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HomeMy WebLinkAbout2016-01-18 - Final Budget FINANCE AND CORPORATE SERVICES COMMITTEE JANUARY 18, 2016 CITY OF KITCHENER The Finance and Corporate Services Committee met this date commencing at 9:33 a.m. Present: Councillor S. Davey - Chair Mayor B. Vrbanovic and Councillors F. Etherington, Y. Fernandes, K. Galloway- Sealock, J. Gazzola, B. Ioannidis, 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 C. Fletcher, Interim Executive Director, Infrastructure Service Department J. Readman, Interim Executive Director, Infrastructure Service Department R. Hagey, Director, Financial Planning M. Seiling, Director, Building H. Gross, Director, Engineering Services W. Malcom, Director, Utilities K. Kugler, Director, Enterprise V. Raab, Director, Corporate Communications & Marketing N. Gollan, Manager, Stormwater Utility D. Fagerdahl, Manager, Financial Planning 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 2016 Operating and Capital Budgets and the 10-Year Capital Forecast 2016-2025. 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. FCS-16-002 - 2016 BUDGET PACKAGE (FINAL BUDGET DAY) 1. Mr. D. Chapman presented a budget overview, advising that the competing themes of affordability and sustainability would be a focus of consideration for the 2016 Budget. He noted there were three key components for the 2016 Operating budget, including: maintenance of existing service levels; increased investments in the Waterloo Region Economic Development Corporation, Centre in the Square, and Kitchener Public Library; and, significant utility investments to ensure the sustainability of critical infrastructure. He stated for the 2016 Capital Budget there were three key achievements, including: adequate funding to deliver the 10-year capital program; new investments in priority areas such as public Wi-Fi, community gardens, the Kiwanis Park Pool, the Iron Horse Trail, and the replacement of failing water and sewer infrastructure; and, a continued focus in decreasing the City’s debt levels, which is now within the moderate range of debt per household as defined by the Province. He further advised in comparison to other local municipalities, Kitchener is anticipated to have the lowest tax rate increase, noting that the increase in utility rates is not unique to Kitchener, other local area municipalities are also proposing to increase utility rates beyond the rate of inflation. Questions were raised as to whether, as part of future budgets, year-end balances could be circulated prior to Final Budget Day. Mr. R. Hagey advised the budget agenda is typically prepared in December for Final Budget Day, which is usually scheduled in January. He noted staff would not have final numbers in time for the agenda. He suggested staff could provide that information either via email or hard copy, noting those figures may not be accurate as there are still accruals from the previous year being processed until the end of January. On motion by Councillor Y. Fernandes - it was resolved: “That staff be directed to provide existing capital balances as of December 31 via email or hardcopy at least one week prior to Final Budget Day, as well as operating account balances as of December 31 or as close as possible to that date.” BOARDS Centre in the Square FINANCE AND CORPORATE SERVICES COMMITTEE JANUARY 18, 2016 - 4 - CITY OF KITCHENER FCS-16-002 - 2016 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT’D) 1. A motion was brought forward by Councillor K. Galloway-Sealock to approve the capital funding for Centre in the Square (CITS) with an amendment requiring staff to notify Council, if and when CITS requests the proposed transitional funding. On motion by Councillor K. Galloway-Sealock - it was resolved: “That the 2016 Centre in the Square (CITS) appropriation be approved, with a requirement that notification be provided via email when any additional transitional funding is requested from the CITS Board.” Kitchener Public Library , Ms. Mary Chevreau Kitchener Public Library (KPL), was in attendance to respond to questions from the Committee. A motion was brought forward by Councillor K. Galloway-Sealock to approve Issue Paper BD04 (Accelerate Funding for Amenities at South Kitchener District Park [SKDP]), regarding the reallocation $750,000. of the Kitchener