HomeMy WebLinkAboutFCS-11-217 - 2012 Operating Budget
REPORT TO:
Finance and Corporate Services Committee
DATE OF MEETING: December 5, 2011
www.kitchenerca
SUBMITTED BY: Dan Chapman, Deputy CAO
PREPARED BY: Ryan Hagey, Manager/Interim Director of Financial Planning
WARD(S) INVOLVED: All
DATE OF REPORT: November 16, 2011
REPORT NO.: FCS-11-217
SUBJECT: 2012 OPERATING BUDGET
RECOMMENDATION:
For information only.
BACKGROUND:
The Finance and Corporate Services Committee will review the 2012 Operating Budget on
December 5, 2011, with final budget deliberations scheduled for Jan 19, 2012. The attached
documents provide budget details.
REPORT:
Staff are providing the following operating budget information to Committee for review and
discussion:
• PowerPoint presentation
• Issue Papers
• Departmental Business Plans
• Potential Reduction list
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Foundation: Efficient and Effective Government
Goal: Financial Management
Strategic Direction: Strive for competitive, rational and affordable taxation levels
FINANCIAL IMPLICATIONS:
Financial implications are provided in the attached information.
COMMUNITY ENGAGEMENT:
Budget information is available on the City of Kitchener website (kitchener.ca/2012budget).
Feedback is welcomed using the following methods:
• Public meeting planned for January 9, 2012 in the Council Chambers
S~a~`Re~p~rt
Finance and Corporate Services Department
OP - 1
S~r~ffRe~p~r~
I~TC~>~nT~~ Finance and Corporate Serivr`ces Department www.kitchenerca
• Online comment form at kitchener.ca/2012budget
• Telephone 519-741-2602
• Through responses to upcoming Facebook and Twitter postings
• Regular mail at: 2012 Budget, c/o Corporate Communications, Kitchener City Hall, PO
Box 1118, 200 King St. W. 2nd Floor, Kitchener, ON N2G 4G7
• Hard copies of the budget available by calling 519-741-2602 and leaving a message with
mailing address.
ACKNOWLEDGED BY: Dan Chapman, Deputy CAO (Finance and Corporate Services)
OP - 2
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Issue Parser (IP) Index
IP # Description
01 Budget Sustainability Adjustments
02 Fringe Benefit Changes
03 Growth Items
Unfunded Items
04 Gapping
05 Tax Stabilization Reserve Fund (TSRF)
06 Hydro Costs: Street Lighting and Facilities
07 Parking Fine Revenue
08 Leisure Access -Service Overview
09 New Eco-Event
Additions to Core Compliment
10 Site Plan Inspector
11 Parking Manager
Enterprises
12 Parking Enterprise Projection
13 Gas Works Utility Analysis
O P - 64
CITY OF KITCHENER
2012 BUDGET ISSUE PAPER
ISSUE: 01 -Budget Sustainability Adjustments
FUND: Operating
DEPARTMENT: All
PREPARER: Ryan Hagey, Manager/Interim Director of Financial Planning
BACKGROUND:
A sustainable budget is key to the financial health of a municipality as it will help avoid deficits
and ensure that the municipality has the funding it needs to deliver all of its programs/services.
RATIONALE /ANALYSIS:
There are five key budget sustainability adjustments that have been included in the 2012 budget
submission and are detailed below.
1) Phase out of reliance on Tax Stabilization Reserve Fund (TSRF)
The TSRF is used to fund any year end operating deficits and is the recipient of any year end
operating surpluses. It has historically been used as a budgeted funding source to reduce the
need for tax rate increases, but since it does not have a sustainable funding source, the balance
in the TSRF has been decreasing over a number of years. The 2012 operating budget includes
a revenue transfer from the TSRF of $455,000 (a decrease of $295,000 from 2011) which will
exhaust the balance of the TSRF.
2) Phase out of increased dividend from Parking enterprise
The Parking enterprise was created during the 2011 budget process. The sustainable dividend
level from Parking to the tax base proposed during the budget process was $1.75M. During
2011 budget deliberations, Council chose to increase the dividend from Parking to the tax base
by an additional $563,000. This additional dividend level cannot be accommodated by the
Parking enterprise and is being phased out over a two year time frame. The 2012 impact on the
tax base is $337,000.
3) Funding to operate outdoor skating rinks
During 2011 budget deliberations, Council chose to add four more outdoor rinks in the City. For
2011, no operating budget was provided for these rinks as they would only be in operation for a
short time frame at the end of the year. $15,000 has been included in the budget to operate
these rinks in 2012.
4) Increased funding for Winter Control
Winter Control costs are difficult to predict as weather conditions can be quite volatile and are
not consistent from one year to the next. In order to address an ongoing cause of budget
variance, the Winter Control budget has been increased by $400,000.
5) Increased dividend from Gas utility
In order to offset some of the costs mentioned above, the dividend from the Gas utility to the tax
base has been increased by $300,000.
OP - 65
FINANCIAL IMPLICATIONS:
Phase out of reliance on Tax Stabilization Reserve Fund $295,000
Phase out of increased dividend from Parking enterprise $337,000
Funding to operate outdoor skating rinks $15,000
Increased funding for Winter Control $400,000
Increased dividend from Gas utility -$300,000
Total Budget Sustainability Adjustments $747,000
The budget sustainability adjustments outlined above have been included in the 2012 budget
submission.
RECOMMENDATION:
For information only.
OP - 66
CITY OF KITCHENER
2012 BUDGET ISSUE PAPER
ISSUE: 02 -Fringe Benefit Changes
FUND: Operating
DEPARTMENT: All
PREPARER: Ryan Hagey, Manager/Interim Director of Financial Planning
BACKGROUND:
Fringe benefits are the City's costs associated with providing various benefits to employees.
Some of these costs are statutory and based on prescribed rates (e.g. Pension Contributions, EI
and CPP) while other costs are based on collective agreements (e.g. medical and dental
benefits). Fringe benefit costs are budgeted by applying a percentage (called the fringe rate)
against salaries and wage budgets.
RATIONALE /ANALYSIS:
There are two significant adjustments to the City's fringe costs in 2012. The first is an increase
in the Ontario Municipal Employee Retirement System COMERS) pension rate. The second is a
decrease in costs to administer the City's benefit program.
In 2010, OMERS announced that employer and employee pension rate increases will be
required in each of 2011, 2012, and 2013 to address an unfunded liability within the pension
fund. This is anon-negotiable impact to the City which will increase fringe rates by 1%. This
equates to $900,000 in the 2012 budget submission.
In July 2011, the City changed benefit providers as a result of a request for proposals process
finalized earlier in the year. This change also resulted in a cost savings to the City. A $180,000
reduction to benefit administration cost was included in the final 2011 budget. Additional
savings of $215,000 has been included in the 2012 budget submission.
FINANCIAL IMPLICATIONS:
OMERS increase $900,000
Benefit administration cost reduction -$215,000
Total Increase to Benefits $685,000
Funding for the changes to fringe benefits as outlined above has been included in the 2012
budget submission.
RECOMMENDATION:
For information only.
OP - 67
CITY OF KITCHENER
2012 BUDGET ISSUE PAPER
ISSUE: 03 -Growth Items
FUND: Operating
DEPARTMENT: Finance & Corporate Services
PREPARER: Ryan Hagey, Manager/Interim Director of Financial Planning
BACKGROUND:
Each year the City's assessment base grows, which results in additional tax revenue. This
revenue is used to fund new facilities, capital projects, and/or service growth.
RATIONALE /ANALYSIS:
New Facilities
During 2011 budget deliberations, growth related funding for Kingsdale Community Centre,
Bridgeport Community Centre, and McLennan Park was provided to operate those facilities for a
partial year. These facilities will be in operation for a full year in 2012, and require an additional
$334,000 to fund the balance of their operating budget.
Capital Projects
In accordance with the capital investment philosophy, the City's contribution to capital has
increased so that the overall impact to the taxpayer does not exceed the rate of assessment
growth and inflation. This amounts to $97,000 in 2012.
Service Growth
The Operations budget has been increased by $326,000 to help that division address increased
funding requirements for turf maintenance, trail maintenance and forestry. Details regarding the
budget allocation and work to be completed is provided below.
1) Turf Maintenance ($180,000)
Operations will need to add two turf trim crews. Each crew consists of two temporary labourers,
truck/trailer and trimmers/mowers to cut grass as part of their scheduled route.
2) Trail Maintenance ($130,000)
Operations will need to add two temporary labourers and a truck to assist with the maintenance
of trails throughout the city. In their daily operation, they will need to regrade trails, add material
for grooming, trim overhanging branches to our city wide trail system.
3) Forestry ($16,000)
As the City accepts parcels of woodlots through the development process, Forestry becomes
responsible to maintain and make safe these parcels of land for our residents. Typically it costs
approximately $2,000 per acre for the maintenance in these woodlots. In 2011, the City of
Kitchener has accepted eight acres of woodlot that will need budget allocation for maintenance.
The City uses Active Network (formerly CLASS) for program registrations, facility booking and
point of sale transactions. It is also used by members of the public for on-line applications. An
additional $18,000 has been added to the Active Network budget to fund increased annual costs
as a result of more users, and more frequent software upgrading.
The credit card service fees budget for the City has been increased by $23,000 to cover the
rising costs associated with increasing frequency of credit card usage in registering for
programs and services provided at community centres, pools and sportsfields.
__'.: ~. ; .. ~~ 2
OP - 68
Finally, additional funding of $262,989 has been included in the budget submission for the
Kitchener Operations Facility (KOF). The KOF building (315,000 sq ft) is more than double the
size of the former facilities, and the KOF site (45 acres) is close to double the size of the former
facilities. As the KOF has been in full operation for less than a year, the budget requirements
are not fully known, but staff will continue to monitor and refine the budget requirements
throughout 2012 as they get a full year of history.
FINANCIAL IMPLICATIONS:
New facilities $334,000
Capital growth $97,000
Operations service growth $326,000
Active Network software costs $18,000
Credit card fees $23,000
KOF operating costs $262,989
Subtotal Growth Costs $1,060,989
Assessment Growth -$1,728,940
Total Net Impact of Growth -$667,951
For budget forecasting purposes, staff assumed assessment growth of 1.50%. Actual
assessment growth is 1.82%, which equates to $304,000 of additional revenue. This revenue
has been allocated to fund Active Network software costs, Credit card fees, and KOF operating
costs.
Funding for all of the items mentioned above has been included in the 2012 budget submission.
RECOMMENDATION:
For information only.
__`.: ~. ; .. ~~ 2
OP - 69
CITY OF KITCHENER
2012 BUDGET ISSUE PAPER
ISSUE: 04 -Gapping
FUND: OPERATING
DEPARTMENT: General Revenue
PREPARER: Ruth-Anne Goetz, Senior Financial Analyst
BACKGROUND:
Gapping is a Council approved process whereby unused salary and fringe benefit dollars which
accrue during a vacancy are transferred from departmental operating budgets to the gapping
budget. This program is a tax levy reduction strategy.
RATIONALE /ANALYSIS:
In 2011, the City's gapping budget was $2.OM. In the August 2011 interim variance report,
staff estimated the City would have an unfavourable variance in the gapping budget at year end
of $216,000. The chart below shows the budgets and actuals in gapping for the past three
years, in addition to the estimate for 2011:
Year Budget Actual Surplus/
(Deficit)
2008 2,233,915 1,849,554 (384,361)
2009 2,300,932 1,685,968 (614,964)
2010 2,300,932 852,039 (1,448,893)
2011 (est) 2,000,932 1,784,932 (216,000)
The trend indicates that over the past few years it has been difficult to achieve budgeted
gapping targets. This is in part due to the lack of capacity in headcount through various
efficiencies and reductions in FTEs. During tough economic times it is also less likely that
people will leave their current roles and thereby create a vacancy.
Gapping is difficult to predict due to the variable nature of staff turnover, but based on recent
experience and analysis, staff are recommending a $500,000 reduction to the gapping budget
for 2012. A gapping budget of $1.5M will be much more attainable and will reduce the likelihood
of a negative variance in the 2012 operating budget.
FINANCIAL IMPLICATIONS:
Reducing the gapping revenue budget from $2.OM to $1.5M would be a $500,000 increase to
the tax base.
