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Home My WebLink AboutFCS-18-001 - 2018 Budget Package (Final Budget Day)REPORT TO:Finance and Corporate Services Committee DATE OF MEETING:January 22, 2018 SUBMITTED BY:Ryan Hagey, Director of Financial Planning, 519-741-2200 x 7353 PREPARED BY:RyanHagey, Director of Financial Planning, 519-741-2200 x 7353 WARD(S) INVOLVED:All DATE OF REPORT:December 21, 2017 REPORT NO.:FCS-18-001 SUBJECT:2018 Final Budget ___________________________________________________________________________ RECOMMENDATION: For Discussion BACKGROUND: Detailedreports and presentations on the Operating and Capital budgets were considered by Committee in November.This final budget day packagesupplements the information provided previously and is primarily meant to: Provide updates on the Operating and Capital Budgets Provide information required by the Municipal Act REPORT: Operating Budget As presentedto Council during the operating budget discussion,highlights of the proposed operating budgetinclude: 1.Affordability & sustainability 2.Investing in infrastructure 3.Creating community Tax Supported Operating Budget The proposed net tax levy increase for 2018is 1.7%, which approximates the rate of inflation. As noted during the operating budget presentation, assessment growth revenues are slightly higher than expected, so Council will have an opportunity to decide whether to invest these additional funds in service delivery, save them for a future use by putting them in reserve, or reduce the net tax levy increase to 1.66%. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. FINAL - 1 Enterprise Operating Budgets The City enterprises are stand-alone business lines that are self-funding through their own rates (i.e. are not funded through property taxes).They include: Golf, Building, Parking, Natural Gas, Water, Sanitary Sewer, and Stormwater. T he projected financial yearend results (net revenue/expense) for2017have been updated for each of the enterprisesbased on activitysince the operating budget projections were prepared.As well, the budgetforecasts for enterprises have been reviewed, and remain unchanged with the exception of Parking, which has improved due to property tax reassessment of two parking garages. Changes to the enterprise projected actuals or budget forecast are highlighted below. Bu ilding - Projected Net Revenue/Expense is $15,000worse due to slightly higher expenses. The 2018-2022 budgets are unchanged. Go lf - Projected Net Revenue/Expense is unchanged although there are minor changes to both revenues and expenses. The 2018-2022 budgets are unchanged. Parking - Projected Net Revenue/Expense is $200,000better due to a combination of higher monthly revenues and lower property taxes. The 2018-2022 budgeted results have improved due to reassessments of City Hall and the Market parking garages (impact is $113,000 in 2018). GasDelivery - Projected Net Revenue/Expense is $560,000 worse than original presentation due to lower than budgeted consumption in October and November, and increased operating and maintenance costs. The 2018-2022 budgets are unchanged. GasSupply and Transportation -Projected Net Revenue/Expense is $20,000 better due to slightly lower net costs from lower consumption. The 2018-2022 budgets are unchanged. Gas Cap and Trade -Projected Net Revenue/Expense is $34,000 better due to slightly lower net costs from lower consumption. The 2018-2022 budgets are unchanged. W ater - Projected Net Revenue/Expense is $242,000 better due to increased water consumption leading to higher revenues and decreased maintenance costs.The 2018-2022 budgets are unchanged. Sanitary - Projected Net Revenue/Expense is $1,406,000 better due to increased water consumption leading to higher revenues decreased sewage processing costs. Increased water consumption is also reflected in the Water utility revenues, while processing costs have been reduced by 8% at the end of the year based on actuals in September and October being well below the 5-year average. The 2018-2022 budgets are unchanged. FINAL - 2 Stormwater - Projected Net Revenue/Expense is $79,000 worsedue to increased maintenance costs. The 2018-2022 budgets are unchanged. Capital Budget As highlighted to Council during the capital budget presentation, the proposed capital budget: 1.Is balanced 2.Reduces the City’s debt 3.Invests in infrastructure and creates community. The proposed 10-year Capital Budgetand Forecast(referred to as the Capital Budget) remains unchanged, so a new complete projectlisting has not been prepared. Follow up information Council requested related to the new South End arena, the Don McLaren arena, and the Community Trails & Naturalization capital accounts is included in the final budget day package. Information Required by the Municipal Act Regulation 284/09 of the Municipal Act titled “Budget Matters – Expenses” requires that before Council adopts the annual budget, it must first receive a report about “excluded expenses” and adopt that report by resolution.This resolution is included as part of the Final Budget Day resolution.Public Sector Accounting Board (PSAB) changes effective in 2009 require the annual Consolidated Financial Statements to be prepared using full accrual accounting.As a result, certain expenses are included in the financial statements that are not included in the budget.For the City of Kitchener these include amortization expense on tangible capital assets and post-employment benefit expense. Amortization expense on tangible capital assets of $42.7Mwas recorded in the 2016 consolidated financial statements.This expense is meant to represent the rate at which the City is using up its assets (based on historical cost).It can therefore be used as a rough indication of what should be budgeted for replacement. Post-employment benefit expense, which includes sick leave, workplace safety and insurance benefits, and post-employment benefits in the 2016consolidated financial statements,was $3.9M ($42.2 - $38.3M). If these expenses were excluded in the financial statements, the 2016accumulated surplus would increase by $46.6M(the combined amount ofamortization expense and post-employment benefit expense).There is no impact on future tangible capital asset funding requirements based on the exclusion of these expenses. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The recommendation of this report supports the achievement of the city’s strategic vision through the delivery of core service. FINAL - 3 FINANCIAL IMPLICATIONS: The financial impacts on the average homeowner of services provided to citizens by the City of Kitchener are shown in the chart below. The impacts are shown by budget (e.g. tax, water, sanitary, storm water, gas) as well as by level of government (City, Region, Province). It should be noted that the impacts attributed to the Region of Waterloo are only for the additional costs of water supply and sewage processing that must be absorbed within City of Kitchener utility rates. Impacts related to changes inthe Regional net tax levy are notincluded, as they are decided on by Regional Council. The breakdown by level of government shows the City of Kitchener is responsible for $39 (or 53%) of the proposed increase, while the Region of Waterloo and Province of Ontario are responsible for $34 (or 47%) of the proposed increase. The Regional portion of the impact relates to increased costs for supplying water and processing sewage. The Provincial portion of the impact relates to the costs of implementing cap and trade legislation for natural gas. NOTE: The budget impact attributed to the Region of Waterloo does notinclude the impact to taxpayers related to changes in the Regional net tax levy.It only includes the additional costs of water supply and sewageprocessing that must be absorbed within City of Kitchener utility rates. Assumptions: City Taxes: Current Assessed Value (CVA) of $300,000 Storm Water: property classified as Residential Single Detached Medium 3 Water & Sanitary: water consumption of 204m 3 Natural Gas: gas consumption of 2,100m COMMUNITY ENGAGEMENT: Citizens have an opportunity to provide input about priority areas of the budget through a number of processes.Their input comes through public consultation efforts for comprehensive master plans (e.g. Leisure Facilities Master Plan), strategies (e.g. Neighbourhood Strategy, Customer Service Strategy), or specific projects (e.g. Kiwanis FINAL - 4 Park Pool).As part of thoseprocesses, staff considers the feedback received from the public as they make their recommendations to Council and share the feedback with Council when those recommendations are presented for approval.The budget is the process whereby Council affirms thevarious approved priorities and allocates funds to bring concepts into reality. For the 2018budget process, staff have employed a suite of traditional and electronic engagement methods in an effort to effectively inform and consult citizens.Staff have proactively provided information about the budget process via media outreach, the City’s website, and through Your Kitchener. Citizens have been encouraged to provide their input by: Contacting their ward councillor Writing, emailing or phoning City Hall Attending the public input session planned for January 15, 2018 Responding to the City’s Facebook/Twitter posts about the budget Completing the budget survey onEngage Kitchener Included in this budget package is an issue paper of the feedback received from citizens relating to the budget. As of mid-December, the City has received more than 100 responses to the Engage Kitchener survey and one email about the budget. The th Engage Kitchener survey will remain open until January 5, 2018 and staff will update the issue paper in early January so Council has all of the feedback before Final Budget nd Day on January 22, 2018. PREVIOUS CONSIDERATION OF THIS MATTER: The 2018 budget has been discussed in detail by Council during previous meetings set aside exclusively to consider the budget.The reports and meeting dates are: FCS-17-188, 2018 Operating Budget (November 20, 2017) FCS-17-189, 2018 Capital Budget and 10-Year Forecast (November 27, 2017) As well, the City hosts a stand-alone public input meeting on January 15, 2018 regarding the budget. ACKNOWLEDGED BY: Lesley MacDonald,Acting Deputy CAO (Finance and Corporate Services) FINAL - 5 6 - FINAL Committee January 22, 2018 2018 Final Budget Day Finance and Corporate Services 7 - FINAL kitbudget # CityofKitchener or 2200 x 7700 - www.kitchener.ca/citybudget CityKitchener 741 Facebook.com/ - @ 519 us budget@kitchener.ca Keep up at TweetEmail PhoneSee more at Connect to the Budget FINAL - 8 OverviewBoardsEnterprise Operating BudgetsCapital BudgetTax