Public Library Budget in 2019 related to the Southwest Community Library project to the SKDP project and a corresponding transfer from SKDP to the Southwest Community Library project in 2021. In response to questions, Ms. Chevreau advised that the Library Board was presented with the proposal to reallocate $750,000. from the Southwest Community Library Project in 2019 and it was supported by the Board with the understanding that it was a one-time request. She noted that plans for the Southwest Community Library have not yet been determined, and she indicated Library staff will begin the planning process on the Southwest Branch to determine the project scope, which is anticipated to be brought forward for Council’s consideration sometime in 2016. Carried The following motion was voted on and was on a recorded vote, with Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, P. Singh, S. Davey, S. Marsh, K. Galloway-Sealock, Y. Fernandes, and F. Etherington voting in favour; and, Councillors J. Gazzola and Z. Janecki voting in opposition. On motion by Councillor K. Galloway-Sealock - it was resolved: “That the 2016 Kitchener Public Library appropriation be approved; and, That a reallocation of $750,000. from the Kitchener Public Library’s Southwest Community Library funding to the South Kitchener District Park project in the year 2019; and, That the $750,000. be reallocated to the South Community Library Project in the year 2021; and further, That there be no reduction in the overall budget for the South Community Library Project.” ENTERPRISE OPERATING BUDGETS Golf Councillor B. Ioannidis brought forward a motion to approve the 2016 Operating Budget for the Golf Enterprise. Carried Unanimously The following motion was then voted on and was on a recorded vote. FINANCE AND CORPORATE SERVICES COMMITTEE JANUARY 18, 2016 - 5 - CITY OF KITCHENER FCS-16-002 - 2016 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT’D) 1. On motion by Councillor B. Ioannidis - it was resolved: “That the 2016 budget for the Golf Enterprise be approved as presented.” Building A motion was brought forward by Councillor B. Ioannidis to approve the 2016 Operating Budget for the Building Enterprise. Carried Unanimously The following motion was then voted on and was on a recorded vote. On motion by Councillor B. Ioannidis - it was resolved: “That the 2016 budget for the Building Enterprise be approved as presented.” Parking Mr. R. Hagey provided an overview of the Parking Enterprise, noting the projections were $244,000. higher than initially projected. He indicated the expenses were lower than forecasted due to multi-year savings in property taxes for the Civic District garage, which was recently assessed by the Municipal Property Assessment Corporation (MPAC). He stated staff have adjusted the property tax figure for future budgets, indicating there is a one-time benefit in 2016 for over-projected property tax amounts. Questions were raised regarding the Benton and Charles Street parking garage and its current usage. Mr. J. Readman advised that he did not have any of those figures available this date, but could follow up by email regarding the patron usage at that facility. A motion was brought forward by Councillor J. Gazzola to approve a one-time increase of the dividend provided from the Parking Enterprise in the amount of $50,000., which would be applied to reduce the 2016 tax levy. In response to questions, Mr. Chapman clarified any increase to the Parking Enterprise Dividend would result in an increase to the 2017 tax levy. LOST Councillor Gazzola’s motion was then voted on and was on a recorded vote, with Councillors J. Gazzola, Y. Fernandes and Z. Janecki voting in favour, and Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, P. Singh, S. Davey, S. Marsh, K. Galloway-Sealock, and F. Etherington voting in opposition. Mayor B. Vrbanovic brought forward a motion to approve the 2016 Operating Budget for the Parking Enterprise. In response to questions, Mr. Chapman advised the difference in forecasted property taxes for the Parking Enterprise was approximately $29,000., adding any increase to the dividend less than that amount would be budget-neutral for 2017. A motion was brought forward by Councillor J. Gazzola to amend Mayor Berry Vrbanovic’s motion to approve a one-time increase in the Parking Enterprise