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HomeMy WebLinkAbout2011-11-17 SSPECIAL FINANCE AND CORPORATE SERVICES COMMITTEE Present: Councillor S. Davey -Vice-Chair Mayor C. Zehr and Councillors S. Davey, Y. Fernandes, K. Galloway, P. Singh, B. loannidis, Z. Janecki, B. Vrbanovic and F. Etherington 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 R. Regier, Executive Director, Economic Development R. Hagey, Interim Director of Financial Planning J. Witmer, Director of Operations S. Adams, Director, Community & Corporate Planning S. Turner, Director, By-law Enforcement M. Hildebrand, Director, Community Programs & Services C. Fletcher, Director of Facilities Management G. Murphy, Director of Engineering W. Malcolm, Director of Utilities A. Pinard, Director of Planning J. McBride, Director of Transportation Planning T. Beckett, Fire Chief D. Murray, Manager, Client Services B. Korah, Manager, Development Engineering K. Kugler, Manager, The AUD & Community Arenas G. Hummel, Manager, Park Planning, Development & Operations S. Allen, Manager, Engineering Design & Approvals G. McTaggart, Manager, Infrastructure Asset Planning D. Ritz, Supervisor, Design & Development S. White, Senior Financial Analyst A. Italiano, Senior Financial Analyst D. Gilchrist, Committee Administrator J. Billett, Committee Administrator The purpose of this special meeting was to discuss the proposed Capital Budget and 10 Year Capital Forecast 2012-2021. FCS-11-203 - 2012 CAPITAL FORECAST The Committee considered Finance and Corporate Services Department report FCS-11-203, dated October 25, 2011, and attached line-by-line listing of all projects in the Capital Forecast by Department /Division. The Committee also received this date supplemental information, including Issue Papers C13 (Boathouse Exterior & Aud Dehumidification), C14 (Debt Graphs Net of Hydro Debt) and C15 (Financial Condition per Capita). Mr. D. Chapman provided opening remarks, stating that there were 4 themes used in preparation of the Capital Budget: affordability, investment, challenge and process. What will be presented today is an affordable budget that is fully funded throughout the 10 years of the forecast and it is affordable for taxpayers. The forecast contains improvements related to investments in such areas as parks and trails and increases in investment in infrastructure in areas such as the backlog of bridges. Also, there are challenges to be dealt with over the life of the forecast including parks and forestry as well as the absence of reserves and a limited debt capacity. With respect to the process, Mr. Chapman advised that direction was taken from Council and the Corporate Leadership Team (CLT), public input was obtained and this capital budget and forecast is fully supported by the CLT. BUDGET OVERVIEW Mr. Hagey advised that information will be provided on the Capital Budget and 10 Year Capital Forecast today and there is ample time for input from Council members and a response from staff prior to final budget day on January 19, 2012. Mr. Hagey reviewed funding sources for the Capital Forecast: respecting the capital pool, he noted that there is 1 less year for Economic Development Investment Fund (EDIF) as compared to the 2011 Capital Forecast. Respecting Development Charges, Mr. Hagey SPECIAL FINANCE AND CORPORATE SERVICES COMMITTEE 1. FCS-11-203 - 2012 CAPITAL FORECAST ICONT'D advised that some development charge projects have been deferred and will have to be prioritized through the next Development Charge Study. The amount of donations has been reduced as these donations were from the province in respect of the new court house; further, "other" represents transfers from other sources for specific projects. Mr. Hagey advised that any additions in the 10 Year Capital Forecast or 2012 Capital Budget will require 1 of 3 things to happen: a reduction in another area of the budget; an increase in the amount of capital from current, which will affect current taxes; or, an increase in debt which will have an impact on future property taxes. Respecting the City's Capital Policy, Mr. Hagey advised that the impact on the taxpayer each year is to be no greater than the rate of inflation. The increase in debt charges is limited to the rate of assessment growth; so, the increase in debt charges combined with capital out of current is limited to the rate of assessment growth plus inflation. Mr. Chapman advised that for this purpose, inflation has been set at 3% and assessment growth at 2% for the life of the forecast. Both are applied so that growth is funded. In reviewing the Capital Pool Availability, questions were raised by the Committee about Capital Closeouts. Mr. Hagey advised that there were no capital closeouts last year but there have been in previous years. Councillor Gazzola directed staff to provide the figures for Capital Closeouts over the last 5 years and details on last year's Capital Closeouts. Mr. Hagey then referred to page CAP-63 in the agenda and noted that as of October 