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HomeMy WebLinkAbout2015-02-23 FINANCE AND CORPORATE SERVICES COMMITTEE FEBRUARY 23. 2015 CITY OF KITCHENER The Finance and Corporate Services Committee met this date commencing at 9:01 a.m. Present: Councillor S. Davey-Chair Mayor B. Vrbanovic and Councillors F. Etherington, Y. Fernandes, K. Galloway- Sealock, J. Gazzola, B. loannidis, Z. Janecki, S. Marsh, D. Schnider and P. Singh. Staff: J. Willmer, Chief Administrative Officer D. Chapman, Deputy CAO, Finance &Corporate Services M. May, Deputy CAO, Community Services D. Tyagi, Deputy CAO, Infrastructure Services J. Miller, Executive Director, IT Training & Projects R. Hagey, Director, Financial Planning M. Seiling, Director, Building J. Witmer, Director, Operations C. Fletcher, Director, Facilities Management H. Gross, Director, Engineering W. Malcom, Director, Utilities J. Readman, Director, Transportation Services K. Kugler, Director, Enterprise M. Hildebrand, Director, Community Programs C. Tarling, Director, Legislated Services P. McCormick, Manager, Parking Enterprise J.Young, Manager, Special Events D. Fagerdahl, Manager, Financial Planning G. Hummel, Manager, Park Planning, Development and Operations D. Ritz, Supervisor, Design and Development C. Goodeve, Committee Administrator D. Livingstone, Committee Administrator D. Saunderson, Committee Administrator The purpose of this special meeting was to give final consideration to the 2015 Operating and Capital Budgets and the 10-Year Capital Forecast 2015-2024. It was noted that any recommendations from the Committee this date would be considered at the special Council meeting to be held immediately following this meeting. 1. FCS-15-027 - 2015 BUDGET PACKAGE (FINAL BUDGET DAY) The Committee considered Finance and Corporate Services Department report FCS-15-027, dated February 17, 2015, concerning the City's 2015 Operating and Capital Budgets, and additional considerations of strategic initiatives, additional assessment growth and chronic deficits that could affect the starting levy increase of 2.25%. OVERVIEW Mr. D. Chapman presented a budget overview, advising that the competing themes of affordability and sustainability would be a focus of consideration for the 2015 Budget. He reviewed the 2014 combined costs of taxes and water/sewer of municipal comparators. He explained that Kitchener has the fifth lowest combined tax and utility costs of Ontario's largest cities; has the lowest costs in the region; and, is lower than the average comparator municipality. With regard to sustainability, he indicated that Kitchener's tax supported operating budget is not sustainable as expenses have regularly been greater than revenues and the Tax Stabilization Reserve Fund (TSRF) is depleted due to these ongoing deficits. He referred to the annual Consumer Price Index (CPI)for 2014 which was 2.3%, and advised that Kitchener's proposed increase of 2.25% is less than the Ontario CPI as well as the approved increases by the Region of Waterloo or Cambridge. He reviewed the impact of the proposed levy, summating that Kitchener is the most affordable city in the Region and the proposed rate increases would help ensure sustainability does not worsen. BOARDS Mr. Chapman addressed the Committee regarding capital funding for Centre in the Square (CITS) and the Kitchener Public Library. He advised that the capital budget for CITS reflects the approved change of the acceleration of funding into 2015 to leverage Cultural Spaces FINANCE AND CORPORATE SERVICES COMMITTEE FEBRUARY 23. 2015 -26- CITY OF KITCHENER 1. FCS-15-027 - 2015 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT'D) federal grant funding, as outlined in Issue Paper BD 01 —Centre in the Square Capital Projects & Cultural Spaces. With regard to the capital budget for the Kitchener Public Library, he indicated that the budget remains unchanged from the capital budget presentation. At the request of Councillor J. Gazzola, the Centre in the Square and the Kitchener Public Library were dealt with separately. Centre in the Square A motion was brought forward by Councillor B. loannidis to approve the capital funding for Centre in the Square as presented. The following motion was then voted on and was Carried Unanimously by a recorded vote. On motion by Councillor B. loannidis- it was resolved: "That the 2015 Centre in the Square appropriation be approved." Kitchener Public Library A motion was brought forward Councillor B. loannidis to approve the capital funding for the Kitchener Public Library as presented. The following motion was voted on and was Carried by a recorded vote, with Mayor B. Vrbanovic and Councillors B. loannidis, D. Schnider, P. Singh, S. Davey, S. Marsh K. Galloway-Sealock, Y. Fernandes, Z. Janecki and F. Etherington voting in favour; and, Councillor J. Gazzola voting in opposition. On motion by Councillor B. loannidis- it was resolved: "That the 2015 Kitchener Public Library appropriation be approved as presented." Grants A motion by Councillor K. Galloway-Sealock was brought forward for consideration to approve the 2015 Grants with the exception of the ones for Creative Enterprise Initiative (CEI) and Strategic Initiatives Issue Paper SI 09 — House of Friendship: Chandler Mowat Community Centre Operating. Councillor Galloway-Sealock's motion was then voted on and was Carried Unanimously by a recorded vote. On motion by Councillor K. Galloway-Sealock- it was resolved: "That 2015 grant budgets be approved save and except Creative Enterprise Initiative (CEI)and House of Friendship." ENTERPRISE OPERATING BUDGETS Mr. R. Hagey advised that no significant changes have occurred to the 2015 Enterprise budgets,with year-end projections having been updated effecting minor changes. Golf Councillor B. loannidis brought forward a motion to approve the 2015 Operating Budget for the Golf Enterprise. The following motion was then voted on and was Carried Unanimously by a recorded vote. FINANCE AND CORPORATE SERVICES COMMITTEE FEBRUARY 23. 