dividend in the amount of $25,000., which would be applied to reduce to the 2016 tax levy. Carried Councillor J. Gazzola’s amendment was then voted on and was on a recorded vote, with Councillors J. Gazzola, S. Davey, S. Marsh, K. Galloway-Sealock, D. Schnider, Y. Fernandes and Z. Janecki voting in favour, and Mayor B. Vrbanovic and Councillors B. Ioannidis, P. Singh and F. Etherington voting in opposition. Carried Unanimously The following motion was then voted on and was on a recorded vote. FINANCE AND CORPORATE SERVICES COMMITTEE JANUARY 18, 2016 - 6 - CITY OF KITCHENER FCS-16-002 - 2016 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT’D) 1. On motion by Mayor B. Vrbanovic - it was resolved: “That the 2015 budget for the Parking Enterprise be approved, with a one-time increase to the dividend in 2016 in the amount of $25,000.” The Committee recessed at 10:58 a.m. and reconvened at 11:08 a.m., Chaired by Councillor S. Davey with all members present. Gas A motion by Councillor B. Ioannidis was brought forward for consideration to approve the 2016 Gas Utility budget, as presented. Carried The following motion was then voted on and was on a recorded vote with Mayor B. Vrbanovic and Councillors B. Ioannidis, P. Singh, D. Schnider, J. Gazzola, Y. Fernandes, S. Davey, K. Galloway-Sealock, S. Marsh and F. Etherington voting in favour; and, Councillor Z. Janecki voting in opposition. On motion by Councillor B. Ioannidis - it was resolved: “That the 2016 budget for the Gas Works Utility be approved as presented.” Water Mr. Hagey presented the proposed 7.6% rate increase for water in 2016, noting the utility is projected to remain in a significant deficit until 2019. He indicated staff has provided an Issue Paper, BD02 (Water Rate Reduction Scenarios), identifying the associated impacts of reducing the proposed water rate increase by 1% or 2% in 2016. Mr. H. Gross responded to questions regarding the Accelerated Infrastructure Replacement Program (AIRP), advising the program was implemented in 2002, and developed a funding model based on historical trends and age criteria of infrastructure replacement over a 30-year period. He stated since the beginning of the program, actual costs of replacement have increased and surpassed the budgeted funding. He referred to graphical information provided at the August 24, 2015 Council Strategy Session on the State of the Infrastructure, which shows the funding gap between the actual cost of replacement and the budgeted amount, as well as the proposed rates for 2016 aimed at addressing the current replacement requirement, and the backlog created since the program began. Mr. W. Malcom was in attendance and responded to questions regarding the number of watermain breaks and the budget implications for the AIRP. He advised since 2014, the number of breaks per year has remained relatively consistent. He indicated watermain breaks cost 40-50% more than scheduled replacement due to age, and confirmed that reduction in AIRP funding would result in an increase in watermain breaks. Councillor J. Gazzola stated it would be his preference to reduce the proposed rate increases to the water / sanitary sewer / and stormwater utilities to lessen the impact to residents. He noted the Federal and Provincial governments have alluded to potential infrastructure funding being available in the future, which could be applied towards the cost of the infrastructure replacement program. Councillor J. Gazzola brought forward a motion to approve a water rate increase of 4.2%, a sanitary sewer rate increase of 7.2%, and a stormwater utility rate increase of 4.7%. Questions were raised regarding the impact of the proposed water rate reduction on the AIRP. Mr. Gross confirmed, as outlined in Issue Paper BD-02, that a 1% reduction from the proposed 7.6% would decrease the City’s ability to reconstruct 5.3 km of roadway over the 10-year capital program. He further explained any rate reduction would extend the current FINANCE AND CORPORATE SERVICES COMMITTEE JANUARY 18, 2016 - 7 - CITY OF KITCHENER FCS-16-002 - 2016 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT’D) 1. AIRP program, noting it is projected a large portion of the City’s infrastructure developed in the 1960’s will need to be replaced in 2040-2045, requiring significant resources. LOST Councillor Gazzola’s