28, 2011, the capital surplus was $2.2M and of that, $1.1 M came from the Grand River Slope Stabilization Project. The remaining $1.1 M consists of a small amount from a number of other projects. In discussions concerning the overall deficit of $1.854M, Mr. Hagey advised that it will be paid from the closeout and that the area of greatest deficit is winter controls. Mr. Hagey next reviewed the Gas Capital Investment Reserve Fund. Through discussions Mr. Malcolm advised that the gas utility has experienced a better transportation benefit. He then explained that changes are taking place in the industry which will take a while to put in place and Kitchener Utility's rates will remain constant until at least next June. Mr. Hagey advised that the details of the gas utility operating budget will be presented in December. Mr. Chapman stated that staff will provide a history of gas profitability to this Committee in December when the operating budget will be discussed. In response to questions about reducing the gas rate, Mr. Chapman advised that the City has an approved policy regarding setting gas rates and a policy review should be undertaken first; however, gas rates were reduced last year and will probably be reduced again next year. The Hydro Capital Investment Reserve Fund was review and responding to a question on the reduction of interest on long term debt through the term of the forecast, Mr. Chapman advised that interest rates continue to fall. The Committee continued its review of Reserves with the Economic Development Investment Fund (EDIF). Mr. Hagey advised that 2012 is the 9t" year of this 10 year fund. He stated that the library and Centre Block will be financed through this fund. Further, the changes made by Council last year have been continued to the end of the fund. In response to a question about parking subsidies to Wilfrid Laurier University (WLU), Mr. Regier advised that the subsidy is tied to the current parking rate paid by students at the main WLU campus. He also advised that WLU is discussing this matter with its unions and once these discussions have taken place, staff will bring a report to Council, with options. He stated that our current agreement with WLU gives them 175 parking spaces but they only use 90. Further questions were raised about EDIF: the Economic Development Investment Strategy requires funds to prepare some City owned land for redevelopment; concerning the Brahm Street Parking, the funding will cover the cost of decommissioning the site and development of a surface parking lot. A question was raised as to property tax increases for the tannery and Kaufman Lofts and Mr. Chapman agreed to provide this information to the Committee. SPECIAL FINANCE AND CORPORATE SERVICES COMMITTEE 1. FCS-11-203 - 2012 CAPITAL FORECAST ICONT'D Mr. Regier was directed to provide information on the amount of private sector investment in downtown, in light of EDIF and information on property taxes for those developments which have been funded. In response to questions, Mr. Hagey advised that the costs of EDIF debt will still have to be paid after 2013, for 15 years after the last debt issue, and these costs will be shown in the operating budget. Mr. Hagey continued his review of the Capital Budget and Forecast with Development Charges, noting that originally there was a significant shortfall which was handled by deferring several projects to 2015. Those Development Charge projects will be finally determined once there is a new Development Charges By-law. In response to questions about earlier preparation of a new by-law, Mr. Willmer advised that circumstances indicate that it would be unwise to do so at this time. Mr. Chapman advised that in the future by-law we will lose funding for soft services. In response to questions, Mr. Hagey advised that the best time for Council members to present project priorities for the next development charges by-law would be early in 2013. Mr. Hagey presented the Development Charges (DC) for Engineering and Non-Engineering Reserves, indicating the projects were prioritized based on Strategic Planning goals, safety issues and the Kitchener Growth Management Plan (KGMP). He stated that the determination of how funding is allocated between Engineering (hard) and Non-Engineering (soft) services is based upon the DC Background Study. Clarification was requested regarding the projected decline of the `Credits to be Applied' item, as outlined on page CAP-24. Mr. Hagey advised that this relates to credits for existing frontend servicing agreements, with the projected decline correlating with the timeframe set out in the existing agreements. Councillor K. Galloway questioned if consideration has been given to having developers cover both hard and soft costs through frontend servicing agreements. Mr. Hagey advised that the City's frontend servicing agreement policy only pertains to hard /engineering related services. Mr. Chapman added that DC legislation sets out the range a municipality is permitted to charge