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HomeMy WebLinkAboutFCS Minutes - 2017-01-23 - Final Budget FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 23, 2017 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 J. Miller, Executive Director, CAO’s Office C. Bluhm, Interim Executive Director, CAO’s Office C. Tarling, Director, Legislated Services & City Clerk R. Hagey, Director, Financial Planning M. Seiling, Director, Building M. Hildebrand, Director, Community Programs H. Gross, Director, Engineering Services M. Goldrup, Director, Human Resources D. McGoldrick, Director Operations, Environmental Services J. Edmondson, Interim Director, Utilities C. Goodeve, Manager, Council/Committee Services & Deputy City Clerk P. McCormick, Manager, Parking Enterprise B. Bennett, Manager, Business Development D. Fagerdahl, Manager, Financial Planning S. White, Senior Financial Analyst D. Saunderson, Committee Administrator The purpose of this special meeting was to give final consideration to the 2017 Operating and Capital Budgets. 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-17-003 - 2017 BUDGET PACKAGE (FINAL BUDGET DAY) The Committee was in receipt this date of a Council Report containing draft resolutions related to the 2017 Budget put forward for consideration this date. Mr. D. Chapman presented a budget overview, advising the competing themes of affordability and sustainability would be a focus of consideration for the 2017 Budget. He indicated there were five key notes to the 2017 Operating Budget, as follows: the majority of any increased costs to the homeowner is controlled by other levels of government; the proposed tax- supported budget holds most City services status quo; the budget includes growth funding for the expanded Doon Pioneer Park Community Centre, which is no longer required and can be repurposed; the increasing costs related to the Workplace Safety Insurance Board (WSIB); and, increased investments in utility infrastructure. He further advised Kitchener is the only municipality in the area which is poised to adopt a property tax increase below the rate of inflation, in many cases, by a considerable margin. Mr. Chapman stated for the 2017 Capital Budget there were three key achievements: the Capital Budget is balanced; it provides new investment in priority areas; and, reduces the City’s debt. BOARDS Kitchener Public Library Ms. Mary Chevreau and Ms. Sabina Franzen, Kitchener Public Library (KPL), were in attendance to respond to questions from the Committee. A motion was brought forward by Councillor J. Gazzola to reduce the City’s operating grant to the KPL by $10,000. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 23, 2017 - 7 - CITY OF KITCHENER 1. FCS-17-003 - 2017 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT’D) Councillor Gazzola’s motion was voted on and was LOST on a recorded vote, with Councillors J. Gazzola 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, Y. Fernandes, and F. Etherington voting in opposition. The following motion was voted on and was Carried 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 2017 Kitchener Public Library appropriation be approved, as presented.” Centre in the Square ReferencingIssue Paper BD01 (Sharing Centre in the Square Year-end Surplus and Transitional Funding), Councillor S. Davey advised a motion to reconsider would need to be approved prior to any consideration being given to the proposal put forward by Centre in the Square (CITS) to split any surplus on a 50/50 basis for fiscal year 2016. Ms. Deb Daub, CITS, was in attendance and responded to questions. On motion by Councillor J. Gazzola - it was resolved: “That the January 18, 2016 decision regarding the allocation of any surplus accumulated by Centre in the Square (CITS) up to and above the transitional funding of $250,000., be reconsidered.” The motion was Carried with the required 2/3 of members present. On motion by Councillor J. Gazzola - it was resolved: “That additional transitional funding of $218,500. from the Tax Stabilization Reserve Fund for the Centre in the Square (CITS) be disbursed at the request of the CITS Board, with Council being notified by email of the request, and that the funding arrangement