RECOMMENDATION:
That the gapping budget be reduced by $500,000 for the 2012 operating budget.
OP - 70
CITY OF KITCHENER
2012 BUDGET ISSUE PAPER
ISSUE: 05 -Tax Stabilization Reserve Fund (TSRF)
FUND: Operating
DEPARTMENT: General Revenue
PREPARER: Ryan Hagey, Manager/Interim Director of Financial Planning
BACKGROUND:
The City has a Tax Stabilization Reserve Fund (TSRF). This reserve fund is used to fund any
year end operating deficits and is the recipient of any year end operating surpluses. It has
historically been used as a budgeted funding source to reduce the need for tax rate increases.
RATIONALE /ANALYSIS:
The 2012 budget includes a reduction in the transfer from the TSRF of $295,000 (2011 transfer
_ $750,000, 2012 transfer = $455,000). The $455,000 transfer budgeted for 2012 will exhaust
the funding in this reserve, meaning the main reserve which should be used to offset any year
end deficits will be completely depleted. This transfer should be completely eliminated, but in
order to stay within the budget guidelines, it could not be removed.
As recommended by the Government Finance Officers' Association (GFOA), the benchmark
target for a tax stabilization reserve fund is 5%-15% of the net tax levy. In 2012, this would
equate to approximately $5M to $15M as shown in the chart below.
Balance, beginning of year
Interest
Operating surplus (deficit)
Transfer to operating
Balance, end of year
Minimum Benchmark 5%
Maximum Benchmark 15%
Net Tax Levy
Actual
2010 2011 2012 2013 2014 2015
1,760 1,159 444 2 2
34 35 13 0 0
875 - - - - -
(1,510) (750) (455) - - -
1,159 444 2 2 2 2
4,821 4,735 4,920 5,067 5,219 5,376
14,463 14,205 14,759 15,202 15,658 16,127
96,422 94,700 98,393 101,345 104,385 107,517
Removing a reliance on the TSRF as a funding source for the operating budget items is good
fiscal management. This is because its funding source (operating surpluses) is unpredictable
and unsustainable. This reserve fund needs to be built up over time.
FINANCIAL IMPLICATIONS:
Eliminating the transfer from the Tax Rate Stabilization Reserve Fund would result in an
increase of $455,000 to the tax base.
RECOMMENDATION:
That the transfer from the Tax Rate Stabilization Reserve Fund to the tax base be completely
eliminated in the 2012 budget. This will be a $455,000 increase to the tax base.
3- -
OP - 71
CITY OF KITCHENER
2012 BUDGET ISSUE PAPER
ISSUE: 06 -Hydro Costs: Street Lighting and Facilities
FUND: Operating
DEPARTMENT: INFRASTRUCTURE SERVICES -
Engineering & Transportation Planning
Facilities Management
PREPARER: John McBride, Director of Transportation Planning
Cynthia Fletcher, Director of Facilities Management
BACKGROUND:
The cost of electricity to operate almost 18,000 street lights and 176 major/minor buildings has
been increasing greater than the rate of inflation over the past number of years. Coupled with
this is the increase in the actual number of street lights as new subdivisions are built and
new/expanded facilities. As a result, sufficient funds are not available to cover anticipated
electricity costs.
RATIONALE /ANALYSIS:
In the past three years, electricity costs have increased approximately 21 %. This increase is a
combination of actual energy commodity prices, distribution charges, transmission connection
charges, debt retirement charges and global adjustments. The rate of increase has been
beyond the budget guidelines as illustrated in the charts below in the Financial Implications
section of this issue paper. The gap between budget and actual cost has been growing each
year.
Staff have prepared the 2012 street lighting electricity budget with a 10.4% increase, which
keeps the overall budget within the budget limit. However, staff expect that actual costs for
2012 will be approximately $93,000 higher than budgeted. In the near future, as LED lights are
incorporated into roadway lighting, energy use will decrease as existing HPS lights are
replaced.
The Facilities Management budget was prepared with an 8% increase as per the budget call.
Staff anticipate a funding gap of $93,000.
FINANCIAL IMPLICATIONS:
The charts below compare the budgeted increases in electricity over time versus the actual
increases we have been experiencing. The actual increases are a function of both rates and
usage. Many factors can affect usage including changes in the number of street lights or
facilities and hours of operations. The projected 2012 deficit assumes actual increases similar
to that experienced in 2011 (5%).
Hydro Analysis for Transportation Planning
YEAR Budget Call
Inflation Fctr
BUDGET %inc in
bud et
ACTUALS %inc in
actuals Surplus/
Deficit
2008 5% $ 1,015,500 $ 1,031,685 $ 16,185
2009 3% $ 1,045,965 3% $ 1,040,141 1 % $ 5,824
2010 0% $ 1,045,965 0% $ 1,160,765 12% $ 114,800
2011 5% $ 1,098,263 5% $ 1,243,263 7% $ (145,000)
2012 8% $ 1,212,560 10% $ 1,305,426 5% $ 92,866
projected
projected
OP - 72
Hydro Analysis for Facilities Management
projected
projected
RECOMMENDATION:
That a t otal of $186,000 ( $93,000 each for Transp ortation Planning and Facilities Management)
be added to the operati ng budget for e lectricity costs.
YEAR Budget Call
Inflation Fctr
BUDGET %inc in
budget
ACTUALS %inc in
actuals Surplus/
(Deficit)
2008 5% $ 1,984,876 $ 1,711,300 $ 273,576
2009 3% $ 1,896,562 -4% $ 1,891,382 11 % $ 5,180
2010 0% $ 1,987,441 5% $ 2,076,002 10% $ (88,561)
2011 5% $ 2,027,148 2% $ 2,173,625 5% $ (146,477)
2012 8% $ 2,189,320 8% $ 2,282,306 5% $ (92,986)
OP - 73
CITY OF KITCHENER
2012 BUDGET ISSUE PAPER
ISSUE: 07 -PARKING FINE REVENUE
FUND: OPERATING
DEPARTMENT: COMMUNITY SERVICES DEPARTMENT, BY-LAW ENFORCEMENT
DIVISION: SHAYNE TURNER, DIRECTOR OF BY-LAW ENFORCEMENT
BACKGROUND:
The parking fine revenue within the By-law Enforcement Division has fallen short of the budget
target in 2010 and is predicted to do the same in 2011. Forward projections suggest that there
is little opportunity to overcome this deficit without some mitigation measures.
RATIONALE /ANALYSIS:
The deficit in parking fine revenue in 2010 was approximately $175,000, with forecasts
indicating it could be significantly higher in 2011. Historically, there have been challenges with
the parking fine revenue meeting its annual target. In 2008, for the 2009 budget year, a review
of the various parking violation fine amounts was undertaken and adjustments made (increases)
that were logical and comparative to neighbouring municipalities. As indicated on the chart
below, for 2009, the fine revenue amount met expectations. However, what was not foreseen
was a significant drop in the number of parking tickets issued on private property. That ticket
amount was increased from $15 to $25 in 2009. Since the ticket amount was increased there
has been a decrease of approximately 8,000 tickets, from 20,319 in 2008 to 12,239 in 2010,
issued on private property, by private officers who are authorized to issue tickets on their own
properties or by contract to the property owner. This decrease in private property tickets
accounts for the vast majority of the deficit being experienced.
Fine Revenue vs Budget Trends
2
000
000
,
,
1
900
000
,
.
1
800
000
,
,
1
700
000
,
.
1
600
000
.
.
1
500
000
.
.
1
400
000
.
.
1
300
000
.
.
1
200
000
.
.
1
100
000
.
.
1
000
000
..
.
900
000
.
800
000
.
700
000
.
600
000
,
500
000
.
400
000
,
300
000
.
200
000
,
100
000 Increase in Parking Fine Rates
.
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Forecast
Year
Total Fine Revenue -~-Total Fine Budget
OP - 74
FINANCIAL IMPLICATIONS:
For 2012, the By-law Enforcement Division has frozen the parking fine revenue budget at the
2011 amount. However, given the current budget was not attainable in 2011, it is highly likely
that the Division will not achieve this forecast in 2012.
Staff recommend that thought be given to mitigating what essentially amounts to a chronic
deficit by lowering the 2012 budget target to an amount more reflective of actual fine revenues
received. The By-law Division does not have the capacity to absorb this decrease in revenue
with offsetting reductions in expenditures. Thus, this option would impact the City's Operating
Budget by and estimated $275,000.
Regardless of the ultimate decision in this regard, staff feels it is important to note the
challenges associated with viewing fines as a predictable and sustainable source of revenue.
The fundamental goal of by-law enforcement is to achieve compliance and the fact is, greater
compliance can mean fewer violations, which in turn equates to lower fine revenue being
realized. Finding and maintaining the optimum balance between sources of revenue and
deterrence and compliance continues to be a challenge.
Staff will be reporting back on the results of the regional traffic and parking by-laws review,
including fine increases, once it is completed. The anticipated time for this is early in the new
year.
RECOMMENDATION:
That the parking fine budget be reduced by $275,000 to bring it in more in line with actual
revenues received.
OP - 75
CITY OF KITCHENER
2012 BUDGET ISSUE PAPER
ISSUE: 08 -Leisure Access -Service Overview
FUND: Operating
DEPARTMENT: Community Services -Program and Resource Services
PREPARER: LoriAnn Palubeski, Manager, Program and Resource Services
BACKGROUND:
As directed by Council at the Finance and Corporate Services Committee meeting on
November 7t", 2011, staff has prepared the following summary which provides a financial
overview of the Leisure Access fee subsidy program.
RATIONALE /ANALYSIS:
Leisure Access is a fee subsidy program that provides financial support for residents in order to
support their participation in City recreation and leisure programs. Access to and participation in
public recreation has demonstrated positive impacts both at the individual and community level.
The City of Kitchener is committed to facilitating this by removing some of the financial barriers
to participation. It is important to note that there are many residents in the community that
continue to experience economic challenges, which makes access to affordable programming
even more critical.
FINANCIAL IMPLICATIONS:
The following chart provides a comparative summary of the total subsidies granted and the
approved annual operating budgets. Please note that the negative variances shown in the
chart, as well as in prior years, have been eliminated by funding from the Canadian Tire
JumpStart Foundation and other more modest but much appreciated grant programs. The City
has been fortunate to receive such assistance, but has no assurance that it will continue to be
available going forward.
Year A roved Bud et Actual Ne ative Variance
2009 $85,000 $109,794 $24,794
2010 $95,000 $138,748 $43,748
2011 $105,000 $114,978 (as of
November 15t, 2011) $9,978
RECOMMENDATION:
Given the recent shortfalls in this account, proposed increase to the 2012 User Fees Schedule,
and the continued demand for Leisure Access, Council may wish to consider an increase of
$15,000 to the base budget.
OP - 76
CITY OF KITCHENER
2012 BUDGET ISSUE PAPER
ISSUE: 09 New Eco-Event
FUND: Operating
DEPARTMENT: CSD -Special Events
PREPARER: Jeff Young/Keith Baulk
BACKGROUND:
The first Car Free Sunday branded as Square to Square took place in conjunction with the City
of Waterloo on Sunday July 14th, 2011. Following the event, staff provided council with an
overview of the event including metrics intended to serve as a measure of success. Council
directed staff not to undertake any further Square to Square events in 2011, but instead bring
forward an alternate event proposal that had a clear focus for consideration during the 2012
budget process.
RATIONALE /ANALYSIS:
It is suggested that a focused eco-event be considered in the place of Car free Sundays. An
event brief providing details and budget numbers is attached to this document. This event
connects to City strategies in the following manner:
1. Creation of another event that supports the City's economic development strategy
2. Supports the City's environment strategy by providing awareness and education
3. Helps create a more livable community by enhancing citizen spirit and pride
It is felt an eco-event can incorporate the theme of alternative forms of transportation but be
more all-encompassing. The event would have a clear focus and goals. It would be held on one
day in downtown Kitchener, focus on enhancing environmental awareness and also bring
additional people to the core.
A broader environmental theme has the potential to attract additional partners and supporters.
FINANCIAL IMPLICATIONS:
The net tax supported funding required to deliver the event would be $25,000 which is
consistent with the net cost of other major events hosted by the City including Cruising on King,
and Kidspark.