for DC services. He noted that the City typically applies the maximum allowable charge for soft services. Councillor J. Gazzola questioned if it would be possible to delay certain items within the Capital Forecast; such as, the Block Line Road East project. Mr. J. Willmer advised that the completion of the Block Line Road East project is timed to alleviate traffic congestion related to the start of the Region of Waterloo's work at Homer Watson Boulevard and Ottawa Street. In response to further questions, Mr. G. McTaggart confirmed that the funding allocated for the Block Line Road East project does not include resurfacing the existing sections of that road. He added that staff are currently examining surface reconstruction as well as widening of the existing portion of Block Line Road. Councillor P. Singh requested that an issue paper be provided for final Budget Day outlining the costs related to resurfacing Block Line Road. Mr. McTaggart advised that work is still being done on the study examining the resurfacing and widening and staff anticipate bringing forward a report on this matter once that study has been completed. Councillor Singh asked if delaying the Block Line Road East project would help to expedite the proposed resurfacing. Mr. McTaggart indicated that the two projects are not connected, as the resurfacing and widening are not intended to be funded through the DC Reserves. In discussing the Development Charges for engineering projects, Mr. B. Korah advised that the Freeport Pumping Station was built in the 1960s and it has to be replaced in order to allow for future developments in the catchment area. He advised that a consultant has already been hired for this project. He stated that the biggest concern is that this pumping station is reaching capacity now and any overflow will go into the Grand River. SPECIAL FINANCE AND CORPORATE SERVICES COMMITTEE 1. FCS-11-203 - 2012 CAPITAL FORECAST ICONT'D Respecting the Block Line Road project, Mr. Korah advised that the environmental assessment has been completed. Staff is currently in discussions with CNR and CPR and will present a report in this regard to Council in March. This 2 year project will commence in April or May 2012. Respecting the Schneider Creek Project, Mr. S. Allen advised that the project will be done in 3 phases. He stated that there are currently problems with erosion and flooding and the environmental assessment is being undertaken at this time. Further, the capital budget for this project is shown as $1.61 M in 2012 and $2.7M in 2015. Concerning the capital allocation for Planning Studies, Mr. A. Pinard advised that all of the funds are not always spent in a year. Any funds remaining are carried forward to the following year so that in a year when a large cost is incurred, there are sufficient funds available. There were also questions about financing for the Kitchener Operations Facility (KOF) and Ms. Houston advised that even though the building is complete, the funding was spread out over several years, which was part of the business plan. Mr. Hagey noted that all of these projects are to be funded through Development Charges and they have no impact on the tax levy. The Committee then reviewed Development Charges for non-engineering projects and it was noted that the main projects in this category are the Central Branch Library, Centre Block parking and parks and trails. Councillor Galloway advised that her priority for the next Development Charges Study is: the South End Complex, being a community centre in 2015 followed by a library and pool, the South District Sportsfields and a twin pad arena. Mr. Chapman responded that if Council wishes, discussions on the next Development Charges Study and By-law can take place sooner than early 2013. In response to questions about capital expenditures on parks, Mr. G. Hummel advised that the allocation for major park development will pay for capital improvements to several parks and the funding for general parks is for new park development. Mr. Hummel noted that part of the cost for these parks will be paid from Development Charges and part from Capital from Current. Respecting funding for the library, Ms. S. Lewis, CEO, Kitchener Public Library, advised that funding has been spread out over 4 years and they have phased in the purchase of books and technology, as contained in the business plan. A discussion took place concerning funding for parks and trails; also of 2 significant parts missing from the Walter Bean trail and funding that may be available through the Grand River Conservation Authority. Mr. Hummel advised that the City is currently acquiring land for this purpose and is moving forward as the land is acquired. Concerning City funding for parks and trails, Mr. Hummel advised that a budget of $331,000 is proposed as Capital from Current in addition to the Development Charges funding. This meeting recessed at 11:30 a. m. and reconvened at 11:42 a.m. with the following members present: Mayor C. Zehr and Councillors