment to its remediation and that he hoped further work on adjoining tributaries would then follow. Rych Mills, Chair, Victoria Park Historical Committee, advised that visitors from outside the City who attend a small historical gallery dedicated to the park, most often question when the City will undertake to clean up the lake. He raised concerns of the lake’s ability to handle run- off from a major storm event and potential danger to the nearby Schneider Haus, a National Historic site, if flooding occurs. He pointed out that substantial dollars have been spent to beautify the park entrance, yet the lake remains unsightly and asked that the SWM Utility program be maintained as it lays the foundation for the remediation work to begin. Sky Dasey asked that the Committee view the SWM Utility in context of the overall waterway system, as remediation of Victoria Park Lake, while the public’s focus, is not the only reason for the change in tax structure. She noted that the lake remediation having been deferred for some time, has taken a long time to achieve priority standing and further delay will only serve to delay the inevitable. She commented that maintaining livable cities costs money and in cities that are not growing one of the impacts is lower equity in homes. She raised concerns that the thousands of dollars spent on the Victoria Park Lake Environmental Assessment (EA) would be invalidated by a decision to reduce the SWM Utility program and suggested that it is each Councillor’s responsibility to effectively communicate and bring understanding to their constituents as to why the expenditure is necessary and the benefits to be accrued that will result in a more liveable city. Gada, K-W Reception Centre, advised that the Centre is a temporary home for government assisted refugees, where they are provided with orientation to help them to better adjust to living in their new environment. The Centre is adjacent to Victoria Park in full view of the lake and those staying at the Centre often have a desire to get close to the lake in summer months; however, he feels obligated to discourage them from doing so given the condition of the lake at that time of year. He asked that the project not be further delayed and that consideration also be given to issues of safety in and around the park. Gada further advised that the park is a reasonable place where new comers can go to meet and socialize with one another. Ian McLean, President, Greater K-W Chamber of Commerce, requested the City’s continued support for the Family Physician Recruitment program operated by the Chamber. Mr. McLean explained that the program was started in 1998 to recruit and retain family doctors in the Region due to a shortage of doctors. Since that time 135 doctors have been recruited and the number of citizens without a family doctor has been reduced from approximately 40,000 to 20,000. Mr. McLean advised funding has come from various sources including an annual contribution of $10,000. each from the Cities of Kitchener and Waterloo. Mr. McLean requested that the City’s contribution continue in order to maintain the program. In answer to questions, Mr. McLean advised that the City of Waterloo has approved its contribution for 2011. He pointed out that although the program has been successful it must continue as the Region grows and as a means of attracting business and residents. Dr. Ashok Sharma, Joint Chief of Staff, Grand River / St. Mary’s Hospitals, advised that the hospitals have operated a Specialists Recruitment program to attract doctors specializing in various fields to work at the hospitals. Dr. Sharma further advised that over the past 5 years, 88 specialists have been recruited; however, the program must continue to fill vacancies and as the Region grows so will the demand for more specialists. He also pointed out that 40% of all specialists working in the cities are over 50 years of age and therefore, the need to continue with the program is even greater. Dr. Sharma requested that Council continue supporting the program in the amount of $10,000. / annum. Mayor C. Zehr pointed out that the financial contribution from the City has been paid directly to the hospital and requested more information on the program’s funding, such as what has been received and from what sources and the types of expenditures. Dr. Sharma stated that he would have the information provided to Council. FINANCE AND CORPORATE SERVICES COMMITTEE FEBRUARY 15, 2011 - 40 - CITY OF KITCHENER DRAFT 2011 BUDGET - PUBLIC CONSULTATION (CONT’D) 1. Roger Farwell, Creative Enterprise Enabling Organization, attended to support the proposed annual contribution of $225,000 (approximating $1 per capita) to the Arts and Culture Sustainability Fund (ACSF), beginning in 2011. He provided a brief history of the Prosperity Council, established to create an environment to support the building of creative enterprises to enhance quality of life and to