Supported Operating BudgetResolution Presentation Agenda•••••• 9 - FINAL Overview FINAL - 10 dgets bu to Council for final approval n o is an approved budget papers dated based on decisions made today Highlights of proposed Updates on local comparatorsIssue Draft resolutions provided to Council, and will beupForwarded ––––– Minimal staff presentationFollow up items for information and decisionOutcome Final Budget Day Process••• FINAL - 11 in infrastructure & creates community Affordability and SustainabilityInvesting in InfrastructureCreating CommunityIs balancedReduces the City’s debtInvests Highlights of the 2018 Budget Operating•••Capital••• 12 - a p 6.50%4.50% a3.33% FINAL 2.74% a4.52% a2.10% a1.70% p 2018 Local Tax Rate Increases Region of WaterlooCambridgeWaterlooKitchener 2018 Local Combined Water/Sewer Increases Kitchener (Water, Sanitary, Stormwater)Waterloo (Water, Sanitary, Stormwater)Cambridge (Water and Sanitary only) Update on Local Municipalities(a = approved, p = proposed) FINAL - 13 Summary of Proposed Budget Changes 14 - FINAL Boards h FINAL - 15 . BD05 rating budget nsidered for additional assessment growt pe o unding in issue paper No changes to budgetActuals are the same as the projection fromoOne of the areas Council asked to becf Kitchener Public Library (KPL)••• FINAL - 16 Kitchener Public Library (KPL) m FINAL - 17 rating budget pe No changes to budgetActuals are similar to projection frooAsking for continued transition funding Centre in the Square (CITS)••• 18 - FINAL Centre in the Square (CITS) 19 - FINAL Enterprise Operating Budgets 20 - FINAL set)set)set) When fees are set User fees (alreadyUser fees (alreadyUser fees (alreadyOutside budget processFinal Budget DayFinal Budget DayFinal Budget Day Enterprise GolfBuildingParkingGasWaterSanitary SewerStorm Sewer Setting Enterprise Fees 21 - actuals FINAL projected actuals for most enterprises budget and rojected p resentation Most budgets remain unchanged from original pChanges to hanges to the –– Each enterprise is preceded by a summary of c Budget and Actual Updates• l FINAL - 22 o slightly higher expenses t esentation Budget remains unchanged from originaprProjected Net Revenue/Expense is $15K worsedue Building Change Summary•• FINAL - 23 Building Enterprise d nge h l ha unc FINAL - 24 esentation lthough there are minor changes to bot evenues and expenses Budget remains unchanged from originaprProjected Net Revenue/Expense is ar Golf Change Summary•• FINAL - 25 Golf Enterprise n C $200K FINAL - 26 is ed to include lower property tax tter due to a combination of higher monthly eassessment. All budget years across the forecast have beeupdatnumbers for both City Hall and the Marketgarage. This was the result of a recent MPArProjected Net Revenue/Expense berevenues and lower property taxes Parking Change Summary•• FINAL - 27 Parking Enterprise se eams l and B wor FINAL - 28 is $560K presentation due to: frastructure An increase in corrosion maintenance on steel gasinAlternating current mitigation on steel mains near and Manitou. vember •• Lower than budgeted consumption in OctoberNoIncreased operating costs related to: esentation –– Budget remains unchanged from originalprProjected Net Revenue/Expense than original Gas Delivery Change Summary•• 29 - FINAL Delivery - Gas Utility r better l $20K FINAL - 30 s i esentation onsumption Budget remains unchanged from originaprProjected Net Revenue/Expense due to slightly lower net costs from lowec Gas Supply Change Summary•• FINAL - 31 Supply - Gas Utility r tte r l be $34K FINAL - 32 to slightly lower net costs from lowe esentation onsumption Budget remains unchanged from originaprProjected Net Revenue/Expense is duec Gas Cap & Trade Change Summary•• FINAL - 33 Cap & Trade – Gas Utility l higher to $242K FINAL - 34 to: tter due Increased water consumption leading revenuesDecreased maintenance costs esentation –– Budget remains unchanged from originaprProjected Net Revenue/Expense is be Water Change Summary•• FINAL - 35 Water Utility l $1.4M FINAL - 36 ewage processing s venues ter due to: t Increased water consumption leading to higherreDecreased esentation –– Budget remains unchanged from originaprProjected Net Revenue/Expense is be Sanitary Change Summary•• FINAL - 37 Sanitary Utility orse l w $79K FINAL - 38 increased maintenance costs esentation Budget remains unchanged from originaprProjected Net Revenue/Expense is due to Stormwater Change Summary•• FINAL - 39 Stormwater Utility 40 - FINAL Capital Budget nd FINAL - 41 ar capital budget a ye - orecast No changes to the 10f Capital Budget Changes• FINAL - 42 Title South End Arena Follow UpRoofing (Don McLaren Arena Follow Up)Trails & Naturalization Follow Up Capital Issue Papers IP#BD01BD02BD03 43 - FINAL Tax Supported Operating Budget FINAL - 44 x supported operating ta No changes to the budget Operating Budget Changes• 45 - FINAL Time Active Transportation Planning Project Manager Follow Up - Title Part Additional Assessment GrowthMileage and Per Diem Rates2018 Budget Public Input Operating Issue Papers IP#BD04BD05BD06BD07 46 - FINAL Resolutions ill FINAL - 47 today based on decisions made ange Figures included in the draft resolutions wchTier 1 grantsVehicle & Equipment Replacement Schedule rwarding them on to Council ––– All resolutions need to be approved beforefoNew resolutions for the 2018 budget: Resolutions•• Final Budget Day Issue Paper (IP) Index IP # Description BD01South End Arena Follow Up BD02 Roofing (Don McLaren Arena Follow Up) BD03 Trails & Naturalization Follow Up BD04Part-Time Active Transportation Planning Project Manager Follow Up BD05 Additional Assessment Growth BD06 Mileage and Per Diem Rates BD07 2018 Budget Public Input FINAL - 48 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER ISSUE: BD01 – South End Arena Follow Up FUND:Capital DEPARTMENT: Community Services – SportDivision PREPARER: Kim Kugler, Director of Sport BUDGET IMPACT: None BACKGROUND: During the November 27, 2017 capital budget review, staff was directed to provide an update on the timing of when the South End Arena will be included in the ten year capital budget forecast. RATIONALE / ANALYSIS: In response to the findings of the 2013 Leisure Facilities Master Plan Update (LFMPU), City Council approved a clear set of priorities for future investments in indoor and outdoor recreational facilities. A new arena was not amongst the top 6 priority indoor facilities identified by City Council. The prioritized recreational facility listing that was approved by City Council was used to prepare the 2014 development charges (DC) background study. As a new arena was not identified as a priority by City Council, and DC funding for recreation facilities is limited, it was noted in the DC study as a post 2023 priority(the DC study only identified funding priorities for 10 years, so post 2023 was used for anything outside of the first 10 years). The arena was identified at a total cost of approximately $17 million in 2014 dollars. As part of the City’s 2018 Leisure Facilities Master Plan, the timing of a new arena will be considered along with a variety of other recreational needs in the community. FINANCIAL IMPLICATIONS: None. RECOMMENDATION: For information only. FINAL - 49 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER ISSUE: BD02 – Roofing (Don McLaren Arena Follow Up) FUND:Capital DEPARTMENT: Infrastructure Services – Facilities Management Division PREPARER: Lynda Stewart, Interim Director of Facilities Management BUDGET IMPACT: None BACKGROUND: During the November 27, 2017 capital budget review, staff was directed to provide additional information about the future plan for the Don McLaren arena, and whether there were options to reduce the roof repair costs planned for 2018. RATIONALE / ANALYSIS: Staff in the Sport division have indicated Don McLaren is a well-used facility which is planned to remain in operation for more than 20 years. The ice plant operates 7 months of the year and the floor is rented for 4 months per year. Given the anticipated residential growthin the downtown and midtown areas, this recreational facility will meet a continued need for ice surface andhard floor sports amenity space. The roof condition assessment, completed in 2016, indicated it should be replaced within two years. Leaks were repaired in both 2016 and 2017. The new roof system will also address condensation issues on the ceiling over the arena floor thatresults in moisture falling onto floors and the ice surface. This moisture must be mopped on floors or scraped off the ice surface. FINANCIAL IMPLICATIONS: None. The estimated cost of $445,000 is included as part of the proposed 2018 capital budget. RECOMMENDATION: For information only. FINAL - 50 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER ISSUE: BD03 – Trails & Naturalization Follow Up FUND:Capital DEPARTMENT: Infrastructure Services – Operations, Environmental Services PREPARER: Denise McGoldrick, Director ofOperations, Environmental Services BUDGET IMPACT: None BACKGROUND: During the November 27, 2017 capital budget review, staff was directed to: 1.Provide a list of 2018 trail projects planned for Community Trails General Provision 2.Provide a list of 2018 natural area projects planned for Naturalization accounts RATIONALE / ANALYSIS: 1.Trail ProjectsPlanned for 2018 The Community Trails General Provision capital budget provides for the planning, design and construction of outstanding trails and trail gaps as identified through the Multi Use Pathways and Trails Master Plan (2012). Trail projects planned for 2018 utilizing the Community Trail General Provision include the following: PROJECT NAME LOCATION DESCRIPTION Trans Canada Trail Courtland - Asphalt multi-use pathway under Hwy 7/8 to connect existing Courtland Underpass Hwy 7/8 multi-use pathways on either side of the underpass, including Trail Connection underpass improvements from Mill/Bedford to Hayward Regional Water Main Bleams Rd - Asphalt trail extension through hydro corridor in conjunction Trail Construction Ottawa St S with a Regional water main project. Timing tied to the Region project. Topper Woods Robert Ferrie Stone-dust trail connection through Topper Woods to an Natural Area Trail to Forest Edge existing trail, connecting 3 communities. Connection Mill to Queen Trail Mill St. to New Asphalt trail closing a trail gap for a well-used connection Connection Queen St. through greenspace leading to Victoria Park. Wayfinding Signage City-wide Designing a city wide multi-use pathway and trail wayfinding Design/Standardsignage standard across the city. Hearth Green Trail Butler Lane to New Asphalt trail closing a trail gap for a well-used connection Connection Highland through greenspace. Trans Canada Trail Block Line to