S. Davey, J. Gazzola, B. loannidis, Z. Janecki, Y. Fernandes, K. Galloway, B. Vrbanovic, F. Etherington and P. Singh. The Committee next reviewed the 2012 Capital Budget and 10 Year Capital Forecast for the Kitchener Public Library and Centre in the Square. Reference was made to the Library's General Provision account and Ms. S. Lewis advised that this fund covers the cost of unexpected repairs and will be spent on the Forest Heights Library parking lot paving. To address some questions from the Committee, Mr. Chapman advised that there are no unnecessary funds in these projects. He stated that if there is an excess of funds in any account, it is closed and the money becomes a funding source for other capital projects. SPECIAL FINANCE AND CORPORATE SERVICES COMMITTEE 1. FCS-11-203 - 2012 CAPITAL FORECAST ICONT'D Staff continued with their presentation, dealing with the City's debt. It was noted that the graphs represent various aspects of the debt and do not include the Auditorium expansion; and, as directed by the Committee, Mr. Hagey stated that these graphs will be updated to include the expansion of the Auditorium and will be provided in the Budget Day package. As a result of a discussion on credit rating and comparative debt across the Region, Mayor Zehr advised that he will forward the Region's charts to all members of Council. Staff then reviewed Issue Papers C14 and C15, providing a scenario as to what the City's overall debt and per capita debt would be if the City should liquidate its note receivable from Kitchener Wilmot Hydro and net it against the City's debt. Staff stated that this scenario is completely theoretical and is simply to be used as an illustration. Mayor Zehr stated that he had requested this illustration and pointed out that the City is receiving more income than it is paying on the debentures. It was pointed out that, when looking at a comparative situation respecting debt, other municipalities do not necessarily have such an asset and our risk is significantly less. In addressing the City's Reserves, Mr. Hagey noted that they generally have low balances and staff will come forward with a comprehensive policy respecting Reserves in 2012. Following discussion of some of the reserves, Ms. Ladd advised that some of the reserves will be closed out and the funds will be placed in an Economic Development Reserve. She advised that Council considered the Economic Development Strategy and funds for this strategy will be required. Staff will present a report in this regard in the near future. Ms. Ladd stated that the city needs to continue an investment strategy and staff will investigate consolidating some of the existing funds into one Economic Development Reserve once EDIF ends. As a response to questions, Mr. Chapman advised that Council can look at the Reserves and give direction. He gave assurances that the funds will not be touched until Council makes a decision. Mr. Regier suggested conserving the existing resources and he will provide Council with a report on how to utilize them to cash flow some projects. Respecting the Gas Capital Reserve, Mr. Chapman advised that the objective benchmark is 10% to 15% of the operating revenue. The meeting then recessed at 12:53 p. m. and reconvened at 1:40 p. m. with all members present, except Councillors B. Vrbanovic and D. Glenn-Graham. Mr. R. Hagey circulated a chart representing Total Debt Cost, broken down by the 2010 principal, 2011 principal payment and 2011 interest payment for Enterprise, EDIF and tax based. It was noted that the 2011 interest payment for tax based equates to $853,560. Mr. Hagey provided details as to how the Capital Forecast information is structured and outlined major changes over the previous year as proposed in Department/Divisional capital budgets, outlined on pages 46 to 58 of report FIN-11-203, and referenced associated Issue Papers. GENERAL EXPENSES Councillor Y. Fernandes requested that 2011 revenues and expenditures for the Storm Water Management (SWM) Enterprise be provided in comparison to the general expenses attributed to the Enterprise. Mr. R. Hagey advised that these figures would be included in the Operating Budget package. OFFICE OF THE CHIEF ADMINISTRATOR Councillor P. Singh requested an explanation as to what the Safe and Healthy Advisory Committee funding is used for and Ms. C. Ladd agreed to provide an update on 2011 expenditures for the Advisory Committee. Councillor J. Gazzola questioned the feasibility of reducing funding in the Corporate Plan account. Ms. C. Ladd advised that there are existing encumbrances outstanding and in 2010- SPECIAL FINANCE AND CORPORATE SERVICES COMMITTEE NOVEMBER 17. 