2015 -27 - CITY OF KITCHENER 1. FCS-15-027 - 2015 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT'D) On motion by Councillor B. loannidis- it was resolved: "That the 2015 budget for the Golf Enterprise as presented be approved." Building A motion was brought forward by Councillor B. loannidis to approve the 2015 Operating Budget for the Building Enterprise. The following motion was then voted on and was Carried Unanimously by a recorded vote. On motion by Councillor B. loannidis- it was resolved: "That the 2015 budget for the Building Enterprise as presented be approved." Parking Councillor B. loannidis brought forward a motion to approve the 2015 Operating Budget for the Parking Enterprise. The following motion was then voted on and was Carried Unanimously by a recorded vote. On motion by Councillor B. loannidis- it was resolved: "That the 2015 budget for the Parking Enterprise as presented be approved." Gas Councillor P. Singh left the meeting at this time. A motion by Councillor B. loannidis was brought forward for consideration to approve the Gas Utility 2015 budget as presented. The following motion was then voted on and was Carried by a recorded vote with Mayor B. Vrbanovic and Councillors B. loannidis, D. Schnider, S. Davey, K. Galloway-Sealock, S. Marsh and F. Etherington voting in favour; and, Councillors J. Gazzola, Y. Fernandes and Z. Janecki voting in opposition. Councillor P. Singh was absent at this time and accordingly did not vote. On motion by Councillor B. loannidis- it was resolved: "That the 2015 budget for the Gas Works Utility as presented be approved." The Committee then recessed briefly 10:57 a.m. and reconvened at 11:05 a.m. chaired by Councillor S. Davey,with all members present. Water/Sanitary Utility/Stormwater Utility Mr. Hagey presented the proposed 2015 rate increases for water and sewer rates at 9.9%, noting that both the water and sanitary utilities ended the year with deficits and their stabilization reserves have been depleted. He advised that both the water and sanitary utilities have significant ongoing Capital programs which require funding in order to ensure a safe water supply and sewage disposal system. He indicated that staff has provided an Issue Paper, BD02 (Water, Sanitary, and Storm Utility Rates), summarizing the different rate scenarios for Water, Sanitary, and Storm Utility Rates, and identifying the associated impacts of reducing the respective rates. He referred to the Issue Paper, stating that the proposed FINANCE AND CORPORATE SERVICES COMMITTEE FEBRUARY 23. 2015 -28 - CITY OF KITCHENER 1. FCS-15-027 - 2015 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT'D) rates are intended to maintain existing service levels and any type of rate reduction would result in a service reduction. He explained that the impact of a service reduction would result in increased failures, increased costs and decreased revenues. Mr. Hagey further advised that Accelerated Infrastructure Replacement Program (ARIP) projects are funded by Water, Sanitary, and Storm utilities in fixed proportions, noting that a reduction in one of the utilities would trigger a corresponding reduction in each of the other utilities. He indicated that a 1% reduction in Water rates would cause a 1.3% reduction in Sanitary rates, and a 2.1% rate reduction for the Storm utility. Councillor D. Schnider noted that since the City's infrastructure has been experiencing an average life expectancy of 50 years, he suggested that infrastructure replacement should be based on that average for all future budgets, rather than the current 80 year projection. Questions were raised regarding the budget implications with regards to the Waterloo Region Insurance Pool and the costs associated with claims due to watermain breaks. Mr. Chapman advised that although homeowners have personal insurance coverage, if residents believe that the City is also at fault, they may submit a claim to assist in covering damages. He noted that staff could report back as part of the annual year end update on the costs associated with claims related to watermain breaks. Mayor B. Vrbanovic brought forward a motion to approve a water rate increase of 9.9% to $1.9379 per cubic metre and the sanitary sewer rate increase of 9.9% to $2.1742 per cubic metre, as outlined in Issue Paper BD 02 attached to Report FCS-15-027. A motion was brought forward by Councillor Y. Fernandes to amend Mayor Vrbanovic's motion to reduce the budget allocation for Storm Water Storage: Stirling Avenue by $100,000. to assist in reducing the storm water rates by 1%; and, to reduce the Federal Gas Tax budget allocation for the South District Park / Upper Canada Park by $400,000. to assist in reducing the Sanitary rate by 1.3%. Questions were raised regarding the potential impacts of Councillor Fernandes' amendment. Mr. Chapman advised that a one-time contribution would assist in providing a rate decrease in 2015; however, an additional rate increase would be required in 2016 to offset the reduction in 2015. In response to questions, Councillor Fernandes acknowledged concerns raised by the other members of Council and agreed to withdraw her amendment pertaining to the $400,000. Federal Gas Tax funding proposed to help offset the Sanitary rate increase. Councillor Fernandes' amendment regarding the transfer of $100,000. from the Storm Water Storage: Stirling Avenue account was voted on by a recorded vote and was LOST, with Councillors J. Gazzola, S. Marsh, Y. Fernandes and Z. Janecki voting in favour; and, Mayor B. Vrbanovic and Councillors P. Singh, B. Ioannidis, D. Schnider, S. Davey, K. Galloway-Sealock and F. Etherington voting in opposition. A motion was brought forward by Councillor J. Gazzola to amend Mayor Vrbanovic's motion to utilize $1.5M of the Federal Gas Tax funding towards the Water and Sewer utilities, which would reduce the proposed water rate from 9.9% to 7.9% and reduce the proposed sewer rate from 9.9%to 7.3%. Councillor Gazzola's amendment was voted by a recorded vote and was LOST, with Councillors J. Gazzola, Y. Fernandes and Z. Janecki voting in favour; and, Mayor B. Vrbanovic and Councillors B. Ioannidis, P. Singh, S. Marsh, D. Schnider, S. Davey, K. Galloway-Sealock and F. Etherington voting in opposition. The following motion was then voted on and Carried by a recorded vote, with Mayor B. Vrbanovic and Councillors B. Ioannidis, P. Singh, S. Marsh, D. Schnider, S. Davey, K. FINANCE AND CORPORATE SERVICES COMMITTEE FEBRUARY 23. 