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HomeMy WebLinkAbout2012-01-09 SSPECIAL FINANCE AND CORPORATE SERVICES COMMITTEE JANUARY 9, 2012 CITY OF KITCHENER The Finance and Corporate Services Committee met this date commencing at 7:18 p.m. Present: Councillor S. Davey - Chair Mayor C. Zehr and Councillors J. Gazzola, D. Glenn-Graham, B. Ioannidis, Z. Janecki, Y. Fernandes, K. Galloway, B. Vrbanovic and P. Singh. Staff: C. Ladd, Chief Administrative Officer D. Chapman, Deputy CAO, Finance & Corporate Services P. Houston, Deputy CAO, Infrastructure Services J. Willmer, Deputy CAO, Community Services R. Regier, Executive Director, Economic Development R. Gosse, Director, Legislated Services & City Clerk R. Hagey, Interim Director/Manager of Financial Planning S. Adams, Director, Community & Corporate Planning L. Johnston, Director of Corporate Communications & Costumer Service D. Saunderson, Committee Administrator DRAFT 2012 BUDGET - PUBLIC CONSULTATION 1. Councillor S. Davey welcomed members of the public in attendance, advising that this special meeting was being held to receive comments and consultation from the public in respect to the draft 2012 Budget. He stated that Council has given direction to staff to identify options to reduce the projected 3.9% tax levy increase by 2%. Final budget deliberations will be held on January 19, 2011. Mr. R. Hagey advised that the City has undertaken various consultative measures to inform and engage the public in budget considerations, including: a dedicated telephone line; e-mail address; web page devoted to the 2012 budget; a variety of publications; public meetings; and use of social media networking technologies. Copies of written responses received to date through the various methods of communication was circulated this date for the Committee’s information. The Committee was also in receipt of correspondence this date from the following: Harald Drewitz, dated January 9, 2012, requesting a reduction in the currently proposed property tax increase; REEP Green Solutions, dated January 9, 2012, requesting reconsideration of the proposal to require REEP to apply for grant funding through the Tier 1 Community Grant process rather than the grant funding structure from the Environment Committee; and, Kitchener Soccer Club, January 2012 Update, dated January 9, 2012 and The Kitchener Soccer Club, 2011 AGM Report dated December 17, 2011. Harald Drewitz, resident, advised that the lingering effect of the 2008/2009 economic downturn is continuing. He commented that there are many people in the community on fixed incomes or who experience very little increase in their wages annually. He requested clarification on the proposed spending amounts in 2014 and 2015 referenced on page CAP-126 of the draft Capital Budget. He stated that there is a significant difference in spending for those two fiscal years, why would Council not seek to keep a more balanced spending trend. He further advised that the Capital Budget package also references $9 M in spending toward a stand- alone library in the South end of Kitchener. He commented that greater consideration should be given to combine this service with another facility similar to the Forest Heights Pool, Library and School Complex. He indicated that the proposed budget will have an approximate increase of 5% to the average homeowner, and as he noted previously, there are very few people that receive annual household increases of 5%. Regarding the proposed Operating Budget, Mr. Drewitz referenced the Balance of Service Levels vs. Affordability survey referenced on page OP-18 of the Operating Budget, pointing out that the survey was completed in 2009 and suggested another survey should be taken. Residents may feel differently about Council’s spending due to the tough economic times. He stated that he was not in favour of reducing the Tax Stabilization Fund and noted that the proposed 2% reduction from the City’s controllable costs should be commended. He requested clarification on what the City deemed to be a controllable cost. SPECIAL FINANCE AND CORPORATE SERVICES COMMITTEE JANUARY 9, 2012 - 20 - CITY OF KITCHENER DRAFT 2012 BUDGET - PUBLIC CONSULTATION (CONT’D) 1. In response to questions, Mr. Drewitz advised that the proposed tax increase, by his calculation, would not equal 3.9%; the total tax increase percentage must take into consideration the increases in the Water, Sanitary Sewer, and Stormwater Rates. Taking those increases into consideration, he noted that by his calculation the 2012 increase would equal a 5.1% increase. Councillor K. Galloway advised that the library being proposed in the South End of Kitchener is being considered in conjunction with a community centre and it is unlikely it will be a stand- alone facility. In response to questions, Mr. Drewitz stated that in an ideal situation, the City should be seeking a 0% tax increase; however, in his opinion a reasonable tax increase for 2012 should fall between 1.5% and 1.9%. He indicated that even with this minimal tax increase it would still be his suggestion to find enough cuts within the budget to increase the Tax Stabilization Fund by at least $500,000. Mary Jane Patterson, Executive Director REEP, expressed her concerns regarding Finance and Corporate Services Department report FCS-11-217 to discontinue the annual allocation for REEP through the City’s Environmental Committee, and instead to direct REEP to apply through Tier 1 Community Grant Process. She gave a presentation reviewing REEP’s achievements in 2010/2011 and their goals for 2012. She thanked Council for their continuing support and noted that the City’s annual funding provides for significant leverage from other funding sources. She advised that she appreciates Council’s challenges with the upcoming budget; she just wanted to ensure that there is greater consideration to REEP and their contributions to the City. Mayor C. Zehr commented that the funding chart provided on the handout does not provide enough context to the overall funding received from each municipality within the Region. He requested that Council receive an updated chart outlining all the grant funding received in previous years, as well as any additional funding awarded by the municipalities, such as the LEAF program grants. Frank Prospero, President, Williamsburg Community Associations, advised that he resides in one of the fastest growing areas in Kitchener, and the Community Centre is the strength of the neighbourhood. He expressed his concerns that the proposed Neighbourhood Association budget reductions will significantly impact their community. He noted that the Association