2011 - 148 - CITY OF KITCHENER 1. FCS-11-203 - 2012 CAPITAL FORECAST (CONT'D) 2011 expenses exceeded the budget allocation to address an Organizational Design Review which led to the recent organizational restructuring. She stated that this is the only account the organization has to address special programs/research in support of development of the City's Strategic Plan and given it is a modest amount would not recommend a reduction. Councillor Y. Fernandes questioned the feasibility of using Downtown Incentives Funding for other programming outside of the downtown, such as Community Centre improvements or helping smaller strip malls improve store fronts. Mr. R. Regier advised that a comprehensive review of all downtown incentives programming is to be undertaken in 2012 with a report to come forward with recommendations for change. Ms. Ladd added that a similar discussion held during the 2011 budget deliberations noted that analysis of investment in suburban areas shows a higher investment than that made in the downtown area, citing examples of the Leisure Facilities Master Plan and the Parks & Trails Master Plan. Councillor K. Galloway questioned the feasibility of using EDIF to fund downtown incentives. Mr. Regier advised that staff is recommending the existing program be preserved for the time being, adding that a report is to come forward regarding the new Economic Development Strategy for land development and funding allocations will be a decision of Council. Councillor J. Gazzola questioned the $100,000. allocation for Market acoustics upgrades, as outlined in Issue Paper C03. Mr. R. Regier advised that the Market has been challenged to increase revenues in the area of corporate training markets because of issues related to poor acoustics in the teaching kitchen /event space. He stated that the Market has lost significant business and revenues because of the ambient noise levels and the upgrades are designed to mitigate acoustics to improve the Market's ability to generate increased business and revenues. A motion by Councillor J. Gazzola was brought forward for consideration to remove the $100,000 allocation for Market acoustics upgrades from the Capital budget. Councillor K. Galloway expressed a preference to have additional information made available to show current revenue streams and projected increase in revenue with the proposed improvements. She questioned if Option 1 which equates to the $100,000 amount is what staff is actually recommending. Mr. Regier advised that a business case is to be presented during budget deliberations and based on an architectural analysis staff will be recommending Option 1. On motion by Councillor K. Galloway - itwas resolved: "That consideration to remove the $100,000 allocation for Market acoustics upgrades from the Capital budget be deferred to final budget day, pending receipt of additional information from staff concerning current revenue streams, projected increase in revenue with proposed improvements and presentation of the business case related to the upgrades." FINANCE AND CORPORATE SERVICES Mr. D. Chapman advised that funding in the Enhancements to the Tax/Utility System account is related to the Customer Information System (CIS) which is maintained in-house by a staff support team. Mr. Chapman stated that a recent review determined that there is still good value in the CIS system; however, as the originating developer no longer supports the software it has been determined that it is not sustainable as a long term solution. Mr. Chapman advised that a business case is being developed for presentation in 2012 as to options for replacement of the CIS system. Councillor J. Gazzola questioned the reason for annual funding for the Waterloo Region Education Public Network (WREPNET). Mr. D. Murray advised that the expenses in the account covers monthly fibre fees paid to Rogers to have fibre optic connections; and the maintenance of the hardware devices at those locations as provided through another vendor. Councillor Gazzola inquired if there are any other less expensive alternatives. Mr. Murray SPECIAL FINANCE AND CORPORATE SERVICES COMMITTEE 1. FCS-11-203 - 2012 CAPITAL FORECAST ICONT'D advised that for the level of service the City is getting the joint municipal partnership agreement is a sound alternative and has provided great value to the City. INFRASTRUCTURE SERVICES -FACILITIES MANAGEMENT Councillors Y. Fernandes and Z. Janecki raised concerns with the need to spend an allocation of $500,000 per year over the next 5 years for capital repairs to the Kitchener Operations Facility (KOF) given it is a new facility. Ms. C. Fletcher acknowledged that it is a new facility; however, she pointed out that over 450 employees have moved into the building and heavy equipment is also being moved about which results in normal wear and tear. She added that this is the City's largest facility, as well as the largest site at 45 acres, and the dollars allocated are intended to cover maintenance of the entire package. Mayor Zehr agreed, suggesting that a site this size cannot be run without major expenditures and cannot be compared to a household given the sophisticated equipment and building structures in use. COMMUNITY SERVICES In response to Mayor C. Zehr, Ms. K. Kugler advised that currently funding for the Centennial / Jack Couch Stadiums comes from the