2015 -29 - CITY OF KITCHENER 1. FCS-15-027 - 2015 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT'D) Galloway-Sealock and F. Etherington voting in favour; and, Councillors J. Gazzola, Z. Janecki and Y. Fernandes voting in opposition. On motion by Mayor B.Vrbanovic- it was resolved: "That, effective April 1, 2015, the water rate be increased 9.9% to $1.9379 per cubic metre, the sanitary sewer rate be increased 9.9%; and, the storm water utility monthly rates be increased 3%." The Committee then recessed at 1:22 p.m. and reconvened at 2:04 p.m. chaired by Councillor S. Davey,with all members present. CAPITAL BUDGET Mr. Hagey advised that the Capital Budget remains unchanged from what was reviewed at the January 12, 2015 Finance and Corporate Services Committee meeting, save and except for: the Centre in the Square outlined in Issue Paper BD01; and, the removal of the Snow Dump funding outlined in Issue Paper BD05. Follow-up Issue Papers BD03—South District Park The following motion was Carried Unanimously by a recorded vote. On motion by Councillor K. Galloway-Sealock- it was resolved: "That Strategy `A' (Two Phases), be approved as the preferred option for the development of the South District Park, as outlined in the 2015 Capital Budget and Forecast." BD04—District Parks—Upper Canada Park In response to questions, Mr. D. Ritz advised that the Upper Canada Park project does not just involve upgrades to the ball diamonds, but also the washrooms, parking lot, trails, connectivity to the community centre, skatepark, playground and park amenities. He noted that being a district park, it would service residents from across the City. He acknowledged the Upper Canada Park project was originally intended to be funded through a general provision account; however, with the reduction in Development Charge funding alternative funding sources had to be identified to facilitate this project. At the request of Mayor B.Vrbanovic, the Committee reviewed a recommendation establishing the City's leisure facilities priorities for future funding, which included the Upper Canada Park amenities outlined in Issue Paper BD04. Mr. M. May indicated that of those identified priorities, additional funding is also required to move forward with the Grand River Park. He advised that an estimate in the Leisure Facilities Master Plan projected a cost of approximately $10M to complete the series of parks along the Grand River. Mr. G. Hummel commented the two projects are very different, noting the Grand River Park project is more of a passive park while Upper Canada Park is an active park. He added that the 2010 Parks Master Plan identified ten parcels of lands that would be needed along the Grand River for the park. He noted currently, the City does not own all of those parcels. A motion was brought forward by Mayor B. Vrbanovic to approve the funding proposed for Upper Canada Park as outlined in the 2015 Capital Budget and Forecast, but hold it over pending a report being provided by June 2015 as to the possibility of moving forward with both it and the Grand River Park. The following motion was then voted on and was Carried by a recorded vote, with Mayor B. Vrbanovic and Councillors B. loannidis, D. Schnider, P. Singh, S. Davey, S. Marsh and F. FINANCE AND CORPORATE SERVICES COMMITTEE FEBRUARY 23. 2015 -30 - CITY OF KITCHENER 1. FCS-15-027 - 2015 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT'D) Etherington voting in favour; and, Councillors J. Gazzola, K. Galloway-Sealock, Z. Janecki and Y. Fernandes voting in opposition. On motion by Mayor B.Vrbanovic- it was resolved: "That the funding identified in the 2015 Capital Budget and Forecast for the District Park Development, be approved but held in abeyance pending a report being provided by June 2015 examining the Upper Canada Park project and the Grand River Park project with possible recommendations and timelines for moving forward with both proposals." BD05—Snow Dump Facility It was identified that this project had been removed from the 2015 Capital Budget and Forecast; and accordingly, no action was required. BD06—Timing of the Strasburg Road (north section)and Trunk Sanitary Sewer Protects With regard to Capital Issue Paper, BD 06 —Timing of the Strasburg Road (north section) and Trunk Sanitary, a motion was brought forward by Councillor Y. Fernandes to defer the South Strasburg Creek Sanitary Sewer and Strasburg Road Truck Sewer Extension from 2015-2016 to 2020-2021 to align with the construction of the Strasburg Road extension. Councillor Y. Fernandes' motion was voted on and was LOST by a recorded vote, with Councillors S. Marsh and Y. Fernandes voting in favour; and, Mayor B. Vrbanovic and Councillors P. Singh, B. Ioannidis, D. Schnider, Z. Janecki, S. Davey, J. Gazzola, K. Galloway- Sealock and F. Etherington voting in opposition. A motion was brought forward by Councillor K. Galloway-Sealock to approve the proposed timing for the South Strasburg Creek Sanitary Sewer and Strasburg Road Truck Sewer Extension, as outlined in the Capital Budget report FCS-15-002. The following motion was then voted on and was Carried by a recorded vote, with Mayor B. Vrbanovic and Councillors B. Ioannidis, P. Singh, D. Schnider, Z. Janecki, S. Davey, J. Gazzola, K. Galloway-Sealock and F. Etherington voting in favour; and, Councillors S. Marsh and Y. Fernandes voting in opposition. On motion by Councillor K. Galloway-Sealock- it was resolved: "That the proposed timing for the South Strasburg Creek Sanitary Sewer and Strasburg Road Truck Sewer Extension, as outlined in the Capital Budget report FCS-15-002 be approved." BD07- Development Incentives for Affordable Housing Units The Committee considered Capital Issue Paper BD 07 — Development Incentives for Affordable Housing Units. A motion was brought forward by Councillor P. Singh to approve Option 1, as outlined in the Issue Paper, to explore the use of development incentives for affordable housing units and report back to Council in 2015 with results of the examination. The following motion was then voted on and was Carried Unanimously by a recorded vote. On motion by Councillor P. Singh - it was resolved: "That staff be directed to explore the use of development incentives for affordable housing units and report back with the results in 2015, as outlined in Option 1 of Capital Issue Paper BD 07- Development Incentives for Affordable Housing Units." FINANCE AND CORPORATE SERVICES COMMITTEE FEBRUARY 23. 2015 -31 - CITY OF KITCHENER 1. FCS-15-027 - 2015 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT'D) BD08-Council Home Technology The Committee considered Capital Issue Paper BD 08—Council Home Technology. A motion was brought forward by Councillor J. Gazzola to approve Option 6 in Issue Paper BD08, being $5,753. per council member for the 4-year term. Councillor D. Schnider indicated an intent to bring forward a motion to reduce the 4-year allocation to $4000. He added the annualized savings of $438 per Council member could be allocated to ward-specific citizen engagement budgets, available to be used by Councillors for the communication of City-related matters within their wards. Members expressed support for the availability of funding for citizen engagement initiatives. In response, Councillor Gazzola agreed to modify his motion to freeze the Council Home Technology Budget at its existing level and to include direction to staff to report back on opportunities to broaden the home technology budget to allow citizen engagement initiatives. The following motion was then voted on and was Carried by a recorded vote with Councillors B. loannidis, J. Gazzola, P. Singh, S. Marsh, Y. Fernandes, and