It should be noted that a new event may take a few years to achieve the success of existing
events as it applies to key metrics:
- attendance
- sponsorship
- awareness
- partnerships
RECOMMENDATION:
That $25,000 be added to the 2012 operating budget to fund a new eco-event at the City of
Kitchener.
OP - 77
Event Title Kitchener Eco-Event
1. Encourage alternative forms of transportation in everyday life
2. Promote awareness on the importance of creating a cleaner and more sustainable community
Goals
3. Provide an outlet where eco-friendly businesses can demonstrate their products to consumers
4. Brin eo le downtown and increase foot traffic on Kin St.
Proposed Mid-August
Date
Time 2 pm to 8 pm
Place/Venue City Hall Rotunda/Civic Square/King Street
Develop a new event in Kitchener that has a clear focus on improving the quality of the environment
Program through changes in our everyday lifestyle.
Description The event would provide the public the opportunity to be exposed to a variety of companies/services
that could assist them in reducin their carbon foot rint at home and in the work lace.
2:00 pm -Kick off/Welcome on Civic Square stage
2:00 pm -Event opens to the public
2:15 pm -Live entertainment begins on Civic Square stage
8:00 pm -Live entertainment concludes on Civic Square stage
8:00 pm -Event concludes
Sample Activities could include:
Activity - Free bicycle tune ups on site
Plan - Q&A sessions with eco exhibitors (solar, wind power, etc)
- Solar demonstrations
(timelines) _ Recycled artists market
- Interactive games for children
- Live entertainment throughout the day
- Children's chalk zone -environmental theme
- The Conserver Challenge (House and Business)
- Recycle old cell phones/computer monitors
- Interactive edal ower activities
Metrics Attendance, interactions, samples provided
City $25,000 -consistent with the net cost of other major events hosted by the City including
Contribution Cruising on King, Kidspark, Word On The Street.
OP - 78
-
Road Closure
$ 1,500.00 ~-
Vendor Permits $ 500.00
Marketing $ 35,000.00
Staff $ 1,000.00 4 staff, 10 hours
Additional Staff $ 1,000.00 Custodial, Security
First Aid $ 1,000.00 Onsite first aid staff
Bands $ 3,200.00 Civic Square stage entertainment
Signage $ 2,000.00 Event Signage
Overall
Bud
et Entertainment $ 1,600.00 Roaming entertainment -face painters, etc
g
(revenue Miscellaneous Equip $ 3,000.00 Tents, tables, other event items
and expense Volunteer T's $ 200.00 T-shirts for volunteer staff
breakdown) Volunteer Food $ 200.00 Snacks/drinks for volunteer staff
Guest Speakers $ 800.00 Eco experts to speak with consumers
Pedal Power $ 1,300.00 Interactive activity
Incentive For Consumers $ 2,500.00 Rain barrels, compost bins, grocery bags, etc
~ ~ :~• ••
*In kind media $30,000
*CoK Contribution $24,800
Potential
sponsors Region of Waterloo, BIA, Rogers Radio Group, REEP, The Market, The Record, Rogers TV, GRT,
Green Enterprise Ontario (GEO), Recycled Artists, various Eco companies
3- -
OP - 79
CITY OF KITCHENER
2012 BUDGET ISSUE PAPER
ISSUE: 10 -SITE PLAN INSPECTOR
FUND: OPERATING
DEPARTMENT: COMMUNITY SERVICES DEPARTMENT -PLANNING DIVISION
PREPARER: BRIAN PAGE, SUPERVISOR OF SITE DEVELOPMENT
BACKGROUND:
In 2008 the site plan approval fees were restructured following consideration of a Budget Issue
Paper. The fees were restructured to generate additional revenue for staff resources in response to
concerns from the development industry on the time taken to process a development application
from start to finish. Two of three requested additional staff were granted: a Planning Technician and
an Urban Designer. These two staff resources have greatly helped in the processing of an
application for the issuance of a building permit. The third requested staff - a Site Plan Inspector
was put on hold pending the monitoring of site plan revenues and service levels. The monitoring has
been done. The demand for the position still exists and site plan revenues have increased steadily
since 2008 to cover the costs of this position request.
RATIONALE /ANALYSIS:
Kitchener continues to be one of Canada's fastest-growing urban areas with more opportunities than
our neighbouring cities for both re-urbanization and greenfield development. While significant
progress has been made establishing policies and criteria for enhanced urban design,
implementation and compliance inspection of approved development remains difficult with current
staff resources and service level expectations.
Community Expectations:
The citizens of Kitchener have clearly communicated their vision of the City and these priorities are
reflected in the City of Kitchener Strategic Plan. Community priorities such as Quality of Life,
Development, Dynamic Downtown and the Environment form the basis of many Council policies and
planning standards such as the Urban Design Manual. Successful implementation of the numerous
policies and standards has become increasingly complex and the large-scale re-urbanization
projects are becoming more common. Site plan staff is increasingly involved in negotiating intricate
site design changes to ensure that the new development makes a positive contribution to the
community, especially in established neighbourhoods.
Applicant Expectations:
Applicants expect an efficient and expeditious approvals and the hiring of a Site Plan Inspector
would improve the process.
Need for Site Plan Inspector:
The Site Plan Inspector would coordinate the closing of site plan files by ensuring that approved site
plan developments are implemented in a timely manner as laid out in development agreements.
This work is currently carried out by Urban Designers whose core function is plan review and
implementation of the Council-approved Urban Design Manual. The Site Plan Inspector would free
up time for the Urban Designers to focus on plan review and to carry out this work function more
rapidly.
The City currently holds over 20 million dollars in securities covering 170 site development projects
that are either under construction or for which a release has not been finalized, but the buildings are
occupied. 58%, (99 out of 170) of these outstanding projects, are greater then 3 years old. The
registered Development Agreements require that these projects be completed at the time of
occupancy or as soon as weather permits.
2011-11-21
OP - 80
The hiring of a Site Plan Inspector would also provide a regular presence at current site
development projects to ensure that what has been negotiated and approved is implemented in a
timely manner as directed by the Site Development Agreement. The anticipated faster turnaround
with plan review will decrease the number of complaints from the development industry. The
anticipated faster completion of site improvements benefits the occupants of properties in the vicinity
of development sites. The amenities that accompany development are realized sooner and the
nuisance associated with construction would be of a shorter duration.
FINANCIAL IMPLICATIONS:
In 2008 it was projected that the new fee structure would increase annual revenues by $300,000.
Actual revenues since 2008 have exceeded this projection. Total site plan revenue increased from
$601,331 in 2008 to $1,191,902 in 2010. Based on year to date (October) revenues of $1,088,297,
a total of $1,305,956 in revenue is projected for 2011.
It is noted that since 2009, site plan revenue has been shared with Engineering on a 75% Planning -
25 % Engineering basis. Therefore, of the $1,305,956 in revenue projected for 2011, $979,467 is
collected by Planning and the balance of $326,489 is collected by Engineering. The Planning
revenue alone exceeds the revenue increases projected in 2008 when the fees were restructured.
As a result, of the above increases in Site Plan revenues staff is requesting the approval of the Site
Plan Inspector position that was previously put on hold pending this review. The estimated cost is
$93,000 annually.
RECOMMENDATION:
That one new FTE be approved for the hiring of a Site Plan Inspector at an estimated cost of
$93,000. That the 2012 Site Plan revenue budget be increased by $93,000 therefore having zero
impact on the tax base.
OP - 81
CITY OF KITCHENER
2012 BUDGET ISSUE PAPER
ISSUE: 11 -PARKING MANAGER
FUND: Operating -Parking Enterprise
DEPARTMENT: INS Department -Transportation Planning
PREPARER: John McBride -Director Transportation Planning
BACKGROUND:
On January 24, 2011, Council approved report INS-11-005 the Parking Enterprise Business
Case which established a business unit to manage and operate the City's parking portfolio. It
defined a number of business practices that would be followed including the recommendation to
hire a Parking Manager and be funded from the Parking Enterprise.
RATIONALE /ANALYSIS:
The Parking Enterprise generates gross revenues and expenditures of approximately $6 million
and $5 million respectively. A higher level of financial monitoring and quicker response to
changes in parking patterns and operating issues are required if we are to remain financially
solvent. There are currently in excess of $25 million in capital construction ongoing with two
additional garages expected within the next few years. Existing staff can not support the level of
involvement required to maintain or expand an operation of this size. Programs and policies
supportive of the parking operation, and the Downtown, can not be completed.
The internal audit review found that the parking enterprise will not realize its potential as a
business unit without a manager dedicated to achieving the expected results and moving the
unit forward strategically.
The Manager of Parking will be responsible for, among other things;
o Development of supporting policies and business practices, and reporting to Council as
needed
o Development of capital repair programs ie garage structural monitoring and repair
o Capital expansion -managing the construction of an existing parking structure project
with two additional garages expected within the next two years
o Development of customer based programs and initiatives
o Dedicated management of the Parking Enterprise as a business unit including greater
financial monitoring
FINANCIAL IMPLICATIONS:
There was $50,000 of funding set aside in the 2011 budget process to potentially be used
toward staffing. Therefore the additional funding required for the Parking Manager position in
2012 is $62,118 and has been included in the 2012 Operating Budget to be funded from the
Parking Enterprise.
RECOMMENDATION:
That a Parking Manager position be approved effective March 1, 2012.
OP - 82
CITY OF KITCHENER
2012 BUDGET ISSUE PAPER
ISSUE: 12 -Parking Enterprise Projection
FUND: Enterprise Operating and Capital
DEPARTMENT: Infrastructure Services -Transportation Planning
PREPARER: John McBride -Director of Transportation Planning
Alicia Italiano -Senior Financial Analyst
BACKGROUND:
During the 2011 budget process Council approved the creation of aself-sustaining parking
enterprise. The enterprise would fully fund all operating costs, capital improvements, future
parking developments as well as the Cycling and Transportation Demand Management (TDM)
initiatives.
RATIONALE /ANALYSIS:
Based on the most recent 2011 projections for the parking enterprise the yearend deficit will be
$324,000. This is largely due to the delayed opening of the Charles & Benton garage which has
impacted the projected net revenues by approximately $565,000. The current five year
projection shows this deficit continuing to grow in 2012 with the parking enterprise not returning
to a surplus position until 2015. In order to mitigate this deficit and improve the five year
projection three options are available:
1) Increase parking rates
2) Decrease operating expenses
3) Reduce or adjust capital funding requirements
Although parking rate increases can be used as a means to increase revenues, the City has
seen in 2011 that rate increases will lead to a drop in demand which can negate the additional
revenues. Monthly parking rates are already increasing 10% per year for the next three years
so there is little room for additional rate increases. There is a delicate balance between
encouraging people to consider alternate modes of travel and negatively impacting customer's
ability to work and shop Downtown. Staff cannot support any further parking rate increases
beyond what has been included in the budget. The majority of the operating costs for the
parking enterprise are fixed in nature as they relate to the property taxes, rent and utilities to
operate the lots. As a result, there is little opportunity for reductions in expenses. Therefore, the
only viable alternative is to reduce or adjust the timing of capital funding.
FINANCIAL IMPLICATIONS:
The proposed ten year capital forecast will shift $50K in funding for both Cycling and TDM from
years 2012 to 2014 to years 2015 to 2017. The structural garage repair provision of $150K
was eliminated in 2013 and spread back over future years of the forecast. Therefore, no
existing capital funding was eliminated but the timing was adjusted to improve the short term
financial stability of the parking enterprise. The revised capital forecast is below:
OP - 83
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Total
CHARLES & WATER GARAGE
CHARLES & BENTON GARAGE MON ITORIN
CIVIC DISTRICT GARAGE MONITORING
CYCLING MASTER PLAN IMPLEMENTATION
TRANS DEM MGMT INITIATIVES
DUKE/ONT GARAGE MONITORING - DT
CITY HALL GARAGE MONITORING
PARKING LOT LIGHTING - DT
PARKING LOT RESURFACING - DT
MARKET GARAGE MONITORING - DT
STRUCTURAL PROVISION -GARAGES
7055 7.055
33 35 68
35 37 72
150 150 150 250 250 350 309 318 328 338 2;593
150 150 150 250 250 256 212 219 225 232 2.094
35 40 43 11 8
35 35 38 108
15 15 20 20 20 20 20 20 20 20 190
20 25 30 75
30 35 40 10 5
315 370 694 1093 1201 1338 1159 1293 1342 8311 17,1161
Parking Capital - FM
CIVIC DISTRICT PARKING GARAGE - FM 24 24 24 29 34 35 36 37 243
DUKE & ONTARIO PARKING GARAGE - FM 31 32 32 33 34 34 35 36 37 37 341
CITY HALL PARKING GARAGE - FM 45 46 47 43 49 50 41 52 53 54 480
CHARLES & BENTON PARKING GARAGE - FM 20 20 20 20 25 30 35 36 37 37 280
CENTRE BLOCK PARKING GARAGE - FM 24 24 24 29 34 35 36 37 243
Total Parkinq Capital 411 468 841 1237 1357 1510 1338 1487 1541 8513 18,703
Based on the new ten capital forecast presented above attached is the revised five year
projection.