Kitchener Memorial Auditorium Complex (KMAC) Site Upgrading account. She noted that information is still being put together in regard to changes to occur at the site and a report will come forward in early 2012 to look at funding dependent on what option is chosen to proceed. Mayor Zehr suggested that some funding may be required in 2012 relative to potentially significant works, questioning if there is a figure in the budget as a placeholder. Ms. Kugler advised that at this time because the costs and a specific option is not defined there is no placeholder as yet for any kind of revitalization or demolition of the site. Mayor Zehr commented that he was thinking also in context of the parking issues related to the KMAC expansion plans and with the likelihood that something will be done in 2012 he questioned where the financing is to come from and how a placeholder for it could be established. Mr. D. Chapman advised that options are limited, as seen in staff's attempts to find funding for the KMAC dehumidification system and improvements to the Victoria Park Boathouse. Mr. Chapman suggested and it was agreed, that staff will consider the issues raised and report back on final budget day. At the request of Councillor K. Galloway, Mr. M. Hildebrand agreed to provide an update on the specifics of what was funded from the Community Development Infrastructure Program. Councillor K. Galloway referred to Issue Paper C07 (Forest Heights School /Pool /Library Parking Lot), questioning if the Parking Enterprise is to contribute funding toward the parking lot redesign. Mr. M. Hildebrand advised that no funding is being contributed from the Parking Enterprise, noting that this project is a joint partnership between the City of Kitchener and the Waterloo Region District School Board (Forest Heights Collegiate). Mr. J. McBride added that the Enterprise typically funds projects where it can recoup expenses through revenue generation; and in this case, revenue generation is not possible as parking is free at Forest Heights Collegiate. Councillor J. Gazzola suggested that allocating funds to the parking lot redesign is premature as true costing and actual improvements to be made are unknown. Mr. Hildebrand advised that redesign plans have not yet been received from the School Board but it was his understanding a complete renovation is intended, including such things as redirecting traffic flow and enhancing lighting to improve safety for students travelling through the parking lot. Mr. Hildebrand added that the project costs are yet to be determined and negotiations with the School Board will have to be undertaken to determine the extent of funding the City will contribute to the project. At the request of Councillor F. Etherington, Mr. Hildebrand agreed to report back on the length of time the Mill-Courtland Community Centre has been waiting for an addition. Councillor K. Galloway requested an Issue Paper on Development Charge projects, and in particular, the Mill-Courtland and Doon Pioneer Park Community Centres and South-end Community Centre, Library, Pool, Arena and District Park, so that they can be prioritized in context for the Development Charge By-law review. SPECIAL FINANCE AND CORPORATE SERVICES COMMITTEE 1. FCS-11-203 - 2012 CAPITAL FORECAST ICONT'D Councillor Y. Fernandes questioned why there is a spike in funding in 2013 for Fire -Major Equipment/Fleet. Mr. Hagey stated that Fire Services indicated that $15M would be needed for Major Equipment/Fleet over the next 10 years. He stated that rather than allocating $1.5M per year, the amounts were adjusted based on the funds that were identified as being available in a particular year. Questions were raised regarding the timing of the next major equipment purchase by Fire Services, and staff agreed to provide additional information on the vehicle replacement cycle. Councillor Gazzola questioned if the construction of any additional Fire Halls was included in the Forecast. Chief Beckett advised that the most recent Fire Hall was constructed in 2007 in South West Kitchener, adding that in accordance with the Station Relocation Study, the City's current Fire Hall complement is sufficient to meet demand. He commented that in the future it might only be necessary to provide for additional apparatus and staff, rather than adding a new Fire Hall. Mr. Willmer noted that if response times were to become problematic, then that could facilitate the need for a new Fire Hall. INFRASTRUCTURE SERVICES Councillor Fernandes asked to receive information on the type of equipment that was being replaced under the Fleet Replacement Equipment account. Mr. Chapman agreed to provide a list of vehicles included in the equipment review process. Mayor C. Zehr stated that when looking at equipment and its impact on levels of service for turf maintenance, if the level of service were to increase so too would the demand for equipment. He questioned if staff were recommending an adjustment to the level of service in the Operating