Z. Janecki voting in favour; and, Mayor B. Vrbanovic and Councillors D. Schnider, F. Etherington, K. Gal loway-Sealock, and S. Davey voting in opposition. On motion by Councillor J. Gazzola- it was resolved: "That the 4-year capital funding for Home Technology for each member of Council remain at$5,301.; and further, That staff be directed to report back on opportunities to utilize the funding to broaden engagement with constituents." Reserve Funds A motion was brought forward by Councillor K. Galloway-Sealock to approve a one-time transfer from the Tax Capital Reserve Fund the Tax Stabilization Reserve Fund in the amount of$250,000. The following motion was voted on and was Carried Unanimously by a recorded vote. On motion by Councillor K. Galloway-Sealock- it was resolved: "That a one-time transfer from the Tax Capital Reserve Fund the Tax Stabilization Reserve Fund in the amount of$250,000." Capital Road Reconstruction Councillor P. Singh declared pecuniary interest with Capital Road Reconstruction projects, as indicated in the Capital Forecast 2015-2024 related to Ottawa Street, Edwin Street, Stirling Avenue, and Fourth Avenue as he and/or his family own property that would be affected by the reconstruction. Accordingly, Councillor Singh did not vote or participate in any discussion regarding this matter. Mayor B. Vrbanovic brought forward a motion to approve the Ottawa Street, Edwin Street, Stirling Avenue, and Fourth Avenue Capital Reconstruction projects. The following motion was then voted on and was Carried Unanimously by a recorded vote. On motion by Mayor B.Vrbanovic- it was resolved: FINANCE AND CORPORATE SERVICES COMMITTEE FEBRUARY 23. 2015 -32 - CITY OF KITCHENER 1. FCS-15-027 - 2015 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT'D) "That the capital road reconstruction projects on Ottawa Street, Edwin Street, Stirling Avenue and Fourth Avenue be approved." The balance of the Capital Budget was then voted on and was Carried by a recorded vote, with Mayor B. Vrbanovic and Councillors B. loannidis, D. Schnider, Z. Janecki, S. Davey, Y. Fernandes, K. Galloway-Sealock, S. Marsh, P. Singh and F. Etherington voting in favour; and, Councillor J. Gazzola voting in opposition. On motion by Mayor B.Vrbanovic- it was resolved: "That the balance of the Capital Budget be approved as presented." The Committee then recessed at 4:16 p.m. and reconvened at 4:25 p.m. chaired by Councillor S. Davey,with all members present. TAX SUPPORTED OPERATING BUDGET Mr. Hagey presented a summary on the Tax Supported Operating budget, noting that the proposed tax levy increase is 2.25%. He noted that the proposed budget maintains existing service levels and forecasted tax rate increases are inflationary. He provided an overview on the 10-year tax rate forecast, stating the assessment growth previously assumed at 0.75% has been increased to 1.25% and base inflation has been increased to 2.25% rather than the previously projected 2%. Follow-up Issue Papers BD09—Special Events Support for Neighbourhoods Outside of Downtown With regard to BD 09—Special Events Support for Neighbourhoods Outside of Downtown, Mr. J. Young agreed to provide information to Council outlining the total budget for events held outside of the Downtown. Questions were raised regarding the costs to neighbourhood associations for hosting movie nights as initiated by Special Events neighbourhood engagement strategy, Mr. Young advised that the cost would be approximately $300. per event. A motion was brought forward by Councillor P. Singh to waive the nominal fee for "Movie Nights"organized through neighborhood associations located outside of the Downtown. The following motion was voted on and was Carried Unanimously by a recorded vote. On motion by Councillor P. Singh - it was resolved: "That the nominal fee charged to neighbourhood associations outside of the Downtown to cover staff costs required to host `Movie Nights' be waived, as outlined in Final Budget Day Issue Paper BD09 — Special Events Support for Neighbourhoods Outside of Downtown." Councillor B. loannidis left the meeting at this time. BD10—Fuel Prices With regard to Issue Paper BD 10 - Fuel Prices, Councillor K. Galloway-Sealock brought forward a motion proposing a one-time transfer from the Fleet Budget in the amount of $200,000. to the Tax Stabilization Reserve Fund due to the decrease in fuel prices. FINANCE AND CORPORATE SERVICES COMMITTEE FEBRUARY 23. 2015 -33 - CITY OF KITCHENER 1. FCS-15-027 - 2015 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT'D) The following motion was then voted on and Carried Unanimously by a recorded vote. Councillor B. loannidis was absent and accordingly did not vote. On motion by Councillor K. Galloway-Sealock- it was resolved: "That a one-time transfer from the Fleet Budget in the amount of $200,000. to the tax stabilization reserve due to the decrease in fuel prices, be approved." Councillor B. loannidis returned to the meeting at this time. BID 11 —Mileage and Per Diem Rates With regard to Issue Paper BD 11 — Mileage and Per Diem Rates, Councillor B. loannidis brought forward a motion to approve the staff recommendation to increase the per diem rates to match the Region of Waterloo. A motion was brought forward by Councillor Z. Janecki to amend Councillor loannidis' motion to increase the per diem meal allowances to $75. equal to of the City of Waterloo and to maintain the existing rate of$14. for incidentals. Councillor Z. Janecki's amendment was voted by a recorded vote and was LOST, with Councillors Y. Fernandes and Z. Janecki voting in favour; and, Mayor B. Vrbanovic and Councillors B. loannidis, S. Marsh, P. Singh, D. Schnider, S. Davey, K. Galloway-Sealock, J. Gazzola and F. Etherington voting in opposition. The following motion was then voted on and was Carried by a recorded vote, with Mayor B. Vrbanovic and Councillors B. loannidis, P. Singh, J. Gazzola, Z. Janecki, Y. Fernandes, S. Marsh, S. Davey, K. Galloway-Sealock and F. Etherington voting in favour; and, Councillor D. Schnider voting in opposition. On motion by Councillors B. loannidis- it was resolved: "That the per diem rates be increased from $64. to $68. to match the rates from the Region of Waterloo, as outlined in Issue Paper BD 11." BD12—Public Input In response to questions regarding to Issue Paper BD 12 - Public Input, Mr. Hagey agreed to follow up with the Mayor and Council staff for the 2016 Budget process to include the feedback submitted to the general Council email address with regards to the Budget in the Public Input Issue Paper. STRATEGIC INITIATIVES Mr. Hagey provided an overview of the Strategic Initiatives, noting that the proposals are intended to enhance existing services, provide a new service, implement a master plan or audit findings. He indicated that Council has already approved Issue Paper S105 — Waterloo Regional Economic Development Corporation (WREDC). He stated that Issue Papers S101, S106 and S108 have been revised since their initial presentation, and consideration of the House of Friendship: Chandler Mowat Community Centre grant was previously referred to Final Budget Day. S101 —Restoration of the Tax Stabilization Reserve Fund The Committee considered Strategic Initiatives Issue Paper S101 — Restoration of the Tax Stabilization Reserve Fund. Councillor S. Davey noted that there have been various motions already approved by the Committee to transfer funds into the Tax Stabilization Reserve Fund and the current balance of the Fund is $788,611. FINANCE AND CORPORATE SERVICES COMMITTEE FEBRUARY 23. 