Planning for permanent trail corridor between Block Line to Planning/DesignManitou Manitou and Fallowfield to Balzer. Iron Horse-Victoria West Ave – Iron Horse Trail connection at existing informal trail crossing & Park Trail ConnectionHomewood entrance to Victoria Park. Walter Bean Trail Idlewood Completion of a gap in the Walter Bean Trail includinga stone- Connection at Creek at dust trail and pedestrian bridge. Idlewood Creek Woolner Trail Kingswood-Laurentian TBD Resolving a gap between Kingswood Drive and the Trans- Trail Planning/Design Canada Trail at Block Line. FINAL - 51 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER 2. Naturalization Projects Planned for 2018 The capital accounts for “Natural Area” projects primarily consist of two capital accounts: Naturalization and Natural Area Stewardship & Education. Within these two areas efforts are focusedon community engagement, outreach, education and the active management and restoration of our natural areas. Naturalization This account supports the development and implementation of natural area management plans. With over 100 natural areas in public ownership, a limited number (1-2) plans per year are developed. These plans include a detailed public consultation and outreach phase. In addition to specific natural area management tasks, this account also supports habitat improvement projects, species at risk conservation, naturalization and other ecological initiatives. The 2018 Naturalization work plan includes: PROJECT NAME DESCRIPTION Monarch WoodsImplementation of the Monarch Woods management plan including: invasive species management, reforestation efforts from EAB tree removal impacts, trail improvements, and addressing public access and wayfinding. Lynnvalley ParkMeadow restoration within Lynnvalley Park. Huron Natural AreaClosing and rehabilitating of informal trail networks. Lakeside Park Habitat improvement projects including: turtle nesting, meadow habitat, naturalization surrounding Shoemaker Pond, and on-going invasive species and forest restoration. Laurentian Wetlands Final phases of the Laurentian Wetlands management plan will be Management Plan completed and a public access strategy will be developed. Natural Area Stewardship/Conservation This capital account supports the City’scommunity engagement and outreach efforts as well as the City’s ability to engage volunteers and community groups in natural area improvement projects. Areas of focus include providing hands-on educational opportunities & programming for youth, adults and seniors and on increasing environmental literacy and awareness in our community. In 2017, the City hosted 280 events/activities which engaged over 9,000 people from the community. The 2018 Natural Area Stewardship/Conservation work plan includes: PROJECT NAME DESCRIPTION Kitchener Forest Continuation of seasonal nature programs at Huron Natural Area. This is a School registration and revenue generating program which provides hands-on nature based education. Adult Nature Continuation of adult nature programs including: forest therapy walks, Programs nature yoga and other workshop based programming. Evergreen/Hallman A City partnership with the EvergreenFoundation and grant from the Lyle Nature Play ProjectHallman Foundation to support the implementation and programming of natural play features in two parks (Gzowski and Kingsdale). Nature in the City The City hosts a successful partnership program with Waterloo Region Series Nature for a monthly speaker series called ‘Nature in the City’. Talks are held at the Kitchener Public Library. FINAL - 52 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER FINANCIAL IMPLICATIONS: None. RECOMMENDATION: For information only. FINAL - 53 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER ISSUE: BD04 – Part-Time Active Transportation Planning Project Manager Follow Up FUND:Operating DEPARTMENT: Infrastructure Services Department –Transportation Services Division PREPARER: Ken Carmichael, Interim Director of Transportation Services BUDGET IMPACT: $15,000 - $20,000 increase BACKGROUND: During the November 20, 2017 operating budget review, staff was directed to provide information about maintaining one Active Transportation Student, and supplementing this position with a new part-timeActive Transportation Planning Project Manager rather than creating one full time Active Transportation Planning Project Manager position, as outlined in issue paper Op-02. RATIONALE / ANALYSIS: The hiring of a part-time Active Transportation Planning Project Manager at 24 hours per week and supplemented with the existing Active Transportation Student position is anticipated to provide approximately the same total work output as one full-time Active Transportation Planning Project Managerat a higher costand with greater risk. A part-time Active Transportation Planning Project Manager presents potential challenges in that it would be very difficult to attract a part-time employee that would have the technical and soft skills required to deliver this type of program. Typically, people with the skill set and education needed for this position would not seek opportunities for part-time hours since they have invested significant time and money into technical post-secondary education. If the City were successful in retaining a suitable candidate on a part-time basis, it is very much expected that they would soon find full-time employment shortly after being hired. This would mean that investments into onboarding, orientation and training would be lost if the employee were to find full-time employment outside of the City of Kitchener. The Active Transportation Student is effective in supporting the City’s existing Active Transportation Planning Project Manager.However, this student position is typically turned over every four (4) months resulting in time lost due to training requirements at the beginning of the term and lost time at the end of each term from the inability to start and follow through on new projects before their term ends. Additionally, the student position is unable to lead many of the projects this area of the corporation is required to deliver on due to a lack of skills and/or authority. Examples of this include leading public consultation or creating infrastructure designs. Lastly, it is very important to establish a consistent message and infrastructure through collaboration with the Region and neighbouring municipalities in order to develop a strong network of cycling infrastructure that meets the needs of the interested but concerned segment of people in the local community. The provision of an additional full-time staff person in this area, as outlined in Op-02, will greatly assist in developing a consistent message and consistent infrastructure. FINAL - 54 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER FINANCIAL IMPLICATIONS: Staff estimate that the cost of hiring a part-time Active Transportation Planning Project Manager at 24 hours per week, plus maintaining the existing Active Transportation Student would cost between $15,000 and $20,000 more per year than the recommendation outlined in Issue Paper Op-02. RECOMMENDATION: For information. FINAL - 55 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER ISSUE: BD05 – Additional Assessment Growth FUND:Operating DEPARTMENT: General Revenue PREPARER: Ryan Hagey, Director of Financial Planning BUDGET IMPACT: $51,000 additional revenue(not included in budget) BACKGROUND: During the November 20, 2017 operating budget review, staff noted the final assessment growth figure noted in the budget package was not finalized and would likely be slightly higher (approximately $50,000) than the figure reflected in the budget document. Staff was directed to provide options on how the additional funding could be used in the 2018 budget. RATIONALE / ANALYSIS: The final assessment growth figure for 2018 has come in at 1.59% as opposed to the 1.55% noted in the operating budget package. This equates to $51,000 of additional revenue that has not been accounted for in the 2018 operating budget. The table below provides a list of options (in no particular order) for this additional funding, and includes the different ideas noted by Council during the operating budget presentation. Option Impact The 2018 budget for Tier 2 grants is $182,000 (subject to final review of Tier 1 grants). Additional funding of $51,000 would bring Tier 2 Grants the total to $233,000 and would be an increase of 28%. The 3-year average of total Tier 2 grant requests is $382,000. The average total Tier 2 grants approved for the same period is $173,000. The projected balance of the WSIB reserve fund at the end of 2017 is projected to be $2,245,000. Additional funding of $51,000 would Workplace Safety bring the balance to $2,296,000 versus a minimum target balance Insurance Board (WSIB) of $7,105,000.It was recommended through the actuary report ReserveFund that annual contributions over a 10 – 15 year period would be appropriate to achieve the minimum target. Staff have proposed creating a new full-time Active Transportation Planning Project Managerposition through the 2018 budget. An Active Transportation alternative discussed during Operating Budget review was to position maintain the Active Transportation Student and supplementing this with a part-time Active Transportation Planning Project Manager. The additional cost of this alternative is $15,000 -$20,000. The 2018 grant to KPL is $10,823,395, an increase of $212,000 (or 2%) from 2017. Additional funding of $51,000 would bring the total to $263,000 and would be an increase of 2.5% from 2017. This Kitchener Public Library funding was suggested for KPL given they are impacted by the (KPL) changes to minimum wage legislation. The 2018 impact of minimum wage on the KPL budget was $85,000. KPL plans to fund the $85,000 through increased staff gapping including keeping vacant positions unfilled longer. FINAL - 56 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER Option Impact The 2018 budget for Forestry is $1,691,000. Additional funding of $51,000 would bring the total to $1,742,000 and would be an Tree Canopy increase of 3%.This funding would provide for an additional Maintenancetemporary seasonal or student resource for 26 weeks to provide additional support to the care of trees through inspection, pruning and/or watering of new trees planted. Additional funding could be used for 3 improvements: 1)Clean Team: $20,000 would allow this team to operate from April through the Christkindl Market instead of just from Victoria Day through Oktoberfest. Work examples include litter pickup, Downtown Sanitation/ cleaning granite, pole cleaning, and poster removal. Beautification 2)Powerwashing: $10,000 