Budget. Mr. J. Witmer advised that staff is recommending an increase in turf maintenance for 2012, which has not been specifically identified in the Capital Forecast. He suggested that if the proposed $2.7M allocation for replacement equipment was used elsewhere, then alternative arrangements would need to be made to fund the increase in turf maintenance. In regard to community trails and park development in general and as it relates to Issue Paper C11 (Park & Urban Forestry Strategic Plans), Mayor C. Zehr requested additional information as to a mechanism to deal with these issues, expressing the opinion that the City cannot continue to operate with deficit balances in these accounts. He noted that establishment of the Local Environmental Action Fund (LEAF) was intended to inspire projects of a transformational character and while many coming forward could be considered as such they have not leveraged the added dollars hoped for. He stated that in the next few years LEAF is to have an uncommitted balance of $3.5M and while he was not suggesting the approach be entirely abandoned he was of the opinion it was time to look at the criteria used for LEAF and determine if things such as cycling, the Parks Master Plan and trails that cannot be done because there are no resources, could benefit and be looked at as a whole. He asked that staff provide options as to what could be included that may also include other environmental related projects the City cannot get to because there is no standard financing. At the same time, and if it is determined LEAF funds could be used, then he suggested the City could look at the remaining $1 M in the Walter Biehn Grand River Conservation Foundation for those trails but noted that there is acquisition issues still to be dealt with. Mayor Zehr commented that it would be a great legacy for this Council to be able to say they completed the Walter Biehn Trail by 2014 but it will take some creativity in how to piece it together. Councillor K. Galloway requested that the Urban Forestry Strategy and the Huron Natural Area Education Centre be considered as part of staff's consideration to leverage LEAF funds and asked for an Issue Paper to be provided as to how the Huron Natural Area Education Centre might be included in the Capital Forecast with potential use of LEAF funding. Councillor Y. Fernandes requested that the Victoria Park Strategic Plan, McLennan Park and Huron Woods also be considered as part of staff's consideration to leverage LEAF funds. Councillor B. loannidis requested that LEAF funds also be considered as a means to advance action to protect the City's tree canopy against the Emerald Ash Borer. SPECIAL FINANCE AND CORPORATE SERVICES COMMITTEE FCS-11-203 - 2012 CAPITAL FORECAST (CONT'D) Mr. D. Chapman suggested and it was agreed, that a report on the review of LEAF criteria come forward to the January 9, 2012 Standing Committee meetings to allow full discussion and an opportunity to fine tune options prior to final budget day. Councillor P. Singh referred to the Victoria Park General Provision and asked that an Issue Paper be prepared to consider the feasibility of establishing a similar account for McLennan Park. The Committee considered Issue Paper C10 (Victoria Park Boathouse Site Development) and supplementary Issue Paper C13 (Boathouse Exterior and Aud Dehumidification). Mr. J. Witmer advised that staff had desired to have all Victoria Park exterior work included in the original tender; however, the price exceeded funding availability and therefore, there is no funding allocation for the boathouse improvements. Councillor F. Etherington requested clarification of plans for the boathouse interior space. Mr. Witmer advised that the proposed funding for boathouse improvements does not include any interior work at this time. Mr. R. Regier added that a review of interior renovations is currently being conducted by Facilities Management staff and a report will come forward with costing and options for funding sources at a later date. Mr. Witmer also noted that the proposed improvements to the front of the boathouse are to be done concurrent with the lake improvements project to effect a seamless exterior rehabilitation. Councillor Z. Janecki inquired if Tree Planting funds are used for random or specific tree replacements. Mr. J. Witmer advised that the account covers both tree replacement and new plantings for parks and open spaces. He added that if tree replacement is done systematically across the City it would then in essence become a program that would have to be funded from within their capital dollars in a planned way. Mr. Witmer cited an example of needed tree replacement in the South West - Activa Subdivision that requires approximately 58 trees to be replaced at an approximate cost of $20,000 and therefore, the account could be outstripped quickly given a budget of only $52,000. Councillor Y. Fernandes questioned if any thought has been given to assisting City staff in gaining a better understanding about