CITY OF KITCHENER
PARKING ENTERPRISE
STATEMENT OF REVENUE AND EXPENSES
(000's) Budget Projected Budget Budget Budget Budget Budget
2011 2011 2012 2013 2014 2015 2016
Revenue
Monthly
Meters/Hourly
Gate/General Parking/Other
Subsidies
Total Revenue
Expenses
General
Debt Charges
Property Taxes
Transfer from (to) Capital
Interest (Income)/Expense
Total Expenses
Excess Revenue over Expense
Transfer to City (Dividend)
Balance to transfer to reserve
2,513 2,122 2,712 3,149 3,928 4,078 4,233
2,068 1,494 2,167 2,462 2,584 2,662 2,742
164 148 166 174 179 185 190
1,065 1,065 1,098 1,130 1,164 1,199 1,235
5,811 4,829 6,143 6,915 7,856 8,123 8,400
2,230 1,881 2,653 2,724 2,967 3,056 3,148
272 255 723 724 893 894 894
609 563 722 744 766 789 812
160 160 411 468 841 1,238 1,358
- (20) 6 4 (1) (6) (9)
3,270 2,839 4,514 4,664 5,467 5,972 6,204
2,540 1,989 1,629 2,251 2,389 2,152 2,196
2,313 2,313 1,976 1,750 1,803 1,857 1,912
227 (324) (347) 501 587 295 284
Accumulated Net Revenue/(Deficit)
Balance beginning of year - - (324) (670) (169) 418 713
Transfer to reserve (net change from above) 227 (324) (347) 501 587 295 284
Balance end of year 227 (324) (670) (169) 418 713 997
O P - 84
The above proposal will eliminate the deficit one year earlier in 2014 and significantly reduce the
projected deficit in 2013.
RECOMMENDATION:
That the 2012 parking capital budget be adjusted per the above ten year capital forecast to
mitigate the short term deficit and improve the five year parking projection.
OP - 85
CITY OF KITCHENER
2012 BUDGET ISSUE PAPER
ISSUE: 13 -Gas Works Utility Analysis
FUND: OPERATING and CAPITAL
DEPARTMENT: Utilities /Gasworks
PREPARER: Susan White, Senior Financial Analyst
BACKGROUND:
During Capital Budget presentation on November 17, 2011 council requested additional
information about the Gas Works Utility and the Gas Capital Investment Reserve Fund (GCIRF).
RATIONALE /ANALYSIS:
The annual transfer from the Gasworks operating account to the GCIRF is based on the
requirement that the Delivery Operation in Gasworks is to maintain an accumulated net revenue
position of 50% of the prior year's net revenue.
If net revenues in the Utility are stable, the transfer to the GCIRF is stable. Unfortunately,
volatility in the Utility (due to site remediation and inventory write-downs) in recent years has
resulted in significant fluctuations in the transfer to the reserve. That said, a sufficient balance
has been maintained within the reserve to accommodate these fluctuations in cash flow.
The following table illustrates how the transfer to the Gas Capital Investment Reserve is
calculated:
Delivery Program Net Revenue
Other Programs Net Revenue
Transfer to Gasworks Capital
Net Revenue, Delivery Operation
Accumulated Revenue, Beginning
Net Revenue, Delivery Operation
Transfer to City Revenue Fund
Transfer to GCIRF
Accumulated Revenue, Ending
(50% of previous year's Net Revenue, Delivery Operation amount)
2011 2012
Projected Budget
22,210,834 23,173,253
1,581, 985 2,104,020
-7,554,897 -7,763,000
• 17,514,273
8,135,078 7,483,245
16 , 237, 922 17, 514, 273
-6,802,311 -7,245,460
-10,087,444 -9,633,096
7,483,245 ~ '
As noted above, the 2012 budgeted ending Accumulated Revenue for the Delivery Operation
($8.1 M) is 50% of the 2011 Projected actual Net Revenue, Delivery Operation ($16.2M).
Therefore, the Transfer to GCIRF is the amount required to obtain the desired ending
Accumulated Revenue amount.
Impact of Gross Margin Fluctuations on the Gas Capital Investment Reserve Fund
Since 2005, the gross margin percentage for Gasworks has ranged from 39% to 49% on an
annual basis. The current Gas Utility budget forecasts an average gross margin of 42% over
__'.: ~. ; .. ~~ 2
OP - 86
the next five years. Given the potential for significant fluctuations in gross margin and the
likelihood of additional regulatory or program changes which will require funding (thereby
reducing the transfer into the GCIRF) it would be prudent to maintain a balance in the GCIRF to
avoid compromising funding for projects in the City's capital forecast. There is also the
potential that unforeseen capital costs within the Gas Utility itself will be incurred due to
rebuilding of meter stations or expansion of pipeline infrastructure, and these would represent a
draw on the source of funds coming into the reserve. The following table projects the ending
balance in the Gas Capital Investment Reserve Fund at various average gross profit margin
levels ($000's):
5 Year Gas Delivery 2011 2012 2013 2014 2015 2016
Current 5,779 10,655 10,292 12,263 10,931 8,295
42% 2,734 5,258 7,148 10,183 10,455 9,994
41 % 2,240 4,480 6,120 8,879 8,866 8,109
40% 1,746 3,701 5,093 7,574 7,276 6,224
39% 1,252 2,923 4,065 6,270 5,686 4,339
38% 758 2,145 3,037 4,966 4,097 2,454
37% 264 1,366 2,009 3,662 2,507 569
A 1 % decline in gross profit margin in equates to approximately a $1 M shift in the reserve fund
balance.
The City's reserve fund balances are declining and are well below benchmark averages. The
Gas Capital Investment Reserve Fund represents one of the few remaining reserves set aside
to fund additional capital requirements such as matching investments for Federal infrastructure
initiatives or emergency funding for various projects. Although a benchmark for this reserve has
not been established in policy, if this were considered to be a stabilization reserve the
benchmark would be10-15% of the Operating Revenue.
($000's) 2011 2012 2013 2014 2015 2016
Current Forecasted
Operating Revenue 49,400 51,257 47,907 48,144 48,347 48,553
10% 4,940 5,126 4,791 4,814 4,835 4,855
15% 7,410 7,689 7,186 7,222 7,252 7,283
The current projection for 2011 shows a higher gross profit margin of 54.24%. This has been
driven by two factors, higher consumption during the winter months of 2011 and lower actual
transportation costs. The 5 year projection is based upon an average winter consumption of
gas which is lower than the volume used in 2011. The transportation benefit is a function of the
rates set by Trans Canada who are at this time appealing to the Ontario Energy Board to have
them changed. A review is currently being conducted to determine if a change to the rate
setting model is appropriate for Kitchener Utilities.
Appropriate Level of Earnings to Extract
Based upon an assumed valuation of $200 million dollars applied against deemed capital
structure and the OEB prescribed rate of return the dividend the City could expect from the
Gasworks Utility is $13.5 million dollars. The City Currently enjoys a combined capital and
operating dividend from the Gas Utility of $16.8M forecasted for 2012 Budget and $14.8
average for the past 5 years. A valuation of the Utility is underway to determine the appropriate
basis for this calculation.
__`.: ~. ; .. ~~ 2
OP - 87
FINANCIAL IMPLICATIONS:
As discussed above.
RECOMMENDATION:
For Discussion
__`.: ~. ; .. ~~ 2
OP - 88
Departmental
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2012 Budget Potential Reductions
PR01 Printing and Distribution of Your Kitchener Corporate Communications (46,200)
PR02 Reduction of Holiday Parking Subsidy Economic Dev (22,650)
PR03 Reduction of one Downtown Ambassador Economic Dev (2,970)
Community Services
PR04 Reduced Part-time Wages in By-Law By-law & Enforcement (25,138)
PR05 Reduce Recreation Program Grants Community Programs & Services (13,900)
PR06 Closure of 5 Summer Playground Programs Community Programs & Services (17,391)
PR07 Increase Fee for Leadership Program Community Programs & Services (4,040)
PR08 Kiwanis Park -Reduction of one camp staff Community Programs & Services (5,617)
PR09 Kiwanis Park -Reduced Hours on June Weekdays Community Programs & Services (5,218)
PR10 Elimination of Movie Licences Community Programs & Services (5,000)
PR11 Eliminate Neighbourhood Association Program Grants Community Programs & Services (13,000)
PR12 Reduce Neighbourhood Association Printing Community Programs & Services (9,500)
PR13 Community Centre Closures Community Programs & Services (19,950)
PR14 Delay Opening of City Hall Rink Enterprise (8,000)
PR15 Eliminate One Major City Owned Festival Special Events (25,000)
Finance and Corporate Services
PR16 Discontinue Annual Allocation to REEP Legislated Serv (27,500)
PR17 Property Tax Administration Fee Revenue (185,000)
Infrastructure Services
PR18 Reduce Sidewalk Infill Capital Program Engineering (150,000)
PR19 Reduction of Energy Consumption Facilities Management (10,000)
PR20 Review of Corporate Leases Facilities Management (10,000)
PR21 Reduced Sportsfield Maintenance Operations (50,000)
PR22 Reduced Turf Maintenance Operations (180,000)
PR23 Temporary Labour Hiring Delay Operations (25,000)
General
PR24 Kitchener Public Library Potential Reduction Kitchener Public Library (182,303)
PR25 Centre in the Square Potential Reduction Centre in the Square (27,402)
PR26 Base Budget Adjustments All (215,722)
PR27 Confidentialltems (652,204)
OP - 179
CITY OF KITCHENER
2012 BUDGET POTENTIAL REDUCTIONS ISSUE PAPER
ISSUE: PR01 -Printing and Distribution of Your Kitchener
FUND: Operating
DEPARTMENT: CAO's Office, Communications and Customer Service
PREPARER: Andrea Bailey, Interim Senior Manager, Communications and
Marketing
DESCRIPTION OF POTENTIAL NET BUDGET REDUCTION:
Your Kitchener is currently produced six times per year (every second month) at a cost of
$46,200 for 12 pages of content. In addition, the City of Kitchener spends an average of
$16,000 per year in display advertising with local community newspapers, for a combined total
cost of approximately $62,200.
The Kitchener Citizen and The Kitchener Post community newspapers have proposed taking
over the printing and delivery of Your Kitchener in 2012. Under both proposals, Your Kitchener
would run as a four-page supplement, in pre-purchased ad space. The city's communications
staff would continue to write and lay out the content of the supplement and send the complete
file to the chosen newspaper for printing and delivery. Alternately, Your Kitchener could be
completely eliminated.
BUDGET REDUCTION:
Option 1: Kitchener Citizen proposal
• 4-page pop-up monthly insert, process colour: $49,920 annually* (savings of $12,280)
• Current circulation: 66,000 (East and West editions combined)
• Citizen would continue to run ward councillors' monthly columns for free
Quote is based on assumption that 4 pages each month would cover all of the city's monthly
advertising needs with the newspaper.
Option 2: Kitchener Post proposal
• 4-page pop-up monthly insert, process colour: $59,940 annually* (savings of $2,260)
• 4-page pop-up bi-monthly insert, process colour: $29,970 annually* (savings of $32,230)
• 4-page pop-up insert, 9 issues, process colour: $44,955 annually* (savings of $17,245)
• Current circulation: 60,000 citywide
W Quote is based on assumption that 4 pages each month would cover all of the city's monthly
advertising needs with the newspaper.