would allow for two additional cleanings throughout the year. 3)Plantings: $10,000 would allow King Street flower beds to be planted with more mature plantings, expediting their impact. The Region of Waterloo has allocated 3 percent of the capital construction cost (approximately $165,000) towards landscaping/beatification as part of the King Street regional road King Street/Rockway reconstruction. This location was also identified in the PARTS Entrance Feature Rockway Plan as a gateway to the City. The addition of $51,000 annual operating would provide an enhanced level of landscaping maintenance, through possible partnership with the Horticultural Society, at this important entrance way to the City of Kitchener. The projected balance of the TSRF at the end of 2017 is projected Tax Stabilization to be $1,687,000. Additional funding of $51,000 would bring the Reserve Fund(TSRF) balance to $1,738,000 versus a minimum target balance of $5,643,000. If the additional assessment growth revenue is not allocated to Reduce the Net Tax Levy something else it would reduce the net tax levy increase from 1.70% to 1.66%. FINANCIAL IMPLICATIONS: The additional assessment growth revenue not included in the proposed 2018 budget is $51,000. Options on how it can be used are outlined above. RECOMMENDATION: For information only. FINAL - 57 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER ISSUE: BD06 – Mileage and Per Diem Rates FUND:Operating DEPARTMENT: All PREPARER: Bonnie Saunderson, Senior Financial Analyst BUDGET IMPACT: None BACKGROUND: To provide a comparison of the current mileage and per diem rates used by local municipalities. RATIONALE / ANALYSIS: Mileage Rate The following is a comparison of current mileage rates utilized by local municipalities to reimburse employees who use their personal vehicle for business purposes. Discussions with these other local municipalities indicate mileage rates will be held at 2017 levels with no increase. Municipality Rate/km City of Kitchener $0.50 First 5,000 kilometres $0.45 Over 5,000 kilometres City of Cambridge $0.54First 5,000 kilometres $0.48Over 5,000 kilometres City of Waterloo $0.49 Region of Waterloo$0.50 First 5,000 kilometres $0.47 Over 5,000 kilometres The 2017 tax exempt allowance rates as prescribed by the Department of Finance are $0.54/km for the first 5,000 kilometres driven, and $0.48/km for each additional kilometre. Analysis of the calculated cost per kilometre to own and operate a vehicle indicates the City’s rate could be increased to $0.51 per kilometre. Considering the current rate is reasonable in comparison to the other local municipalities, it is recommended that the City also maintain its mileage rate at 2017 levels. Per Diem Rates The following is a comparison of current per diem rates used by local municipalities. Municipality Breakfast Lunch Dinner Incidentals Total City of Kitchener $ 12 $ 16$ 30 $ 10 $ 68 City of Cambridge $ 15 $ 20$ 35 $ 20 $ 90 City of Waterloo $ 15 $ 25 $ 35 $ - $ 75 Region of Waterloo $ 12 $ 16 $ 30 $ 10 $ 68 Considering the current rate is reasonable in comparison to the other local municipalities, it is recommended that the City also maintain its per diem rates at 2017 levels. FINAL - 58 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER FINANCIAL IMPLICATIONS: None RECOMMENDATION: That the City of Kitchener’s rate per kilometre remain at $0.50 for the first 5,000 kilometres driven, and $0.45 for each additional kilometre. That the City of Kitchener’s per diem rates remainat$68/day ($12 for breakfast, $16 for lunch, $30 for dinner, and $10 for incidentals). FINAL - 59 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER ISSUE: BD07 – 2018 Budget Public Input FUND:Operatingand Capital DEPARTMENT: All PREPARER: Ryan Hagey, Director of Financial Planning BUDGET IMPACT: None BACKGROUND: Public input into budget matters starts well before the formal budget process. This includes City-wide consultations such as the 2013 Environics survey, the 2014 Your Kitchener, Your Say! consultation, or the 2016 Neighbourhood Strategy, as well as more focused consultations for specific topics such as the Kiwanis Park Pool (2015), or City Hall Outdoor Spaces (2016). In addition to these consultations, the City also receives feedback about the proposed budget during the budget process. RATIONALE / ANALYSIS: Budget consultation is done through traditional means like mail, phone, or in person during Public Input Night (January 15, 2018) as well as electronic means like email, responding to City of Kitchener Facebook and Twitter posts, or through the Engage Kitchener survey about the 2018 budget. As of December 13th, feedback about the budget has primarily been received through the Engage Kitchener survey. In total 261people had visited the survey, with a total of 123 people providing responses. The budget survey responses collected to date through Engage Kitchener have been attached to the issue paper. This includes a chart of the results for questions that ask citizens to vote for a response that best reflects their opinion as well as any comments provided by them through open-ended questions. The Engage Kitchener budget survey will th , 2018 and the updated results will be provided to Council for remain open until January 5 Public Input Night. One email response has also been received and is included after the feedback received through Engage Kitchener. FINANCIAL IMPLICATIONS: None RECOMMENDATION: For information only. FINAL - 60 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER ENGAGE KITCHENER RESPONSES Question 1: Notes and Summary of Survey Participant Comments: Some of the topics most frequently mentioned by participants are Region of Waterloo responsibilities (e.g. LRT/transit, affordable housing/social services, garbage collection). Excluding these items, the most frequently mentioned topics were snow plowing (roads, sidewalks & trails), value for tax dollars, and traffic/road safety. Survey Participant Comments: our street never gets plowed, unless we complain. We have a spot on the sidewalk that has sunk in and fills with water, people in scooters, wheelchairs or limited walking ability are forced to do so on the road. Monarch woods now looks like a dump, broken guard rails from when the city cut down trees and broke them. Street light and stop lights polls falling over. Ease of the, affordable housing are major concerns. way to much money has been spent on the lrt. what about social services in the city. often left to the last allotment hospitals deserve more money I think there is way more services and organizations and agenices and funding for Refugees or immigrants than there is homeless Canadians! I know because I was homeless a couple of times because of severe Crohn's disease and mental illness as a young working Canadian. I was last on the list especially being single and white and disabled. I have to be honest, it's not really obvious where the tax dollars go. However, some smaller communities seem to have more amenities for families. I do love my local community centre, though. I have never talked to anyone who was for the LRT.The study showed the best option for us was improved Busses.Carl Zehr legacy? winter road clearing could be better It would be really nice to see better plowing on the roads. Using less salt (creating slush which is worse than snow) and plowing the roadway would be helpful. FINAL - 61 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER Services decline each year however tax increases never do. We continue to get less value fir our tax dollar every year It seems wealthy areas with fewer homes have better services than say the downtown core which has a greater number of homeowners paying a greater amount of property taxes. I am not sure if this is a city issue having just moved here from Toronto but the garbage collection is terrible. I also question the wisdom of putting buses onto the 401. Seems like a disaster waiting to happen. The city needs to start choosing better companies to do business with, and holding them accountable. The iOn has been a huge waste of money and they haven't managed to complete any of their proposed deadlines. Why is the city allowing them to waste taxpayer dollars month after month? It seems the ONLY people being held accountable are the taxpayers themselves. GRT investment not as good as it should be... City says feeder lines in place for the new LRT... We lost our service in The Breiphaupt Park area.. Now have to walk 4 blocks to find a bus stop... Not good for and aging Population... Reconstructing Queen street 5 times in the same spot is not good value. Total waste of money. You replaced the asphalt and sidewalk 3 times over. Why??? Transit and logistics need work, better coordination of construction projects A simple value add - large recycling bins with lids. Also: how is Kitchener working with other municipalities in the region to improve road infrastructure and reduce congestion; but more importantly efficiently speed up constellation on major arteries (i.e. 401 between Kitchener and Cambridge)? Too much emphasis on bike lanes and not enough on traffic flow. I believe that the City has much room for improvement around how you manage properties, transit and budgeting. Transit is overpriced. I live next near Schneider Haus and am frustrated that the city mismanaged and left 2 properties vacant for years only to now determine them fit for demolition. I also find it greatly lacking creativity that the city continues to allow for the downtown to be gentrified. Why can we not require each new development to have 5% set aside for low income housing? LRT is the biggest waste of money. Why are water bills being estimated. I serve on a condo board of directors all we can find out is that you are short staffed. Sorry but that does not help us when we need to set a yearly budget. We do not want estimates for 6 months plus. Do something here since you have to set a budget like we do and estimates are not helpful and can cause budget problems. I would also like to FINAL - 62 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER see the city pick up our garbage. We have fought this for years and get the response the trucks are too big to come through our small complex. But the recycle trucks have no problem coming through. The meager rebate does not come close to what we pay on our tax bills. Just very frustrated with these situations. No accountability for any government services. Grt is the worst by far. I know it's regional but they should be held to some standard of accountability. My autistic child is being discriminted against by her teacher, again no accountability. Things like our library services are extremely effective and good value. Other