2015 -34- CITY OF KITCHENER 1. FCS-15-027 - 2015 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT'D) A motion was brought forward by Councillor Y. Fernandes that no action be taken with regards to Issue Paper S101. The following motion was then voted on and was Carried by a recorded vote, with Councillors J. Gazzola, P. Singh, Z. Janecki, Y. Fernandes, S. Marsh, K. Galloway-Sealock, B. Ioannidis, D. Schnider and F. Etherington voting in favour; and, Mayor B. Vrbanovic and Councillor S. Davey voting in opposition. On motion by Councillor Y. Fernandes- it was resolved: "That no action be taken with regards to Issue Paper S101 — Restoration of the Tax Stabilization Reserve Fund." S102— Increased Urban Forest Maintenance The Committee considered Strategic Initiatives Issue Paper S102 — Increased Urban Forest Maintenance concerning the approval of additional temporary labourers and other outside services to proactively deal with Urban Forest Maintenance. Mr. J. Witmer responded to questions from the Committee. Councillor Y. Fernandes brought forward a motion to approve funding in the amount of $100,000. to the Operations Division budget to retain additional temporary labourers and other outside services to proactively deal with Urban Forest Maintenance. The following motion was then voted on and was Carried by a recorded vote, with Mayor B. Vrbanovic and Councillors P. Singh, Z. Janecki, Y. Fernandes, S. Marsh, B. Ioannidis, S. Davey, K. Galloway-Sealock, D. Schnider and F. Etherington voting in favour; and, Councillor J. Gazzola voting in opposition. On motion by Councillor Y. Fernandes- it was resolved: "That the Operations Division budget be increased by $100,000. to retain additional temporary labourers and other outside services to proactively deal with Urban Forest Maintenance, as outlined in Issue Paper S102." S103—E- Participation as part of Open Government The Committee considered Strategic Initiatives Issue Paper S103 — E- Participation as part of Open Government concerning the establishment of an e-participation program / strategy as part of the City's Open Government Action Plan. A motion was brought forward by Councillor B. Ioannidis to approve the recommendation as outlined in Issue Paper S103. Councillor S. Marsh brought forward an amendment to Councillor Ioannidis' to one full time equivalent (FTE)effective July 1, 2015, to address E-Participation, having an overall impact on the tax levy of$37,500, outlined in Issue Paper S103. Councillor Marsh's amendment was voted on and was Carried by a recorded vote, with Mayor B.Vrbanovic and Councillors S. Marsh, P. Singh, B. Ioannidis, S. Davey, K. Galloway-Sealock, D. Schnider and F. Etherington voting in favour; and, Councillors Z. Janecki,Y. Fernandes and J. Gazzola voting in opposition. The following motion was then voted on and was Carried by a recorded vote, with Mayor B. Vrbanovic and Councillors P. Singh, S. Marsh, B. Ioannidis, K. Galloway-Sealock and D. Schnider voting in favour; and, Councillors Z. Janecki, F. Etherington, S. Davey, Y. Fernandes and J. Gazzola voting in opposition. FINANCE AND CORPORATE SERVICES COMMITTEE FEBRUARY 23. 2015 -35- CITY OF KITCHENER 1. FCS-15-027 - 2015 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT'D) On motion by Councillor Y. Fernandes- it was resolved: "That one full time equivalent (FTE) effective July 1, 2015, to address E-Partici patio n, having an overall impact on the tax levy of$37,500, outlined in Issue Paper S103." The Committee then recessed at 6:04 p.m. and reconvened at 6:40 p.m. chaired by Councillor S. Davey,with all members present. S104—Health and Safety Compliance Resource A motion was brought forward by Councillor Y. Fernandes, to hire a part-time temporary position to address the identified health and safety compliance resourcing issues rather than the one additional full-time equivalent (FTE), as outlined in Issue Paper S104. Additionally, it was proposed that a review be conducted after six months to determine if further resources were required to enable the City to meet its regulatory obligations. In response to questions, Mr. Chapman confirmed the cost for the position is proposed to be shared with $70,000. from the tax supported budget and $10,000. from the enterprise budgets. He indicated that the portion being allocated through the enterprise budgets could be increased to $12,000. and the tax supported portion would decrease to $68,000. Councillor Y. Fernandes' motion was voted on and was LOST by a recorded vote, with Mayor B. Vrbanovic and Councillors D. Schnider, P. Singh, S. Marsh and Y. Fernandes voting in favour; and, Councillors B. Ioannidis, F. Etherington, J. Gazzola, S. Davey, K. Galloway- Sealock and Z. Janecki voting in opposition. A motion was brought forward by Mayor B. Vrbanovic to add one FTE to address the issue of health and safety compliance, with the hiring being postponed until October 1, 2015 which minimizes the impact to the 2015 Budget. It was agreed that the motion would incorporate the increase in the portion of funding that would be allocated through the enterprise budgets. The following motion was then voted on and was Carried by a recorded vote with Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, P. Singh, S. Davey, S. Marsh, K. Galloway-Sealock and F. Etherington voting in favour; and, Councillors J. Gazzola, Z. Janecki and Y. Fernandes voting in opposition. On motion by Mayor B.Vrbanovic- it was resolved: "That one additional FTE full-time equivalent (FTE)for health and safety compliance be added to the Human Resources Division's complement, with the hiring to be postponed until October 1, 2015, which equates to a $17,000. impact on the 2015 tax levy increase." S105—Waterloo Regional Economic Development Corporation It was noted that a decision on this matter had previously been made at the February 9, 2015 Council meeting. S106— Improve the City's Ability to Engage Volunteers in the Community A motion was brought forward by Councillor J. Gazzola to take no action with respect to the hiring of a part-time coordinator of volunteers, as outlined in Issue Paper S106. Councillor J. Gazzola's motion was voted on and was LOST by a recorded vote, with Councillors K. Galloway-Sealock, J. Gazzola, Y. Fernandes and Z. Janecki voting in favour; and, Mayor B. Vrbanovic and Councillors D. Schnider, P. Singh, S. Marsh, B. Ioannidis, F. Etherington and S. Davey voting in opposition. FINANCE AND CORPORATE SERVICES COMMITTEE FEBRUARY 23. 