motion was voted on and on a recorded vote with Councillors P. Singh, Z. Janecki, J. Gazzola and Y. Fernandes voting in favour; and, Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, S. Davey, K. Galloway-Sealock, S. Marsh and F. Etherington voting in opposition. A motion was brought forward by Councillor P. Singh to approve a water rate increase of 5.9%. LOST Councillor Singh’s motion was voted on and on a recorded vote with Councillors Z. Janecki, J. Gazzola, P. Singh and Y. Fernandes voting in favour; and, Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, S. Davey, K. Galloway-Sealock, S. Marsh and F. Etherington voting in opposition. A motion was brought forward by Councillor K. Galloway-Sealock to approve the Water 2016 budget as presented. Carried The following motion was then voted on and was on a recorded vote with Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, S. Davey, K. Galloway-Sealock, S. Marsh and F. Etherington voting in favour; and, Councillors P. Singh, Z. Janecki, J. Gazzola and Y. Fernandes voting in opposition. On motion by Councillor K. Galloway-Sealock - it was resolved: “That effective March 1, 2016, the water rate be increased 7.60% to $2.0852 per cubic metre.” The Committee recessed at 1:10 p.m. and reconvened at 2:01 p.m., Chaired by Councillor S. Davey with all members present. Sanitary Utility Mr. Hagey advised the sanitary sewer rate is proposed to increase by 10.8% in 2016. He stated the sanitary budget remains largely unchanged; however, the projection has improved by approximately $748,000. from when this was last presented. He indicated this was due to an increase in consumption, which lead to higher revenues as well as lower sewage processing and maintenance costs. Responding to questions, Mr. Hagey confirmed that a reduction in the rate proposed for this utility would have a negative impact on the AIRP. He acknowledged with the water rate being set for 2016, if the sanitary rate were reduced, funds would be collected through the water rate which could not be utilized for the AIRP. He added as the stabilization reserve for the sanitary utility has a negative balance it lacks the capacity to compensate for a rate reduction. A motion was brought forward by Councillor J. Gazzola to approve an increase for the sanitary sewer rate of 7.2%. LOST Councillor Gazzola’s motion was voted on and on a recorded vote with Councillors Z. Janecki, J. Gazzola and Y. Fernandes voting in favour; and, Mayor B. Vrbanovic and Councillors B. Ioannidis, P. Singh, D. Schnider, S. Davey, K. Galloway-Sealock, S. Marsh and F. Etherington voting in opposition. Councillor P. Singh brought forward a motion to approve a sanitary rate increase of 9.8% rather than the proposed 10.8%. LOST Councillor Singh’s motion was voted on and on a recorded vote with Councillors Z. Janecki, P. Singh, J. Gazzola and Y. Fernandes voting in favour; and, Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, S. Davey, K. Galloway-Sealock, S. Marsh and F. Etherington voting in opposition. FINANCE AND CORPORATE SERVICES COMMITTEE JANUARY 18, 2016 - 8 - CITY OF KITCHENER FCS-16-002 - 2016 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT’D) 1. A motion was brought forward by Councillor K. Galloway-Sealock to approve the 2016 sanitary rate as presented. Carried The following motion was then voted on and was on a recorded vote with Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, S. Davey, K. Galloway-Sealock, S. Marsh and F. Etherington voting in favour; and, Councillors P. Singh, Z. Janecki, J. Gazzola and Y. Fernandes voting in opposition. On motion by Councillor K. Galloway-Sealock - it was resolved: “That effective March 1, 2016, the sanitary sewer rate, be increased by 10.8% to $2.4090 per cubic metre. Stormwater Utility Mr. Hagey indicated the stormwater rate is proposed to increase by 9.2% in 2016. He advised the budget for this utility remains unchanged and the projection is consistent with what was presented during the Operating Budget deliberations on November 23, 2015. Responding to questions, Mr. N. Gollan advised when the stormwater utility was created in 2010 staff recommended the implementation of a sustainable level of service. He stated when the rates were approved at that time it was with a 10% reduction, adding the 2016 rate would bring the utility’s funding