be instrumental in competing globally to attract and retain high calibre talent to the Region. He stated that sustained funding is needed for the creative enterprise agenda which is all about creating jobs that will attract talent, who will not only want to work here but also live here; and thereby, help to support local economies. Councillor Y. Fernandes questioned the impact of not receiving funding in 2011. Mr. Farwell advised that the organization’s ability to complete its work would be impeded if funding is not received and pointed out that the City of Waterloo has already approved its share of funding. Councillor B. Vrbanovic referred to concerns raised in the community that the organization as established creates a layer of over sight for community arts and culture groups; and is competing to obtain dollars that might otherwise go to grassroots organizations. Mr. Farwell advised that the intent is not to diminish or take away existing funding to grassroots organizations but rather to grow the “pie” through establishing a sustained funding and using that to leverage additional funding sources from other levels of government. Mr. Farwell was requested to provide a business plan for review and the estimated salary of the CEO to be hired in early 2011. Mr. Farwell advised that he would provide a copy of a pre-CEO Strategic Plan and a potential salary range, noting that additional work is required to complete a post- CEO Strategic Plan and a specified salary is not yet defined pending hiring negotiations. Councillor P. Singh questioned the feasibility of relying more on private sector investment, with a smaller contribution from the City. Mr. Farwell advised that he understands the challenges of setting priorities and meeting them, pointing out that the investments requested are to position the enabling organization to prepare and prioritize the arts and culture sector so that they obtain what is needed in assets to achieve the desired goals of this initiative. Don Bourgeois, Chair, Arts and Culture Advisory Committee, advised that at the Advisory Committee’s last meeting a motion was passed unanimously to support the staff recommendation for annualization of the ACSF in the operating budget beginning in 2011. He advocated that this initiative is important to creating a vibrant and desirable community in which to work and live. Alison Burkett, Gallery on the Grand, advised that as a local business owner and taxpayer she was in favour of the City continuing its financial support for the ACSF. Ms. Burkett pointed out that in order to attract new businesses and residents to the Region, the City must be an attractive place to live with a variety of cultural amenities. Judith Stephens-Wells, President, K-W Art Gallery, attended in favour of continued support of the ACSF. Ms. Stephens-Wells advised that the K-W Art Gallery provides facilities for artists, instructional classes for students and a place for citizens to view local art, all of which contribute to a healthy community. Ron Craigen, Chair, K-W Symphony Board of Directors, advised that the Symphony is well known beyond the borders of the Region, attracting visitors to the City and creating a rich arts environment. Mr. Craigen extended his appreciation for the continued support from the City and encouraged Council to continue supporting the arts community and in particular the ACSF. Ian Whitman, Musician, K-W Symphony, provided information on the work that members of the Symphony carry out within the community and the need to continue building a strong arts sector in order to build a strong overall community. David Strucke, The Museum, supported the $1 per capita funding for arts and culture, commenting on the importance of supporting an initiative which seeks to attract people of talent to not only work here, but live here. He added that the initiative has potential to be a driving force in economic value, citing examples of recent entertainment venues featuring high calibre talent, which has drawn persons from outside our boundary into the City. Murray Gamble, resident, commented that the arts and culture sector while slowly recovering from economic downturn, remains somewhat fragile and stable funding is essential to keep FINANCE AND CORPORATE SERVICES COMMITTEE FEBRUARY 15, 2011 - 41 - CITY OF KITCHENER DRAFT 2011 BUDGET - PUBLIC CONSULTATION (CONT’D) 1. their doors open. He expressed the opinion support of the creative sector is important to the community as it plays an integral role in revitalization and contributes to economic prosperity. Mr. Gamble added that while consistent funding is needed it should not all be sourced from governments, acknowledging that businesses and the private sector also need to partner in this initiative. Jennifer Gough, artist, commented that the demonstration of support to the arts in this community is inspiring and the arts community is excited and passionate about creating a