partners with other facilities such as schools and churches to meet the service needs of their community. He stated the proposed printing budget reduction would reduce the direct mail out which help people to stay informed and encourage residents to stay engaged. He further advised that the proposed expansion of the facility has also been proposed for a deferral until 2020, leaving the association without reliable access to facility space to maintain the demand of their growing community. He indicated that with new facilities being built in the neighbouring townships, there are now more opportunities for residents to seek recreational activities outside the City. He noted that it is his goal to ensure that residents can work and play within their community, and the proposed budget cuts may reduce the available programming to meet those needs. Franck Hivert, President, Kitchener Soccer Club, thanked Council for the ongoing support noting that 2011 was a very successful year for them. He noted that the Club continues to experience steady growth, even with the struggling economic times, with registration in 2012 increasing by 25%. Mr. Hivert expressed concern with the 2012 draft budget proposal, noting three potential reductions that he would like Council to reconsider: a reduction in maintenance on the outdoor sports fields, which could potentially cause injury and discourage participants from playing; the construction of additional synthetic turf fields being deferred from 2014 to 2015; and, the need for a new indoor facility to be added to Council’s 10-year forecast. Jennifer Urosefevic, Mill Courtland Neighbourhood Association, Chris Smith, Cedar Hill Community Group and Julie Allen-Gilbert, Highland Stirling Community Group, advised that the three neighbourhood organizations they represent all operate out of the Mill Courtland Community Centre. They thanked Council for their ongoing support and noted that it was still SPECIAL FINANCE AND CORPORATE SERVICES COMMITTEE JANUARY 9, 2012 - 21 - CITY OF KITCHENER DRAFT 2012 BUDGET - PUBLIC CONSULTATION (CONT’D) 1. their hope that Council would proceed with the community centre expansion in 2012. Ms. Urosefevic commented that one area of concern regarding the proposed reductions is relating to Community Grants. She advised that the facility is fully accessible and they offer a wide range of programs to individuals with special needs. She noted that a reduction in community grants could impact the staffing required to facilitate these types of programs. Anna Maste and Aimee Poleroy, Victoria Park Neighbourhood Association, advised that they have concerns with some of the proposed reductions in the 2012 draft budget. Ms. Maste requested that Council reconsider the cuts in: movie licensing, noting these licenses have minimal cost, but provide a great deal to the community; the proposed printing budget reduction advising that the Centre circulates a community newsletter, which is an effective way to keep families informed, and with a continually growing downtown population, the need for printing is increasing; and, the potential community centre closures. Ms. Maste suggested that if you close community centres you are eliminating the one thing that allows communities to connect and provide children a safe place to spend their time. Ms. Poleroy noted that they respect that budget cuts need to be made; however, reducing community centres funding would eliminate programs that help to keep children out of trouble and off the streets. Tessa Jennison, spoke on behalf of the Victoria Park Boathouse and the supporters in attendance. She thanked Council for their ongoing support noting that since the Boathouse has closed due to the Victoria Park Lake construction, the Boathouse enthusiasts have worked to stay connected. She advised that since the Council meeting on October 3, 2011, supporters of the venue would like clarification that the City is still on track with what was initially approved. Mayor C. Zehr noted that a report would be coming forward regarding the status of the Boathouse at the Monday January 16, 2012 Council meeting. Anyone that has an interest in its future may wish to attend. In response to questions, Ms. Jennison indicated that supporters of the Boathouse would like assurance that the Boathouse will continue to operate under Mr. Kevin Doyle following the construction of the Victoria Park Lake. She noted that at this moment there is some concern because a lease is still yet to be signed. She advised that ideally, the critical factors for the re- opening of the Boathouse would be a new patio; the facility has capacity for approximately 60 people, and an additional 30 people could be accommodated on an outdoor patio. She commented that there are other repairs within the restaurant; however, the public would rather have it re-open in disrepair than not open at all. Jen Pidgeon, supporter of the Victoria Park Boathouse, advised that the Boathouse is a unique facility, offering a venue for local artists to express their talents. It is more than a local restaurant; it is an opportunity to promote the arts. She noted that it takes a long time to establish the cliental to keep a restaurant running; it is a long term investment and the Boathouse has become more than just a restaurant for the struggling artists in the area. Denise Baker, supporter of the Victoria Park Boathouse, spoke in support of the Boathouse reopening, noting that the local enthusiasts would like to ensure that Council is still moving forward with what was agreed upon in October 2011. She noted that the proposed renovations were still being considered and that Mr. Doyle would still have the first right of refusal on the operation of the facility. Ms. C. Ladd stated that staff are putting forward a report at the Monday January 16, 2012 Council meeting that will outline staff’s proposal regarding the renovations and funding for the re-opening of the Boathouse. She noted that until those renovation details can be finalized, an agreement with Mr. Doyle cannot be finalized. She advised that staff are still going forward with what was originally discussed at the October 3, 2011 Council meeting. Councillor S. Davey thanked members of the public for their interest in the budget process and advised that the comments received would be taken into consideration as further deliberation of the budget takes final budget day on Thursday, January 19, 2012. SPECIAL FINANCE AND CORPORATE SERVICES COMMITTEE JANUARY 9, 2012 - 22 - CITY OF KITCHENER ADJOURNMENT 2. On motion, this meeting adjourned at 9:18 p.m. D. Saunderson R. Gosse Committee Administrator City Clerk