things like transportation, do not make effective use of money, we spend too much on unnecessarily wide roads. For example, Belmont Rd. was just rebuilt to four lanes wide, with no bike lanes, and yet, there is zero need to spend this money. How many hundreds of thousands (maybe a million) were wasted on that? The traffic does not justify the width, the width reduces safety, increases runoff pollution. Lanes are too wide on residential streets, which again reduces safety, increases costs. We have a sickly red maple with twisted roots that looks like a tree from a horror movie. The city have replaced several trees on our street due to the same twisted roots and dying. I have requested for a few years now to cut the Maple tree down...the city didn't give us a new tree like most of my neighbours. We lost our front lawn to drought a few years ago due to watering bans and the city's advice on the radio that our grass will not die...it will go to sleep during the drought. That was wrong and our lawn totally died. We replaced it with a natural garden of native plants for birds, bees and butterflies. It is beautiful and we get many compliments on it. That Maple tree fills our garden with keys so we now fight with pulling out maple trees in our garden. We are in our 60's and I have arthritis so it is very painful to deal with pulling them out. Please restart the practice of clearing the public paths during the winter months!!! I think the process/way which roads are designed and developed in this area is wrong. It genuinely feels like the roads are built incorrectly, with a plan to redo them immediately, exponentially increasing costs. I would rather see the road plans be better managed so this money could be spent in a multitude of other ways - like promoting new businesses, and support for the arts. I live near Ira Needles. The roundabouts are horribly designed for vehicle and pedestrian safety as one example. Investment in infrastructure, especially sidewalks, bike lanes, trails and water pipes should be ramped up. Many other cities include sidewalk clearing during the winter months which is a benefit to many residents that are retired or close to retirement. Many retired people still live and function in our community in homes that they have owned for years and still maintain. As the population ages so does their ability to perform some tasks such as clearing the sidewalks and raking leaves in fall. Another issue facing seniors is access to affordable retirement housing. With the current pension plans not keeping up with inflation, it would be nice to see the city FINAL - 63 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER involved in an independent housing project that would allow people to live within an affordable senior community managed by the city It would be a source of guaranteed income for the city and could make use of properties currently requiring renovation or demolition. I realize that the cost of goods is increasing but many of us don't get a wage rate increase according to inflation. This makes things tight when increasing property taxes especially on the increase on utilies. We pay for many of your workers pension plan, a luxury many of us don't have. Services are good, more awareness regarding stormwater utility fees and how the money is spent needs to be completed. Incentives for residential homeowners to manage swm at home doesn't add up (costs more than paying the fee). Road and community improvements need more communication and opportunities for engagement moving beyond traditional formats (open houses). Social media could also be better used as a tool. On many occasions I have contacted the city about an issue; and am passed from person to person. Nobody wants to be accountable or take the time to determine who the correct person is to deal with the issue. Poor water quality - one of the highest mineral contents in all of Canada Infrastructure work and cost outrageously long and high Should shovel all city-owned sidewalks in front of all homes and businesses Snow removal is not great. Also the salting of roads could be improved. FINAL - 64 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER Question 2: Notes and Summary of Survey Participant Comments: The responses to question #2 in the graph above is reflective of the feedback The City has received in previous community surveys, where the vast majority of citizens prefer maintaining service levels with tax rate increases around the rate of inflation. The most frequently mentioned topics for this question were concerns around affordability, the need to maintain service levels/replace infrastructure, and getting value for taxes paid. Survey Participant Comments: I want the City of Kitchener to start including snow shovelling in our taxes - the current enforcement by complaint system makes walking an unreliable form of transportation, particularly for those with disabilities. Even for a year or 2, inflation rate is great and all but not everyone gets raises at that rate or even near it. My house value increased $8000 by putting a new front door on my house, my water increases, my hydro increases significantly, my property tax increases, and I get a 3 cent raise an hour this year. Bring back green space maintenance! While I know it is the provincial government's responsibility to oversee long term care beds and affordable housing, I am absolutely willing to pay more for initiatives related to these two items. I live with my mother who owns a townhouse in Kitchener. Taxes continually go up yet our services remain the same. The dramatic increase in housing, and therefore property taxes, should more than make up for inflation. I'm somewhere inbetween taxes held flat and going up with inflation.You have a lot of people over 65 who increases just eat into what they do have.There is not a government or group of workers who are paid with public money where there is a ton of waste or paying too much for things.Look at the story of the stairs built by a guy who heard what the city estimate was.I know it was in Toronto but I guarantee there is stuff like that here too.While I don't have any FINAL - 65 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER examples I'm sure you with the info could find one or more.People are sick and tired of public money being seemingly endless. if we dont keep up with inflation then we will start to see less service and that is never a good plan. Our taxes should NOT go up to cover infrastructure costs that should be borne by new developments. Millions were lost this year by granting exemptions and now thetaxpayers have to pay for infrastructure changes due to the new development. Why do taxes have to up to "maintain" current levels? As this city grows we need to make sure that things like libraries, parks, pools and rinks grown with them. That does not mean blowing the budget but it also means sound planning. I like that we are a vibrant, modern community that cares about all members. I would like to keep it this way. Old infrastructure should be updated as needed and not delayed. I think the city needs to factor in individual cases when assessing tax rates. There are many people in the KW region who are already living paycheque to paycheque, and a tax hike (without a pay raise) could put them over the edge. When was the last time the monthly paycheque was raised due to "inflation" ?? People will have to choose between their taxes or groceries. The wait time for "Affordable housing" is already over 2 years long. Housing prices are ridiculously high, why not start taxing the development companies more money for all the additional stress they put on our utilities?? If they can afford to build dozens of houses that sell for $500,000 < then they can afford to chip in and help out our city as a whole. While it is important to ensure tax increases are done smartly and considerately, there are many areas that could be improved if taxes increased at a rate slightly higher than inflation. Spend it Wisely and in Budget guidelines... E fficient service delivery is worth more money. But if you continue to be inefficient, then it’s just a waste of money. Not a heavy service user, but with the city growing maintaining existing levels is the least that should be done It is unfortunate but as salaries have not matched the rate of inflation in terms of increases, it must fall upon the government elected by the people to maintain a balance for cost of living. We are consistently battling corporate protection, tax caps and cost of living. FINAL - 66 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER If the city manages finances there should never be a reason to increase beyond inflation. It seems to me, however, that when all of a sudden work needs to be done (i.e. pipe maintenance) taxes take a large spike. This reflects poor planning and poor budgeting. Despite proposed increase being in line with inflation, Kitchener residents are not seeing increases in wages.... unless you work for the public sector. Being retired and on a pension that never sees any increases, I feel the city should make allowances for pensioners. Taxes must go up each year no matter what. If the surplus budget is good then they do not need to be raised more than necessary. People must realize that each year everything goes up, wages, food prices, construction material etc. Never ever will not have an increase. I find this interesting, I have worked part-time for the city for almost 2 decades and haven't had a raise in almost 8 years. Why is this ok yet my taxes go up with the rate of inflation yet my pay hasn't gone up in 8 years?? ..and now someone walking in off the street is gong to make $14.00 an hour and I make $14.17......I would like a decent raise and then I would be happy to pay a little more if it means service levels getting better but this is going to be a problem since the 1150 part time employees are going to lose all motivation now. The city is growing and times are changing, we must adapt. Better active transportation infrastructure for cycling and walking--especially winter sidewalk maintenance. Movement is a human right, and yet, in the winter, simply walking around our city is often impossible to do so safely. Land use must also adjust. we are very upset that the dept for the trees gave many of our neighbours beautiful China Lace Lilac trees and not us. We pay the same taxes and deserve a new tree too. everything goes up anyways.. might as well be transparent about it I believe we're not getting adequate service compared to past & current tax costs. I think we need to see smarter decisions before you can talk about tax increases. There are too many high paid officials in our City... I think we should amalgamate to save LOADS! It