2015 -36- CITY OF KITCHENER 1. FCS-15-027 - 2015 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT'D) A motion was brought forward by Mayor B. Vrbanovic to add a part-time coordinator of volunteers, with the hiring being postponed until May 1, 2015 to minimize the position's impact on the 2015 Budget. The following motion was then voted on and was Carried by a recorded vote, with Mayor B. Vrbanovic and Councillors B. loannidis, D. Schnider, P. Singh, S. Davey, S. Marsh and F. Etherington voting in favour; and, Councillors J. Gazzola, Z. Janecki, K. Gal loway-Sealock and Y. Fernandes voting in opposition. On motion by Mayor B.Vrbanovic- it was resolved: "That a part-time coordinator of volunteers be approved,with the hiring being postponed until May 1, 2015,which equates to a $23,800. impact on the 2015 tax levy increase." S107— Increased Street Level Special Events Programming A motion was brought forward by Councillor B. Ioannidis to approve an additional allocation of $23,588. to expand street level special events programming in 2015, as outlined in Issue Paper S107. Councillor K. Galloway-Sealock expressed concern with the proposal which would enable the provision of five additional street level events in Downtown Kitchener. She commented this would be a 50% increase in event programming. She indicated that should the subject motion fail, she would bring one forward to direct staff to pursue sponsorship funding for special events and have at least two of the five events held outside of the Downtown. An amendment was brought forward by Mayor B. Vrbanovic to reduce the allocation to $11,794. in 2015,which represents 50%of the requested funding. Mayor Vrbanovic's amendment was voted on and was Carried by a recorded vote, with Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, P. Singh, S. Davey, S. Marsh and F. Etherington voting in favour; and, Councillors J. Gazzola, Z. Janecki, K. Gal loway-Sealock and Y. Fernandes voting in opposition. The following motion was then voted on and was Carried by a recorded vote, with Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, P. Singh, S. Marsh and F. Etherington voting in favour; and, Councillors J. Gazzola, Z. Janecki, S. Davey, K. Galloway-Sealock and Y. Fernandes voting in opposition. On motion by Councillor B. Ioannidis- it was resolved: "That an additional $11,794. ($2,720. to Downtown Development and $9,074. to Special Events) be approved to expand street level special events programming in 2015." S108- Leisure Access Card Councillor F. Etherington gave notice that he would introduce a motion for consideration this date to provide for an overall increase of $26,000. for Leisure Access Card (LAC) program, which would equate to a total program budget of$172,000. in 2015. Councillor Etherington's motion was voted on and was LOST by a recorded vote, with Councillors B. Ioannidis, D. Schnider, F. Etherington and S. Marsh voting in favour; and, Mayor B. Vrbanovic and Councillors P. Singh, K. Galloway-Sealock, J. Gazzola, Z. Janecki, Y. Fernandes and S. Davey voting in opposition. A motion was brought forward by Councillor J. Gazzola to reduce the allocation to the LAC program from $161,929. to $150,233. with the remaining funds to be reallocated toward the 2015 Tier 1 Community Grant to the House of Friendship to assist with the group's work at the FINANCE AND CORPORATE SERVICES COMMITTEE FEBRUARY 23. 2015 -37 - CITY OF KITCHENER 1. FCS-15-027 - 2015 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT'D) Chandler Mowat Community Centre. Additionally, he proposed that no one should be turned away from the LAC program in 2015 due to insufficient funds in the program's budget. In response to questions, Mr. M. May stressed that no one has ever been refused participation in the LAC program, as a result of insufficient funds in the program's budget. He stated that if demand for the program in a particular year exceeds the program's budget, staff reallocates funding from other lower priority projects. Responding to further questions, he reiterated that staff would never turn anyone away from this program due to a lack of funds. Councillor Gazzola's motion was then voted on and was LOST by a recorded vote, with Councillors J. Gazzola, Z. Janecki, Y. Fernandes voting in favour; and, Mayor B. Vrbanovic and Councillors P. Singh, B. Ioannidis, D. Schnider, F. Etherington, S. Marsh, K. Galloway- Sealock and S. Davey voting in opposition. A motion was brought forward by Councillor K. Galloway-Sealock to approve the 2015 LAC program budget, as outlined in Issue Paper S108, with a clause stipulating that no one be refused access to the LAC program due to insufficient program funds. The following motion was then voted on and was Carried Unanimously by a recorded vote. On motion by Councillor K. Galloway-Sealock- it was resolved: "That the 2015 Budget for the Leisure Access Card (LAC) program be set at$161,929., as outlined in Issue Paper S108; and further, That no one be refused from accessing the LAC program due to insufficient funds in the program's budget." S109—House of Friendship: Chandler Mowat Community Centre A motion was brought forward by Councillor P. Singh to increase the 2015 Tier 1 Community Grant to the House of Friendship in the amount of$11,696. to assist with the group's work at the Chandler Mowat Community Centre, as outlined in Issue Paper S109. The following motion was voted on and was Carried by a recorded vote, with Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, P. Singh, S. Marsh, J. Gazzola, Z. Janecki, K. Gal loway-Sealock, Y. Fernandes and F. Etherington voting in favour; and, Councillor S. Davey voting in opposition. On motion by Councillor P. Singh - it was resolved: "That the 2015 Tier 1 Community Grant to the House of Friendship be increased by an additional $11,696. to assist with the group's work at the Chandler Mowat Community Centre, for a total 2015 grant allocation of$50,568, as outlined in Issue Paper S109." RESOLUTIONS Mr. Hagey advised that a motion has been included on the resolution sheet arising from this meeting that will be considered at the special Council meeting being held later this date regarding the allocation of Council's Conference Budget for the 2014-2018 term. Creative Enterprise Initiative (CEI) Mr. Hagey confirmed that the $46,805. operating grant to the Creative Enterprise Initiative (CEI)was not voted on when the other grants were considered earlier this date. FINANCE AND CORPORATE SERVICES COMMITTEE FEBRUARY 23. 