Option 3: Discontinue Your Kitchener
• Annual savings of $46,200
RISKS/IMPACTS ASSOCIATED WITH REDUCTION:
By transferring the printing and delivery of Your Kitchener to either the Kitchener Citizen or the
Kitchener Post, the city would be sustaining its commitment to community engagement by
continuing to provide citizens with important information on local projects and issues, while
underscoring its commitment to operating as an effective and efficient government through the
cost savings.
Completely eliminating the Your Kitchener publication could have negative impacts as it is still
considered to be one of the city's primary and most effective tools for information sharing and
communit en a ement.
OP - 180
CITY OF KITCHENER
2012 BUDGET POTENTIAL REDUCTIONS ISSUE PAPER
ISSUE: PR02 -Holiday Parking Subsidy
FUND: Operating
DEPARTMENT: CAO's Office, Economic Development Division
PREPARER: Rod Regier, Executive Director of Economic Development
DESCRIPTION OF POTENTIAL NET BUDGET REDUCTION:
The City of Kitchener has been providing free Saturday parking on downtown parking lots on the
seven Saturdays leading up to Christmas. The purpose of the subsidized parking is to support
seasonal retail sales for downtown merchants. Staff are suggesting the subsidy could be
reduced from 7 Saturdays to 3 Saturdays.
The City has invested significant resources in the redesign and revitalization of King Street.
Anecdotal information indicates consumer perception and retail sales have responded positively
to the changes underway. In addition, the City does not subsidize retail parking in any other
commercial environment. During the remainder of the year, some Downtown merchants provide
subsidized parking for their patrons. It is appropriate to consider reducing the parking subsidy in
2012.
BUDGET REDUCTION:
Reducing the number of Saturdays with subsidized parking from 7 to 3 would save the City
approximately $22,650.
RISKS/IMPACTS ASSOCIATED WITH REDUCTION:
There will possibly be negative feedback from downtown patrons that are used to free holiday
parking for the full seven weeks.
OP - 181
CITY OF KITCHENER
2012 BUDGET POTENTIAL REDUCTIONS ISSUE PAPER
ISSUE: PR03 -Reduction of one Downtown Ambassador
FUND: Operating
DEPARTMENT: CAO's Office, Economic Development Division
PREPARER: Rod Regier, Executive Director of Economic Development
DESCRIPTION OF POTENTIAL NET BUDGET REDUCTION:
For the past 4 years, the City of Kitchener and the Downtown Kitchener Business Improvement
Area have partnered on an ambassador program that hires college and university students to
provide assistance and information to downtown customers, festival attendees, employees and
visitors. The ambassadors assist in various aspects of downtown festivals and executing
Downtown Live. The ambassadors also act as additional eyes on the street, contacting police
when they witness inappropriate activity, such as aggressive panhandling. This project was
designed to help improve the image of the downtown and improve awareness of retail and
restaurant options, as well as public services in the downtown.
The Ambassador Program allocation in the Economic Development Division operating budget is
$10,470. The BIA funds the balance of the program ($20,000) through a combination of its
own funding as well as grants from HRDC. These funds allow the BIA to employ 4 post-
secondary students for 4 months during the summer season.
Downtown Kitchener is experiencing improvements in its overall brand as people recognize the
significant changes underway. This is resulting in increased pedestrian traffic and improved
public perception of the downtown as a retail, cultural and residential destination. As a result, it
is now appropriate to review the utility of the ambassador program and consider operating
changes to reduce its impact on the City's operating budget.
BUDGET REDUCTION:
The Downtown Ambassador Program could be reduced from $10,470 to $7,500 (savings of
$2,970).
RISKS/IMPACTS ASSOCIATED WITH REDUCTION:
A reduction of the City budget by $2,970 would allow the program to continue at a reduced level
with 3 students. For security reasons, the students always work in pairs. It is therefore important
that the program not be reduced to the point where only two students are available. Reducing
the program to less than 3 students would likely result in the program being discontinued.
OP - 182
CITY OF KITCHENER
2012 BUDGET POTENTIAL REDUCTIONS ISSUE PAPER
ISSUE: PR04 -REDUCED PART-TIME WAGES IN BY-LAW
FUND: OPERATING
DEPARTMENT: COMMUNITY SERVICES DEPT - BY-LAW ENFORCEMENT DIVISION
PREPARER: SHAYNE TURNER, DIRECTOR OF BY-LAW ENFORCEMENT
II DESCRIPTION OF POTENTIAL NET BUDGET REDUCTION: II
The part-time wages fund is used to fund parking and noise officer wages, as well as the Trail
Bike officers, using officers in the Division's part-time pool of officers. Part time coverage is
required to fill shifts during times when full time officers have booked off work due to vacations,
sick time and statutory holidays, as well as when officers are required to attend court. In
addition, the current parking enforcement and noise enforcement weekly schedules include
several shifts that are designated for part-time staff, in order to extend enforcement coverage
into evenings and weekends. Part-time officers are also utilized to provide coverage as
necessary for targeted enforcement initiatives such as coverage around the student housing in
Lower Doon area, adjacent to Conestoga College, the winter overnight parking prohibition, snow
events, leaf collection program and school zone safety enforcement. Finally, part-time wages
are sometimes used to provide officers for special events such as the annual spring opening of
the Huron Natural Area and other annual open house events as well as one-time events such
as the opening of McLennan Park.
It should also be noted that, despite the use of part-time officers to fill gaps in the existing
enforcement schedule, there are already portions of the week when there are no Enforcement
Officers on duty to respond to public complaints. These gaps equate to approximately 20 hours
per week, and already generate public complaints from time to time regarding lack of coverage.
In order to reduce the current budget amount, the Division will have to leave certain shifts open
(without officer coverage). The shifts left open will be dependent upon circumstances, and will
be spread across all 3 enforcement programs (parking, noise and trail bikes). Based on the
Division's current schedule and the hourly rates associated with the various enforcement duties,
it is anticipated that the reduction amount will equate to approximately 100 shifts being left open
on an annual basis (approximately 2 per week). Many of the shifts covered by part-time officers
(as with many of the full-time positions) generate revenue, most notably parking fines, but also
other by-law offences as well.
BUDGET REDUCTION:
The reduction equates to $25,138, ($20,111 in wages and fringe benefits of $5,027)
RISKS/IMPACTS ASSOCIATED WITH REDUCTION:
The reduction in part-time officer coverage will result in reduced capacity to deliver on current
service level expectations in the following enforcement programs:
- student housing and Lower Doon coverage
- winter overnight parking prohibitions
- snow events
- licensing enforcement
- school zone safety
- leaf program (ie. dump sites and curb side monitoring)
- s ecial ro rams and o en houses
OP - 183
The following risks are associated with the service level reduction as noted above:
increased none compliance in problematic areas currently monitored regularly (ie.
student housing, leaf dump sites)
potential reduction in revenue (ie. parking fines)
increased complaints from the community relating to our reduced ability to respond to
by-law enforcement service requests
It should be noted that evidence is showing that public expectations are increasing in terms of
response times as a result of initiatives such as the 24/7 call centre. The By-law Enforcement
Division currently receives some complaints regarding the times when they already do not have
officer coverage.
O P - 184
CITY OF KITCHENER
2012 BUDGET POTENTIAL REDUCTIONS ISSUE PAPER
ISSUE: PR05 -Reduce Recreation Program Grants
FUND: Operating
DEPARTMENT: Community Services -Program and Resource Services
PREPARER: Lori Ann Palubeski, Manager, Program and Resource Services
DESCRIPTION OF POTENTIAL NET BUDGET REDUCTION:
Recreation program grants offer financial assistance to neighbourhood associations and
community groups to assist in the delivery of recreation and leisure programs and services.
Essentially, the grants extend the municipality's program delivery role in the community and
increase the capacity of community groups to provide neighbourhood based programs. The
grants are available to assist with the cost of staff wages, program supplies or special events
expenditures etc.
The total dollars associated with the impacted recreation grant programs is $21,400. A total
reduction of $13,900 is proposed as $7,500 of this budget is committed as per a contractual
agreement. It is proposed that the total reduction of $13,900 would be applied as follows (data
for 2011 is not yet available):
$1,400- older adult programming
There was $0 granted in 2009 and $0 granted in 2010.
$7,500- youth programming
There was $4,925 granted in 2009 and $2,300.00 granted in 2010.
$5,000- children's programming
There was $300 granted in 2009 and $3,598.00 granted in 2010.
BUDGET REDUCTION:
Reduce recreation program grants by $13,900.
RISKS/IMPACTS ASSOCIATED WITH REDUCTION:
While the recreation program grants budget was not fully utilized in 2009 and 2010 it is
important to note that the amounts fluctuate from year to year, and there are times when these
various accounts are fully utilized. Grant requests can be variable and reflect the programming
supports required by any one community group/association at any one time.
The elimination of this program will result in a service reduction to neighbourhood associations
and community groups which in turn may impact their capacity to deliver affordable community
based recreation programs. If a decrease in the amount of programs offered in the community
was a result, additional pressures may be placed on the municipality to deliver these programs
directly.
OP - 185
CITY OF KITCHENER
2012 BUDGET POTENTIAL REDUCTIONS ISSUE PAPER
ISSUE: PR06 -Closure of 5 Summer Playground Programs
FUND: Operating
DEPARTMENT: Community Services -Program and Resource Services
PREPARER: Lori Ann Palubeski, Manager, Program and Resource Services
DESCRIPTION OF POTENTIAL NET BUDGET REDUCTION:
Summer Playgrounds is a neighbourhood-based program offered for children 3 to 12 years of
age for six weeks during the summer. The programs operate out of community centres, schools
and parks and strive to provide high quality programs at affordable prices. The City employs
approximately 115 young people to deliver the programs on an annual basis. In 2011, there
were 53 programs offered across the community.
The closure of 5 summer playground programs would result in a savings of $17,391. The
following sites would be closed; Smithson Playground, King Edward Playground, Southridge
Playground, Queen Elizabeth Playground and Alpine Adventure. The registration statistics are
noted as follows:
Pla round 2011 2010 2009 2008
Smithson 23 47 68 Did not o erate
Kin Edward 23 26 35 Did not o erate
Southridge 32 89 (location was
FHCC*) 114 (location
was FHCC*) 48
Queen Elizabeth Closed due to
low re istration 22 28 Did not operate
AI ine 7 11 24 26
*FHCC stands for Forest Heights Community Centre
BUDGET REDUCTION:
Net reduction of $17,391. This figure represents the elimination of ten summer student positions
(wages and fringe), as well as accounts for an estimate of lost revenue and a decrease in the
program supply budget associated with each program.
RISKS/IMPACTS ASSOCIATED WITH REDUCTION:
As stated, the closure of 5 programs will result in a decrease in the number of youth
employment opportunities as well as a decrease in the number of available summer program
spaces in the identified neighbourhoods.
OP - 186
CITY OF KITCHENER
2012 BUDGET POTENTIAL REDUCTIONS ISSUE PAPER
ISSUE: PR07 -INCREASE FEE FOR LEADERSHIP PROGRAM
FUND: OPERATING
DEPARTMENT: COMMUNITY SERVICES AQUATICS AND ATHLETICS
PREPARER: DENISE KEELAN, MANAGER OF AQUATICS AND ATHLETICS
DESCRIPTION OF POTENTIAL NET BUDGET REDUCTION:
The Aquatic section offers a fast track option for teens to take 4-5 lifeguard courses in one time
period. These are called our "bundles". Each bundle is offered over the summer, predominantly
to allow a candidate to take these courses in a short time period. These are very popular
courses for both residents and non residents.
The bundle fee was originally set low to encourage teens to become lifeguards. The current
cost is $404 for Kitchener residents. If these courses were taken separately the fee would be
$511.
BUDGET REDUCTION:
Based on a 20% increase to the cost, the new fee would be $484.80.
Based on 50 registrants (the average enrollment for the last two years) the increased fee would
generate additional revenue of $4,040. The cost of these courses is currently very low for the
value of the certifications that the lifeguard receives.
RISKS/IMPACTS ASSOCIATED WITH REDUCTION:
This fee increase will be viewed as a deterrent to some registrants. Registration for these
courses may also decrease with this cost increase. However, this new fee is still a considerable
savings if the candidate was taking all 5 courses separately throughout the year.