of splitting any surplus accumulated by CITS 50/50 between CITS and the City be applied to FY2016 and FY2017.” Councillor J. Gazzola brought forward a motion to reduce the City’s operating grant to the CITS by $10,000. Councillor Gazzola’s motion was voted on and was LOST 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. The following motion was voted on and was Carried on 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, Y. Fernandes and Z. Janecki voting in opposition. On motion by Mayor B. Vrbanovic - it was resolved: “That the 2017 operating budget appropriation of $1,781,500., be approved to Centre in the Square (CITS).” FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 23, 2017 - 8 - CITY OF KITCHENER 1. FCS-17-003 - 2017 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT’D) ENTERPRISE OPERATING BUDGETS Golf Councillor B. Ioannidis brought forward a motion to approve the 2017 Golf Enterprise budget. A motion was brought forward by Councillor J. Gazzola to amend the 2017 Golf Enterprise budget by increasing the dividend by $5,000., which would be applied to the Tax Stabilization Reserve Fund (TSRF). Councillor Gazzola’s motion was voted on and was LOST on a recorded vote with Councillors, K. Galloway-Sealock, 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 and F. Etherington voting in opposition. The following motion was voted on and was Carried on 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, Y. Fernandes and Z. Janecki voting in opposition. On motion by Councillor B. Ioannidis - it was resolved: “That the 2017 budget for the Golf Enterprise, be approved, as presented.” Building A motion was brought forward by Councillor B. Ioannidis to approve the 2017 Operating Budget for the Building Enterprise. Councillor Y. Fernandes left the meeting at this time. The following motion was then voted on and was Carried Unanimously on a recorded vote with all members present. On motion by Councillor B. Ioannidis - it was resolved: “That the 2017 budget for the Building Enterprise be approved as presented.” Parking Councillor Y. Fernandes re-entered the meeting at this time. Councillor J. Gazzola brought forward a motion to increase the Parking Enterprise dividend from $1,750,000. to $1,775,000. The following motion was voted on and was Carried on a recorded vote, with Mayor B. Vrbanovic and Councillors J. Gazzola, Y. Fernandes, Z. Janecki, D. Schnider, P. Singh, S. Davey, S. Marsh and K. Galloway-Sealock voting in favour; and, Councillors B. Ioannidis and F. Etherington voting in opposition. On motion by Councillor J. Gazzola - it was resolved: “That the 2017 Parking Enterprise dividend be increased from $1,750,000. to $1,775,000.” The Committee recessed at 11:14 a.m. and reconvened at 11:20 a.m., Chaired by Councillor S. Davey with all members present. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 23, 2017 - 9 - CITY OF KITCHENER 1. FCS-17-003 - 2017 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT’D) Gas A motion was brought forward by Councillor B. Ioannidis to approve the 2017 Gas Utility budget, as presented. In response to questions, Ms. C. Fletcher confirmed that staff is committed to bringing forward a follow-up report on the Provincial Cap and Trade program in the Spring of 2017. The following motion was voted on and was Carried on a recorded vote, with Mayor B. Vrbanovic and Councillors B. Ioannidis, P. Singh, D. Schnider, Z. Janecki, Y. Fernandes, S. Davey, K. Galloway-Sealock, S. Marsh and F. Etherington voting in favour; and, Councillor J. Gazzola voting in opposition. On motion by Councillor B. Ioannidis - it was resolved: “That the 2017 budget for the Gas Works Utility, be approved, as presented.” Water, Sanitary Utility and Stormwater Utility The Committee considered Issue Paper BD02 \[Accelerated Infrastructure Replacement Program (AIRP) Follow-Up\], which provided additional information on the utility rates and how they fund the City’s infrastructure program. Questions were raised as to how possible rate reductions could be accommodated within the three utilities. Ms. C. Fletcher reviewed a list of seven ongoing utility maintenance items for 2017 related to Water, Sanitary Utility and Stormwater Utility. She stated