2015 -38 - CITY OF KITCHENER 1. FCS-15-027 - 2015 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT'D) A motion was brought forward by Councillor K. Gal loway-Sealock to approve a 2015 operating grant to CEI in the amount of$46,805., as the organization is in the process of restructuring how it would provide support to all arts groups in future years. Councillor F. Etherington indicated that if Councillor Galloway-Sealock's motion was not successful, he would bring forward a motion that no further funding support be provided to CEI. Councillor S. Marsh indicated that she would also be interested in bringing forward a motion to suspend the funding allocation to CEI subject to receiving evidence illustrating how small and medium size arts organizations are being consulted as part of CEI's restructuring. Councillor B. Ioannidis advised that while he was supportive of CEI receiving funding for an additional year, should the subject motion be lost, his preference would be to have the identified funding allocated to various arts groups through the community grant process. Councillor S. Davey stated that while he would not vote in favour of Councillor Galloway- Sealock's motion, he would be inclined to support a reduced funding allocation to continue to provide some assistance to CEI during its restructuring. Councillor Galloway-Sealock's motion was then voted on and was LOST by a recorded vote, with Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider and K. Galloway-Sealock voting in favour; and, Councillors P. Singh, J. Gazzola, Z. Janecki, Y. Fernandes, F. Etherington, S. Marsh and S. Davey voting in opposition Councillor Etherington indicated that he was no longer interested in bringing forward a motion on this matter. Councillor Marsh brought forward a motion that $46,805 be allocated toward small to medium size arts organizations, with direction to staff to report back at a later date with options as to how those funds could be distributed. Mr. J. Willmer clarified that funding to CEI from the City has been provided through two streams; one being approximately $39,400. from the Arts and Culture Sustainability Fund to support small and medium size arts organizations through CEI. He added that consideration of that funding allocation is scheduled for March 30, 2015. He stated the other funding, being the $46,805., was intended as an operating grant to CEI to assist with the organization's day- to-day operations. He confirmed that CEI is anticipated to report back with the results of its stakeholder consultations prior to June 2015. Councillor Marsh withdrew her proposed motion. A motion was brought forward by Councillor P. Singh to provide a one-time operating grant allocation of$20,000. to CEI in 2015. An amendment was brought forward by Mayor Vrbanovic to add a provision to Councillor Singh's motion that the remaining $26,805. originally intended to be allocated to CEI should be held in abeyance pending a future decision on the distribution of those funds. Mayor Vrbanovic's amendment was voted on and was Carried by a recorded vote, with Mayor B.Vrbanovic and Councillors B. Ioannidis, D. Schnider, K. Gal loway-Sealock,Y. Fernandes, S. Marsh and S. Davey voting in favour; and, Councillors F. Etherington, J. Gazzola, Z. Janecki and P. Singh voting in opposition. The following motion was then voted on and was Carried by a recorded vote, with Mayor B. Vrbanovic and Councillors D. Schnider, K. Galloway-Sealock, B. Ioannidis, S. Marsh, Y. Fernandes and S. Davey voting in favour; and, Councillors J. Gazzola, P. Singh, F. Etherington and Z. Janecki voting in opposition. On motion by Councillor P. Singh - it was resolved: FINANCE AND CORPORATE SERVICES COMMITTEE FEBRUARY 23. 2015 -39 - CITY OF KITCHENER 1. FCS-15-027 - 2015 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT'D) "That a one-time the operating grant allocation to Creative Enterprise Initiative (CEI) be reduced from $46,805. to $20,000., with the remaining $26,805 to be held in abeyance pending a decision regarding the distribution of the funds." Tax Based Investment Income A motion was brought forward by Councillor J. Gazzola to increase the 2015 Budget for tax based investment income by$500,000. In response to questions, Mr. Hagey advised that interest rates have decreased by 0.25%from the start of 2015, adding that staff has been informed rates are expected to go down by another 0.25% by the end of March 2015. He indicated each 0.25% drop equates to a loss of $375,000. He noted the anticipated decrease in March has been factored into the proposed budget; however, any further reduction in interest rates would result in a deficit in this account. Councillor Gazzola's motion was voted on and was LOST by a recorded vote, with J. Gazzola, S. Marsh, Z. Janecki, Y. Fernandes voting in favour; and, Mayor B. Vrbanovic and Councillors P. Singh, B. Ioannidis, D. Schnider, F. Etherington, K. Galloway-Sealock and S. Davey voting in opposition. Operations Downtown Maintenance In reference to Page 15 of the Operating Budget package, Councillor Galloway-Sealock expressed concern regarding the proposed 10% increase in Operations Division's Downtown Maintenance budget. She advised that the increase would accommodate the hiring of two additional temporary staff from April to October to assist with maintenance and sanitation activities to support special events in Downtown Kitchener. She stated that in her opinion, the subject activities could be accommodated within the existing staff complement. A motion was brought forward by Councillor K. Galloway-Sealock to reduce the growth allocation in Operations Division's Downtown Maintenance budget by $70,000. ($67,000. two temporary staff positions and $3,000. associated equipment costs). In response to questions, Mr. J. Witmer advised that the growth funding was proposed to be allocated toward downtown maintenance as staff are having difficulty in meeting the public's expectations in regard to this matter. He clarified that staff could have identified other service level issues that could have been addressed with that funding, rather than having it eliminated from the Division's budget. The following motion was then voted on and was Carried by a recorded vote, with Mayor B. Vrbanovic and Councillors