OP - 187
CITY OF KITCHENER
2012 BUDGET POTENTIAL REDUCTIONS ISSUE PAPER
ISSUE: PR08 -KIWANIS PARK -REDUCTION OF ONE CAMP STAFF
FUND: OPERATING
DEPARTMENT: COMMUNITY SERVICES ,AQUATICS AND ATHLETICS
PREPARER: DAVE MILLAR, SUPERVISOR OF AQUATICS KIWANIS PARK
DESCRIPTION OF POTENTIAL NET BUDGET REDUCTION:
2011 was the third year of operating a full day camp at Kiwanis Park. Based on registrations for
these camps, we are suggesting a reduction of one camp staff for future years. Four camp staff
have been hired in 2009, 2010 and 2011. Three camp staff would allow for the ratio of 10:1
campers to staff, which is considered a safe limit. We have historically allowed for registration of
up to 40 campers. This would reduce the maximum to 30 camper total per week. The average
camper registration ranges from 14 in 2009, 25 in 2010 and 22 in 2011.
BUDGET REDUCTION:
The cost of one summer camp staff is equivalent to $5,617. This includes training, wages and
fringe benefits.
RISKS/IMPACTS ASSOCIATED WITH REDUCTION:
This reduction would have no negative impact on the quality of Kiwanis Park's summer camp
program. Since the City is committed to providing a ratio of campers to staff of 10:1 or better, it
would mean that we could only accommodate 30 campers per week at Kiwanis Park.
OP - 188
CITY OF KITCHENER
2012 BUDGET POTENTIAL REDUCTIONS ISSUE PAPER
ISSUE: PR09 -Kiwanis Park -Reduced Hours on June Weekdays
FUND: Operating
DEPARTMENT: Community Services Aquatic and Athletics
PREPARER: Dave Millar, Supervisor of Aquatics at Kiwanis Park
DESCRIPTION OF POTENTIAL NET BUDGET REDUCTION:
This cost reduction would be achieved by offering reduced hours of operation for weekdays in
June, 2012.
Currently Kiwanis Park is opened for June hours all day. By altering the hours to Monday to
Friday 4:OOpm - 8:OOpm, a savings in part time staff will be achieved. Weekend hours in June
would remain the same.
BUDGET REDUCTION:
By opening during the evening only on weekdays in June (a total of 10 days) we would save:
- $850 in wages for gate house staff
- $809 in wages for Head Guards
- $2,515 in wages for lifeguards
- Total savings of 5 218 (includes fringe benefits)
RISKS/IMPACTS ASSOCIATED WITH REDUCTION:
Some regular Kiwanis customers will expect the park to be open through the day. This reduction
may result in complaints from these regular users.
School groups that visit the park without booking may be inconvenienced by this reduction in
hours.
OP - 189
CITY OF KITCHENER
2012 BUDGET POTENTIAL REDUCTIONS ISSUE PAPER
ISSUE: PR10 -Elimination of Movie Licences
FUND: Operating
DEPARTMENT: Community Services, Community Programs and Services
PREPARER: Debbie Campbell, Manager, Community Resource Centres
DESCRIPTION OF POTENTIAL NET BUDGET REDUCTION:
The elimination of movie licenses is offered as a potential for budget reduction. Movie Licenses
are required in each Community Centre to utilize movies in programming and special events at
that facility. Both Neighbourhood Association programming and direct City of Kitchener
programming (Senior Day Program, Youth Drop-In, Playground and Camp programs)
incorporate movies into their scheduling. Several Neighbourhood Associations also utilize
movies as community special events.
BUDGET REDUCTION:
Eliminate Movie Licenses: $5,000
RISKS/IMPACTS ASSOCIATED WITH REDUCTION:
The elimination of movie licenses would affect both the programming and special events
currently offered by Neighbourhood Associations and City of Kitchener staff in Community
Centres. In particular, it would affect the Senior Day program, youth drop-in programs, and
several Neighbourhood Associations who offer movies as a regular part of their programming.
Programs would need to be discontinued, or fees raised to offset the cost of these movie
licences.
OP - 190
CITY OF KITCHENER
2012 BUDGET POTENTIAL REDUCTIONS ISSUE PAPER
ISSUE: PR11 -Eliminate Neighbourhood Association Program Grants
FUND: Operating
DEPARTMENT: Community Services, Community Programs and Services
PREPARER: Debbie Campbell, Manager, Community Centres
II DESCRIPTION OF POTENTIAL NET BUDGET REDUCTION: II
The City of Kitchener offers program grants to affiliated neighbourhood associations to
encourage the provision of affordable, neighbourhood based programming for residents of the
City of Kitchener. The objective of the grant is to support citizen leadership in the development
and delivery of leisure and recreation-based programming to residents in their local
communities, and improve the quality of life in the City of Kitchener.
Cash grants of up to $750 per year are provided to those affiliated neighbourhood associations
who offer recreation programming. These grants support instructor wages, facility rentals and
other program costs, and are valuable to those neighbourhood associations who have budget
limitations and are maximizing resources to provide affordable programming to local residents.
Youth programming is particularly enhanced through the provision of these grants, and the
benefit of such programming is widely recognized.
BUDGET REDUCTION:
Eliminate neighbourhood associations program grants - $13,000
RISKS/IMPACTS ASSOCIATED WITH REDUCTION:
Program grants are a benefit of neighbourhood associations affiliation with the City of Kitchener.
Elimination of the grants would reduce the benefit of such affiliation.
Program grants are particularly valuable to fledgling neighbourhood associations who are
beginning to offer programs, smaller NAs who have fewer resources from which to draw,
neighbourhood associations who have limited access to City of Kitchener facilities, and those
neighbourhood associations who offer youth programming or other low-cost, no-cost
programming options.
Elimination of these program grants will result in more challenges for neighbourhood
associations to offer programs, and will likely decrease the number and variety of community
programs that are currently available. It will particularly be a disincentive for neighbourhood
associations to offer youth programming, and other no or low cost programming which would be
of great benefit to residents.
3- -
OP - 191
CITY OF KITCHENER
2012 BUDGET POTENTIAL REDUCTIONS ISSUE PAPER
ISSUE: PR12 -Reduce Neighbourhood Association Printing
FUND: Operating
DEPARTMENT: Community Services, Community Programs and Services
PREPARER: Mark Hildebrand, Director Community Programs and Services
DESCRIPTION OF POTENTIAL NET BUDGET REDUCTION:
The City of Kitchener offers all affiliated Neighbourhood Associations access to printing for their
Newsletters, minutes, and flyers to send out to the community in which they serve. Outlined in
Policy I-660 are guidelines which detail the maximum amount of printing provided to each
affiliate for their newsletters, flyers etc. Any requested printing in excess of the maximum
permitted is charged back to the each Neighbourhood Association.
The amount of printing requested from Neighbourhood Associations varies from year to year
depending on their activities. Over the past two years, the Neighbourhood Association printing
budget line has been in a surplus position. A reduction of $9,500 could be made to reflect use.
BUDGET REDUCTION:
Reduce Neighbourhood Association printing by $9,500.
RISKS/IMPACTS ASSOCIATED WITH REDUCTION:
Staff are not suggesting to reduce the maximum allotted printing for each Neighbourhood
Association outlined in Policy I-660 but rather adjusting the budget down to reflect the trend in
budget use over the last two years. Therefore there would be no impact on immediate
services.
However there is a possibility and risk that Neighbourhood Association activities requiring
printing could increase again, either putting the budget into a deficit position and/or leading to
further requests to increase this budget into the future.
3- -
OP - 192
CITY OF KITCHENER
2012 BUDGET POTENTIAL REDUCTIONS ISSUE PAPER
ISSUE: PR13 -Community Centre Closures
FUND: Operating
DEPARTMENT: Community Services, Community Programs and Services
PREPARER: Debbie Campbell, Manager, Community Resource Centres
II DESCRIPTION OF POTENTIAL NET BUDGET REDUCTION: II
Community Resource Centres are highly used public facilities which are currently open to the
public 52 weeks per year. This budget reduction would result in the closure of each Community
Centre for one week per year. Such a closure would occur primarily in the latter part of June or
August, when programs are at a minimum. During this shutdown period, arrangements would
be made through Facilities Management for maintenance and upkeep that is required annually
at all the Centres, including floor refinishing, painting, repairs and thorough cleaning.
It should be noted that Community Centre budgets reflect a large component of part-time staff,
which maximizes service provision to the public in acost-effective manner. Closures of
Community Centres will adversely affect part-time staff through a reduction in wages.
BUDGET REDUCTION:
Part Time Wages: $15,960
Fringe Benefits: $ 3,990
One Week Total: $19,950
RISKS/IMPACTS ASSOCIATED WITH REDUCTION:
One week of closure would have the following impacts to the public:
reduction in service to Neighbourhood Association volunteers
• reduction in programming by Neighbourhood Associations, Youth Drop In, Inclusion
programs, other direct City of Kitchener programs, and partner organization programs
reduction in availability and space for summer staff training, and summer/fall program
registration
reduction of services to older adults
lack of public access to Community Outreach workers for program subsidies, food and
clothing supports, and bus tickets.
• lack of availability of Centres for rentals, and rental inquiries
lack of access to Centres as community hubs for public access computers, information
and referral, cooling centres etc
One week closure would have the following impacts on staff:
reduction in pay for part-time Community Centre staff
potential for loss of long-term, experienced staff as a result of reduction of wages
reduced staff morale
OP - 193
CITY OF KITCHENER
2012 BUDGET POTENTIAL REDUCTIONS ISSUE PAPER
ISSUE: PR14 -Delayed Opening of City Hall Skating Rink
FUND: Operating
DEPARTMENT: Community Services
PREPARER: Kim Kugler, Keith Baulk
II DESCRIPTION OF POTENTIAL NET BUDGET REDUCTION: II
Defer opening of City Hall skating rink by 2 weeks until approximately December 15t
BUDGET REDUCTION:
This would result in savings of $8,000.
RISKS/IMPACTS ASSOCIATED WITH REDUCTION:
The City Hall rink is a well used public service, so a delayed opening would negatively impact
downtown vitality initiatives, create a longer less aesthetically pleasing non-use period between
the removal of the water in the fountain and installation of ice, and creates conflicts with the
load-in of Christkindel Market.
OP - 194
CITY OF KITCHENER
2012 BUDGET POTENTIAL REDUCTIONS ISSUE PAPER
ISSUE: PR15 -Eliminate One Major City Owned Festival
FUND: Operating
DEPARTMENT: Community Services -Enterprise
PREPARER: Jeff Young/Keith Baulk
DESCRIPTION OF POTENTIAL NET BUDGET REDUCTION:
The City has direct responsibility for developing, programming, funding and implementing 6 major
festivals or events. However there are strong partnerships that have evolved with a local car club
in the case of Cruising on King St and with the library for Kidspark and Word on the Street. These
festivals and some metrics associated with them are as follows:
Event Net Cost Total Bud et Attendance Cost/Attendee
Cruisin on Kin St. $25,000 $106,000 50,000 $0.50
Kids ark $25,000 $110,000 15,000 $1.67
Word on the Street $25,000 $118,000 6,000 $4.17
New Years Eve Celebration $10,000 $85,000 5,000 $2.00
Toone Tuesda s $10,000 $40,000 2,000 $5.00
Downtown Live - Civic S uare $12,000 $12,000 n/a n/a
The total budgets include the value of in-kind sponsorships from various media outlets.
There are a many other festivals and events the City supports however they are owned by cultural
groups, non-profit organizations, the BIA, other City Departments or private operators. City
support includes providing grants, professional advice, services at cost and/or partnership funding.
Special event funding cuts are not being suggested for these groups.
BUDGET REDUCTION:
Eliminating one major City owned festival could have a budget reduction of $10,000 to $25,000,
depending on which festival is chosen.
RISKS/IMPACTS ASSOCIATED WITH REDUCTION:
Special event programming has been critical in supporting economic development strategies
related to a vibrant downtown. In particular the significant investment in the downtown streetscape
won't achieve its purpose unless it is animated by events.
Special Events are important for the knowledge-sector as events create a vibrant city and a more
livable community which supports their efforts to recruit and retain talent. The success of events in
the core have also been an important element in making the downtown more livable and a small
piece of the puzzle that has resulted in the recent proliferation of condominium development.