would appear that the older generation is bearing the burden of previous government officials. While restructuring and rebuilding the infrastructure is critical to our environment, I feel that better planning and execution of my tax dollars, should be taken into consideration. A drive that normally takes 10 minutes should not take 30 minutes due to construction projects. If projects have to take a sideline due to lack of funding, then maybe a long term plan based on current revenues should be incorporated. Why place the increased tax burden on taxpayers? Generate additional income through city owned properties, rentals and capitalize on government grants and loans for the additional funding. Increasing our taxes increases our FINAL - 67 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER inability to meet our financial obligations under our current pension income. After 50 plus years of working towards retirement, increasing taxes means semi retirement as my reward. We are being charged increasing amounts far in excess of inflation and not always reflection of the quality of services provided. The answer I would choose is not listed. I realize cost is increasing but we can keep a status quo on increasing cost occasionally for our citizens. There is a tipping point to this comparison, and it would be helpful to indicate which measure of inflation you are referring to. Also cost of living increases may be a better measure then inflation. Just because inflation goes up does mean a taxpayer got a cost of living increase at their place of employment It is too much when taxes go up $50 a month which is what happened to me this past year. That’s an extra $600 a year and I haven’t seen the services in my area increase enough to warrant that increase. The actual rate of inflation, not a made-up baseline and in-house predictions. Taxes should not automatically increase or service levels go down - efficiency and automation should be lowering some costs to make up for inflation in others. FINAL - 68 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER Question 3: Notes and Summary of Survey Participant Comments: The responses toquestion #3 in the graph above show that nearly 84% of respondents think the proposed tax rate increase is very reasonable or somewhat reasonable. T he most frequently mentioned topics for this question were concerns around affordability, the need to have small increases to maintain service levels, and inflation. Survey Participant Comments: My issue is not so much the tax levy, it's the value increase on my house and the 1.7% added to that Again the resources should shift to helping people who already live in Kitchener who are struggling. New people should not have it better than people that have been stuck here for decades! With the city growing, I would think that the city would be collecting more than ever. And with property assessments skyrocketing, I can only assume that the city is collecting more than ever. Taxes are collected as a percentage of things, so if inflation is increasing, so are taxes. I don't get the need to increase it. It is a mathamatical certainty that one day property taxes will be $10 000 a year. A long way off but it will get there. Its an overstatement to get the point across.There should be years and years where no increase is required. as the cost of things go up, so must the taxes to keep the service levels at the level we want where I live the snow plows takes 2 or 3 days after the snow has falling ...I know the main streets etc has to be done 1st but after those are done then other secondary roads should be plowed and the city waits to do them....at least with Waterloo the secondary roads get done aswell and they don't wait When was the last time the average paycheque was raised due to "inflation" ?? I appreciate the desire to keep tax increases minimal, as long as we are not doing it at the risk of losing services, especially to those marginalized groups who most benefit from strong services being available to all. FINAL - 69 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER Remember aging Rate payers are not getting yearly inflation Rate increases.. Us seniors feel at times we are getting nickel and dime to death... Chooseing between paying bills and eating is not a good thing... Going to cost this region way more in the long run... Should be more. It makes enough sense, also generally in line with other expense increases Me and my family are having a hard enough time paying for the basics then paying for new taxes. Balance the budget with no tax increases. This is only reasonable if it is consistent; without periodic large increases to either property tax or utility costs. Any increase must be adjusted by inflation. By that adjustment, the 1.7% increase is very low. Needs to be justified and options considered. Not every government elected official needs a $ 5,000.00 a year cost of living wage increase. City is not currently using tax revenues judiciously As with any large organization efficiency can always be found I think they increased substantially last year and I don’t understand why. The assumption that taxes should rise every time is flawed. A small percentage increase on a past percentage increase begins to turn into large money after only a few iterations. FINAL - 70 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER Question 4: Notes and Summary of Survey Participant Comments: The responses to question #4 in the graph above are split fairly evenly between thinking the utility rate increase is somewhat reasonable, somewhat unreasonable, and very unreasonable. The most frequently mentioned topics for this question were concerns around affordability, the importance of this utility infrastructure, and the desire for better planning for replacements and maintenance. Survey Participant Comments: We need to maintain and replace our infrastructure - it's short-sighted to "save" money at the cost of the reliability of our infrastructure. A bit steep The increase has been for several years for same reason, kind of hard to believe anymore. Especially with the big flawed Ira Needle Boulevard (in the early stages). As a resident am concerned for overspending in the last 6 years, hence the increase Very annoyed that this was not done sooner. That said, WATER is LIFE! There is no service more important than a safe water supply. I know that this is taken for granted by most people but I appreciate it every single time I turn on the tap. There could be focus in planning for infrastructure replacement that's a lot of money considering minimum wage is going up but other's wages are not. Families with low income will not be able to afford that kind of increase every month. Rate of inflation is a lot less I am not interested in passing on our water treatment issues to the next generation of homeowners. We need to take care of whatever issues exist with our infrastructure so that the future we give to our children involves safe and accessible water. As the city grows we do not want to poison the grand river with untreated or improperly treated waste. If that means raising the rate even more than this, I won't like paying for it, but I will understand. I don't want to live like they do in the US with crumbling infrastructure. Can't say I'm too happy about it. It is what it is however. FINAL - 71 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER We already pay more than anyone in Canada for these services. The city doesn't set aside a portion of it's earnings for maintenance? That's ridiculous. So when the infrastructure has all been upgraded we will get a 6.5% decrease? If its all paid for we should,shouldnt we? You know damn well we wont. I do not like it but also realize that money has to be spent on the replacement of pipes etc that have been neglected. why was this not planned for before why should homeowners bear the cost today for city's lack of planning Again,this is infrastructure cost that new developers (especially in the downtown core) should be covering. I understand our infrastructure is aging and needs updating and repairing. It's important that our water is safe. Maintenance is important, and if this is what it costs to maintain things properly I'm okay with it. I do feel though that these above inflation water increases will cause political pain, and any opportunity to reduce the increase (without compromising things long term) should be explored. Better communication about what has been explored would probably increase public acceptability. Kitchener is already expensive to live in, I'm sure you can find the money elsewhere then on the backs of hardworking citizens who are already struggling to pay their bills on time. We already have significantly higher rates then majority of other cities. It's time to sell the gas portion of Kitchener utilities and have union gas take over As long as the lowered rate does not push our infrastructure problems into the future. I would rather deal with these issues now and pay a bit now then deal with larger, more costly issues down the road. Where is the value? What are we getting this year that wasn’t there last year? give me a break with the leading nature of this question. It's lower than predicted? Oh great. "Hey, I was going to kick you in the groin with an iron boot, but now I'm just going to use a leather sandal" Gee thanks. I understand that sometimes costs increase, but don't insult your audience's intelligence with these BS leading questions. Come on. Especially when on our street, we've seen the inefficiency of construction projects. FINAL - 72 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER When basic necessities start to increase over what people can afford, we are treading in dangerous territory. Globally, we are driving costs of living up while not improving living conditions, quality of life of enhancing opportunities. If anyone was struggling before, it will be worse now. And then our social services will bear the brunt. We are creating a vicious cycle I would think that prudent budgeting would have a plan in place to regularly set money aside to deal with pipe replacements all along. I set money asside with the knowledge that I will eventually need to replace my roof or boiler, why can't the city budgetlikewise and avoid this periodic jumps in tax? As previously mentioned, we do not see any increases in pensions. Sure CPP goes up like a few dollars every year. Wish we could have readings not estimates for months at a time. Give me a raise and I might feel different. Utilities are becoming unaffordable for many in the community This increase is probably lower than it should be. The water utility has been under funded for maintenance for years, because people have