to the level that was originally proposed in 2010. He added the previous rate reduction resulted in a backlog as well as a lack of capacity to undertaken certain work, which should have been undertaken prior to the utility coming into existence; such as, the removal of approximately 79,000 tonnes of sediment from the City’s SWM ponds. He estimated the cost for that work at approximately $7M, confirming the City has a statutory obligation to remove the sediment. A motion was brought forward by Councillor J. Gazzola to approve a stormwater rate increase of 4.7%. LOST Councillor Gazzola’s motion was voted on and on a recorded vote with Councillors Z. Janecki, J. Gazzola, P. Singh and Y. Fernandes voting in favour; and, Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, S. Davey, K. Galloway-Sealock, S. Marsh and F. Etherington voting in opposition. Councillor Y. Fernandes brought forward a motion to approve a stormwater rate increase of 6.2% rather than the proposed 9.2%. LOST Councillor Fernandes’ motion was voted on and on a recorded vote with Councillors Z. Janecki, P. Singh, J. Gazzola and Y. Fernandes voting in favour; and, Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, S. Davey, K. Galloway-Sealock, S. Marsh and F. Etherington voting in opposition. A motion was brought forward by Councillor K. Galloway-Sealock to approve the 2016 stormwater rate as presented. Carried The following motion was voted on and was on a recorded vote with Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, S. Davey, K. Galloway-Sealock, S. Marsh and F. Etherington voting in favour; and, Councillors P. Singh, Z. Janecki, J. Gazzola and Y. Fernandes voting in opposition. On motion by Councillor K. Galloway-Sealock - it was resolved: “That effective March 1, 2016, the stormwater utility monthly rates be increased by 9.2%.” FINANCE AND CORPORATE SERVICES COMMITTEE JANUARY 18, 2016 - 9 - CITY OF KITCHENER FCS-16-002 - 2016 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT’D) 1. CAPITAL BUDGET Mr. Hagey highlighted two changes that were implemented to the Capital Budget from what was presented on November 30, 2015. The first change relates to the Fleet Replacement Equipment account, which has been updated based on the 2015 annual equipment review. He stated the review resulted in a $3.9M budget increase primarily in the final four years of the 10- year forecast. He added the second change was to the Neighbourhood Festival account, which was increased by approximately $180,000. over the 10-year forecast in accordance with the direction given during Council’s Tier 1 Community Grant deliberations. Follow-up Issue Papers In speaking to Issue Paper BD-03 (City’s Capacity to Leverage Federal Funding for Infrastructure), Mayor B. Vrbanovic suggested staff should begin to potentially identify projects that may lend themselves to being advanced into this construction year. He noted that further information on this matter is anticipated to be released by the Federal Government in late February / early March 2016. A motion was brought forward by Mayor B. Vrbanovic to approve the recommendation contained in Issue Paper BD-05 (Tree Planting - Urban Forest Capital Provision), to retain the remaining $250,000. within the Grand River Park Capital Budget. A motion was brought forward by Councillor Y. Fernandes to amend Mayor Vrbanovic’s motion by retaining only $125,000. in the Grand River Park Capital Budget and transfer $125,000 to the City’s Tree Planting Program. LOST Councillor Fernandes’ motion was voted on and on a recorded vote with Councillors Z. Janecki, J. Gazzola, S. Marsh and Y. Fernandes voting in favour; and, Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, S. Davey, K. Galloway-Sealock, P. Singh, and F. Etherington voting in opposition. Carried The following motion was then voted on and was on a recorded vote with Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, S. Davey, K. Galloway-Sealock, P. Singh and F. Etherington voting in favour; and, Councillors S. Marsh, Z. Janecki, J. Gazzola and Y. Fernandes voting in opposition. On motion by Mayor B. Vrbanovic - it was resolved: “That the remaining $250,000. be retained within the Grand River Park Capital Budget, as outlined in Issue Paper BD-05 (Tree Planting - Urban Forest Capital Provision).” A motion was brought forward by Councillor