vibrant, stimulating place to live and work. She stated that the proposed funding will provide opportunities to allow artists to work toward becoming self-sustaining and prosperous; adding that investing in their future not only contributes to their financial success but to the City’s as well, by generating economic value and helping to solidify the relationship between businesses and the arts community. Ramy Nassar, TEDx Waterloo, advised that TEDx Waterloo will be held March 2011 and will be the largest TEDx event in the world with over 1,000 participants. Mr. Nassar explained that TEDx events are held world-wide to bring arts, technical and cultural aspects of a community together in a creative event to share ideas. He added that each TEDx event is planned and co-ordinated on a community by community basis. Mr. Nasser suggested that continued support for the ACSF allows such events to take place and in turn, the events provide an opportunity to showcase the City. Tim Kenyon, Chair, Cycling Advisory Committee, advised that a Cycling Planning Study was undertaken for the City in 1998 yet very little was done with it, resulting in a loss of opportunity. In 2010 a new Cycling Master Plan was completed, taking many of the ideas of the previous study and recommending the establishment of a Cycling Co-ordinator that would work with City departments and other government agencies to implement the plan. Mr. Kenyon suggested that consideration be given to establishing this position as part of the 2011 budget which should represent half of a full time position with the City. Jason Morris, resident, questioned how much more citizens can give to the City to help support programs and services. He stated that over the past 3 years he has experienced a 13% increase in property taxes and projected that he will pay up to an additional $300. more in 2011 under the proposed budget. He stated that these increases take away discretionary spending and continued spending by the City on non-essential items is non-sustainable. He questioned the value he receives in return for taxes paid and noted that he is considering moving out of the City. Specifically, he suggested that a move to Guelph could lessen his property tax payments by up to $2,000. He raised concerns with the figure of $225,000 applied to the cost of an average household in demonstrating the base levy impact per household; suggesting that the figure is not reflective of current market values. He asked that in communicating tax increases to the community the City use a standardized methodology, suggesting that the dollar value be shown for every $100,000 assessed on a property; and that taxes remain static in 2011. Mr. Morris responded to questions, suggesting that while there are many worthy causes that the City is asked to support, there is only so many dollars one can afford to give. He cited the arts community as an example of non-essential spending, noting they have already received supplementary funding and continue to ask for more. He acknowledged the value of the arts but disagreed that they should be supplemented year after year, suggesting those in the private sector with vested interest should support the arts with their own investment dollars. He added that he is also subject to significant increases in his property assessment which equates to a double impact in the amount of taxes he will have to pay. Mayor C. Zehr clarified that the figure referred to which is used for the average household is the average of assessed value of homes in Kitchener, as provided by the Municipal Property Assessment Corporation. He also pointed out that a 2010 survey showed that taxes paid on a similar sized home in Guelph is only about $50 less. Mr. Morris acknowledged that he was aware of the survey but in doing his own research through MLS listings had found most to be at least $1,000 less. Councillor K. Galloway questioned Mr. Morris if part of the reasoning for not feeling that he was getting value for his tax dollars was the lack of amenities in his area, such as a Community Centre. Mr. Morris suggested the area is not under-serviced, citing FINANCE AND CORPORATE SERVICES COMMITTEE FEBRUARY 15, 2011 - 42 - CITY OF KITCHENER DRAFT 2011 BUDGET - PUBLIC CONSULTATION (CONT’D) 1. examples of the Doon Pioneer Park Community Centre and the Homer Watson House / Doon Pioneer Park and Museum. He suggested rather that it is a matter of not being able to pay more whether services are added or not. Gordon Nicholls, resident, advised that he was a member of the Friends of Hidden Valley who had presented the previous Council with a recommendation to add 552 hectares of new parkland which was also a recommendation in the Parks Master Plan; yet, he could not find in the capital budget where resources have been allocated. He suggested that the budget should be organized in such a way to make it clear to citizens and Council the allocation of funds based on