B. Ioannidis, Y. Fernandes, S. Marsh, S. Davey, P. Singh, Z. Janecki, D. Schnider, and K. Galloway-Sealock voting in favour; and, Councillors J. Gazzola and F. Etherington voting in opposition On motion by Councillor K. Galloway-Sealock- it was resolved: "That the growth allocation in the Operations Downtown Division's Maintenance budget for be reduced by $70,000. ($67,000. two temporary staff positions and $3,000 associated equipment costs)." Public Art A motion was brought forward by Councillor Y. Fernandes to transfer $100,000 of the $409,288 in the Public Art Balances account to the Tax Stabilization Reserve Fund. Mr. D. Chapman advised that as part of the 2014 Budget deliberations an issue paper was provided and discussions were held regarding the funding that is set aside in accordance with Council Policy I-816 (Public Art Policy). He confirmed that funding for public art is derived from a one percent allocation applied to civic projects with construction budgets over$100,000. He stated that if Council decided to revisit this matter it would be best to do so through a review of FINANCE AND CORPORATE SERVICES COMMITTEE FEBRUARY 23. 2015 -40 - CITY OF KITCHENER 1. FCS-15-027 - 2015 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT'D) the Policy, rather than an adjustment in the account balance. He noted that no direction was given last year to review the Policy and accordingly the issue has remained status quo through 2014. Several members expressed concerns with Councillor Fernandes' motion, commenting that no information has been provided as to the potential implications of the proposed transfer and/or the encumbrances facing the Public Art account. Councillor Y. Fernandes' motion was then voted on and was LOST by a recorded vote with Councillors J. Gazzola, Z. Janecki and Y. Fernandes voting in favour; and, Mayor B.Vrbanovic and Councillors P. Singh, S. Marsh, B. loannidis, D. Schnider, F. Etherington, K. Galloway- Sealock and S. Davey voting in opposition. The following motion was voted on and was Carried Unanimously by a recorded vote. On motion by Councillor Y. Fernandes- it was resolved: "That staff be directed to undertake a review of Council Policy 1-816 (Public Art Policy), in order to understand the current encumbrances and what projects have yet to be funded out of the Public Art account." Trails Leading to Schools A motion was brought forward by Councillor P. Singh to direct staff to examine the issue of providing winter maintenance on trails leading to schools. Mr. Witmer advised that funds have been allocated within the Capital Budget which could be used toward upgrading trails. He stated on the operating side it needs to be quantified as to how much of the City's trail system could be maintained in the winter. He acknowledged that staff could report back prior to May 2015 identifying the trails that could be completed from a priority perspective and the amount of capital investment that would be required. He added the report could also indicate the degree of consultation that would be undertaken, which would include the local area school boards and the Cycling and Trails Advisory Committee. He noted that a further report would be provided this fall to determine the amount of winter maintenance that could be accommodated within existing budgets and the funding commitment that would need to be made for 2016 and beyond based on the extent of the trail network that would need to be cleared. The following motion was voted on and was Carried Unanimously by a recorded vote. On motion by Councillor P. Singh - it was resolved: "That staff be directed to report back prior to May 2015, following community engagement and discussions with local area school boards, with a priority list of trails and walkways that are crucial routes to schools; and further, That staff be directed to outline the financial impact of winter maintenance for those identified trails and walkways." Sidewalk Snow Clearing Policy Mayor B. Vrbanovic spoke to the increased attention that has recently been given to the issue of sidewalk snow clearing. He commented that numerous people have expressed an interest in addressing Council on this matter; however, it would be beneficial to have staff report back on this matter to help inform that discussion. The following motion was voted on and was Carried Unanimously by a recorded vote. FINANCE AND CORPORATE SERVICES COMMITTEE FEBRUARY 23. 2015 -41 - CITY OF KITCHENER 1. FCS-15-027 - 2015 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT'D) On motion by Mayor B.Vrbanovic- it was resolved: "That staff be directed to conduct the following examinations in relation to sidewalk snow clearing operations and report back prior to winter of 2015-2016: i. Conduct a review of the City's sidewalk snow clearing policies and engage in community consultation to determine if any changes are required; and further, ii. Circulate the previous report completed on sidewalk snow clearing to Council and report back on the practices of other large municipalities including the impact of implementing a similar level of service in 2016 or beyond." Tax Stabilization Reserve Fund Transfer A motion was brought forward by Councillor Y. Fernandes to transfer $100,000. from the Tax Stabilization Reserve Fund (TSRF)to reduce the 2015 tax levy. Several members expressed concerns with utilizing the TSRF to subsidize the 2015 tax levy. Councillor Fernandes' motion was voted on and was LOST by a recorded vote, with Councillor J. Gazzola, S. Marsh, Z. Janecki and Y. Fernandes voting in favour; and, Mayor B. Vrbanovic and Councillors P. Singh, B. loannidis, D. Schnider, F. Etherington, K. Galloway-Sealock and S. Davey voting in opposition. FINAL RECOMMENDATIONS-2015 BUDGET The Committee agreed to advance its recommendations pertaining to the 2015 Budget, based on decisions made this date, for Council's consideration at its special Council meeting to be held immediately following this meeting. The following motion was voted on and was Carried by a recorded vote, with Mayor B. Vrbanovic and Councillors B. loannidis, S. Marsh, S. Davey, P. Singh, Z. Janecki, D. Schnider, F. Etherington and K. Galloway-Sealock voting in favour; and, Councillors J. Gazzola and Y. Fernandes voting in opposition On motion by Councillor K. Gal loway-Sealock- it was resolved: "That the 2015 department operating budget, be approved resulting in a 2015 levy for general purposes of$108,055,193; and further, That an increase in the 2015 tax rate, excluding tax policy changes, of approximately 1.91%, be approved." 2. ADJOURNMENT On motion, this meeting adjourned at 9:44 p.m. C. Goodeve D. Livingstone D. Saunderson Committee Administrator Committee Administrator Committee Administrator