all of the items assist the City in meeting legislated compliance obligations, addressing a backlog and/or extending the life of an asset. She identified four of those items, which if reduced, could provide a rate reduction of 0.54%. Responding to questions regarding federal infrastructure funding, Mr. Chapman advised incrementality is one of the eligibility criterion for the funding program. He stated the intent is to ensure this funding leads to new, additional infrastructure projects or investments in projects that would not have been completed in 2017 in the absence of federal funding. He cautioned against rate reductions related to the capital program as it could put the City in jeopardy of not complying with the eligibility criteria. A motion was brought forward by Councillor P. Singh to decrease the combined utility rate by 1.3% which would change the overall proposed rate from 9.3% to 8%, with staff being directed to report back on possible options to address the gap in funding. A motion was brought forward by Councillor J. Gazzola to defer consideration of the Water, Sanitary and Stormwater budgets to February 13, 2017 Finance and Corporate Services Committee meeting. Councillor Gazzola’s deferral motion was voted on and LOSTon a recorded vote with Councillors J. Gazzola, Y. Fernandes, S. Marsh, D. Schnider and Z. Janecki voting in favour; and, Mayor B. Vrbanovic and Councillors B. Ioannidis, K. Galloway-Sealock, P. Singh, S. Davey and F. Etherington voting in opposition. In response to questions regarding possible funding options, Mr. Chapman indicated staff had examined possible measures for 2017 and did not identify any other potential funding sources. He stated the only area where there is flexibility to make a rate reduction is within the maintenance program. Councillor Singh’s motion was then voted on and LOSTon a recorded vote with Councillors B. Ioannidis, P. Singh, S. Marsh voting in favour; and, Mayor B. Vrbanovic and Councillors K. Galloway-Sealock, J. Gazzola, Y. Fernandes, Z. Janecki, D. Schnider, S. Davey, and F. Etherington voting in opposition. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 23, 2017 - 10 - CITY OF KITCHENER 1. FCS-17-003 - 2017 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT’D) Mayor B. Vrbanovic brought forward a motion to decrease the combined proposed utility rate by 0.54%, reducing it from 9.3% down to 8.76%. The following motion was then voted on and was Carried on a recorded vote with Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, S. Davey, K. Galloway-Sealock and S. Marsh voting in favour; and, Councillors Z. Janecki, F. Etherington, P. Singh, Y. Fernandes, J. Gazzola voting in opposition. On motion by Mayor B. Vrbanovic - it was resolved: “That the proposed 2017 utility rate increases for Water (7.4%), Sanitary (9.8%) and Stormwater (9.2%), be approved, resulting in a combined increase of 8.76%.” The Committee recessed at 12:52 p.m. and reconvened at 2:06 p.m., Chaired by Councillor S. Davey with all members present. CAPITAL BUDGET Follow-up Issue Papers The Committee considered Issue Paper BD04 (Kiwanis Park Pool (KPP) Renovation) regarding the scheduled 2017 pool renovation and the request for additional funding to complete the renovation and install a splash pad feature as part of the renovation project. Mr. R. Hagey noted the tender for renovations is over the approved capital budget. Mr. M. Hildebrand answered questions regarding the construction of the splash pad and the advisability of constructing it at the same time as renovating the pool; the rationale for locating the splash pad at Kiwanis Park; its funding source including the possibility of obtaining sponsorship funding; and, the reasons for the tender being over the approved capital budget. Mr. Hagey confirmed the contingency for general repairs would come from the Capital Contingency for the entire City, not just for Kiwanis Park. A motion was brought forward by Mayor B. Vrbanovic to approve staff’s recommendation to transfer $190,000 from the Capital Contingency account to the 2017 Kiwanis Park Pool capital account; and, to increase the 2017 Kiwanis Park Pool capital budget by $200,000 of sponsorship funding for a splash pad at Kiwanis