demanded lower rates. Lets not continue to under fund things resulting in continued infrastructure debt. Will this increase consider the needs of adapting the current infrastructure for climate change? Will there be programs in affect to help with low-income families such as a conservation rate that gives a discount for using less than average? Conservation is an important piece of this puzzle that I suggest should be implemented into the use of a tax increase. Concerned about delaying pipe replacement I don't use that much water and sewage rates based on consumption does not take into consideration people with pools, hot tubs or lawn watering. Costs have already increased a lot, utilies are becoming a luxury. The average household pays now close to $200 per month, do you call that affordable? I am concerned about our residents with lower income, they have to make a choice, eat or keep their house warm. Water and sanitary I understand but stormwater rates don't add up, it seems like we are starting to fund park projects through the stormwater utility. I live in an area of Kitchener that receives no water or sewer services. FINAL - 73 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER With all the tax hikes and utility increases over the past few years, it is becoming very difficult for families (especially those with small children) to make ends meet. I strongly feel that the city needs to look at cutting costs by negotiating better deals for city contracts and reducing spending. I have some concern about there needing to be a huge increase later. It's best to manage it spread over years. Poor water quality Costs of gas and electricity are through the roof, I am sure many people will not be able to afford their bills with an increase of this magnitude. The only reason the increase is so high now is because the maintenance has been ignored and not treated properly in the past. Proper management would have avoided increases of this size. FINAL - 74 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER Question 5: If the City of Kitchener could invest more in any one service, what should it be? Notes and Summary of Survey Participant Comments: Some frequently mentioned topics by participants are Region of Waterloo responsibilities (e.g. affordable housing/social services, transit, police, water quality, and garbage collection). Excluding these items, the most frequently mentioned topics were roads & traffic, snow plowing (roads, sidewalks & trails), and active transportation (trails, bike lanes & sidewalks). Survey Participant Comments: Snow shovelling - adding sidewalks to the city's responsibilities and keeping bike lanes clear throughout thewinter. Plowing and sidewalk repair Seniors Roads quality Can't think of anything that stands out. You do good job! No more spending more Investing in synchronization of traffic lights. It's absurd how long it takes to get around it city. This project is simple, the root of which is done in second year engineering classes at UW. It is both a green investment as it reduces emissions from idling, and a productivity investment which can grant greater efficiencies and a stronger local economy Open forums, public feed back. raffic planning T parks and greening spaces - for example, the park at the corner of Lancaster and General is on a busy corner - there are no fences and no sidewalks on the side of the park to keep children safe -another option would be to plant bushes or something to hedge it in - children running and playing don't often consider the roads and parents with more than one child can't always keep an eye on all of them at the same time social services--not just OW or ODSP but community centre projects, Early Years, Funding for sports The two issues which need to be addressed primarily are long term care beds and affordable housing, and while I know these are not municipal issues, any incentives that could be offered to relieve the burden on these services should be undertaken as quickly as possible. There should not be the number of homeless and precariously housed individuals in such a rich area of the country. Additionally tax incentives or municipal programs to encourage the FINAL - 75 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER development of long term care beds should be considered. Our system cannot sustain itself the way it is. No one should wait three years for a long term care bed. Better ODSP for disabled people that worked and paid into the municipality all their life! ROAD REPAIR The streets and potholes around town are in horrible shape. Ontario Housing for low income earners. Please, for the love of god, stop spending money "calming" neighbourhood traffic. These g*d d*mn road bumps are ridiculous and do nothing. What a wasteof money. I'm sorry, but the traffic department has made a mess of Kitchener with these stupid double turning lanes, or turn-left-only lights. They might be "admissible" during rush hour, but the rest of the day they hold keep cars are intersections for 2 lights when there's no traffic coming the other way (Westmount/Ottawa, for one) Make the traffic lights more efficient. I had these "no right on red" signs. The lights at Westmount and OTtawa is a joke. That left hand turning lane - the traffic is never busy but you can't turn left without the advance. Turning left onto Fisher Hallman from OTtawa - the light coming off of the expressway is too long and there's always a traffic jam there in the morning. I can't drive down Fisher Hallman without hitting every single light. Can't we synchronize these? No more advanced lights. They only slow down traffic. I prefer the roundabouts (although they terrify my daycare/babysitter). Personally, I would like to see Kitchener neighbourhoods like Beechwood, with community pools and walking trails. The new subdivisions are hideously overcrowded. We are desperate for walking trails in the community (that are paved for strollers, wheelchairs, etc...). Also, my kids love splash pads in the summer and outdoor pools. Looking at moving to Beechwood because no communities in Kitchener offer what they do. Repairing roads properly that are in disrepair and full of pot holes instead of constantly patching. Show renoval, better maintain trails, neighborhoods with better parks and outside pools. Roadwork. Making sure you protect water for example in the first place.Whatever service this would fall under.Cortland Ave. had signs saying Water protection area.Yes they had trains down below but then you run an LRT line above it.Iknow its electric but the more activity you bring to an FINAL - 76 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER area the more crap gets in water period.Protect these areas and little forests in the city.They provide more than most give credit for. I cannot think of one specific area. I do know that it should not be for a specific group but for everyone as a whole. parking enforcement, many residential streets are littered with cars and overnight parking particularly in town house area's who should have its own parking for residents & guests. may litter the street with garbage which residents must clean up. ! Snow plowing & side walks some older folks cant shovel some dont even shovel and is a safety issue, with property taxes high & increasing city needs to take responsibility for this ! Police and 1st responders Better road planning. I think planners should drive the roads that they plan on changing, so they actually understand what is happening. Building a 2 lane road, then expanding it to 4 lanes 2 years later is BAD planning, and BAD budgeting. The double disruption is unacceptable when it could be done right the first time. Community Centres Moving traffic better Improving the downtown core improve the roads and put bike lanes when they redo the roads Public transit. Again, I know this is a regional issue but that would be No. 1. No.2 would be in infrastructure such as parks. I would love to see more communal areas, along with trees, parks and trails. Beautifying our downtown with more art and gardens would also be nice to see. Youth and senior services. Pedestrian and cyclist infrastructure, particularly separated bike lanes and trails. I'd love to see more trails like the spur line trail, which work well for commuting and connect important urban locations. More money needs to go into preserving historical buildings in our city, and neglectful property owners should be fined accordingly. Creating a more accessible city (reducing/eliminating current barriers such as increased transit fares, issues around sidewalk clearing (not necessarily taking it over but supporting residents in FINAL - 77 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER some way to make sidewalks usable by all in the winter, reducing wait times for affordable housing, etc.) Infrastructure, beautification of areas such as highland plaza, downtown core, alpine plaza. Invest more in parks and recreation and don’t charge ridiculous fees for addition to places such as Kiwanis. Snow removal and road safety Active responses to downtown gentrification - ensuring homeless/immigration/disability services can maintain a central location and that they are accessible by those who need them. An aging population is upon the region, we know it and the Region knows it... Don't put it on the back burner... Timing traffic lights and more green arrows for right turns on red lights. Roads! And winter maintenance!!! Transit infrastructure, bicycle infrastructure More garbage cans in parks Road maitenance Definitely transit, but not exclusively LRT. Availability of service / connections from outlying areas to major hubs needs work as several routes are so convoluted that they take too long to be a viable alternative to cars. Child care or family services. You can't work if you can't find a place to take care of your young children. saving money for unseen problems ahead. Emergency housing, repairs,fire, medical emergence, economy not doing so well, housing bubble collapses. Affordable housing, more senior supports at home Improved traffic flow.Remove unwanted bike lanes, on street parking, and traffic calming (which for the most part is unnecessary). Stop turning 4 lane streets into 2 lane. Neighborhoods need to be consulted, not just those that live on a street. The majority need to state that they definitely want a specific change. Currently staff assume that a no response or a neutral response means that residents are in favour. That is not necessarily true. Affordable housing. FINAL - 78 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER A close second would be reduced bus fares. If we are serious about reducing car usage we should heavily subsidize our transit. As it stands, collecting