B. Ioannidis to approve the overall 2016 Capital Budget. Councillor P. Singh declared a pecuniary interest with LRT construction projects related to Stirling / Mausser and Lydia / Merner as outlined in the Capital Agenda Package, as his family owns property in the vicinity of the subject work; accordingly, he did not take part in any discussions or voting regarding those matters. The Capital projects related to the LRT Construction – Stirling / Mausser and Lydia / Merner, Carried were voted on and were on a recorded vote with Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, S. Davey, K. Galloway-Sealock, F. Etherington, S. Marsh, Z. Janecki, J. Gazzola and Y. Fernandes voting in favour. Resultant to his declared pecuniary interest, Councillor P. Singh did not participate in the vote on those matters. Carried The following motion was then voted on and was on a recorded vote with Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, S. Davey, K. Galloway-Sealock, P. Singh, S. Marsh, Z. Janecki, Y. Fernandes and F. Etherington voting in favour; and, Councillor J. Gazzola and voting in opposition. FINANCE AND CORPORATE SERVICES COMMITTEE JANUARY 18, 2016 - 10 - CITY OF KITCHENER FCS-16-002 - 2016 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT’D) 1. On motion by Councillor B. Ioannidis - it was resolved: “That the balance of the Capital Budget & Forecast (2016-2025) be approved, with expenditures for all years totaling $1,163,782,000.” TAX SUPPORTED OPERATING BUDGET Mr. Hagey reviewed the highlights of the tax support Operating Budget. He advised the proposed budget maintains existing service levels, adding the forecasted tax rate increases over the next decade vary between 1.5% and 2.5%. He reiterated there has been additional assessment growth revenue of approximately $43,000., noting this could be applied toward other budget items or used to reduce the net tax levy by 0.04%. Follow-up Issue Papers A motion was brought forward by Councillor B. Ioannidis for the City of Kitchener to fund approximately one-third of the costs for the School Travel Planning Coordinator, outlined in Issue Paper BD 10 (2016 Implementation of School Zone Parking Strategy). Mayor B. Vrbanovic expressed support for Councillor Ioannidis’ motion and suggested that the Cities of Cambridge and Waterloo be approached to see if they would also be interested in participating in this initiative. Carried The following motion was then voted on and was on a recorded vote with Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, S. Davey, K. Galloway-Sealock, P. Singh S. Marsh, Y. Fernandes and F. Etherington voting in favour; and, Councillors Z. Janecki and J. Gazzola voting in opposition. On motion by Councillor B. Ioannidis - it was resolved: “That $21,000. be allocated as the City of Kitchener’s share toward the funding of a School Travel Planning Coordinator, to be funded from the City’s unallocated 2016 assessment growth; and further, That 0.4 FTE’s be allocated for this role should it be determined that the position will be housed within the City of Kitchener.” Councillor S. Davey advised that no action was needed to be taken on Issue Paper BD07 (Temporary Retail Market), which proposes to maintain the Council-approved 2016 fees for the Temporary Retail Market Licence until staff have undertaken a comprehensive Business Licensing review due to be completed in 2016. Councillor Y. Fernandes brought forward a motion to take no action on Issue Paper BD06 (Permanent Part-Time Constituency Assistant), related to hiring an additional part-time administrative position in the Office of the Mayor and Council. Carried Unanimously The following motion was on a recorded vote. On motion by Councillor Y. Fernandes - it was resolved: “That no action be taken to hire a Part-Time Constituency Assistance in the Office of the Mayor and Council as outlined in Issues Paper BD06 (Permanent Part-Time Constituency Assistant).” Councillor J. Gazzola brought forward a motion to decrease the staff compliment in the Office of the Mayor and Council by one Full-time Equivalent (FTE). FINANCE AND CORPORATE SERVICES COMMITTEE JANUARY 18, 2016 - 11 - CITY OF KITCHENER FCS-16-002 - 2016 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT’D) 1. LOST Councillor Gazzola’s motion was voted on and on a recorded vote with Councillors