pruning of trees and to help residents maintain trees so they do not die off. Mr. D. Ritz advised that the Park and Urban Forestry Strategy, currently not funded, provides for strategies to address tree pruning, with street tree structural pruning proposed as a new program. The Committee then reviewed Engineering -Regional and City road reconstruction capital projects. Following discussion, Councillor K. Galloway referred again to Issue Paper C11 (Park and Urban Forestry Strategic Plans) and in particular to the items listed in the Plan's Forecast for 2012-2021. She asked that staff investigate and report on a way to fund in 2013 at least 50- 75% of the projects identified (Cycling Master Plan, Walter Bean Trail, other environmentally related projects, Huron Natural Area Education Centre, General Trails Master Plan). On motion by Councillor P. Singh - itwas resolved: "That staff be directed to report and / or take appropriate action on the following matters arising from the November 17, 2012 special Finance and Corporate Services Committee meeting relative to the 2012 Capital Budget, as outlined in the chart below: TOPIC ACTION Capital Pool Provide figures on the total amount of close outs for the past 5 years and the details of this year's close outs. For Operating budget, provide a history of profit margins in Gas Utility and an explanation of projected gas reserve transfers. SPECIAL FINANCE AND CORPORATE SERVICES COMMITTEE FCS-11-203 - 2012 CAPITAL FORECAST (CONT'D) Economic Development Investment Fund Provide Council with a copy of the Wilfrid (EDIF) Laurier University parking subsidy agreement. Provide tax revenue increases as a result of the Tannery and the Kaufman Lofts. Update report from 2009 on performance of EDIF for Council and provide the City's rate of return for every $1 invested in EDIF. Development Charges Provide further details on planning studies account and forecast on what it will be used for going forward. Indicate if there are years when the City has spent more than the funding allocation in a particular year for big projects. Debt For final budget day, update the debt graphs to include the Auditorium expansion debt. Capital Budget Detailed Review Provide an update on what the Safe & Healthy -Chief Administrator's Office Community Advisory Committee budget funds (CAO) were used for in 2011. Market Upgrade -provide the current revenue stream and projected revenue stream. Provide details on how much business has been lost; options available for the upgrade to help with the sound issue; and business case for the ex ansion. Capital Budget Detailed Review For final budget day, report on 2012 costs for - Community Services Department work at Centennial/Jack Couch Stadiums. - Kitchener Memorial Auditorium Com lex KMAC and Arenas Capital Budget Detailed Review Provide information on the types of programs -Community Services Department funded out of the Community Development -Community Programs & Services Infrastructure Program for the last 10 years. Provide the length of time the Mill Courtland area has been waiting for the addition to the community centre. For final budget day, provide an Issue Paper to prioritize Doon Pioneer Park Community Centre, Mill Courtland Community Centre and South-End Community Centre -Pool, Arena, Park and Library. Provide Issue Paper on Development Charge priorities for South-end projects: Community Centre 2015 Library and Pool Sports field -South District Park Twin pad arena (Councillor Galloway) SPECIAL FINANCE AND CORPORATE SERVICES COMMITTEE FCS-11-203 - 2012 CAPITAL FORECAST (CONT'D) Capital Budget Detailed Review For final budget day, provide projection for - Community Services Department Fire Services -Major Equipment/Fleet. -Fire Services Capital Budget Detailed Review For final budget day, provide a list of what - Infrastructure Services Department replacement equipment is planned to be -Fleet purchased, based on equipment review. Capital Budget Detailed Review Provide amount projected to be spent on - Infrastructure Services Department Walter Bean Trail (including consulting and - Operations staffing costs which are not recoverable through the Grand River Conservation Foundation). For January 9, 2012 Finance & Corporate Services Committee, provide additional information regarding a mechanism to deal with continual deficits in parks and trails accounts. Staff to consider the feasibility of using LEAF funds and provide options. Staff to investigate and report on a way to fund at least 50-75% of projects identified in Issue Paper C11 -Park & Urban Forestry Strategic Plans, in 2013 (Cycling Master Plan, Walter Bean Trail, other environmentally related projects, Huron Natural Area Education Centre, General Trails Master Plan). For final budget day, provide Issue Paper on whether or not to establish a general provision for McLennan Park (similar to that for Victoria Park). ADJOURNMENT On motion, this meeting adjourned at 5:16 p. m. D. Gilchrist J. Billett Committee Administrator Committee Administrator