Events not only create community spirit and pride, they bring people downtown and over the years
have helped change the public image of downtown and Victoria Park. Eliminating events has the
potential over time to negatively impact the positive strides that have been made downtown and at
Victoria Park.
3- -
OP - 195
CITY OF KITCHENER
2012 BUDGET POTENTIAL REDUCTIONS ISSUE PAPER
ISSUE: PR16 -DISCONTINUE ANNUAL ALLOCATION TO THE RESIDENTIAL
ENERGY EFFICIENCY PROJECT (REEP)
FUND: OPERATING
DEPARTMENT: FINANCE & CORPORATE SERVICES -LEGISLATED SERVICES
PREPARER: COLIN GOODEVE, COMMITTEE ADMINISTRATOR
DESCRIPTION OF POTENTIAL NET BUDGET REDUCTION:
Founded in 1998, the Residential Energy Efficiency Project (REEP) is a community-based
partnership that provides home energy evaluations in Waterloo Region. Using the national
home energy rating system developed by Natural Resources Canada (EnerGuide for Houses),
REEP has been conducting home energy audits since the federal grant program began in
October 2003. In early 2006, REEP became incorporated as a project of Waterloo Region
Green Solutions (WRGS), a community-based non-profit environmental organization that is
funded by a combination of local partners, provincial contracts, grants and client fees. The City
has funded REEP since 2000, and for the past several years, the value of the grant was
$25,000. In 2011, REEP received $27,500 and has requested the same amount for 2012.
REEP has received funding through the Environmental Committee budget for the past 11 years.
Annually, funding is allocated in the Environmental Committee
budget for REEP. However, unlike how financial assistance is
provided to most outside groups, the existing allocation process
does not require REEP to compete with other organizations for
funding. Accordingly, it is proposed that REEP's annual funding
request should be considered as part of the Community Grant
Program, rather than through the Environmental Committee
budget. This would allow for a more equitable process whereby
REEP's request could be compared and evaluated against
those submitted by other outside groups.
On the basis that REEP has received ongoing funding from the
City, it would seem appropriate for them to submit an application
for a Tier 1 Community Grant. Tier 1 Grants, comprise services
that are considered essential to a healthy and vibrant community and are provided by
longstanding, credible organizations. The following chart documents the measureable benefits
Environmental Benefit* 2010 2009 1999-2010
Carbon emissions reduced 6,747 tonnes 4,359 tonnes 18,142 tonnes
Economic Benefits*
Grants received $5,167,015 $3,553,580 $11,102,761
Ener savin s er ear $1,542,750 $996,750 $4,531,500
Locals endin on retrofits $12,342,000 $7,974,000 $30,624,000
REEP has contributed
to the community since
their inception.
The end of the federal
ecoENERGY - Homes
program in March of
2011 required REEP to
*based on estimates by Natural Resources Canada outlined in REEP's 2010 Annual Report refocus. In anticipation
of the cessation of this program, they updated their strategic plan examining how their future
direction could align with community needs. Their findings showed an increasing concern for
the rising cost of energy, and that homeowners needed information to make informed decisions
about renovation options, contractors and financing. In addition, they saw municipalities trying
to cope with the cost of maintaining their water infrastructure. To address these needs, REEP
added new services and community programs such as, an Electricity Saving Audit, Green Home
Planner, and RAIN - an ecological approach to stormwater management. These new offerings,
2011-08-31
Environmental Committee
Fundin to REEP
2000 $5000
2002 $10,000
2003 $10,000
2004 $20,000
2005 $20,000
2006 $20,000
2007 $25,000
2008 $25,000
2009 $25,000
2010 $25,000
2011 $27,500
OP - 196
along with the various energy evaluations they provide, demonstrate REEP's continuing
contribution to a healthy and vibrant community.
In accordance with Council Policy I-525 (Community Investment), only groups providing
municipal services in the areas of arts and culture /special events, sports and recreation, and
community support and development as well as those funded by the City for at least five years
through community grants are to be considered for Tier 1 funding. In addition, an applicant
organization must demonstrably meet Council's strategic objectives as documented in the City
of Kitchener Strategic Plan; however, grant requests falling under the "Environment" strategic
objective are to be handled through environmental grant programs, such as the Local
Environmental Action Fund (LEAF) or the Community Environmental Improvement Grant
(CEIG) Program. Based on this criteria, REEP would need an exemption to receive funding
through the Community Grant Program. It should be noted that such an exemption could create
ambiguity as to what is deemed an eligible organization and has the potential to encourage
other environmental groups to request Community Grant funding.
Both LEAF and CEIG are intended for specific projects and not multi-year support and
therefore, neither would be appropriate ongoing source funding for REEP. Conversely, Tier 1
support is confirmed through amulti-year operating agreement. In addition, the annual budget
for the CEIG program is approximately $11,000 with a maximum grant allocation to any one
group of $3,000. Accordingly, the CEIG program lacks the necessary funds to accommodate
REEP. LEAF has established criteria to fund small projects requesting $50,000 or less. LEAF
grants are normally one-time in nature awarded for a definitive purpose, and for projects /
programs covering an identified time. One of the program's identified objectives is to contribute
to a reduction of greenhouse gases, which is something that REEP continues to accomplish
with demonstrable results. In 2011, REEP was awarded two separate LEAF grants, being
allocated over two years. The first in the amount of $500,000 for the Kitchener Home Energy
Improvement Program, to provide incentives to owners of pre-1970s homes to complete energy
audits and insulate/air-sealing based on the federal ecoENERGY model. $440,037 of this
funding was reserved for the incentives and grant verifications. The second, in the amount of
$161,245 for their (RAIN! Ecological Approach to Stormwater Management project.
REEP is an environmental non-profit organization that provides services, tools and programs
with a goal of creating a healthier community through sustainable living techniques. In doing so,
REEP meets several of Council's strategic objectives related to quality of life, community
engagement, and development; which align with the tenets of the Tier 1 Community Grant
Program. It is suggested that as an interim measure, REEP's anticipated 2012 funding request,
be included as part of year two of their LEAF funding, thereby allowing time to identify how best
to approach the allocation of long-term funding through the Community Grant Program.
BUDGET REDUCTION:
Discontinuing the $27,500 allocation to REEP through the Environmental Committee Budget,
equates to a potential savings to the tax supported operating budget. Notwithstanding Council
Policy I-525 (Community Investment), future funding requests submitted by REEP would be
considered as part of the Community Grant Program.
RISKS/IMPACTS ASSOCIATED WITH REDUCTION:
There is no risk to the department/division associated with this reduction.
There is a risk that REEP may be unsuccessful in its request for funding through the Community
Grant Program and the organization may need to investigate alternative funding sources.
2011-08-31
OP - 197
CITY OF KITCHENER
2012 BUDGET POTENTIAL REDUCTIONS ISSUE PAPER
ISSUE: PR17 -Property Tax Administration Fee
FUND: Operating
DEPARTMENT: Revenue
PREPARER: John Sonser, Revenue Analyst
DESCRIPTION OF POTENTIAL NET BUDGET REDUCTION:
Each year the City processes a significant number of property ownership changes. Currently
the City of Kitchener does not charge a fee for this service, but other municipalities in the
Region do. Staff are proposing charging $35 for processing property ownership changes,
beginning in 2012.
Property ownership changes can come from a number of sources; existing owners, new owner's
lawyers/law firms and the Municipal Property Assessment Corporation (MPAC) through their
monthly sales reports. Customer Services Representatives (CSR's) and Revenue staff record
and process the changes in the Customer Information System (CIS). Between 2008 and 2010,
the City of Kitchener processed well over 6,000 property ownership changes annually.
Types of costs incurred by the City include staff resources -CSR's/Clerical staff inputting and
updating CIS; system resources; billing; mailing; supplies and overhead.
The ownership change fee is standard for municipalities across the Region. Table 1 below
shows the fees charged by our regional municipal comparators in 2011.
Table 1
Municipalities
Charging Property Ownership Change Fees
Cambridge Waterloo
Ownership Changes $ 40.00 $ 37.50
The City currently charges a $35 "Utility Account Administration Fee" for utility account changes.
A fee of $35 for processing a property ownership change is reasonable, given that the amount
of work required is similar to that required for processing utility account changes. The
recommended fee is lower than those charged by cities of Cambridge and Waterloo.
BUDGET REDUCTION:
In 2012, it is anticipated that the "ownership changes" fee will generate additional revenue
totalling $185,000. This is based on a February/March implementation, with no retroactive
application.
RISKS/IMPACTS ASSOCIATED WITH REDUCTION:
The addition of the ownership fee may result in an increase in customer complaints.
2011-08-31
OP - 198
CITY OF KITCHENER
2012 BUDGET POTENTIAL REDUCTIONS ISSUE PAPER
ISSUE: PR18 -Reduce Sidewalk Infill Capital Program
FUND: Capital
DEPARTMENT: INS -Engineering
PREPARER: Greg McTaggart -Manager, Infrastructure Asset Planning
DESCRIPTION OF POTENTIAL NET BUDGET REDUCTION:
This annual program is intended to construct new sidewalks in locations of the city that are
already urbanized and developed. Although it is standard practice now to have sidewalks
installed as part of new development, there are older areas of the city that for various reasons
did not have sidewalks installed at the time of their initial construction. The process of filling in
these "gaps" in the city's existing sidewalk network is often referred to as "sidewalk infilling". The
current budget allocation of just over $300,000 allows for approximately 2,340 metres of new
sidewalk installation per year. As a potential reduction for the 2012 budget, this could be
reduced by $150,000/year (roughly half).
BUDGET REDUCTION:
The proposed reduction is $150,000/year. This capital project is funded from federal gas tax, so
in order to realize a benefit to the tax base, the funding from this project would be reallocated to
a project (or projects) currently funded from the tax supported capital pool. This project is
unfunded in 2012. As such, a decrease in funding will require a project that is currently funded
by the tax supported capital pool to be funded by federal gas tax closeouts in 2012.
RISKS/IMPACTS ASSOCIATED WITH REDUCTION:
A reduction in the amount of work performed annually would result in a reduction in the rate of
new sidewalks being installed in existing urbanized areas of the city. This would represent a
reduction in the rate of progress of overall objective of the program, which is to provide
sidewalks for citizens with a walking environment that is as safe as is possible for all of the city's
pedestrians, by striving to provide sidewalk availability for all citizens to use where ever they
may choose to walk within the public right-of-way. Specifically, this program is in support of
several corporate goals, objectives, and guiding principles which are listed below:
1) The Pedestrian Charter For The City Of Kitchener (report CRPS-05-051) has been adopted
as a guiding principle on issues related to pedestrians and related transportation matters in the
city on a broad scale.
2) The Strategic Plan For The Environment (report DTS-08-060), has a mission intended "to
ensure an environment that is ecologically sound and supportive of health, safety, and well-
being of its residents by identifying policies and practices which reflect community values and
impact positively on the environment':
3) A Plan For A Healthy Kitchener (P4HK) prepared by Compass Kitchener (report CAO-06-
050), has a mission intended "to provide a single strategic approach to delivering results in key
areas that are essential to the health and vitality of our city, now and into the future". On the
issue of diversity and inclusiveness, 85% of citizens who participated indicated their willingness
to spend the same or more funding on increasing physical accessibility, such as wheelchair
access.
Some locations that are currently without sidewalk and would be candidates for installation of a
sidewalk in the upcoming 10 year period would likely have to wait longer for that installation to
occur, as work would have to be stretched out to fit within a reduced funding envelope.
OP - 199
CITY OF KITCHENER
2012 BUDGET POTENTIAL REDUCTIONS ISSUE PAPER
ISSUE: PR19 -Reduction of Energy Consumption
FUND: Operating
DEPARTMENT: INFRASTRUCTURE SERVICES -FACILITIES MANAGEMENT
PREPARER: Cynthia Fletcher, Director -Facilities Management
DESCRIPTION OF POTENTIAL NET BUDGET REDUCTION:
Facilities Management staff plan to facilitate education and information sessions with occupants
of buildings, with the goal of reducing our utility costs. We have incorporated many technology
systems into our facilities and conducted various energy saving component retrofits/
improvements. We are turning our attention to working with our stake holders to collectively
reduce consumption in our facilities.