Park. Councillor Z. Janecki requested the matters relating to the Capital Contingency account and the sponsorship funding be voted on separately. The following motion was voted on and was Carried Unanimously on a recorded vote. On motion by Mayor B. Vrbanovic – it was resolved: “That $190,000 be transferred from the Capital Contingency account to the 2017 Kiwanis Park Pool capital account.” The following motion was then voted on and was Carried on a recorded votewith Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, F. Etherington, K. Galloway-Sealock, P. Singh, S. Marsh, S. Davey, and Y. Fernandes voting in favour; and, Councillors Z. Janecki and J. Gazzola voting in opposition. On motion by Mayor B. Vrbanovic – it was resolved: “That the 2017 Kiwanis Park Pool capital budget be increased by $200,000 of sponsorship funding related to the Kiwanis Park splash pad.” FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 23, 2017 - 11 - CITY OF KITCHENER 1. FCS-17-003 - 2017 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT’D) The Committee considered Issue Paper BD05 (Funding Shortfall for Doon Pioneer Park Community Centre Expansion and Splash Pad) regarding the funding shortfall related to the Doon Pioneer Park Community Centre expansion and splash pad facility. Ms. D. McGoldrick provided clarification regarding the funding needed for the skateboard park as well as the timing for funding. She indicated staff will initiate the detailed design in 2017 but the majority of the money will be spent in 2018/2019. She confirmed staff will come back to Council through a future budget process if additional funding is needed. Mr. M. Hildebrand stated construction of the splash pad will be done in 2018 and the intent is to locate it close to the community centre. A motion was brought forward by Councillor Y. Fernandes to approve Option #2 as outlined in Issue Paper BD05 to transfer $200,000 from the Upper Canada Park skate park to the project expansion budget to fund the shortfall associated with the replacement of the splash pad. The following motion was voted on and was Carried Unanimously on a recorded vote. On motion by Councillor Y. Fernandes – it was resolved: “That $200,000 from the capital funding for the skateboard park planned for the Upper Canada Park be reallocated to upgrading the Doon Pioneer Park Community Centre splash pad.” The Committee considered Issue Paper BD06 (Brownfield Remediation), including additional information on the Brownfield Program and associated funding. Mr. Hagey confirmed there is no budget increase in 2017; the increase starts in 2019 and will be considered as part of future budget deliberations. Mr. D. Chapman added this Issue Paper is intended to be for information only and has been brought forward for further clarification as previously Council had questions regarding the brownfield capital account. Councillor J. Gazzola left the meeting at this time. The Committee considered Issue Paper BD07 (Impact of Economic Development Reserve Outside of Downtown), providing additional information on the various Make It Kitchener programs. A motion was brought forward by Councillor P. Singh to allocate $10,000 from the Economic Development Reserve fund for Placemaking Initiatives Outside Downtown and to keep Line 29 of the Economic Development Reserve Fund (MIK – Communications, Events, Studies) at $100,000. Mr. M. May clarified that $10,000 for Placemaking Initiatives will be funded from different accounts as part of the Neighbourhood Strategy. He confirmed Economic Development staff will be included as part of the evaluation committee for Neighbourhood Strategy projects. The following motion was then voted on and was Carriedon recorded vote with Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, F. Etherington, K. Galloway-Sealock, P. Singh, S. Marsh, S. Davey, and Y. Fernandes voting in favour; and Councillor Z. Janecki voting in opposition. Councillor J. Gazzola was absent and did not vote. On motion by Councillor P. Singh – it was resolved: “That a Line Item be added to the Economic Development Reserve Fund called ‘MIK – Placemaking Initiatives’ with an allocation of $10,000; and further, That Line 29 of the Economic Development Reserve Fund (MIK – Communications, Events, Studies) be retained at $100,000.” Councillor J. Gazzola re-entered the meeting at this time. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 23, 2017 - 12 - CITY OF KITCHENER 1. FCS-17-003 - 2017 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT’D) Councillor B. Ioannidis brought forward a motion to approve staff’s recommendation to finance the following Line Items and their corresponding amounts from the Economic Development Reserve Fund for the total amount of $1.792 million: “Line Item Amount 5 Land Pad Grants $310,000 7 Parking Subsidy due to ION Construction $ 77,000 27 MIK – 44 Gaukel – Accelerator $ 60,000 14 Small Business Centre $ 30,000 21 MIK – Communitech $300,000 23 MIK – Two Way GO/High Speed Rail $ 50,000 24 MIK – Maker Expo $ 15,000 13 Physician and Specialist Recruitment $ 10,000 28 MIK – 44 Gaukel – Arts Build Ontario $ 10,000 22 MIK – Incubator Capacity $500,000 25 MIK – Digital Kitchener $200,000 20 MIK – Music, Film and Interactive Media Industry Office $130,000 29 MIK – Communications, Events and Studies $100,000” A motion was brought forward by Mayor B. Vrbanovic to amend Councillor Ioannidis’ motion to increase the amount for Line Item 13 (Physician and Specialist Recruitment) to $10,000 for Physician Recruitment and $10,000 for Specialist Recruitment for a total increase to $20,000 from the Economic Development Reserve Fund. Mayor Vrbanovic’s motion was voted on and was Carriedon recorded vote with Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, F. Etherington, K. Galloway-Sealock, P. Singh, S. Marsh, S. Davey and J. Gazzola voting in favour; and, Councillors Y. Fernandes and Z. Janecki voting in opposition. Councillor Y. Fernandes then brought forward a motion to amend Councillor Ioannidis’ motion to reduce Line Item 21 (Communitech Grant) in the Economic Development Reserve Fund to $200,000; and not to approve budget allocations for Line Item 22 (MIK – Incubator Capacity) as well as Line Item 25 (MIK – Digital Kitchener) from the Economic Development Reserve Fund. Mr. R. Hagey indicated Line Items 22 and 25 along with Line Item 20 (MIK – Music, Film and Interactive Media Industry Office) will require a report to come back to Council for approval in the future so there is no blanket approval today for those items. Councillor Y. Fernandes’ motion was then voted on and was LOSTon recorded vote with Councillors Y. Fernandes and Z. Janecki voting in favour; and, Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, F. Etherington, K. Galloway-Sealock, P. Singh, S. Marsh, S. Davey and J. Gazzola voting in opposition. The following motion was voted on and was Carriedon recorded vote with Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, F. Etherington, K. Galloway-Sealock, P. Singh, S. Marsh and S. Davey voting in favour; and, Councillors Y. Fernandes, Z. Janecki and J. Gazzola voting in opposition. On motion by Councillor B. Ioannidis – it was resolved: “That the following Line Items be financed from the Economic Development Reserve Fund: FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 23, 2017 - 13 - CITY OF KITCHENER 1. FCS-17-003 - 2017 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT’D) Line Item Amount 5 Land Pad Grants $310,000 7 Parking Subsidy due to ION Construction $ 77,000 27 MIK – 44 Gaukel – Accelerator $ 60,000 14 Small Business Centre $ 30,000 21 MIK – Communitech $300,000 23 MIK – Two Way GO/High Speed Rail $ 50,000 24 MIK – Maker Expo $ 15,000 13 Physician and Specialist Recruitment $ 20,000 28 MIK – 44 Gaukel – Arts Build Ontario $ 10,000 22 MIK – Incubator Capacity $500,000 25 MIK – Digital Kitchener $200,000 20 MIK – Music, Film and Interactive Media Industry Office $130,000 29 MIK – Communications, Events and Studies $100,000” The Committee considered Issue Paper BD08 (Proceeds of Sale from 48 Ontario Street North) regarding the proceeds from the sale of 48 Ontario Street North and how the funds should be allocated following the sale. A motion was brought forward by Councillor P. Singh to approve staff’s recommendation to add three Line Items to the Economic Development Reserve Fund projection in relation to the anticipated sale of 48 Ontario Street North with the