Z. Janecki and J. Gazzola and voting in favour; and, Mayor B. Vrbanovic and Councillors B. Ioannidis, P. Singh, Y. Fernandes, D. Schnider, S. Davey, K. Galloway-Sealock, S. Marsh and F. Etherington voting in opposition. A motion was brought forward by Councillor K. Galloway-Sealock to apply the remaining additional assessment growth, in the amount of $22,222., to the tax supported operating budget to further decrease the 2016 tax levy. Carried Unanimously The following motion was on a recorded vote. On motion by Councillor K. Galloway-Sealock - it was resolved: “That the remaining 2015 assessment growth in the amount of $22,222. be allocated to the tax supported operating budget to further reduce the tax levy. A motion was brought forward by Councillor K. Galloway-Sealock to approve the recommendation outlined in Issue Paper BD09 (Mileage and Per Diem Rates), to maintain the current mileage and per diem rates for 2016. Carried Unanimously The following motion was on a recorded vote. On motion by Councillor K. Galloway-Sealock - it was resolved: “That the mileage rate per kilometre remain at $0.50 for the first 5,000 kilometres and $0.45 for each additional kilometer; and further, That the City of Kitchener’s per diem rates remain at $68/day ($12 for breakfast, $16 for lunch, $30 for dinner, and $10 for incidentals).” Physician Recruitment A motion was brought forward by Mayor B. Vrbanovic to approve a 2016 Economic Development Grant allocation in the amount of $10,000. for physician recruitment and $10,000. for specialist recruitment. Councillor Z. Janecki requested the proposed grants be voted on separately. Carried The following motion was then voted on and was on a recorded vote with Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, S. Davey, P. Singh, J. Gazzola, S. Marsh and F. Etherington voting in favour; and, Councillors K. Galloway-Sealock, Z. Janecki and Y. Fernandes voting in opposition. On motion by Mayor B. Vrbanovic - it was resolved: “That a one-time Economic Development Grant in the amount of $10,000. for physician recruitment, be approved.” Carried The following motion was then voted on and was on a recorded vote with Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, S. Davey, P. Singh, Z. Janecki, J. Gazzola, S. Marsh and F. Etherington voting in favour; and, Councillors K. Galloway-Sealock and Y. Fernandes voting in opposition. On motion by Mayor B. Vrbanovic - it was resolved: “That a one-time Economic Development Grant in the amount of $10,000. for specialist recruitment, be approved.” FINANCE AND CORPORATE SERVICES COMMITTEE JANUARY 18, 2016 - 12 - CITY OF KITCHENER FCS-16-002 - 2016 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT’D) 1. Councillor P. Singh brought forward a motion to make a one-time transfer from the tax supported operating budget in the amount of $25,000. to the Tax Stabilization Reserve Fund. LOST Councillor Singh’s motion was voted on and on a recorded vote with Mayor B. Vrbanovic and Councillors B. Ioannidis, P. Singh, S. Davey and F. Etherington voting in favour; and, Councillors Z. Janecki, J. Gazzola, Y. Fernandes, D. Schnider, K. Galloway-Sealock and S. Marsh voting in opposition. A motion was brought forward by Councillor Y. Fernandes to make a one-time transfer from the Economic Development Reserve Fund in the amount of $50,000. to the Tax Stabilization Reserve Fund. LOST Councillor Fernandes’ motion was voted on and on a recorded vote with Councillors Y. Fernandes and Z. Janecki voting in favour; and, Mayor B. Vrbanovic and Councillors B. Ioannidis, P. Singh, S. Davey, F. Etherington, J. Gazzola, D. Schnider, K. Galloway-Sealock and S. Marsh voting in opposition. RESOLUTIONS The Committee agreed to advance its recommendations pertaining to the 2016 Budget, based on decisions made this date, for Council’s consideration to the special Council meeting being held immediately following this meeting; and, from which the end result is summarized in brief below: a 2016 department operating budget, resulting in a 2016 levy for general purposes of $111,048,045; and further, an increase in the 2016 tax rate, excluding tax policy changes, of approximately 1.46%. ADJOURNMENT 2. On motion, this meeting adjourned at 4:33 p.m. C. Goodeve D. Livingstone D. Saunderson Committee Administrator Committee Administrator Committee Administrator