fares for young children is financially crippling to struggling parents. A single parent often has no option but to take their children with them as they go to appointments and run errands, charging them full fare and also charging them for their children is cruel. Why can we not allow children 12 and under to ride free? Public transportation. roads Libraries. Homeless services Sidewalk snow clearing. Reducing traffic congestion on City streets. So much development without improving infastructure.....and the LRT billion doesn't count. Social welfare services for the working poor and those who don't qualify for OW but still struggle to afford basic necessities Water readings monthly and city garbage pick up for condo's that can accomodate the trucks without excuses this cannot be done. I know that the rebate given is less than the cost of garbage pick-up and this would cost the city. Why do condos have to supplement the city garbage pick up at our expense. Sidewalk ,maintenance I think the city is doing a great job in all services. I am proud of my city. G reen energy alternatives Housing Active transportation infrastructure, better sidewalks, more protected bike lanes, protected intersections, and trails, and like I said before, sidewalk winter maintenance. Homeowners do not reliably clear sidewalks, and this will never change, the city must do it to ensure we continue to be able to walk around our community in the winter. These are chronically underfunded in our community. Comunity programing FINAL - 79 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER water availability, you tell us we need to conserve water but you keep approving more and more housing projects... we feel like with all the new housing we will run out of water. Roads Mental health do more for less fortunate Debt reduction Clearing public paths in the winter!! I am thinking of the Ontario hydro right of way in McClennan Park Green infrastructure. The natural environment when supported adequately can build resilience against climate change that built infrastructure is incapable of developing. There needs to be more priority placed on naturalization. I would invest LESS in poor management of roads construction and devote this to arts and job creation areas. Active Transportation Infrastructure Moore police engagement with the community in neighbourhoods with high immigrant population. recreation Hospital. Get more nurses, doctors, paramedics to speed up time in the emergency, Water filtration Seniors rebates. discounts for long term residents on utilities. Better commuting services to Toronto Sustainability for all services Roads and traffic flow I live on Dodge Drive in Kitchener, we are essentially a rural neighborhood with no sidewalks, street lights, city water, city sewer, and poor internet options. Why is it that we pay the same tax rate for areas in the City that are able to take advantage of all of these services? FINAL - 80 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER I don't feel that the city needs to invest more in any service. I feel all services are adequate and we need to look at new ways to deliver these services more efficiently so that costs may be reduced. Anything with infrastructure that is upstream thinking. We don't want to pay for any big surprises down the road. Water quality -reduce mineral content at source Cost of ruined appliances born by consumer Police Active transportation infrastructure (trails, MUPs, cycling lanes, sidewalks) Roads Universal transit Health Care staffing to reduce wait times in hospitals FINAL - 81 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER Question 6: Is there anything else you'd like to share with us about the proposed budget? Notes and Summary of Survey Participant Comments: One of the more frequently mentioned topics by participants (LRT) is aRegion of Waterloo responsibility. Excluding this, the most frequently mentioned topics were affordability, efficiency, and better communication & transparency about how funds are spent. Survey Participant Comments: Can't squeeze juice from a dry orange. Throw whatever money is required at getting your half baked public transit project completed and over with. Far too disruptive and poorly executed Make sure you communicate to people what they get for the taxes they pay. Most people forget and need to be reminded. If people realize the SERVICE they get, it is much easier to get buy in for keeping the service levels. Also, not sure how the city handles it, but please NEVER apologise for paying city workers a LIVING WAGE. I would be appalled if I thought taxdollars were spent on labour that is too low to live in this city. Lets work together for a wonderful caring community. remember, there are a lot of people in this city that don't make a living wage. Taxing more on these people will mean that more social services are accessed, which means more funding is needed/ It's a circle that must be stopped Please take us into account when using up the budget! We should bring down the cost of Hydro, give more income to ODSP recipients and add more Ontario housing for low income earners. Make your numbers more transparent. How can anyone make a decision with the information given to us is cherry-picked? I'd would LOVE to see where the tax dollars are collected from, and where they are allocated to. That would make this a lot easier. How about not paying $1B for a service that only caters to less than 10% of the city's population? The overhead wires are an eyesore, and a severe driving distraction. It is hard to tell which light applies to which intersection on King Street, and is a disaster waiting to happen. I would like to see a 5 year moratorium on all road works project sonthat business could get back to normal in this city Let the LRT pay for itself. FINAL - 82 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER Taxes need to be looked at on a case by case basis. Some people are already struggling to pay their bills and a tax raise (while definitely required) might break the bank for some. I'm sure the people buying those expensive condos and high end subdivision houses can pay a bit more than those of us who bought houses at $150,000 20+ years ago and haven't been able to keep up with the dramatic value increase. We can't even sell our house because we wouldn't be able to afford anything better in the city. I would love to see more discussion about things such as inclusionary zoning and participatory budgets for Kitchener. Please no more major billion dollar projects for awhile.. Property taxes are killing us... Thanks for The soapbox... Run it like a business, not a government. It’s amazing how much more efficient you guys could be financially if you did worried about generating money through projects, rather than legacies like the idiotic LRT project. Happy with what has been proposed Efficiency of process needs to be a priority where possible, you hear so much about how drawn out things can get that it takes forever to get anything done. The two main things that people think about with city government are transit and infrastructure and if you can get those right that's a major win. Keep it balanced with no tax increases. We should invest more in affordable housing and assisting those in our community who are low income, until we do we will be far from just or kind. Spend less money surrounding city Hall and extend improvements to other parts of downtown. Town hall already looks nice out front. Spend the Reno money on reducing our utilities instead I, like many others, haven't had a raise in years so anything you increase the costs on reduces what funds I have available for my family. So increasing costs as you work to "improve" services many of us struggle to afford now isn't improving anything. It's only making it more out of reach. I hope you realize that. Many politicians are too focused on not raising taxes. They need to communicate that when it comes to good services, we get what we pay for. It is very difficult for us pensioners to make ends meet. Please keep us in mind as we have been paying into the system for 40 to 50 years already. FINAL - 83 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER I think council members shouldn't be giving themselves raises until part-time employees get somethig half decent. Things like parking, which create a negative effects on our community should be funded more by users. If it cannot pay for itself, than that tells you all you need to know. Curb space should be similarly conserved and priced. Cut down on wasteful contracts and employees standing around not doing anything. debt grows regardless, so truthfully, is there a moral responsibilty to pay it back? chalk it up as a failed experiment. Just because our home values have risen doesn't make it fair to overtax us. Implement bylaws to mitigate unaffordable housing. Limit foreign ownership and Airbnb rentals. Keep increases tied to inflation and find ways to cut back on expenses. If you are going to charge residents for services/infrastructure/maintenance you should either provide it; or adjust their taxes. Stop spending money! No Councils need to begin thinking as though an increase every budget is not the natural and only way to address costs. FINAL - 84 CITY OF KITCHENER 2018 BUDGET ISSUE PAPER Email received through budget@kitchener.ca I believe that the single best thing Kitchener could do is re-prioritize transportation funds toward the human-level. This morning I biked by a senior walking on an ICE covered MUT. We were both literally concentrating all of our faculties on not falling and breaking our bodies on the precarious ice. At the same time, cars were driving by on a dry, clean, 4-lane road at 90kph (60kph zone, unenforced). Far too much money goes to widening, clearing, and building roads in this city, and far too little gets spent on making sure sidewalks, trails, and crossings are safe. I'm not asking for a "war on cars" -but a re-prioritization of funds to the default mode of transport that is available to everyone -walking. The first step should be making sure sidewalks get *at least* as much priority funding in snow-clearing as roadways. Asking residents to shovel their sidewalks is simply not working -all it takes is one or two residents per block failing to clear in order to make navigation by foot (or wheelchair/stroller/etc) extremely difficult. I understand that in many areas of transportation, the city is constrained by the goals and financial decisions of the region and various provincial agencies -but ensuring sidewalks and crossings are safe, year-round, for people 8-80 is something Kitchener can do to not only protect it's residents -but stand out as a leader among cities. FINAL - 85