actual dollar values being added to the Economic Development Reserve Fund projection once the sale is finalized and the funds received. The following motion was voted on and was Carriedon recorded vote with Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, F. Etherington, K. Galloway-Sealock, P. Singh, S. Marsh, S. Davey and J. Gazzola voting in favour; and, Councillors Y. Fernandes and Z. Janecki voting in opposition. On motion by Councillor P. Singh – it was resolved: “That the following three lines be added to the Economic Development Reserve projection in relation to the anticipated sale of 48 Ontario Street North: Revenue line – Sale of 48 Ontario Street North; Expense line – Creative Hub; and, Expense line – MIK-New Investments; and further, That once the sale is finalized and funds are received, the actual dollar values be added to the Economic Development Reserve projection and Council make decisions with respect to the actual expenses.” Mayor B. Vrbanovic left the meeting at this time. Councillor P. Singh declared a pecuniary interest with respect to the following Engineering Capital Projects: 5163 - Ottawa Street - Charles Street to Expressway; Stirling/Mill to Russel; Fourth Avenue - Kingsway Drive to Connaught Street; Second Avenue - Kingsway Drive to Connaught Street; Connaught Street - Ninth Avenue to Traynor Avenue; and, Connaught Street - Third Avenue to Fourth Avenue as members of his family own property in the vicinity of the subject projects. Accordingly, he did not participate in any discussion or voting regarding those matters. Those items in the Capital Budget and Forecast related to Councillor Singh’s identified pecuniary interests were considered separately and were Carried on a recorded vote with Councillors B. Ioannidis, D. Schnider, S. Davey, Y. Fernandes, Z. Janecki, F. Etherington, K. Galloway-Sealock and S. Marsh voting in favour; and, Councillors J. Gazzola voting in opposition. Councillor P. Singh did not participate in voting due to his declaration. Mayor B. Vrbanovic was absent and accordingly did not vote. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 23, 2017 - 14 - CITY OF KITCHENER 1. FCS-17-003 - 2017 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT’D) The following motion was voted on and was Carriedon a recorded vote with Councillors B. Ioannidis, D. Schnider, S. Davey, P. Singh, Y. Fernandes, Z. Janecki, F. Etherington, K. Galloway-Sealock and S. Marsh voting in favour; and, Councillors J. Gazzola voting in opposition. Mayor B. Vrbanovic was absent and accordingly did not vote. On motion by Councillor B. Ioannidis - it was resolved: “That the balance of the Capital Budget & Forecast (2017-2026) be approved, with expenditures for the overall Forecast in all the years totaling $1,240,637,000.” The Committee recessed at 4:26 p.m. and reconvened at 4:30 p.m., Chaired by Councillor S. Davey with all members present, except Councillor K. Galloway-Sealock. TAX SUPPORTED OPERATING BUDGET Follow-up Issue Papers The Committee considered Issue Paper BD09 (Arts Sustainability Funding) regarding the historical funding information for THEMUSEUM, The Kitchener Waterloo Art Gallery (KWAG), and the Kitchener Waterloo Symphony (KWS). A motion was brought forward by Councillor S. Marsh to increase the Tier 1 Community Grant funding to the following organizations through an allocation from the former Creative Enterprise Initiative (CEI) grant: THEMUSEUM by $12,000.; Kitchener Waterloo Art Gallery by $4,000.; and, Pat the Dog Theatre Creation by $4,000. In response to questions, Mr. Hagey advised in 2016 CEI was provided a grant allocation of $46,000. Staff have made a recommendation to transfer those funds to the Tier 2 Community Grant program. Councillor J. Gazzola brought forward an amendment to Councillor Marsh’s motion to decrease the allocation to THEMUSEUM from $12,000. to $5,000. Councillor Gazzola’s amendment was voted on and LOST on a recorded vote with Councillors J. Gazzola and Y. Fernandes voting in favour; and, Mayor B. Vrbanovic and Councillors B. Ioannidis, P. Singh, S. Marsh, Z. Janecki, D. Schnider, S. Davey, and F. Etherington voting in opposition. Councillor K. Galloway-Sealock was absent and accordingly did not