interests of the public, such as parks. Mr. Nicholls submitted a paper containing 10 questions that he believes need to be answered to clarify the budget for the public and for Council. He also advised that he has reviewed the budget extensively and in his opinion, for a typical 1,200 sq. ft. house the increase in costs will be 15.6%, not the proposed 1.94%. He added that there appears to be inconsistencies in the budget when dealing with percentage increases, particularly taking issue with how profits from the gas, water and sewer enterprises are applied to an average household. He suggested that a consistent approach in using figures is required to provide a clearer picture of the budget and to make it easier to understand. In addition, Mr. Nicholls suggested historical data would also be helpful. In conclusion, Mr. Nicholls requested that his submitted questions be answered and that more information be provided to the public and Council regarding the true proposed increase for a typical house with respect to the proposed budget. In answer to questions, Mr. Nicholls suggested that the SWM Utility should not continue as a utility but should be rolled back into the tax base. Members of the Committee pointed out that if SWM costs were rolled back into the tax base, residential property owners would pay approximately 18% higher taxes due to the fact the City would not be able to allocate appropriate costs for SWM between residential and industrial properties. The SWM utility allows the City to charge the appropriate higher rate to industrial/commercial properties reducing the impact on residential properties. Rebecca Short, business owner, advised that she owns and operates small businesses geared toward the knowledge and creative sectors; and is also branching into technology with a new software component. She stated that she moved into the downtown having seen the new investment and dynamic community building taking place, and supports the City’s vision to make it an attractive place to do business. She advised that she has made a considerable investment in downtown Kitchener and stressed the importance from a business point of view to continue the vision and forward thinking of the City to ensure it remains attractive and economically viable. She raised concerns with the current climate to cut tax dollars and services, and appealed to the Committee to consider the long term negative effects to businesses and to show leadership in planning a long term strategic approach to support job creation. Ms. Short responded to questions, commenting that the drive toward budget cuts is in her opinion short term thinking and given projected growth in the Region she was concerned that unless the City supports initiatives to keep talent here the momentum will pass and it will be very difficult to bring it back to the downtown. Theron Kramer, Compass Kitchener, pointed out that the City has developed a strategic plan, suggesting that the budget should be considered in the context of that plan and its vision. He stated that the vision is a community vision that came together following substantial public consultations and states that ‘together we will build an innovative, caring and vibrant Kitchener with safe and thriving neighbourhoods’. He added that the plan holds the City accountable to provide the best future and that best does not mean the cheapest. He encouraged the Committee to continue the work already underway, together with new initiatives and measure its progress. Mr. Kramer was of the opinion a 1.94% tax levy increase is not unreasonable and while the SWM Utility has a cost, he considers it an emergency fee that is necessary to provide needed funding to address a substantial backlog in aging infrastructure. Harald Drewitz, resident, commented that whether the SWM Utility is part of the tax base or not is irrelevant, suggesting the point is that a change in accounting has been made and as with any Corporationwhen a change is made there must be full disclosure and it must be FINANCE AND CORPORATE SERVICES COMMITTEE FEBRUARY 15, 2011 - 43 - CITY OF KITCHENER DRAFT 2011 BUDGET - PUBLIC CONSULTATION (CONT’D) 1. accurate. He agreed with the comments of Mr. Nicholls that the percentage increase is really 15% and suggested that the projected levy increase is skewed by including gas in the calculation. He expressed the opinion that any increase should be less than, or no more than, the CPI rate of 2%. Mr. D. Chapman agreed to provide an issue paper outlining the City’s response to the questions raised by Mr. Nicholls. Councillor S. Davey thanked members of the public for their interest in the budget process and advised that the comments received would be taken into consideration as further deliberation th of the budget takes place on February 28, and finally on March 1, 2011. ADJOURNMENT 2. On motion, this meeting adjourned at 11:45 p.m. J. Billett R. Gosse Committee Administrator City Clerk