BUDGET REDUCTION:
This initiative will result in a reduction in expense. While difficult to quantify at this point and
likely to have an incremental impact over a 3-5 year period, we anticipate a decrease of $10,000
in the first year.
RISKS/IMPACTS ASSOCIATED WITH REDUCTION:
Very few potential risks.
OP - 200
CITY OF KITCHENER
2012 BUDGET POTENTIAL REDUCTIONS ISSUE PAPER
ISSUE: PR20 -Review of Corporate Leases
FUND: Operating
DEPARTMENT: INFRASTRUCTURE SERVICES -FACILITIES MANAGEMENT
PREPARER: Cynthia Fletcher, Director -Facilities Management
DESCRIPTION OF POTENTIAL NET BUDGET REDUCTION:
Facilities Management staff plan to facilitate a review of our Corporate Lease Management
processes. The intent is to bring consistency to our processes, ensure Corporate Properties
have valid lease agreements, review collection/ non-payment notice processes and clarify roles
and responsibilities related to management of our leased properties. Our goal is to ensure we
are leasing properties fairly, have proper documentation/agreements, and are maximizing our
financial potential.
BUDGET REDUCTION:
This initiative will result in an increased income stream. While difficult to quantify at this point
and likely to have an incremental impact over a 3-5 year period, we anticipate an increase of
$10,000 in the first year.
RISKS/IMPACTS ASSOCIATED WITH REDUCTION:
Potential change in practice for many tenants and therefore the City may need to look at phased
in approaches.
OP - 201
CITY OF KITCHENER
2012 BUDGET POTENTIAL REDUCTIONS ISSUE PAPER
ISSUE: PR21 -REDUCED SPORTSFIELD MAINTENANCE
FUND: OPERATING
DEPARTMENT: INFRASTRUCUTURE SERVICES -OPERATIONS DIVISION
PREPARER: JIM WITMER, DIRECTOR OF OPERATIONS
DESCRIPTION OF POTENTIAL NET BUDGET REDUCTION:
If staff were to increase the time between cuttings of our secondary fields (park fields and
secondary school fields) from 1-2 weeks instead of the current one week there is a potential net
budget reduction of $50,000.
BUDGET REDUCTION:
This proposal would result in the elimination of (2 temporary seasonal staff) and the associated
equipment and equates to a potential net budget reduction of $50,000.
RISKS/IMPACTS ASSOCIATED WITH REDUCTION:
This proposal would result in reduced playability of the fields and may cause user groups to
request a reduction in the user fee rate for the fields. As well, reduced sportsfield maintenance
will likely cause significant increase in the complaints from parents and sports groups and will
mean that the City is unable to open any sportsfields until June 15t
OP - 202
CITY OF KITCHENER
2012 BUDGET POTENTIAL REDUCTIONS ISSUE PAPER
ISSUE: PR22 -REDUCED TURF MAINTENANCE
FUND: OPERATING
DEPARTMENT: INFRASTRUCTURE SERVICES -OPERATIONS DIVISION
PREPARER: JIM WITMER, DIRECTOR OF OPERATIONS
DESCRIPTION OF POTENTIAL NET BUDGET REDUCTION:
Increase the time between cuttings of parks and road allowances to five weeks instead of the
current four plus weeks.
BUDGET REDUCTION:
This proposal would result in the elimination of two trim crews (4 temporary seasonal staff) and
the associated equipment and trucks to support this service and equates to a potential net
budget reduction of $180,000.
RISKS/IMPACTS ASSOCIATED WITH REDUCTION:
This proposal would move the City farther away from the three week cutting target that was
previously approved by Council, and does not address the annual resident complaints regarding
long grass and weeds during the summer, especially in the initial growth flush of the spring.
Reducing turf maintenance will cause a significant increase in the complaints from residents and
will likely cause the City to be in contravention of the Lot Maintenance By-law, as turf could be in
excess of the 20cm maximum height.
OP - 203
CITY OF KITCHENER
2012 BUDGET POTENTIAL REDUCTIONS ISSUE PAPER
ISSUE: PR23 -TEMPORARY LABOUR HIRING DELAY
FUND: OPERATING
DEPARTMENT: INFRASTRUCTURE SERVICES -OPERATIONS DIVISION
PREPARER: JIM WITMER, DIRECTOR OF OPERATIONS
DESCRIPTION OF POTENTIAL NET BUDGET REDUCTION:
By delaying the initial hiring of our temporary seasonal staff by one week we could realize a
potential net budget reduction of $25,000.
However, any reduction in staff time and availability will have an impact on overall service levels
and the ability to address the growth flush and preparations of the sportsfields for the season.
BUDGET REDUCTION:
This proposal would result in the delayed hiring of all temporary seasonal staff with a potential
net budget reduction of $25,000.
RISKS/IMPACTS ASSOCIATED WITH REDUCTION:
There will be a significant increase in the complaints from residents and sports groups about the
condition of parks, playgrounds, trails and road allowances as it relates to maintenance.
OP - 204
CITY OF KITCHENER
2012 BUDGET POTENTIAL REDUCTIONS ISSUE PAPER
ISSUE: PR24 - KITHENER PUBLIC LIBRARY POTENTIAL REDUCTIONS
FUND: OPERATING
DEPARTMENT: KITCHENER PUBLIC LIBRARY
PREPARER: SONIA LEWIS, CEO
DESCRIPTION OF POTENTIAL NET BUDGET REDUCTION:
As per the Public Libraries Act, the Library Board determines how best to provide public library services to
the residents of Kitchener utilizing the annual municipal appropriation funding provided by the City of
Kitchener. At the Finance and Corporate Services Committee meeting on June 20, 2011, staff was
directed to identify tax-supported budget reductions ranging from 0% to 2%. A two percent reduction in
City funding for the Kitchener Public Library (KPL) equates to $182,303.
BUDGET REDUCTION:
At its August 17, 2011 meeting the KPL Board reviewed Council's request for potential operating budget
reductions. Within KPL's operating budget, there are only a few budget lines that could accommodate
reductions of this magnitude. A 2% cut would require the following reductions:
Resource materials $ 86,152
Salaries $ 86,151
Staff training 10 000
Total $182,303
RISKS/IMPACTS ASSOCIATED WITH REDUCTION:
In accordance with City guidelines, KPL's operating budget submission includes a 2.1% increase. Since
overall cost increases in 2012 will exceed 2.1 %, the proposed budget cuts $51,648 from salaries and
benefits. Processing/bindery, postage, telephone and stationery expenses have also been reduced to
offset increases in other expenses, such as OMERS.
The resource materials budget submitted for 2012 is frozen at the 2011 funding level. With costs for
books, electronic and A/V resources expected to rise in 2012, aflat-lined budget results in reduced buying
power. Cutting $86,152 from resources equates to roughly 2,900 books not being purchased, i.e. 8.6% of
the total new books acquired in 2011 and would further reduce buying power. Cutting the resources
budget has a direct impact on the service we provide to the community as it means fewer new items
would be added to KPL collections. For customers this means longer wait times for high demand titles
and fewer information and recreational resources.
Implementing a reduction of $86,151 from salaries would require cutting approximately 6.5 part-time
positions. This would result in a loss of 105 part-time hours/week, reducing staffing levels at circulation
and information desks and impacting public service system-wide. Customers would experience longer
line-ups, on occasion information desks would be closed and telephone reference service would be
reduced and possibly eliminated. Transferring support services staff to public services to assist with the
gaps in public service would result in longer turnaround times to get new materials ordered and ready for
the public.
The impact of a $10,000 cut to staff training would reduce this budget by 28%. This is a significant
reduction and would greatly limit staff training opportunities to develop skills and respond to changes,
particularly in the area of technology and its application in libraries.
Kitchener Public Library services are in demand city-wide. Newcomers, families, seniors, the unemployed
and other residents turn to the library in tough economic times for access to free information and
recreational resources, services and programs. Any reduction to the budget would negatively impact the
public given the reduced buying power for books, AV materials and electronic resources and reduced
staffing levels to provide service to the public. Given these negative impacts on Kitchener residents and
the cuts already made to meet City guidelines, no further cuts are recommended by the KPL Board.
OP - 205
CITY OF KITCHENER
2012 BUDGET POTENTIAL REDUCTIONS ISSUE PAPER
ISSUE: PR25 -CENTER IN THE SQUARE POTENTIAL REDUCTIONS
FUND: OPERATING
DEPARTMENT: THE CENTRE IN THE SQUARE
PREPARER: SHARON MCMORRAN -DIRECTOR OF FINANCE
DESCRIPTION OF POTENTIAL NET BUDGET REDUCTION:
In 2011 The Centre In The Square (CITS) received the City of Kitchener base operating grant of
$1,370,079 as well as a one-time extra grant of $50,000 for specific projects for a total of
$1,420,079. 2012 budget presented was for $1,398,851 (2.1 % increase over base grant 2011)
and CITS made no request for any additional grant. To further reduce the 2012 budget request
by 2% would require a cost reduction of $27,402.
This cost reduction is proposed to be made up of 3 items:
Reduction in Box Office Hours
Elimination of Director of Finance overlap
Reduction in conference attendance
BUDGET REDUCTION:
Reduction in Box Office Hours -The Centre In The Square would delay Box Office opening
hours from 10am to 11 am each morning.
Elimination of Director of Finance overlap -The retiring Director of Finance would not be
available to coach the new Director of Finance. (The current plan is for one month overlap).
Reduction in conference attendance -CITS would reduce programming conference attendance
by two conferences in 2012.
RISKS/IMPACTS ASSOCIATED WITH REDUCTION:
Reduction in Box Office Hours -Currently CITS provides Box Office Services for CITS,
Kitchener Memorial Auditorium, Registry Theatre, KW Symphony, Grand Philharmonic, Elmira
Theatre Company, and KW Little Theatre. This cut in hours could result in reduced service and
lower sales for CITS, KW Auditorium, and these other community organizations.
Elimination of Director of Finance overlap - In 2012, the Director of Finance will be retiring after
22 years with the organization. If the overlap is eliminated, these 22 years will be walking out
the door with no knowledge transfer to get the new Director of Finance up to speed.
Reduction in conference attendance -Conferences are important for programming staff to view
potential CITS shows. This reduction may result in missing out on quality programming that
would be experienced at these conferences, which lowers the quality of CITS programming and
ultimately lower future ticket sales. In addition, the 2012 budget calls for CITS to look at
increasing quantity and quality of school programming. One cut would be the school
programming conference, decreasing the quantity and quality of children's' experiences and
jeopardizing potential significant sponsorship funding.
OP - 206
CITY OF KITCHENER
2012 BUDGET POTENTIAL REDUCTIONS ISSUE PAPER
ISSUE: PR26 -Base Budget Adjustments (REVISED)
FUND: Operating
DEPARTMENT: All
PREPARER: Ryan Hagey, Manager/Interim Director of Financial Planning
DESCRIPTION OF POTENTIAL NET BUDGET REDUCTION:
Divisions across the corporation identified a number of smaller dollar items that could potentially
be adjusted to meet Council's direction of budget reduction options of up to a 2%. These
reductions are in addition to the reductions included in the Budget Call instructions provided to
departments for budget preparation. Rather than present each of them individually, they have
been grouped together as one potential reduction.
The base budget adjustments include expense reductions to items such as training/conference
fees, printing costs, and part-time/contract wages. They also include revenue increases that
better reflect actuals for items such as room rentals, and aquatics programs. One of the
adjustments also involves the implementation of a new user fee for the cost recovery of
public notice advertisements in the Planning Division.
BUDGET REDUCTION:
The total of all base budget adjustments in excess of the budget guideline is $215,722.
RISKS/IMPACTS ASSOCIATED WITH REDUCTION:
There are minimal risks/impacts associated with these reductions. However, there will be a
slight impact to external customers resulting from the additional user fee for
development applications which require public notice advertisements ($500 for
condominium applications, Official Plan amendments and zone changes, $1000 for
subdivision applications). This new user fee has been discussed at a Homebuilders
Liaison Committee meeting and no concerns were expressed. There was discussion of a
possible 1% reduction to the corresponding planning fees to partially offset the new user
fee. For Council's information such a reduction would reduce projected revenues by
$2,000 and various application fees would be reduced by amounts ranging from $10 to
$94.
OP - 207