vote. Councillor K. Galloway-Sealock re-entered the meeting at this time. Councillor Marsh’s motion regarding the increase Tier 1 Community Grant funding to Pat the Dog Theatre Creation was then voted on and was Carried on a recorded vote with Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, S. Davey, P. Singh, Y. Fernandes, F. Etherington and S. Marsh voting in favour; and, Councillors K. Galloway-Sealock, Z. Janecki and J. Gazzola voting in opposition. Councillor K. Galloway-Sealock left the meeting at this time. Councillor Marsh’s motion regarding the increase Tier 1 Community Grant funding to the Kitchener Waterloo Art Gallery was then voted on and was Carriedon a recorded vote with Mayor B. Vrbanovic and Councillors D. Schnider, S. Davey, P. Singh, Y. Fernandes, F. Etherington and S. Marsh voting in favour; and, Councillors B. Ioannidis, Z. Janecki and J. Gazzola voting in opposition. Councillor K. Galloway-Sealock was absent and accordingly did not vote. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 23, 2017 - 15 - CITY OF KITCHENER 1. FCS-17-003 - 2017 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT’D) Councillor Marsh’s motion regarding the increase Tier 1 Community Grant funding to THEMUSEUM was then voted on and was Carriedon a recorded vote with Mayor B. Vrbanovic and Councillors D. Schnider, S. Davey, B. Ioannidis, P. Singh, F. Etherington and S. Marsh voting in favour; and, Councillors Y. Fernandes, Z. Janecki and J. Gazzola voting in opposition. Councillor K. Galloway-Sealock was absent and accordingly did not vote. The following motion was voted on and was Carried Unanimously on a recorded vote by all members present. On motion by Councillor S. Marsh - it was resolved: “That $26,000. of the former ‘CEI Operating Grant’ be reallocated to the Tier 2 Community Grant budget and distributed through the Tier 2 Grant process.” Referencing the motion passed at the December 12, 2016 Council meeting related to the Community Grants budget, Mr. Hagey clarified there was a clerical error in the recommendation that will need to be corrected when the minutes are considered at the January 30, 2017 Council meeting. He indicated the total Grant Budget allocation was accurate; however, there should have been an additional clause included in the recommendation outlining a transfer of $19,000. to the Festival of Neighbourhoods. A motion was brought forward by Mayor B. Vrbanovic to approve the 2017 Economic Development grants as outlined in Clause 8 of the draft resolutions circulated to the Committee this date. It was requested that the 2017 Economic Development grant for Communitech Technology Association be voted on separately. Councillor K. Galloway-Sealock re-entered the meeting at this time. The Communitech Technology Association was voted on and was Carriedon a recorded vote with Mayor B. Vrbanovic and Councillors B. Ioannidis, D. Schnider, S. Davey, P. Singh, K. Galloway-Sealock, F. Etherington and S. Marsh 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 Unanimously on a recorded vote. On motion by Mayor B. Vrbanovic - it was resolved: “That Economic Development Grants be approved for 2017 as follows: Waterloo Region Economic Development Corporation $320,000. Waterloo Region Tourism Marketing Corporation $90,000. Waterloo Region Small Business Centre $89,031. Business and Education Partnership $5,850. Skills Canada $5,850. Junior Achievement $5,850.” The Committee considered Issue Paper BD10 (Enhanced Integrity Commissioner Services Follow Up) regarding the number of conflicts of interest that have been declared by members of Council in the past 5-10 years, and how integrity commissioner services may be funded. The following motion was voted on and was Carriedon a recorded vote with Mayor B. Vrbanovic and Councillors D. Schnider, S. Davey, Y. Fernandes, Z. Janecki, J. Gazzola, B. Ioannidis, P. Singh, F. Etherington and K. Galloway-Sealock voting in favour; and, Councillor S. Marsh voting in opposition. On motion by Mayor B. Vrbanovic - it was resolved: FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 23, 2017 - 16 - CITY OF KITCHENER 1. FCS-17-003 - 2017 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT’D) “That no action be taken at this time to obtain additional integrity commissioner services as outlined in Issue Paper BD10 (Enhanced Integrity Commissioner Services Follow Up).” The Committee considered Issue Paper BD11 (Increasing Exposure to Workplace Safety Insurance Board \[WSIB\] Costs Follow Up) related to additional information regarding the recommendation to increase funding to the WSIB reserve fund. Councillor J. Gazzola brought forward a motion to take no action at this time on Issue Paper BD11. Councillor Gazzola’s motion was voted on and LOST on a recorded vote with Councillors J. Gazzola, Y. Fernandes and Z. Janecki voting in favour; and, Mayor B. Vrbanovic and Councillors B. Ioannidis, K. Galloway-Sealock, D. Schnider, P. Singh, S. Davey, S. Marsh and F. Etherington voting in opposition. A motion was brought forward by Councillor K. Galloway-Sealock to approve the recommendation as outlined in Issue Paper BD11, with an amendment to strike out the phrase “on an on- going basis.” The following motion was then voted on and was Carried Unanimously on a recorded vote. On motion by Councillor K. Galloway-Sealock - it was resolved: “That the growth funding of $109,000., meant for the Doon Pioneer Park Community Centre expansion but not required for 2017, be allocated to the Workplace Safety Insurance Board (WSIB) reserve for 2017, as outlined in Issue Paper BD11 (Increasing Exposure to Workplace Safety Insurance Board \[WSIB\] Costs Follow Up); and further, That any final assessment growth revenue, in excess of the 1.25% budget estimate, be allocated to the WSIB reserve. Councillor K. Galloway-Sealock left the meeting at this time. The Committee considered Issue Paper BD12 (Mileage and Per Diem Rates) regarding a comparison of current mileage and per diem rates used by local municipalities. The following motion was voted on and was Carried Unanimously on a recorded vote by all members present. On motion by Councillor S. Marsh - 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 kilometre; 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).” RESOLUTIONS Councillor J. Gazzola brought forward a motion to increase the 2017 Investment Income budget by $450,000 instead of $200,000 as outlined in the proposed 2017 budget. Councillor K. Galloway-Sealock re-entered the meeting at this time. Mr. Hagey circulated information regarding the historical rate trends from the Bank of Canada for Guaranteed Investment Certificates (GICs), Bank of Canada rate forecasts for 2016 and 2017, and an analysis of Kitchener’s expected 2017 investment income based on the projected FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 23, 2017 - 17 - CITY OF KITCHENER 1. FCS-17-003 - 2017 BUDGET PACKAGE (FINAL BUDGET DAY) (CONT’D) 2017 rates. He provided an overview on the City’s investment strategies, advising that while the 2016 projected actual for investment income is expected to be $585,000 better than budget, the 2017 projected actual is expected to be lower based on projected rates. He further advised the interest income budget has already increased since 2016 by $200,000. Councillor Gazzola’s motion was then voted on and LOSTon a recorded vote with Councillors J. Gazzola, Z. Janecki and Y. Fernandes voting in favour; and, Mayor B. Vrbanovic and Councillors B. Ioannidis, K. Galloway-Sealock, P. Singh, S. Marsh, D. Schnider, S. Davey, and F. Etherington voting in opposition. Councillor J. Gazzola brought forward a motion to transfer $200,000. from the 2016 Tax Stabilization Reserve Fund to be added to the tax levy. Councillor Gazzola’s motion was then voted on and Carriedon a recorded vote with Councillors J. Gazzola, S. Marsh, B. Ioannidis, K. Galloway-Sealock, Z. Janecki and Y. Fernandes voting in favour; and, Mayor B. Vrbanovic and Councillors P. Singh, D. Schnider, S. Davey and F. Etherington voting in opposition. FINAL RECOMMENDATIONS - 2017 BUDGET The Committee agreed to advance its recommendations pertaining to the 2017 Budget, based on decisions made this date, for Council’s consideration at its special Council meeting to be held immediately following this meeting. 2.ADJOURNMENT On motion, this meeting adjourned at 6:01 p.m. C. Goodeve D. Saunderson C. Tarling Deputy City Clerk Committee Administrator City Clerk